Information technology project management 2014

INFORMATION TECHNOLOGY PROJECT MANAGEMENT FOURTH EDITION INFORMATION TECHNOLOGY PROJECT MANAGEMENT FOURTH EDITION Providing Measurable Organizational Value Jack T Marchewka John Wiley & Sons, Inc VICE PRESIDENT & PUBLISHER Don Fowley EXECUTIVE EDITOR Beth Lang Golub EDITORIAL ASSISTANT Elizabeth Mills PROJECT EDITOR Rachael Leblond EXECUTIVE MARKETING MANAGER Christopher Ruel SENIOR PRODUCTION MANAGER Janis Soo ASSOCIATE PRODUCTION MANAGER Joyce Poh ASSISTANT PRODUCTION EDITOR Annabelle Ang-Bok DESIGNER Maureen Eide This book was set in 10/12 Times Roman by Laserwords Private Limited and printed and bound by Hamilton Printing The book is printed on acid free paper Founded in 1807, John Wiley & Sons, Inc has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live 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website www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, (201)748-6011, fax (201)748-6008, website http://www.wiley.com/go/permissions Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their courses during the next academic year These copies are licensed and may not be sold or transferred to a third party Upon completion of the review period, please return the evaluation copy to Wiley Return instructions and a free of charge return mailing label are available at www.wiley.com/go/returnlabel If you have chosen to adopt this textbook for use in your course, please accept this book as your complimentary desk copy Outside of the United States, please contact your local sales representative Library of Congress Cataloging-in-Publication Data Marchewka, Jack T Information technology project management : providing measurable organizational value / Jack T Marchewka –4th ed p cm Includes bibliographical references and index ISBN 978-1-118-05763-6 (pbk : acid-free paper) Project management Information technology–Management Microsoft Project Project management–Computer programs I Title HD69.P75M367 2012 004.068’4–dc23 2011041419 Printed in the United States of America 10 The fourth edition is dedicated to Beth and Alma BRIEF CONTENTS CHAPTER The Nature of Information Technology Projects CHAPTER Conceptualizing and Initializing the IT Project CHAPTER The Project Infrastructure CHAPTER The Human Side of Project Management 103 CHAPTER Defining and Managing Project and Product Scope 135 CHAPTER The Work Breakdown Structure and Project Estimation 156 CHAPTER The Project Schedule and Budget 198 CHAPTER Managing Project Risk 246 CHAPTER Project Communication, Tracking, and Reporting 280 30 76 CHAPTER 10 IT Project Quality Management 318 CHAPTER 11 Managing Organizational Change, Resistance, and Conflict 354 CHAPTER 12 Project Procurement Management and Outsourcing 380 CHAPTER 13 Leadership and Ethics 397 CHAPTER 14 Project Implementation, Closure, and Evaluation 420 APPENDIX: An Introduction to Function Point Analysis 441 INDEX 453 vii 452 APPENDIX / AN INTRODUCTION TO FUNCTION POINT ANALYSIS Step 7: Calculate the Final Adjusted Function Point Count The final adjusted function point count is readily found by multiplying the unadjusted function point (UAF) by the value added adjustment factor (VAF) FP = UAF × VAF The project team should then review the function point analysis for completeness and accuracy Errors usually are the result of forgetting or missing something; therefore, the person or small group in charge of the function point analysis should be certified and use the most current standards as published in the IFPUG Counting Practices Manual As with most things in life, function point analysis becomes easier and more meaningful with experience If a function point analysis is conducted for each application, the function point information can be integrated with other financial and nonfinancial metrics to improve estimating and understanding of the development process BIBLIOGRAPHY Albrecht, Allan J 1979 Measuring Application Development Productivity Proceedings SHARE/GUIDE IBM Applications Development Symposium, Monterey, Calif., Oct 14–17, 1979 Albrecht, A J and J E Gaffney 1983 Software Function, Source Lines of Code and Development Effort Prediction: A Software Science Validation IEEE Transactions Software Engineering, SE-9(6): 639–647 Dekker, C A 1999 Managing (the size of) your projects: A project management look at function points Crosstalk: The Journal of Defense Software Engineering, February: 24–26 Dennis, A and W B Haley 2000 Systems Analysis and Design: An Applied Approach New York: John Wiley & Sons Jones, T C 1998 Estimating Software Costs New York: McGrawHill Longstreet, David Function Point Training and Analysis Manual Longstreet Consulting Inc, Revision Dates: Feb 2001, 30 Aug 2001, March 2002 McConnell, S 1996 Rapid Development: Taming Wild Software Schedules Redmond, WA: Microsoft Press INDEX A Acceptance, 89 in organizational change, 360 testing, 342 Accommodation, 368 Accountability, mutual, 117 Actions corrective, 79 preventive, 79 Activity analysis for activity on the node, 201 for program evaluation and review technique, 204–205 Activity definition, 157, 198 Activity duration estimation, 198 Activity on the node (AON), 201–203, 205 activity analysis for, 202 Activity resource estimation, 156 Activity sequencing, 200 Actors, 143 Actual cost (AC), 289 Adaptive software development (ASD), 85 Administration, project, 89 Administrative closure, 82, 423–428 changed priorities, 424 failed, 424 final meeting and presentation, 427–428 acknowledging contributions, 428 communication, 427 getting formal signoff, 428 transferring of information system, 428 final project report, 427 normal, 423 perpetual, 424 premature, 423 project sponsor acceptance, 426–427 knowledgeable sponsors, 426 shortsighted sponsors, 426 realities in, dealing with, 424–425 bugs, 425 delivery dates, 425 documentation, 425 future jobs, 424 resources, 425 sense of panic, 426 Affiliative leadership style, 401 Agents, 361 Agile systems development, 85 Agreement, 44 Allocation, resource, 