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Richard Carlsson
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Engineering/ Construction
Slow, incremental Known, predictable Explicit plan Higher commonality Stable Structured, controlled Defined, measurable
Information Technology
Rapid, unplanned Many times not known Often ambiguous Low commonality High turnover rates Often chaotic Difficult test all options
Pearson Education
Pearson Education
11/19/2009
Pearson Education
What Is a Project?
A temporary sequence of related activities that must be completed to create a unique product or service Key Characteristics:
Temporary Unique Progressive Elaboration Single unique purpose
A Project Is Temporary
It must have a beginning and an end A project is done when one of the following occurs:
The projects objectives have been achieved, as agreed by the sponsor It has been determined that the projects objectives will not or cannot be achieved The need for the project no longer exists, and the project is terminated
Projects which continue but should be cancelled are referred to as Death March projects!
Richard Carlsson, Jnkping International Business School
Pearson Education
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Triple Constraint
Every project is constrained by a list of customer-requested requirements (scope), the amount of time available to produce the system in support of the requirements (time), and the limit of money available (cost) Every project is constrained differently, according to the goals of the system owner (sponsor) and the project team
Triple Constraint
Time, cost, and scope are called the triple constraint
A change in one automatically changes at least one of the others
Scope
Time
Richard Carlsson, Jnkping International Business School
Cost
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Technical Skills:
Project Management software Level of understanding of the technology being used in the project (software, hardware, network, etc.) Basic knowledge of the business Cost estimating and budgeting
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Pearson Education
Organizational Structures
Functional (traditional)
Organized around one of these characteristics: job function, end product, customer groups, a specific process, or geographic locations
needed for the project and nothing else manage human resources the team must work together, this doesnt just happen it takes a directed effort manage communications this occurs at many levels, teammates, customers, managers, vendors, and others manage schedule must keep people on schedule delivering work on time manage quality need to make sure that all work performed meets with customer expected levels of quality manage costs must keep an eye on the budget to make sure all the work can be done and not exceed the allocated budget
Project
Organized completely around projects and sometimes its mere existence is only for one particular project (the Olympic games for example)
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Pearson Education
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area
Communication channels are well established Good control over resources since they only have one boss Easier budgeting and cost control because all budgets
Drawbacks:
Project Manager holds the least amount of authority Potential underutilization of resources or misallocation of
resources
Individual exposure outside of ones department limited Focus not always on the project
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Drawbacks:
Potential underutilization of resources or misallocation of resources Economies of scale when sharing resources (people and materials)
across projects
Project myopia, see only the project we are working on May be a lack of career progression possibilities (Flat structure) Support for administrative functions more difficult
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Pearson Education
Formal project accountability and visibility More dynamic and adaptable to change Sharing of knowledge across projects is enhanced Policies and procedures can vary across projects Less stress about the project ending Drawbacks: Multiple supervisors with competing priorities Budget and cost control becomes more difficult Project Team motivation
who do I listen tomy boss who controls my salary or to the project
manager who is giving me work assignments Policies and procedures can vary across projects
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For Example:
The sales and marketing department has approached the IT department about adding a shopping cart feature to the Web site. It would allow customers to place orders online, adding and removing items until they are ready to process their order (check out). The IT department is very excited because it would be a very cool technology to work with and put on the site But, someone, ideally senior management and the project manager, needs to take a step back and ask
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Pearson Education
Organizations are Open Systems They must interact with the environment to survive Managers must: Appreciate the need to assess forces in the environment Understand the forces that significantly affect their organization Integrate these forces into the organizations goals, objectives, and operations Role of the Project Manager Every project is influenced by outside forces, these alone should not be allowed to dictate the conduct of the project Must manage the behavioral and social aspects of the project
Systems Approach
Emerged in the 1950s to describe a more analytical approach to management and problem solving Three parts include:
Systems philosophy: View things as systems, interacting components working within an environment to fulfill some purpose Systems analysis: problem-solving approach Systems management: Address business, technological, and organizational issues before making changes to systems
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Pearson Education
Pearson Education
understand the environment 2. Then conduct your systems analysis and finally 3. Perform systems management
(responsible for the management of the whole systemobjectives, environment (both internal and external), constraints, resources (both human and other), and the culture and social environment of the organization. This is what project management is all about)
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fail frequently
According to the Standish Group, the failure rate may
project failure rate with over 2/3 of projects delivered close to on-time and on-budget
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Strategic Management of IT
IT project prioritization scheme
During the evaluation of IT projects, a categorization scheme is usually used to assist managers in their decision making The Denis et al. (2004) scheme:
Absolute Must
A mandate due to security, legal, regulatory, or endof-life-cycle IT issues
Project Scope Project Time Project Cost Human Resources Quality Management Risk Management Project Communications Procurement Project Integration
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Wanted
Valuable, but with longer time periods for returns on investment (more than a 12-month period)
Nice to Have
Projects with good returns, but with lower potential business
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MoSCoW Rules
M = Must Haves S = Should Haves C = Could Haves W = Won't Haves
managers who possess technical knowledge and project management skills A project managers main responsibility is to plan and execute the project The following non-technical skills are important for successful project management:
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Figure 12.3
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Project Sponsor
Tasks to Engage Sponsor
Schedule regular meetings with the sponsor to ensure the project is on track, according to current business priorities Create a list of expectations with the sponsor to clarify the project manager role and the sponsors role Agree on how handoffs between the project manager and sponsor will occur Discuss the sponsors preferences for when and how project issues will be brought up with the sponsor Learn how the sponsor will communicate the status of the project to peers and the companys top management Determine what metrics the sponsor will use to judge the completion of the project Agree on how the sponsor will participate in the post-project review
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Richard Carlsson, Jnkping International Business School
It is critical for the project manager to have a strong relationship with the sponsor
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Project Initiation
The first step in the project life cycle is project initiation The main deliverable for this phase is the project charter
Project Charter
Project Initiation
Project Planning
Project Closing
A document that describes a projects objectives, scope, assumptions, and estimated benefits
Project Initiation Project Planning Project Closing
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Project Initiation
Many dimensions of project feasibility are likely to be assessed in this phase
Economic Does this project give a positive financial return? Operational How will the project impact the organizations operations? Technical Does the organization have the technology and expertise required? Schedule Is it possible to finish the project in the required schedule? How is the projects schedule impacted by other timelines? Legal or contractual Does the project have any legal conflicts? Political Is there support for the project from the relevant stakeholders?
