Chapter 1:

Introduction to
Project Management

Understand the growing need for better project

management, especially for information technology
projects

Explain what a project is, provide examples of

information technology projects, list various
attributes of projects, and describe the triple
constraint of projects

Describe project management and discuss key

elements of the project management framework,
including project
stakeholders, the project
management knowledge areas, common tools and
techniques, and project success

Information Technology
Project Management

Learning Objectives

Discuss the relationship between project, program, and

portfolio management and the contributions they each
make to enterprise success

Understand the role of the project manager by describing

what project managers do, what skills they need, and
what the career field is like for information technology
project managers

Describe the project management profession, including its

history, the role of professional organizations like the
Project Management Institute (PMI), the importance of
certification and ethics, and the advancement of project
management software

Information Technology
Project Management

Learning Objectives (continued)

Introduction
Computer hardware, software, networks, and the use of
interdisciplinary and global work teams have radically
changed the work environment
The world as a whole spends nearly $10 trillion of its
$40.7 trillion gross product on projects of all kinds
More than 16 million people regard project management
as their profession

Information Technology
Project Management

Many organizations today have a new or renewed interest

in project management

Project Management Statistics

In the U.S. the size of the IT workforce topped 4 million

workers for the first time in 2008
In 2007 the total compensation for the average senior
project manager in U.S. dollars was $104,776 per year in
the United States, $111,412 in Australia, and $120,364 in
the United Kingdom
The number of people earning their Project Management
Professional (PMP) certification continues to increase

Information Technology
Project Management

Total global spending on technology goods, services, and

staff was projected to reach $2.4 trillion in 2008, an 8
percent increase from 2007

Motivation for Studying Information

Technology (IT) Project Management
A 1995 Standish Group study (CHAOS) found that
only 16.2% of IT projects were successful in meeting
scope, time, and cost goals; over 31% of IT projects
were canceled before completion
A PricewaterhouseCoopers study found that overall,
half of all projects fail and only 2.5% of corporations
consistently meet their targets for scope, time, and
cost goals for all types of project

Information Technology
Project Management

IT Projects have a terrible track record, as described

in the What Went Wrong?

Better control of financial, physical, and human resources

Improved customer relations
Shorter development times
Lower costs
Higher quality and increased reliability
Higher profit margins
Improved productivity
Better internal coordination
Higher worker morale

Information Technology
Project Management

Advantages of Using Formal

Project Management

What Is a Project?

Operations is work done to sustain the business

Projects end when their objectives have been reached or
the project has been terminated

Projects can be large or small and take a short or long

time to complete

Information Technology
Project Management

A project is a temporary endeavor undertaken to

create a unique product, service, or result (PMBOK
Guide, Fourth Edition, 2008, p. 5)

 A technician replaces ten laptops for a small department

A small software development team adds a new feature to
an internal software application for the finance department
A college campus upgrades its technology infrastructure to
provide wireless Internet access across the whole campus
A cross-functional task force in a company decides what
Voice-over-Internet-Protocol (VoIP) system to purchase and
how it will be implemented

Information Technology
Project Management

Examples of IT Projects

 Green IT
Unified communications
Business process modeling
Virtualization 2.0
Social software

Information Technology
Project Management

Top Strategic Technologies for 2008

(Gartner)

10

Media Snapshot: Where IT Matters

VoIP has transformed the telecommunications industry

and broadband Internet access
Global Positioning Systems (GPS) has changed the
farming industry
Digital supply chain has changed the entertainment
industrys distribution system

Information Technology
Project Management

In 2006, Baseline Magazine published Where I.T.

Matters: How 10 Technologies Transformed 10
Industries as a retort to Nicholas Carrs ideas (author
of IT Doesnt Matter)

11

Project Attributes

Has a unique purpose

Is temporary
Is developed using progressive elaboration
Requires resources, often from various areas
Should have a primary customer or sponsor
The project sponsor usually provides the direction and
funding for the project

Involves uncertainty

Information Technology
Project Management

A project:

12

Project and Program Managers

Program: group of related projects managed in a

coordinated way to obtain benefits and control not
available from managing them individually (PMBOK
Guide, Fourth Edition, 2008, p. 9)

Program managers oversee programs; often act as

bosses for project managers

Information Technology
Project Management

Project managers work with project sponsors, the

project team, and other people involved in a project to
meet project goals

13

Figure 1-1 The Triple Constraint of

Project Management
What should it
cost to complete
the project?

Successful project
management means
meeting all three
goals (scope, time,
and cost) and
satisfying the
projects sponsor!
How long should
it take to
complete the
project?