214 Alternatives, project, comparison, 56 external, 56 financial, 56, See also Financial models organizational, 56 project, 56 Ambler, Scott, Analogous estimation, 164 Analysis chart, stakeholder, 113 Analysis of risk, 257–267 Anamolies, budget, 249 Anger, in organizational change, 359 Application boundary for point analysis, 443–444 Approval of project, 57–61, 89 Areas of impact for IT projects, 46 customer, 46 financial, 46 identifying, 46–47 operational, 46 social, 46 strategic, 46 ARPANET project, Assessment of risk, 257–267 Assignable cause, in quality management, 323 Assimilation, 357 Association for computing machinery(ACM), 409 Assumptions, 15, 88–89 Assurance, quality, 319 Attributes, project interdependent tasks, 15 operating in larger environment, 15 organizational change, 15 ownership, 13 purpose, 13 resources, 14 risks and assumptions, 15 roles, 14 time frame, 13 Audit, project, 430–432 post-implementation, 431 Authoritative leadership style, 400 Authority, functional organization and, 107 Automated estimating tools, 172 Avoidance, 368 B Backfiring, 169 Balanced matrix, 110 Balanced scorecard approach, 59 customer perspective, 59–60 financial perspective, 59–60 innovation and learning perspective, 59–60 internal processes perspective, 59–60 Bargaining, in organizational change, 359 Barthelemy, J., 388 Base case alternative, 50 Baseline plan, 216 Beck, Kent, 85 Benchmarking, 442–443 453 454 INDEX Best practices, 12 Binomial probability distribution, 261 Blake, R R., 368 Boehm, Barry, 84, 320 Bottom-up estimating, 164–165 Boundary, scope, 137 Boyatzis, R., 403 Brainstorming, 256 Breadth, 122 Breakeven, 53 Bridge building, 44 Brooks, Frederick, 171 Brooks’ Law, 166 Budget, project, 88, 210–215 baseline plan, 93–94 budget at completion (BAC), 288 contingency reserves, 214 cost estimation, 210–212 cost of task, 211 developing, 210–215 finalizing, 215–216 indirect costs, 213 learning curve, 213 reserves, 214 resource allocation, 214–215 sunk costs, 213 Budgeted cost of work performed (BCWP), 341 Bugs, 339–340n1, 425 Burn down chart, 294–295 Business and technology integration (BTO), 65 Business case, 42–57 alternatives, analyzing (Step 7), 52 financial models, 52–57 alternatives, identifying (Step 3), 50 business case template, 58 alternatives, 58 analysis of alternatives, 58 cover page, 58 executive summary, 58 introduction, 58 core team, selection (Step1), 43 access to real costs, 44 agreement, 44 alignment with organizational goals, 43 bridge building, 44 credibility, 43 ownership, 44 feasibility and risk assessment (Step 4), 50 measurable organizational value (MOV), defining (Step 2), 44, See also Measurable organizational value (MOV) recommendation, proposing and supporting (Step 8), 57 total benefits of ownership (TBO), defining (Step 6), 52 total cost of ownership (TCO), defining (Step 5), 51 direct or up-front costs, 52 indirect costs, 52 ongoing costs, 52 Business knowledge, 179 Business process outsourcing, 387 Business reviews, 341 Business skills, of teams, 115 Business/organization skills, 115 Business-to-business (B2B) application, 45–46 C Capability maturity model (CMM), 318, 320 Capability maturity model integration (CMMI), 331–337 Cash flow models, 52 breakeven, 53 net present value, 54–55 payback, 53 return on investment, 53–54 scoring, 55–56 Cause-and-effect diagrams, 257–258 Center for Project Management, 28, 86 Change management plan, 360–365 ability to change, assessing, 360–362 accommodation, 368 avoidance, 368 change agents, 361 collaboration, 368 compromise, 368 developing lessons learned, 365 developing/adapting a strategy for, 362–364 environmental-adaptive approach, 364 evaluating experience, 365 forcing, 368 implementing, 364–365 normative-reeducation approach, 363 power-coercive approach, 363 rational-empirical approach, 362 readiness, assessing, 360–362 sponsor, 360 targets, 361 willingness, assessing, 360–362 Change management, 356–360 assimilation, 357 Leavitt’s model of organizational change, 358 nature of change, 356–360 acceptance, 360 anger, 359 bargaining, 359 change can be emotional, 359–360 change is a process, 358–359 denial, 359 depression, 360 impact of change, 356–358 CHAOS study 1994, 5–6 2010 CHOAS manifesto, agile process, clear business objectives, emotional maturity, execution, executive support, optimization, project management expertise, skilled resources, tools and infrastructure, user involvement, Charter, See Project charter Checklists, 256 Chief executive officer (CEO), INDEX Chief financial officer (CFO), proposals and, 61 Chief information officer (CIO), Closing project, 33, 420–440, See also Administrative closure Coaching leadership style, 401 COCOMO, See COnstructive COst MOdel (COCOMO) Codes of ethics and professional practices, 409–410 Coercive leadership style, 400 Collaboration, 295, 368 Collect requirements, 135 Common causes, 323 Communications, See Project communications Competition, in information technology projects, 12 Competitive forces model, 45 Complex processing, 449–450 Compromise, 368 Computer aided software engineering (CASE) tools, 41 Computing Technology Industry Association (CompTIA), Conceptualizing IT project, 30–75 Confidence, ethics and, 407 Configuration management, 342–343 Conflict, 366–368 conflicts of interest, ethics and, 406–407 contemporary view, 366 dealing with, 365–368 interactionist view, 367 management, 366 traditional view, 366 Conner, Daryl, 357 COnstructive COst MOdel (COCOMO), 156, 169–172 automated estimating tools, 172 heuristics, 171 project types, 170 embedded, 170–171 organic, 170–171 semi-detached, 170–171 Contemporary view of conflict, 366–367 Context level data flow diagram (DFD), 142 Context of project management, 13–15 Contingency plans, 269 Contingency reserves, 214, 269 Continuous probability distributions, 261 Contract closure, 82 Contracts, 383 administration of, 385 closure, 385 cost-reimbursable, 384–385 fixed-price, 384 lump-sum, 384 time and materials, 385 Contracts between sellers and