Richard Carlsson, Jnkping International Business School
Project Planning
The second phase of the project life cycle is
project planning The primary deliverables for this phase of the project are the statement of work and project plan There are three major components of this phase
1. Scheduling 2. Budgeting 3. Staffing
Project Initiation
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Project Planning
Project Closing
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Project Planning
1. Scheduling
Project Planning
2. Budgeting
Approaches to estimating
Bottom-up
Based on work-breakdown Used with not enough is known about the project to create a work-breakdown
Once the work is broken into tasks, time estimates are assigned to each task based on past experience It is important to consider task dependencies when creating the master schedule with project milestones
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Project Planning
2. Budgeting
Project Planning
3. Staffing
Purposeful inaccurate estimations of the budget can have adverse effects Highballing (or budget padding)
Overestimation of project costs Projects may not be approved because of higher costs
To succeed, a project must contain the right IT skills mix of the professionals assigned to the project An effective project manager must have the ability to estimate the skill type, proficiency level, quantity, and time required for personal to complete project tasks Some staff may require training for the project
Some organizations have created Centers of Excellence where employees can learn additional skills that may be required for future projects
Lowballing
Underestimating project costs Used to gain approval of questionable projects Often lead to project failures when overbudget
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Outside contractors
Important to transfer knowledge from contractors to employees to remove dependency
Teambuilding Incentives
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Project Planning
3. Staffing
One method of obtaining skilled professionals is to utilize outside contractors
It is important for organizations to transfer knowledge from contractors to employees to remove future dependency on the contractors This can increase project risk because of uncertainty in the contractors expertise and behavior
Project Planning
Program Evaluation and Review Technique (PERT) or Critical Path Method (CPM)
Figure 12.5
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Project Planning
Gantt Chart
The third phase of the project life cycle The deliverable for this phase is the completed project Most projects exhibit the following characteristics
1.
Risk and uncertainty are highest at the start of the project 2. The ability of the project stakeholders to influence the outcome is highest at the start of the project 3. Cost and staffing levels are lower at the start of the project and higher toward the end
Project Initiation Project Planning
Project Execution and Control
Project Closing
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All projects carry risk and some IT projects (e.g., enterprise projects) involve considerable risk of failure Early warning signs of project failure
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Project Closing
Even when the project deliverables are complete, successful organizations include a final closing stage to review project success A post-project review is used to share lessonslearned during the project
Typical questions during this phase may include: What went right on this project? What went wrong on this project? What would you do differently on the next project, based on your experience with this project?
Project Initiation Project Planning
Project Execution and Control
Manager?
Project Closing
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Communication
Written Oral Nonverbal When How What
Project Meeting
Before Define purpose Who? Distribute agenda Prepare After Notes (iteration) Actions Send to all
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Formal Informal
Vertical Horizontal
During On time Take notes Stay on topic!! Visual presentation Summarize (disagreements?) Action!
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Conflict intensity
Overt effort to destroy Functional conflict Dysfunctinal conflict PERSONAL CONFLICT!!! Verbal attacks Overt questioning or challenging Minor disagreement or missunderstandings
Richard Carlsson, Jnkping International Business School
Scope of Project
Aggressive physical attacks Threats and ultimatums
What is the scope of the project? Start- and finish date? What resources are available? Is there a clear and concise Project Objective Statement (POS)? Have the major deliverables been well defined? Is there a written Is/Is Not list for each deliverable? Do the major deliverables have target completion dates?
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POS
A good project objective statement..
Is captured in maximum 25 words Uses plain language, avoiding jargon and acronyms Is clear and concise Is visionary and creates challenge/excitement
Closing project
End Report Handover!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! What have we learned?
Put a man on the moon and return him safely by December 31, 1969, at a cost of $9B.
Kick-down (f-off)
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Project Termination
Serious cost and schedule overrun Technical risks too great Customer strategy has changed Competition has make the project obsolete The purpose has changed
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