Software project management

INTRODUCTION TO IT SOFTWARE PROJECT MANAGEMENT: THE NATURE AND SELECTION OF PROJECTS

Chapter 1

1-1

1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s

First ElectronicComputer

EDPEra

PCEra

NetworkEra

Globalization

IT and Modern Day Project Management

1-2Copyright 2012 John Wiley & Sons, Inc.

Introduction Information Technology (IT) projects are organizational investments that require

TimeMoneyAnd other resources such as people, technology, facilities, etc.

Organizations expect some type of value in return for this investment IT Project Management is a relatively new discipline that attempts to make IT

projects more successful andcombines traditional Project Management with Software Engineering/Management Information Systems

Copyright 2012 John Wiley & Sons, Inc. 1-3

An ITPM Approach

Organizational resources are limited, so organizations must choose among competing interests to fund specific projects

This decision should be based on the value a competing project will provide to an organization


Modern Project Management

Often credited to the U.S. Navy as an outgrowth of the Polaris Missile Project in the 1950’s.

Focuses on reducing costs and product cycle time. Provides an important link between an organization’s

strategy and the deployment of that strategy.Can have a direct impact on an organization’s

bottom line and competitiveness.


Which Situation is Worse?

Successfully building and implementing a system that provides little or no value to the organization?

Or… Failing to implement an information system that could

have provided value to the organization, but was underdeveloped or poorly managed?


Why Do IT Projects Fail?

Larger projects have the lowest success rate and appear to be more risky than medium and smaller projectsTechnology, business models, and markets change

too rapidly so projects that take more than a year can be obsolete before they are completed

The CHAOS studies also provides some insight as to the factors that influence project success


The Software Crisis

The CHAOS study published in 1995 by The Standish Group found that although the U.S spent over $250 billion on IT projects, approximately…31% were cancelled before completion53% were completed but over budget, over schedule, &

did not meet original specifications○ For mid-size companies, average cost overruns were 182%, while average

schedule overruns were 202%!


Has the Current State of IT Projects Changed Since 1994? The Standish Group has continued to study IT

projects over the years. In general, IT Projects are showing higher success

rates due toBetter project management tools & processesSmaller projects Improved communication among stakeholdersMore skillful IT project managers

But there is still ample opportunity for improvement!


Figure 1.1 - Summary of the Chaos Studies from 1994 to 2008


1994

1996

1998

2000

2002

2004

2006

2008

16%

27%

26%

28%

34%

29%

35%

32%

53%

33%

46%

49%

51%

53%

46%

44%

31%

40%

28%

23%

15%

18%

19%

24%

Sucessful Challenged Failed

Rank 1994 2001 2006

2008

1 User Involvement Executive Support User Involvement User Involvement

2 Executive Management Support User Involvement Executive Management

SupportExecutive Support

3 Clear Statement of Requirements Experienced Project Manager Clear Business Objectives Clear Business Objectives

4 Proper Planning Clear Business Objectives Optimizing Scope Emotional Maturity

5 Realistic Expectations Minimized Scope Agile Process Optimizing Scope

6 Smaller Project Milestones Standard Software Infrastructure

Project Management Expertise

Agile Process

7 Competent Staff Firm Basic Requirements Financial Management Project Management Expertise

8 Ownership Formal Methodology Skilled Resources Skilled Resources

9 Clear Vision & Objectives Reliable Estimates Formal Methodology Execution

10 Hard-working, focused team Other Standard Tools and Infrastructure

Tools & Infrastructure

Table 1.1 Summary of CHAOS Study Factor Rankings for Successful ProjectsSources: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995, 2010) & http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS


Table 1.2: IT Project Success Criteria Source: Source: http://www.drdobbs.com/architecture-and-design/202800777.

Criteria Response

Schedule 61.3% said it is more important to deliver a system when it is ready to be shipped than to deliver it on time.

Scope 87.3% said that meeting the actual needs of stakeholders is more important than building the system to specification.