Information Technology
Project Management

What work will be

done as part of
the project?

Quality

14

What is Project Management?

Project managers strive to meet the triple constraint by

balancing project scope, time, and cost goals

Information Technology
Project Management

Project management is the application of knowledge,

skills, tools and techniques to project activities to meet
project requirements (PMBOK Guide, Fourth Edition,
2008, p. 6)

15

Figure 1-2 Project Management

Framework

Information Technology
Project Management

Stakeholder
Management

16

Project Stakeholders

The project sponsor

The project manager
The project team
Support staff
Customers
Users
Suppliers
Opponents to the project

Successful project managers must develop good

relationships with project stakeholders to understand
and meet their needs and expectations

Information Technology
Project Management

Stakeholders are the people involved in or affected by

project activities
Stakeholders include:

17

9 Project Management Knowledge

Areas

4 core knowledge areas lead to specific project objectives

(scope, time, cost, and quality)
4 facilitating knowledge areas are the means through which
the project objectives are achieved (human resources,
communication, risk, and procurement management
1 knowledge area (project integration management) affects
and is affected by all of the other knowledge areas
All knowledge areas are important!

Information Technology
Project Management

Knowledge areas describe the key competencies that

project managers must develop

18

9 Project Management
Knowledge Areas (Contd.)
Brief Description

Core
Facilitating

Scope Management

Defining & Managing all the work required to complete the

project successfully

Time Management

Estimating how long it will take to complete the work,

developing an acceptable project schedule, and ensuring
timely completion of project

Cost Management

Preparing & managing the budget for the project

Quality Management

Ensures project will satisfy the stated or implied needs for

which it was undertaken

Human Resource Management

Making effective use of the people involved with the project

Communications Management

Generating, collecting, disseminating and storing project

information

Risk Management

Identifying, analyzing and responding to risks related to the

project

Procurement Management

Acquiring or procuring goods and services for a project from

outside the performing organization

Integration Management

Overarching function that affects and is affected by all

other Knowledge Areas

Information Technology
Project Management

Knowledge Areas

19

Project Management Tools and

Techniques

Project charter, scope statement, and WBS (scope)

Gantt charts, network diagrams, critical path analysis, critical
chain scheduling (time)
Cost estimates and earned value management (cost)

Information Technology
Project Management

Project management tools and techniques assist project

managers and their teams in various aspects of project
management
Some specific ones include:

20

Project Management Tools and

Techniques
Integration Management

Tools and techniques

Project selection methods, project management methodologies, stakeholder analyses,
project charters, project management plans, project management software, change
requests, change control boards, project review meetings, lessons-learned reports

Scope Management

Scope statements, WBS, SOW, requirements analyses, scope management plans, scope
verification techniques, scope change controls

Time Management

Gantt charts, project network diagrams, critical path analysis, crashing, fast tracking,
schedule performance measurements

Cost Management

Net present value, return on investment, payback analysis, earned value management,
project portfolio management, cost estimates, cost management plans, cost baselines

Quality Management

Quality metrics, checklists, quality control charts, Pareto diagrams, fishbone diagrams,
maturity models, statistical methods

Human Resource Management

Motivation techniques, emphatic listening, responsibility assignment matrices, project

organizational charts, resource histograms, team building

Communications Management

Communication management plans, kick-off meetings, conflict management,

communications media selection, status and progress reports, virtual communications,
templates, project Web sites

Risk Management

Risk management plans, risk registers, probability/impact matrices, risk rankings

Procurement Management

Make or buy analyses, contracts, requests for proposals or quotes, source selections,
supplier evaluation matrices

Information Technology
Project Management

Knowledge Area

21

Super Tools
Software for task scheduling (such as project
management software)
Scope statements
Requirements analyses
Lessons-learned reports
Tools already extensively used that have been found to improve
project importance include:

Progress reports
Kick-off meetings
Gantt charts
Change requests

Information Technology
Project Management

Super tools (marked in bold in previous slide) are those

tools that have high use and high potential for
improving project success, such as:

22

What Went Right? Improved

Project Performance

show

The number of successful IT projects has more than

doubled, from 16 percent in 1994 to 35 percent in 2006
The number of failed projects decreased from 31 percent
in 1994 to 19 percent in 2006
The United States spent more money on IT projects in
2006 than 1994 ($346 billion and $250 billion,
respectively), but the amount of money wasted on
challenged and failed projects was down to $53 billion in
2006 compared to $140 billion in 1994

Information Technology
Project Management

The Standish Groups CHAOS studies

improvements in IT projects in the past decade:

23

"The reasons for the increase in successful projects vary.