buyers, 383–385 Control charts, for quality management, 323–324 assignable cause, 323 common causes, 323 for process not in statistical control, 324 for process within statistical control, 323 statistical control, 323 Control of project, 282–283, 343–344 mechanisms, 86 project quality management, 323–324 quality, 326–328 risk, 248 scope, 136 statistical, 323 Core team, selection, 43 Corporate resources, ethics and, 407 Corrective actions, 79 Cost estimation, 210–212 Cost management, 18 Cost of task, 211 Cost performance index (CPI), 290 Cost-plus-fee (CPF), 384 Cost-plus-fixed-fee (CPFF), 384 Cost-plus-incentive-fee (CPIF), 384–385 Cost-plus-percentage of cost (CPPC), 384 Cost-reimbursable contracts, 384 Cost variance (CV), 290 455 Counting Practices Manual,441, 452 Crash, project, 203 Create Work Breadown Structure (WBS), 136 Credibility project managers and, 243 team selection and, 43 Crisis management, 247 Critical Chain, 206 Critical chain project management (CCPM), 206–208 Critical path analysis, 203 Critical path method (CPM), 204 Cross-functional teams, 367 Cruxes, 158 Culture, 405 of project environment, 123 of project management, 103 Cumulative probability distribution, 266–267 Currency exchange, in international projects, 411 Customer relationship management (CRM), 3, 10, 35 Customer satisfaction, 338 Cutoff rate, 55 D Dashboard metric, 287 Data centers, 381 Data communications, 446–447 Data element types (DET), 444 Data flow diagram (DFD), 142 context level, 142 Data functions, determining, 444 Data processing (DP), Database administrator (DBA), 215 Davidson, J., 362 Death march project, 163 DeCarlo, Doug, 15 Decision-making, ethical, 40–51 Decision trees, 259 Defect, 330 prevention, 336 repair, 79 Defects per opportunities (DPO), 330 Defining project and product scope, 135–155 456 INDEX Definition, scope, 92, 139–140 Degrees of influence (DI), 169 Deliverable, 31, 92 milestones and, 92, 155–56 project-oriented, 139 scope and, 139 Deliverable definition table (DDT), 139–140, 157 Deliverable structure chart (DSC), 141, 157, 159 Delivery dates, meeting, 425 Delphi technique, 162, 256 Deming Prize, 320 Deming, W Edwards, 324–325 Democratic leadership style, 401 Denial, in organizational change, 359 Depression, in organizational change, 360 Depth, 122 Description, project, 87 Diagrams, 326–328 Ishikawa diagram, 327 Digital convergence, Digital equipment corporation (DEC), 386 Dilemmas, ethical, 406–407 Direct costs, 212 Direct cutover approach to implementation, 421–422 Direct or up-front costs, 52 Discount rate, 55 Discrete probability distributions, 261 Distribution binomial probability, 261 cumulative probability, 266–267 information, 295–296 normal, 261 PERT, 261, 263 probability, 261–262 triangular, 261, 263–264 Diversity defined, 412 understanding and managing, 412–413 wheel, 412 D-M-A-I-C cycle, 331 analyze, 331 control, 331 define, 331 improve, 331 measure, 331 Documentation, in administrative closure, 82, 428 Duck, Jeanie, 357 Duplication, of effort, 109 Dynamic systems development method (DSDM), 85 E Earned value (EV), 287, 289 Economic feasibility, 50 Economic value added (EVA) measurement tool, 60 Effectiveness, 12 Efficiency, in information technology projects, 12 Electronic commerce (EC), 33 Electronic data interchange (EDI) application, 52 Electronic data processing (EDP) era, 1–2 Electronic mail, for information distribution, 295 Embedded project, 170–171 Emotional intelligence, 402–403 self-awareness, 402 self-management, 402 social awareness, 402 social skills, 403 Emotions in organizational change, 359–360 End user efficiency, 448 End user license agreement (EULA), 322 Enterprise resource planning (ERP), 3, 35 Entity-Relationship Diagram (ERD), 167 Environment, project, 15, 123 culture, 123 office supplies, 123 place to call home, 123 technology, 123 Environmental-adaptive approach, 364 Estimate at completion(EAC), 291 Estimation, See also Project estimation estimate at completion (EAC), 291 Estimating Software Costs, 172 Ethical leadership, 405–406 Ethically neutral leadership, 406 Ethics in projects, 404–410 codes of ethics and professional practices, 409–410 common ethical dilemmas, 406–407 confidence, 407 conflicts of interest, 406 corporate resources, 407 human resource situations, 406 culture, 405 ethical decisions, making, 407–409 check your gut, 409 consider your character and integrity, 408 define the ethical issue, 408 gather the facts, 407 identify the affected stakeholders, 408 identify the consequences, 408 identify the obligations, 408 think creatively about potential actions, 408 ethics versus legality, 404 Evaluating project, 33 Evaluation, project, 428–432 individual performance review, 429 postmortem review, 429–430 project audit, 430–431 success of project, 431–432 Executing project plan, 32–33 Execution management of project, 81 of project management process groups, 81–82 Expectations, for information technology projects, 12 Expected monetary value (EMV), 271 Expected time complete (ETC), 291 INDEX Expected value, 258–259 of payoff table, 258 Expedite, 203 Expediting, project, 203 External input (EI), 168 External inquiry (EQ), 168 External interface file (EIF), 168 External output (EO), 168 External risks, 15 eXtreme programming (XP), 85 eXtreme project management (XPM), 15–17 definition, 15–16 F Face-to-face meetings, 295 Fact-based management, 339 Failed closure, 424 Fast tracking, 31, 204 Feasibility, 50 economic, 50 organizational, 51 technical, 50 File types referenced (FTR), 445 Final project report, 427 Financial models, 52 breakeven, 53 net present value (NPV), 54–55 payback, 53 return on investment (ROI), 53–54 Finish-to-finish (FF), 205–206 Finish-to-start (FS), 205–206 Fire fighting, 247 Fishbone diagram, 326 Fixed-price contracts, 384 Flawed estimates, in budget, 248 Flexibility, in organizations, 106 Float, 203 Flow charts, 326–328 Focus, improving, 443 Food, international projects and, 412 Forcing, 368 Forecast reporting, 293 Formal organization, 105–111 