Money 79.6% said that providing the best return on investment (ROI) is more important than delivering a system under budget.

Quality 87.3% said that delivering high quality is more important than delivering on time and on budget.

Staff 75.8% said that having a mentally and physically healthy workplace is more important than delivering on time and on budget.


Rank Factors for Challenged Projects Factors for Failed (Impaired) Projects

1 Lack of user input Incomplete requirements

2 Incomplete requirements Lack of user involvement

3 Changing requirements & specifications Lack of resources

4 Lack of executive support Unrealistic expectations

5 Technology incompetence Lack of executive support

6 Lack of resources Changing requirements & specifications

7 Unrealistic expectations Lack of planning

8 Unclear objectives Didn’t need it any longer

9 Unrealistic time frames Lack of IT management

10 New technology Technology illiteracy

Table 1.3: Summary of Factor Rankings for Challenged and Failed (Impaired) ProjectsSource: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995)


Tata Consultancy Services 2007 Report

Included 800 senior IT managers from the UK, US, France, Germany, India, Japan, & Singapore:62% of the IT projects failed to meet their schedules49% experienced budget overruns47% experienced higher-than expected

maintenance costs41% failed to deliver the expected business value

and ROI


Continued to provide support to improve IT

Reduced IT budgets

Sought compensation from IT vendors

None

69%

43%21%

19%

13%

9%

2%

1%

Figure 1.2 - When IT projects have gone wrong, what has been the reaction from the business

managers and the Board of Directors?


Improving the likelihood of success A Value-Driven Approach

Plain & Simple: IT Projects must provide value to the organization Socio-technical Approach

It’s not just about the technology or building a better mouse trap Project Management Approach

processes and infrastructure (Methodology) resources expectations competition efficiency and effectiveness

Knowledge Management Approach lessons learned, best practices & shared knowledge


The PMBOK® Guide’s Definitions for Project and Project Management

A project is a temporary endeavor undertaken to create a unique product, service, or result.

Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.

A project manager is the person assigned by the performing organization to achieve the project objectives.


The Context of Project Management – Project Attributes

Time Frame Purpose (to provide value!) Ownership Resources (the triple constraint) Roles

Project ManagerProject SponsorSME (domain & technical)

Risk & Assumptions Interdependent Tasks

progressive elaboration – steps & increments Planned Organizational Change Operate in Environments Larger than the Project Itself


The Triple Constraint

1-19Copyright 2012 John Wiley & Sons, Inc.Figure 1.3

Extreme Project Management (XPM) A new approach & philosophy to project management that is becoming

increasingly popular Characterizes many of today’s projects that exemplify speed, uncertainty,

changing requirements, and high risks Traditional project management often takes an orderly approach while, XPM

embraces the fact that projects are often chaotic and unpredictable XPM focuses on flexibility, adaptability, and innovation Traditional and new approaches together can provide us with a better

understanding of how to improve the likelihood of project success


The Project Management Body of Knowledge (PMBOK®) The Guide to the Project Management Body of Knowledge (PMBOK® Guide)

documents 9 project management knowledge areas The PMBOK® Guide is published and maintained by the Project Management Institute

(PMI)http://www.pmi.org

PMI provides a certification in project management called the Project Management Professional (PMP) that many people today believe will be as relevant as a CPA certification

PMP certification requires that you pass a PMP certification exam to demonstrate a level of understanding about project management, as well as satisfy education & experience requirements and agree to a professional code of conduct


http://www.pmi.org/


Project Management Body of Knowledge Areas

Figure 1.8

Project Life Cycle Evaluate Project

Lessons learned to determine those things to do the same and those things to change

Evaluate team member performanceMay be audited by an outside third party

Systems Development Life Cycle (SDLC)

PlanningIdentifying and responding to a problem or opportunityIncorporates the project management and system development

processes and activitiesEnsures that the goal, scope, budget, schedule, technology, and

system development processes, methods, and tools are in place Analysis

A closer look at the problem or opportunityDocuments the specific needs and requirements for the new

system

Systems Development Life Cycle (SDLC)

DesignThe project team uses the requirements and “to be” logical models

to design the architecture to support the new information systemThis includes designing the network, hardware configuration,

databases, user interface, and application programs Implementation

The development or construction of the system, testing, and installation

Training, support, and documentation must also be in place. Maintenance and Support

The system is updated to respond to bugs, new features, or to adjust to a changing business environment.

