Introduction: Why Project Management? Chapter Copyright © 2010 Pearson Education, Inc Publishing 1-1 Introduction • Examples of projects – – – – Split the atom Chunnel between England and France Introduce Windows Vista Disneyland’s Expedition Everest “Projects, rather than repetitive tasks, are now the basis for most value-added in business” -Tom Peters Copyright © 2010 Pearson Education, Inc Publishing 1-2 Project vs Process Work Project • Take place outside the process world • Unique and separate from normal organization work • Continually evolving Process • Ongoing, day-to-day activities • Use existing systems, properties, and capabilities • Typically repetitive A project is a temporary endeavor undertaken to create a unique product or service PMBoK 2000 Copyright © 2010 Pearson Education, Inc Publishing 1-3 Additional Definitions • A project is a unique venture with a beginning and an end, conducted by people to meet established goals within parameters of cost, schedule and quality Buchanan & Boddy 92 • Projects are goal-oriented, involve the coordinated undertaking of interrelated activities, are of finite duration, and are all, to a degree unique Frame 95 Copyright © 2010 Pearson Education, Inc Publishing 1-4 Elements of Projects • Complex, one-time processes • Limited by budget, schedule, and resources • Developed to resolve a clear goal or set of goals Customer-focused Copyright â 2010 Pearson Education, Inc Publishing 1-5 General Project Characteristics (1/2) • Ad-hoc endeavors with a clear life cycle • Building blocks in the design and execution of organizational strategies • Responsible for the newest and most improved products, services, and organizational processes • Provide a philosophy and strategy for the management of change Copyright © 2010 Pearson Education, Inc Publishing 1-6 General Project Characteristics (2/2) • Entail crossing functional and organization boundaries • Traditional management functions of planning, organizing, motivating, directing, and controlling apply • Principal outcomes are the satisfaction of customer requirements within technical, cost, and schedule constraints • Terminated upon successful completion Copyright © 2010 Pearson Education, Inc Publishing 1-7 Process & Project Management Process (Table 1.1) Project Repeat process or product New process or product Several objectives One objective Ongoing One shot – limited life People are homogeneous More heterogeneous Systems in place to integrate Systems must be created to efforts Performance, cost, & time known integrate efforts Performance, cost & time less certain Part of the line organization Outside of line organization Bastions of established practice Violates established practice Supports status quo Upsets status quo Copyright © 2010 Pearson Education, Inc Publishing 1-8 Project Success Rates • Software & hardware projects fail at a 65% rate • Over half of all IT projects become runaways • Up to 75% of all software projects are cancelled • Only 2.5% of global businesses achieve 100% project success • Average success of business-critical application development projects is 35% Copyright © 2010 Pearson Education, Inc Publishing 1-9 Why are Projects Important? Shortened product life cycles Narrow product launch windows Increasingly complex and technical products Emergence of global markets Economic period marked by low inflation Copyright © 2010 Pearson Education, Inc Publishing 1-10 Project Life Cycles Man Hours Conceptualization Planning Execution Termination Fig 1.3 Project Life Cycle Stages Copyright © 2010 Pearson Education, Inc Publishing 1-11 Project Life Cycles • Conceptualization - the development of the initial goal and technical specifications • Planning – all detailed specifications, schedules, schematics, and plans are developed • Execution – the actual “work” of the project is performed • Termination – project is transferred to the customer, resources reassigned, project is closed out Copyright © 2010 Pearson Education, Inc Publishing 1-12 Project Life Cycles and Their Effects Client Interest Project Stake Resources Creativity Uncertainty Conceptualization Planning Execution Copyright © 2010 Pearson Education, Inc Publishing Termination Fig 1.4 1-13 Quadruple Constraint of Project Success Client Budget Acceptance Success Schedule Performance Copyright © 2010 Pearson Education, Inc Publishing 1-14 Six Criteria for IT Project Success • System quality • Information quality • Use • User satisfaction • Individual Impact Organizational impact Copyright â 2010 Pearson Education, Inc Publishing 1-15 Four Dimensions of Project Success Importance Project Efficiency Impact on Customer Business Success Project Preparing for The Future Time Completion Copyright © 2010 Pearson Education, Inc Publishing 1-16 Developing Project Management Maturity Project management maturity models – Center for business practices – Kerzner’s project management maturity model – ESI International’s project framework – SEI’s capability maturity model integration Copyright © 2010 Pearson Education, Inc Publishing 1-17 Spider Web Diagram Copyright © 2010 Pearson Education, Inc Publishing 1-18 Project Management Maturity Generic Model High Maturity Institutionalized, seeks continuous improvement Moderate Maturity Defined practices, training programs, organizational support Low Maturity Ad hoc process, no common language, little support Copyright © 2010 Pearson Education, Inc Publishing 1-19 Project Elements and Text Organization Copyright © 2010 Pearson Education, Inc Publishing 1-20 Copyright © 2010 Pearson Education, Inc Publishing 1-21 ... Copyright © 2010 Pearson Education, Inc Publishing 1-16 Developing Project Management Maturity Project management maturity models – Center for business practices – Kerzner’s project management. .. of the project is performed • Termination – project is transferred to the customer, resources reassigned, project is closed out Copyright © 2010 Pearson Education, Inc Publishing 1-12 Project. .. 2010 Pearson Education, Inc Publishing 1-8 Project Success Rates • Software & hardware projects fail at a 65% rate • Over half of all IT projects become runaways • Up to 75% of all software projects