Forrester Research, Inc., 70 Frame, J Davidson, 424 Friedman, Thomas L., Full-insourcing approach, 387 Full-outsourcing approach, 387 Function points, 166–169 analysis, 156 application boundary for, 167 external input (EI), 168 external inquiry (EQ), 168 external interface file (EIF), 168 external output (EO), 168 internal logical file (ILF), 167 Functional matrix, 105, 110 Functional organization, 105–108 advantages, 106–107 breadth and depth of knowledge and experience, 106 increased flexibility, 106 less duplication, 106 poor integration, 108 poor response time, 108 Functional organizational structure, 104 G Gantt charts, 200–201, See also Project network diagrams for planning, 200 reporting project’s progress, 201 General Systems Characteristics (GSC), 168 Generic management system standards, 329 Glass, Robert, Global positioning system (GPS) technology, 16 Global technology solutions (GTS), 20, 64, 96, 127–128, 150, 176–177, 217–218, 273–274, 298–299, 348–349, 371–372, 391–392, 415, 434–435 Globalization, Goals, project, 32 Goldratt, Eliyahu, 206 Goleman, Daniel, 400, 403 Governance communication and, 73 monitoring projects and, 61 457 priorities and, 43, 57 project management office and, 69 strategic value identification, 51 Gray, C F., 423, 431 Groups project management process, 81–82 work, 104, 115–116 Guesstimating, 162 Guide to the Project Management Body of Knowledge (PMBOK Guide),13, 17, 135, 336 H Haugan, Gregory T., 157, 161 Help desk/technical support, 35 Heuristics, 156, 171 Human resource management, 18, 103 Human side of project management, 103–134 formal organization, 105–111, See also Functional organization hybrid organizations, 110 matrix organization, 109 project organization, 108 informal organization, 111–113, See also individual entry organization, 104–113 project planning, 104–113 project team, 113–123, See also individual entry Hurdle rate, 55 Husky Air Assignment, Pilot Angels, 21–22, 64–66, 97, 128–129, 150–151, 177, 274–275, 299–300, 372–373, 416, 435 Hybrid organizations, 110 Hypocritical leadership, 405 I Identification, project, 87 If Japan Can, Why Can’t We documentary, 325 458 INDEX Implementation of project, 421–423 direct cutover approach, 421–422 parallel approach, 422–423 phased approach, 422 Improvement, quality, 326 Indirect costs, 52, 213 Individual performance review in project evaluation, 429 Informal organization, 111–113 stakeholder analysis, 112 chart, 113 stakeholders, 112 Information distribution, 295–296 collaboration technology, 295 electronic mail, 295 face-to-face meetings, 295 telephone in, 295 wireless devices, 295 Information technology project management (ITPM), See under Project management Infrastructure, 41, 76–102 organizational, 41 project, 41 technical, 41 Initializing IT project, 30–75 Initiating sponsor, 360 Inspections, 340 Installation ease, 450 Integrated product development capability maturity model (IPD-CMM), 332 Integrated software management, 335 Integration defined, 17 functional organization and, 105 high level of, 109, 111 management, 17 testing, 342 Interactionist view of conflict, 367 Interdependent tasks, 15 Intergroup coordination, 335 Internal logical file (ILF), 167 Internal risks, 15 International association of outsourcing professional (IAOP), 388 International Function Point Users Group (IFPUG), 167 International Organization for Standardization (ISO), 328–330 International projects, challenges of, 410–412 attitude toward work and time, 411 currency exchange, 411 food, 412 language, 411 number of locations, 410 political instability, 411 regulations and laws, 411 religion, 411 Interpersonal skills, 115 Interviewing, 256 Intranets, 12 Ishikawa diagram, 257, 326 Ishikawa, Kaoru, 326 Isolation, project, 109 Iterative systems development, 84 agile systems development, 85 prototyping, 84 rapid applications development (RAD), 84 spiral development, 84 J Joint application development (JAD), 143 Jones, T Capers, 162, 172, 247 Juran, Joseph, 326 K Kan, S H., 339 Katzenbach, Jon R., 115–117, 124 Kick-off meeting, 94 Kill points, 31 Knowledge management, 118–123 learning cycles and lessons learned, 119–123 project environment, 123 for project success, 12 project teams and, 118–123 Knowledge Plan, 172 Knowledgeable sponsors, 426 Known risks, 253 Known-unknown risks, 253 Kotter, John, 398 Kouzes, J., 398399 Kăubler-Ross, Elizabeth, 359 Kumari, R., 412 L Lag time, 206 Language, international projects and, 411–412 Larson, E W., 423, 431 Lead time, 206 Leadership, 398–403 emotional intelligence, 402–403 ethical leadership, 405–406 ethically neutral leadership, 406 hypocritical leadership, 405 modern approaches to, 399–400 challenge the process, 399 enable others to act, 400 encourage the heart, 400 inspire a shared vision, 399 model the way, 399 styles, 400–402 affiliative style, 401 authoritative style, 400 coaching style, 401 coercive style, 400 democratic style, 401 pacesetting style, 401 unethical leadership, 405 Learning curve, 213 Learning cycle theory, 119 Learning cycles, 119–123, 255 phases, 119 act, 121 plan, 120–121 reflect and learn, 121 understand and frame the problem, 119 Leavitt’s model of organizational change, 358 Legality, ethics versus,349 Lessons learned, 12 Lewin, Kurt, 358 Lewis, W E., 342 Lines of Code (LOC), 156, 165 Listening, leadership and, 403 INDEX Low-quality software, acceptance of, 322 Lump-sum contracts, 384 M Malcolm Baldridge National Quality Award, 320 Management information systems (MIS) Management plan, 79 quality, 89 scope, 89, 136 Management reserves, 269 Management reviews, 341 Managers project, 78, 109 study of, Managing at the Speed of Change, 357 Managing project and product scope, 135–155 Managing project risk, 246–279, See also Project management analysis and assessment, 257–267 Monte Carlo simulation, 264–267 qualitative approaches, 258–260, See also inidividual entry quantitative approaches, 261–264, See also inidividual entry identifying risks, 252–257 applying framework, 254–255 brainstorming, 256 