Systems Development Life Cycle

Planning

Analysis

DesignImplementation

Maintenance & Support

An IT Project Methodology


Phases Phase 1: Conceptualize and Initialize Phase 2: Develop the Project Charter and Detailed Project

Plan defined in terms of project’s:scopeschedulebudgetquality objectives

Copyright 2012 John Wiley & Sons, Inc.2-28

Phases continued Phase 3: Execute and Control the Project using

approach such as the SDLC. Phase 4: Close Project Phase 5: Evaluate Project Success

Post mortem by project manager and team of entire project Evaluation of team members by project manager Outside evaluation of project, project leader, and team members Evaluate project’s organizational value


IT Project Management Foundation

Project Management Processes Initiating processes Planning processes Executing processes Controlling processes Closing processes

Project Objectives


IT Project Management Foundation

Tools - e.g. Microsoft Project ®, Computer Aided Software Engineering (CASE)

Infrastructure Organizational InfrastructureProject Infrastructure

○ Project Environment ○ Roles and Responsibilities of team members ○ Processes and Controls

Technical Infrastructure

Project Management Knowledge Areas

Nonnumeric Selection Methods

The “Sacred Cow”- a pet project advocated by a senior executive of the firm.

The operating/competitive necessity Comparative benefits


The Q-Sort Method


Numeric Selection Methods

Financial assessment methods• payback period• discounted cash flow• future opportunity analysis

Scoring methods• unweighted 0-1 factor method• weighted factor scoring method


Payback Period


InflowsCash Net Annual

Investment Fixed Initial

The Life Cycle of Projects

All organisms have a life cycle (i.e., they are born, grow, wane, and die) … and so do projects

Some projects follow an S-shaped curve … they start slowly, develop momentum, and then finish slowly

Other project follow a J-shaped curve … they start slowly , proceed slowly, and then finish rapidly


The Project Life Cycle

1-37Figure 1-3

Time Distribution of Project Effort

1-38Figure 1-4

Another Possible Project Life Cycle

1-39Figure 1-5

Modern Project Management

Often credited to the U.S. Navy as an outgrowth of the Polaris Missile Project in the 1950’s.

Focuses on reducing costs and product cycle time. Provides an important link between an organization’s

strategy and the deployment of that strategy.Can have a direct impact on an organization’s

bottom line and competitiveness.


Which Situation is Worse?

Successfully building and implementing a system that provides little or no value to the organization?

Or… Failing to implement an information system that could

have provided value to the organization, but was underdeveloped or poorly managed?


Uncertainties Encountered in Project Management.

Time required to complete a projectAvailability and cost of key resourcesTiming of solutions to technological problemsMacroeconomic variablesThe whims of clientsActions taken by competitors


Can Uncertainty be Eliminated?

No … uncertainty cannot be eliminated. However, if managed properly, it can be minimized


Risk Analysis

Estimate probabilities or distributions associated with key parameters

Construct a mathematical model of the situation and run a simulation ... given various scenarios

Analyze distribution of outcomes generated by model


Risk Analysis with Crystal Ball

Assumption Cells Distribution Gallery Forecast Cells


Steps in the Project Portfolio Process

Establish a project council Identify project categories and criteria Collect project data Assess resource availability Reduce the project and criteria set Prioritize the projects within categories Select the projects to be funded and those to be held in

reserve Implement the process


Categories of Projects

Derivative projects … those that are only incrementally different from existing offerings

Platform projects … major departures from existing offerings … the next generation

Breakthrough projects … involving a newer technology … possibly a “disruptive” technology

R&D projects … “blue sky” or visionary endeavors


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