MANAGEMENT INFORMATION SYTEMS CHAPTER 11 IT PROJECT MANAGEMENT Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-1 IT PROJECT MANAGEMENT GOALS • To deliver a quality system that meets the needs of the business, on schedule, and on budget • To achieve goals, triple project constraints need to be managed: a change in one factor automatically changes at least one of the others Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-2 SOME DEFINITIONS Project: A project is a temporary endeavor undertaken to create a unique product or service It typically is a one-time initiative that can be divided into multiple tasks, which require coordination and control, with a definite beginning and ending Project Management: The application of knowledge, skills, tools, and techniques to a broad range of activities in order to meet the requirements of a particular project Program Management: A group of projects managed in a coordinated way to obtain benefits not available from managing them individually Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-3 IT PORTFOLIO MANAGEMENT • Senior business and IT leaders manage the entire IT portfolio to ensure it fits well with the organization’s strategic vision - Decisions are made about the approval and prioritization of IT projects based on financial and strategic assessments - Individual projects and programs are undertaken only after assessing their “fit” with the overall IT portfolio Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-4 STRATEGIC MANAGEMENT OF IT Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-5 PROJECT MANAGEMENT INSTITUTE (PMI) • An international organization that provides resources for and certifies project managers • Project Management Body of Knowledge (PMBOK) Guide details standard project management practices PMI Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-6 PROJECT MANAGEMENT INSTITUTE (PMI) • Nine areas of PMI competency Project Scope Project Time Project Cost Human Resources Quality Management Risk Management Project Communications Procurement Project Integration Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-7 PROJECT MANAGEMENT • New project requests are typically submitted using an organizational template Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-8 IT PROJECT PRIORITIZATION Example of a categorization scheme to help prioritize projects Source: Denis et al 2004 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-9 PROJECT MANAGEMENT ROLES • All IT projects should have a project manager and a project sponsor • Some projects also require a project champion for successful implementation • Each role can be critical to the success of a project, especially for complex projects and/or those involving a significant investment Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-10 PROJECT EXECUTION AND CONTROL • A Request for Change process needs to be followed for requesting changes to the initial requirements: Fig 11.9 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-31 PROJECT EXECUTION AND CONTROL • Managing Project Risks Risk Identification and Assessment Elicit, identify, and classify major project and process risks and determine the impact, probability, and time frame of occurrence Risk Planning Use assessment information to make decisions and actions to implement them (present and future) Risk Avoidance Avoid a specific risk when possible, by eliminating its causes (e.g., change the design, change requirements, change technologies) Risk Monitoring Develop processes for monitoring the risk indicators and detecting occurrences Change the initial assessments (impact, probability, time frame) as relevant Risk Mitigation or Acceptance Take steps to limit the probability of occurrence and limit the impact of a risk OR rd formally plan for its occurrence (such as shifting the management of a risk to a party) Risk Management, Tracking and Control Continue to track and control for deviations from the planned risk actions and reassess the risks and the effectiveness of the monitoring process Fig 11.10 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-32 PROJECT EXECUTION AND CONTROL • Managing Project Risks - Early warning signs of project failure include People- Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall related and Process-related symptoms: 11-33 PROJECT EXECUTION AND CONTROL • Managing Project Risks - The profile of the project risks changes over the phases - The risks typically decrease as the organization’s stake in the project increases Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-34 PROJECT EXECUTION AND CONTROL • Three recommended Strategies to manage Project Risks Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-35 PROJECT EXECUTION AND CONTROL • Managing Business Change Change Management: The ability to successfully introduce change to individuals and organizational units - Strong Change Management as part of the IT project is required if success of new system requires major changes within the business—work processes, new cross-unit dependencies, new skills that require training prior to implementation, etc - The objective is to include a strong change management component in the project to minimize resistance to the implementation and usage of a new system Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-36 PROJECT EXECUTION AND CONTROL Lewin/Schein Change Model Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-37 PROJECT EXECUTION AND CONTROL Kotter Change Model Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall Establish a sense of urgency Form a powerful guiding coalition Create a vision Communicate the vision Empower others to act on the vision Plan for and create short-term wins Consolidate improvements and produce still more change Institutionalize new approaches 11-38 PROJECT EXECUTION AND CONTROL • Managing Conflict - PMs typically need to manage conflicts among project team members as well as with other stakeholders - Five modes of conflict resolution (Kerzner 2006) Confronting – a collaborative, problem-solving approach where both parties try for a win-win Compromising – each party gives something up Smoothing – minimizing the differences between the parties Forcing – competing or dominant; one party goes all out to win Avoiding – removal of one party from the conflict Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-39 PROJECT CLOSING • Post-Project Reviews should be a part of the Project Closing • Review process is designed to promote open sharing of “lessons learned” during the project to avoid same problems in the future: • Typical questions as part of Project Review: - What went right on this project? - What went wrong on this project? - What would you differently on the next project, based on your experience with this project? Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-40 MANAGING COMPLEX IT PROJECTS • Three critical success factors have been identified for effective management of large, complex projects: The business vision was an integral part of the project A testing approach was used at the program level (not just at the individual application level) The projects used a phased-release approach (rather than a single-release rollout strategy) • To manage complex projects, many organizations engage consulting firms to take advantage of their expertise performing similar projects in other firms, but this affects project costs Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-41 MANAGING COMPLEX IT PROJECTS • Project Size is related to Project Complexity and Risk of Failure Characteristic of large, complex project Increased Risk of Project Failure Project requirements captured from multiple stakeholders Engaging with more stakeholders results in more discrepancies in requirements to be resolved Large project teams devoted to the project Reliance on multiple outside contractors to supplement internal people resources increases time and cost for project coordination Multi-year timetable for project completion The longer the project timeline, the greater the likelihood that key personnel will leave the organization before project completion External environment changes require revisions to a project plan The bigger the project scope, the greater the likelihood that major changes to the project plans will need to be made to accommodate unanticipated changes outside of the control of the project leader Fig 11.13 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-42 MANAGING COMPLEX IT PROJECTS • Usage of People Resources off-site & offshore also can increase Project Complexity Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall Figure 11.14 (Poria 2004) 11-43 MANAGING VIRTUAL TEAMS Virtual Teams: Project teams that are geographically dispersed and communicating through information technology • Virtual teams bring together individuals with expertise that cannot work together face-to-face • Virtual teams for IT projects can introduce additional project risks due to: - Differences in communication norms - Unfamiliarity with a different culture - Lack of trusting relationships across team members Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-44 MANAGING VIRTUAL TEAMS • Strategies for managing Virtual Teams Source: Kostner (1996) Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-45 [...]... 2011 Pearson Education, Inc publishing as Prentice Hall 11-31 PROJECT EXECUTION AND CONTROL • Managing Project Risks Risk Identification and Assessment Elicit, identify, and classify major project and process risks and determine the impact, probability, and time frame of occurrence Risk Planning Use assessment information to make decisions and actions to implement them (present and future) Risk Avoidance... Pearson Education, Inc publishing as Prentice Hall 11-32 PROJECT EXECUTION AND CONTROL • Managing Project Risks - Early warning signs of project failure include People- Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall related and Process-related symptoms: 11-33 PROJECT EXECUTION AND CONTROL • Managing Project Risks - The profile of the project risks changes over the phases - The risks... Hall 11-34 PROJECT EXECUTION AND CONTROL • Three recommended Strategies to manage Project Risks Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 11-35 PROJECT EXECUTION AND CONTROL • Managing Business Change Change Management: The ability to successfully introduce change to individuals and organizational units - Strong Change Management as part of the IT project is required if success