cause-and-effect diagrams, 257–258 checklists, 256 Delphi technique, 256 framework, 252–254 interviewing, 256 known risks, 253 known-unknown risks, 253 learning cycles, 255 nominal group technique (NGT), 256 past projects, 257 SWOT analysis, 257 unknown-unknown risks, 253 mistakes in, 247 planning process, 248–252 risk assessment, 251 risk evaluation, 252 risk identification, 250 risk monitoring and control, 251 risk response, 251 risk strategies, 251 PMBOK R Guide defining, 248 requirement, 247–248 commitment by all stakeholders, 247 different risks for different types of projects, 248 identify risks, 248 monitor and control risks, 248 perform qualitative risk analysis, 248 perform quantitative risk analysis, 248 plan risk management, 248 plan risk responses, 248 stakeholder responsibility, 247 risk monitoring and control, 270 risk audits, 270 risk reviews, 270 risk status meetings and reports, 270 risk response and evaluation, 270–271 risk strategies, 268–269 Mantel, Jr., S J., 424 Martial Arts Academy (MAA)—School Management System, 22–25, 66–68, 97–98, 129–130, 151–152, 178, 241, 275, 300–301, 349, 373–374, 392, 416, 436 Matrix balanced, 110 functional, 110 project, 111 Matrix organization, 109 advantages, 111 balanced matrix, 110 459 disadvantages, 111 functional matrix, 110 project matrix, 111 structure, 104 McKee, A., 403 Measurable organizational value (MOV), 44, 87, 91 appropriate metric, developing, 47 desired area of impact, identifying, 46 desired value of the IT project, identifying, 47 documenting, 85 project stakeholders, verifying and getting agreement from, 49 time frame for achieving, setting, 48–49 Meetings face-to-face, 122, 295 final, 427–428 Mentoring, communication and, 296 Meredith, J R., 424 Methodology, 11, 35 Metrics, 165–169, 285–292, See also Project metrics quality, 339–340 process category, 340–341 product category, 340–341 project category, 340–341 Meyer, C., 286 Microsoft project tutorial baseline project plan, 307–309 changing dates, 311–313 effort-driven tasks, 225 linking/unlinking tasks, 229 precedence diagramming, 233 project start dates, 221–222 project summary report, printing, 239–241 reporting, 304–317 standard reports, creating, 313–317 tracking, 304–317 updating the project’s progress, 309–311 460 INDEX Microsoft project tutorial (continued) work breakdown structure (WBS), creating, 181–196, 219–220 adding resources, 191–193 assigning resources to tasks, 193–195 editing tasks, 185–186 entering durations (estimates), 189–190 exit MS project, 196 navigating the menus and icons, 182 printing, 195–196 project outline, 183–185 project work area, 183 saving project, 187 starting microsoft project, 181–182 Milestones, 92, 158–159 Minor variances, in budget, 249 Monitoring the project, 282–283, 343–344 Monte Carlo simulation, 264–267 MONY Group, 65 Moody’s Investor Service, 367 Mouton., J S., 368 Mulcahy, Rita, 77 Multicultural projects, 410–413 diversity, understanding and managing, 412–413 international projects, challenges of, 410–412, See also individual entry N Nature of IT projects, 1–29 around 1995, early 1970s, in late 1960s, mid-1980s, Nelson, K A., 407 Net cash flows, 53, 55 Net present value (NPV), 54–55 Nolan, Richard, 2, Nominal group technique (NGT), 256 Normal closure, 423 Normal distribution, 261 Normative-reeducation approach, 363 O Objectives, project, 34, 41 Offshoring, 387 On Death and Dying, 358 Ongoing costs, 52 Online data entry, 448 Online update, 449 Operational ease, 450 Organic project, 170–171 Organization, 104–113 process definition, 335 process focus, 335 project, 108 advantages, 109 disadvantages, 109 pure project organization, 108 Organizational change, 15 managing, 354–379, See also Change management Organizational feasibility, 51 Organizational goals, 43 Organizational infrastructure, 41 Organizational skills of managers, 113 of team, 113 Organizational structure functional, 105–108 matrix, 109–111 project, 108–109 selection of, 104 Organizational technology, Out of the Crisis (Deming), 325 Outsourcing, 386–389 beginning of, 386–387 business process outsourcing, 387 full-insourcing approach, 387 full-outsourcing approach, 387 managing outsourcing relationship, 388–389 activities that should not be outsourced, 388 failing to plan an exit strategy, 389 losing control over the outsourced activity, 389 overlooking personnel issues, 389 overlooking the hidden costs of outsourcing, 389 selecting the wrong vendor, 389 writing a poor contract, 389 offshoring, 387 realities of outsourcing, 387–388 selective outsourcing, 387 types of outsourcing relationships, 387 Ownership, 44 P Pacesetting leadership style, 401 Parallel approach to implementation, 422–423 Pareto charts, 326–328 Pareto, Alfred, 327 Past projects, 257 Paulk, Mark C., 336 Payback, 53 Payoff table, 258 Peer reviews, 335 People skills, project managers and, 117 Percent complete, 309 100 Percent rule, 161 Performance index cost, 290 schedule, 290 reporting, 292–295 team, 115–118 real teams, 116–118 work groups, 115–116 Permanent variances, in budget, 249 Perpetual closure, 424 Personal computer (PC), Personal digital assistant (PDA), 150, 299 PERT See Program evaluation and review technique (PERT) Phase exits, 31 Phased approach to implementation, 422 Phases, 92 INDEX Philosophies quality, 321–323 scientific management, 321–323 Plan procurements, 382–383 Planned budget, 288 Planned value (PV), 288 Planning, project, 32, 104–113, See also under Project communications; Project planning framework Polaris missile project, Political instability, international projects and, 278 Politics, project estimation and, 173 Portfolio, project, 57 Posner, B., 398–399 Post-implementation audit, 431 Postmortem review, 429–430 Power-coercive approach, 363 Precedence diagramming method (PDM), 200, 205 finish-to-finish (FF), 205–206 finish-to-start (FS), 205–206 start-to-finish (SF), 205–206 start-to-start (SS), 205–206 Predecessors, 201 Premature closure, 423 Presentation, of project, 427–428 Preventive actions, 79 Probability distributions binomial, 261 continuous, 261–263 discrete, 261 Process, 40, 80, 319 change as, 358–359 closing, 41 controlling, 41 defined, 80, 319 executing, 41 initiating, 41 metrics and, 340 planning, 41 product-oriented, 40, 80, 82 project, 80 management, 40, 80–81 procurement, 381–382 quality management and, 264 risk management, 248 scope management, 135–136 tools for, 41 Process change management, 336 Processing Complexity Adjustment (PCA), 168 Procurements, See also Project procurement management administering, 382, 385 closing, 382, 385–386 conducting, 382–383 management, 19 Procurement-type contracts, 384 cost-plus-fee (CPF), 384 cost-plus-fixed-fee (CPFF), 384 cost-plus-incentive-fee (CPIF), 384–385 cost-plus-percentage of cost (CPPC), 384 cost-reimbursable contracts, 384 fixed-price or lump-sum contracts, 384 time and materials (T&M) contracts, 385 Product scope, 142 Product-oriented processes, 40, 80, 82–85 implementing SDLC, 83–85 Product-oriented scope definition tools, 142 Professional practices, codes of, 409–410 Program evaluation and review technique (PERT), 204, 261, 263 Programming/application development, Progress reporting, 293 Progressive elaboration, 15 Project definition, 13–15 attributes of a project, 13 ownership, 13 purpose, 13 resources, 14 scope, 14 time frame, 13 triple constraint, 14 Project charter, 38, 85–90 areas that go into, 87–90 461 acceptance, 89 approval, 89 assumptions and risks, 88–89 measurable organizational value (MOV), 87 project administration, 89 project budget, 88 project description, 87 project identification, 87 project schedule, 88 project scope, 87 project stakeholders, 87 quality standards, 88 references, 89 resources, 88 terminology, 90 defining project infrastructure, 85 defining roles and responsibilities, 86 documenting project’s MOV, 85 setting out project control mechanisms, 86 showing explicit commitment to the project, 86 summarizing details of project plan, 86 Project communications, 280–317 communications, planning, 281 information distribution, 281 management, 18 performance, reporting, 281 plan, 283–285 information requirements, 284 medium or format, 285 stakeholders, 283 timings/availabilities, 285 type of report or metric, 285 stakeholder expectations, managing, 281 stakeholders, identifying, 281 Project cost management, 199 Project environment, 41, 89, 123 culture, 123 location, 123 office supplies, 123 technology, 123 462 INDEX Project estimation, 162–165 analogous estimation, 164 best way to, 172–173 bottom-up estimating, 164–165 Delphi technique, 162 guesstimating, 162 time boxing, 163 top-down estimating, 163–164 Project infrastructure, 41 Project integration management, 77–80 PMBOK Guide R , 79–80 close project or phase, 80 integrated change control, performing, 79 project charter, developing, 79 project execution, directing and managing, 79 project management plan, developing, 79 project work, monitoring and controlling, 79 Project life cycle (PLC), 31–35 characteristics, 31 closing project, 33 development, 31–35 evaluating project, 33 executing plan, 32–33 goal, defining, 32–33 planning, 32 and SDLC, 35–36 Project management, 35–42, See also Managing project risk; Nature of IT projects close project (Phase 4), 39 conceptualize and initialize (Phase 1), 37–38 context of, 13–15 interdependent tasks, 15 operating in an environment larger than the project itself, 15 organizational change, 15 risks and assumptions, 15 definition, 13 develop the project charter and detailed project plan (Phase 2), 38–39 evaluate project success (Phase 5), 40 between project manager and individual project team members, 40 final project review, 40 execute and control the project (Phase 3), 39 failures, reason for, 8–9 foundation, 40–42 closing processes, 41 controlling processes, 41 executing processes, 41 infrastructure, 41 initiating processes, 41 planning processes, 41 project management knowledge areas, 41 project management process group, 40 project objectives, 41 tools, 41 groups, 81–82 closing, 82 executing, 82 initiating, 81 monitoring and controlling, 82 planning, 81 knowledge areas, 41 likelihood of success, improving, 9–12 best practices, 12 knowledge-management approach, 12 lessons learned, 12 methodology, 11 project-management approach, 11 socio-technicalapproach, 10–11 value-driven approach, modern-day project management, processes, 80–82 project management supporting IT projects, reasons, 11 competition, 12 efficiency and effectiveness, 12 expectations, 12 resources, 11 project success criteria, money, quality, schedule, scope, staff, roles, 14 project manager or leader, 14 project sponsor, 14 subject matter expert(s) (SME), 14 technical expert(s) (TE), 14 software tools, 208–210 state of, 5–12 software crisis, Project Management Body of Knowledge (PMBOK R ) Guide, 1, 13, 17–19, 41, 135, 199, 280 knowledge areas, 17–19 communications management, 18 cost management, 18 human resource management, 18 integration management, 17 procurement management, 19 quality management, 18 risk management, 18 scope management, 17 time management, 17–18 PMBOK R Guide, 17 Project management institute (PMI), 13, 336, 409 Project manager or leader, 14, 284, See also Project estimation Project matrix, 105, 111 Project metrics, 285–292 budget at completion (BAC), 288 earned value, 287 planned value (PV), 288 team’s role adopt only a handful of measures, 287 design its own measurement system, 286 to gauge its progress, 286 tracking results and progress, 287 INDEX Project network diagrams, 201–206 activity on the node (AON), 201–203 critical path analysis, 203 precedence diagramming method (PDM), 205 program evaluation and review technique (PERT), 204 Project Ocean—the Troubled Water Billing System, 25–26 Project organizational structure, 104 Project-oriented deliverables, 139 Project-oriented scope, 139–144 Project plan, 38 Project planning framework, 91–94 kick-off meeting, 94 MOV, 91 project’s scope, defining, 91–92 change control, 92 definition, 92 planning, 92 verification, 92 schedule and budget, baseline plan, 93–94 subdividing the project into phases, 92 tasks, 92–93 resources, 92–93 sequence, 92–93 time estimates, 92–93 Project portfolio, 57 Project procurement management, 381–386 administer procurements, 382, 385 close procurements, 382, 385–386 conduct procurements, 382–383 contracts between sellers and buyers, 383–385 plan procurements, 382–383 Project quality management (PQM), 318–353, See also Quality management Project report, categories, 294 Project scope definition, 139–144, See also Scope, project project-oriented scope, 139–141 tools, 139 Project sponsor, 14 Project success, 2010 CHOAS manifesto description, 7, See also under CHAOS study Project team(s), 113–123, 284 attributes of project manager, 114 ability to communicate with people, 114 ability to create and sustain relationships, 114 ability to deal with people, 114 ability to organize, 114–115 and knowledge management, 118–123 project manager, roles of, 114–115 team performance, 115–118 team selection and acquisition, 115 business/organization skills, 115 interpersonal skills, 115 technology skills, 115 Project time management, 156–157 Prototyping, 84 Pure project organization, 108 Q Qualitative approaches for risk analysis and assessment, 258–260 decision tree, 259 expected value, 258 risk impact table, 259 Quality control, 326 fourteen points for, 325 improvement, 326 planning, 326 Quality Control Handbook (Juran), 326 Quality issues, project charter and, 85 463 Quality management, 18, 318–353 control charts, 323–324 diagrams, 326–328 flow charts, 326–328 Ishikawa diagram, 327 Pareto charts, 326–328 PMBOK R definition, 319 perform quality assurance, 319 perform quality control, 319 plan quality, 319 quality control, 326 quality improvement, 326 quality planning, 326 quality systems, 328–337, See also Software process maturity CMMI, 331–337 defects per opportunities (DPO), 330 D-M-A-I-C cycle, 331 generic management system standards, 329 International Organization for Standardization (ISO), 328–330 IPD-CMM, 332 Motorola’s martial arts terminology, 331 project scope verification, 329 registrar, 330 SECM, 332 Six Sigma (6σ ), 330–331 standards, 328 scientific management, 321–322 tools and philosophies, 321–328 total quality movement, 324–325 Quality plan, IT project, 337–345 change control and configuration management, 342–343 controlling, 343–344 monitoring, 343–344 quality philosophies and principles, 337–339 customer satisfaction, 338 464 INDEX Quality plan, IT project (continued) fact-based management, 339 improve the process to improve the product, 338 prevention, not inspection, 338 quality is everyone’s responsibility, 338 quality standards and metrics, 339–340 verification and validation, 340–342 testing approaches, 342 Quality Standards, 88 Quality tools control charts, 323–324 philosophies and, 321–328 Quantitative approaches for risk analysis and assessment, 261–264 continuous probability distributions, 261 discrete probability distributions, 261 simulations, 264 triangular distribution, 263 Quantitative Software Management (QSM), 166 R Radical Team Handbook , The, 118 Rapid applications development (RAD), 84 Rational-empirical approach, in change management, 362 Real teams, 116 Record element types (RET), 444, 445 Redding, John, 118–119 References, 89 References, project charter and, 89–90 Registrar, 330 Regulations, in international projects, 411 Reliability, 443 Religion, international projects and, 411 Reporting performance and progress, 292–295 burn down chart, 294–295 forecast reporting, 293 progress reporting, 293 reviews, 292 status reporting, 293 Request for proposal (RFP), 138, 382 Request seller responses, 382 Requirements management, 334 Reserves, 214 Resistance, 365–366 dealing with, 365–368 managing, 354–379 Resource allocation, 214–215 Resources allocation of, 215 corporate, 407 end of, 425 in information technology projects, 14 insufficient, over allocation, example of, 215 project charter and, 88 tasks, 93 Response time, in matrix organization, 111 Responsibility functional organization and, 107 quality, 124 Return on investment (ROI), 8, 53–54 Reusability, 450 Reviews, 292 types, 340 business reviews, 341 management reviews, 341 technical reviews, 340 Risks, 15, 50, 88–89, See also Managing project risk external, 15 internal, 15 management, 18 response plan, 269 Rolling wave planning, 209 Rules of thumb, 172, 262, 322 Run charts, 344 S Schedule performance index (SPI), 290 Schedule variance (SV), 290 Schedule, project, 88, 198–245 and budget, baseline plan, 93–94 developing, 199–208 finalizing, 215–216 Gantt charts, 200–201 schedule performance index (SPI), 290 schedule variance (SV), 290 Scientific management of quality, 321–322 Scope, project, 14, 87 boundary, 137–138 change control, 145–148 procedures, 146–148 scope change request form, 147 scope change request log, 148 control, benefits of, 148 creep, 145 grope, 145 leap, 146 planning, 136–139 scope management plan, 17, 136 scope management processes, 135–136, See also Project scope definition collect requirements, 135 control scope, 136 define scope, 135 definition, 135–136 verify scope, 136 work breadown structure (WBS), 136 statement, 138–139 verification, 145 Scoring models, 53, 55–56 Scoring models, 55 Selection process, IT project, 57–61 decision, 58–61, See also Balanced scorecard approach Selection, of team, 115 Selective outsourcing, 387 Self-awareness, in leadership, 402 INDEX Self-management, in leadership, 402 Sellers request responses, 382 selection of, 381 Semi-Automated Business Research Environment (SABRE), 87 Semi-detached project, 170–171 Sensitivity approach, 267 September 11, 2001 terrorist attacks, Sequence, 93 Shewhart, Walter, 323 Shortsighted sponsors, 426 Shriberg, A., 412 Shriberg, D L., 412 Sigma (σ ), quality system, 330–331 Signoff, formal, 428 Simulations, 264 Six Sigma (6σ ), quality system, 330–331 Skills business, 115 interpersonal, 115 organizational, 115 technology, 115 Skills, information technology (IT), business knowledge, help desk/technical support, 14, 35 networking and telecommunications, 52 programming/application development, project management, security, 143 Slack, 203 Smith, Douglas K., 115–117, 124 Social awareness, 402 Social skills, 403 Socialization, 405 Socio-technical approach, for project success, 10–11 Software capability maturity model for, 331–337 configuration management, 334 low-quality, acceptance of, 322 process capability, 332 process maturity, 320, 322 process performance, 322 process, 319, 332 product engineering, 335 project planning, 334 project tracking and oversight, 334 quality assurance, 334 quality management, 335 subcontract management, 334 Software crisis, Software Engineering Economics, 169 Software engineering institute (SET), 331 Software engineering, 165–169, See also Function points lines of code (LOC), 165 metrics and approaches, 165–169 Software process maturity levels of, 333 defined (Level 3), 334–335 initial (Level 1), 334 managed (Level 4), 335 optimizing (Level 5), 335 repeatable (Level 2), 334 Software tools, project management, 208–210 Source lines of code (SLOC), 441 Speed, 122 Spiral development, 84 Sponsor(s)/Client(s), 13 284, 360 acceptance of closure, 426–427 knowledgeable sponsors, 426 shortsighted sponsors, 426 initiating sponsor, 360 sustaining sponsor, 360 Stage gates, 31 Stakeholders, project, 13, 87, 112, 283 agreement from, 49 analysis, 112 chart, 113 commitment by, 247 communications plan and, 281 in informal organization, 112 managing, 281, 283 responsibility, 247 risk management and, 248 465 Standards, 328 international, 328–330 quality, 339–340 Standish Group, 11 Start-to-finish (SF), 205–206 Start-to-start (SS), 205–206 Statement of Work (SOW), 88, 138 Statement, scope, 138–139 Statistical control, 323 Status reporting, 293 Strategies, risk, 268–269 accept or ignore, 268 acceptance, 268 avoidance, 269 contingency plans, 269 contingency reserves, 269 enhancement, 268 exploitation, 268 management reserves, 269 mitigate, 269 sharing of ownership, 268 transfer, 269 Subject matter expert(s) (SME), 14 Success, in information technology projects, 9–12 project-management approach, 11–12 socio-technical approach, 10–11 value-driven approach, 9–10 Successors, 201 Sunk costs, 213 Sustaining sponsor, 360 SWOT analysis, 257 System engineering capability model (SECM), 332 Systems development life cycle (SDLC), 33–35, 82 analysis, 34 design, 34 implementing, 34, 83–85 iterative systems development, 84, See also individual entry structured approach to systems development, 83 maintenance and support, 34–35 planning, 34 466 INDEX Systems development life cycle (SDLC) (continued) and PLC, 35–36 project objectives, 34 Systems testing, 342 T Targets, 361 Task, 92–93 cost of, 199 resources, 93 sequence, 93 time, 93 Tata Consultancy Services survey, Taylor, F W., 321, 345 Team learning dimensions, 122–123 breadth, 122 depth, 122 speed, 122 Team performance, 115–118, See also Project team(s) real teams, 116 basics that define, 117 work groups, 115–116 Team selection and acquisition, 115 Technical expert(s) (TE), 14 Technical feasibility, 50 Technical infrastructure, 41 Technical reviews, 340 Technical reviews, 340–341 Technical support, 11 Techniques, for risk, 255–257 Technology change management, 336 Technology skills, 115 Telecommunications, 52 Telephone, for information distribution, 295 Terminology, 90 Terminology, project charter and, 90 Testing approaches, 342 acceptance testing, 342 integration testing, 342 systems testing, 342 unit testing, 342 Theory of Constraints, 206 Time, 93 Time and materials (T&M) contracts, 385 Time boxing, 163 Time frame, for measurable organizational value, 48 Time management, 17–18 Tools support, 41 computer aided software engineering (CASE), 41 Top-down estimating, 163–164 Tornado graph, 266 Total adjusted function points (TAFP), 169 Total benefits of ownership (TBO), 52 Total cost of ownership (TCO), 51–52 Total quality movement, 324–325 Tracking, 280–317 Traditional view of conflict, 366 Training programs, 335 Transaction rate, 448 Transactional functions, defining, 444 Trevino, L K., 407 Triangular distribution, 261 Triangular distribution, 261, 263 Triple constraint, 14 U Unadjusted function point (UAF), 168 Unethical leadership, 405 Unified modeling language (UML), 142 Union of Japanese scientists and engineers (JUSE), 325 Unit testing, 342 United Kingdom Function Point Users Group (UFPUG), 167 Unity of command, 110 Unknown-unknown risks, 253 Up-front costs, 52 Use case, 143 use case diagram (UCD), 142, 144 V Validation, 340–342 Value actual, 289 earned, 287, 289 net present, 54–55 planned, 288–289 Value Adjustment Factor (VAF), 168 Value chain, IT, 45 Value-driven approach, for project success, Verification, 340–342 scope, 136 verification and validation (V&V) activities, 320 Verma, V K., 366–367 Versions, 343 Visionary leadership, 403 W Walk-through review process, 340 Waterfall model, 83 WellPoint, 356 Whistle blower, 407 Wireless devices, for information distribution, 295 Wisdom of Teams, The, 115, 124 Work breakdown structure (WBS), 135–136, 141, 157–161 deliverables, 158–159 developing, 159–161 points to remember, 161 milestones, 158–159 work packages, 158 Work groups, 115–116 Work packages, 158 World Wide Web, 12 Written proposals, failure of, 61 Y Y2K computer-related problems, Yourdon, Ed, 163 ... understanding project management These nine areas include: (1) project integration management, (2) project scope management, (3) project time management, (4) project cost management, (5) project quality management, ... Approach 10 A Project- Management Approach 11 A Knowledge -Management Approach 12 The Context of Project Management 13 What Is a Project? 13 Extreme Project Management 15 The Project Management Body... as Information Resources Management Journal, Information Technology and People, Journal of International Technology and Information Management, Communications of the IIMA, and Information Management