First, the average cost of a project has been more than cut
in half. Better tools have been created to monitor and
control progress and better skilled project managers
with better management processes are being used.
The fact that there are processes is significant in itself.*

Information Technology
Project Management

Why the Improvements?

*Standish Group, "CHAOS 2001: A Recipe for Success" (2001).

24

Project Success
There are several ways to define project success:
The project met scope, time, and cost goals

The results of the project met its main objective, such as

making or saving a certain amount of money, providing a
good return on investment, or simply making the
sponsors happy

Information Technology
Project Management

The project satisfied the customer/sponsor

25

1. Executive support
2. User involvement
3. Experienced project
manager
4. Clear business objectives
5. Minimized scope
6. Standard software
infrastructure

7. Firm basic requirements

8. Formal methodology
9. Reliable estimates
10. Other criteria, such as
small milestones, proper
planning, competent
staff, and ownership

*The Standish Group, Extreme CHAOS, (2001).

Information Technology
Project Management

Table 1-2: What Helps Projects

Succeed?*

26

 Recent research findings show that companies

that excel in project delivery capability:
Use an integrated project management
toolbox (use standard/advanced PM tools,
lots of templates)
Grow project leaders, emphasizing business
and soft skills
Develop a streamlined project delivery
process
Measure project health using metrics, like
customer satisfaction or
return on
investment

Information Technology
Project Management

What the Winners Do

27

Program and Project Portfolio

Management

A program manager provides leadership and direction for

the project managers heading the projects within the
program
Examples of common programs in the IT field include
infrastructure, applications development, and user support
Apart from technical and project management skills,
program managers must also possess strong business
knowledge, leadership capabilities and communication skills

Information Technology
Project Management

A program is a group of related projects managed in a

coordinated way to obtain benefits and control not available
from managing them individually (PMBOK Guide, Fourth
Edition, 2008, p. 9)

28

Project Portfolio Management

Portfolio managers help their organizations make wise

investment decisions by helping to select and analyze
projects from a strategic perspective

Information Technology
Project Management

As part of project portfolio management,

organizations group and manage projects and
programs as a portfolio of investments that contribute
to the entire enterprises success

29

Information Technology
Project Management

Figure 1-3. Project Management Compared to

Project Portfolio Management

30

Best Practice

Make sure your projects are driven by your strategy; be able

to demonstrate how each project you undertake fits your
business strategy, and screen out unwanted projects as soon
as possible
Engage your stakeholders; ignoring stakeholders often leads
to project failure; be sure to engage stakeholders at all stages
of a project, and encourage teamwork and commitment at all
times

Information Technology
Project Management

A best practice is an optimal way recognized by

industry to achieve a stated goal or objective*
**Robert Butrick suggests that organizations need to
follow basic principles of project management, including
these two mentioned earlier in this chapter:

*Project Management Institute, Organizational Project Management Maturity Model

(OPM3) Knowledge Foundation (2003), p. 13.
** Robert Butrick, author of The Project Workout, wrote an article on best practices in
Project Management for the Ultimate Business Librarys Best Practice Book.

31

Information Technology
Project Management

Figure 1-4. Sample Project

Portfolio Approach

32

Information Technology
Project Management

Figure 1-5. Sample Project Portfolio

Management Screen Showing Project Health

33

Suggested Skills for Project

Managers
Project managers need a wide variety of skills

Be comfortable with change

Understand the organizations they work in and with

Information Technology
Project Management

They should:

Be able to lead teams to accomplish project goals

34

The Role of the Project Manager

Remember that 97% of successful projects were led by

experienced project managers, who can often help
influence success factors

Information Technology
Project Management

Job descriptions vary, but most include

responsibilities like planning, scheduling,
coordinating, and working with people to achieve
project goals

35

The Project Management Body of Knowledge

Application area knowledge, standards, and regulations
Project environment knowledge
General management knowledge and skills
Soft skills or human relations skills [effective communication,
influencing the organization to get things done, leadership,
motivation, conflict management and problem solving]
Understand important topics like: financial management,
accounting,
procurement,
sales,
marketing,
contracts,
manufacturing, distribution, logistics, supply chain, strategic
planning,
tactical
planning,
operations
management,
organizational
structures
and
behaviour,
personnel
administration, compensation, benefits, career paths, health and
safety practices etc.
IT
Project
Managers
must
have
special
product
knowledge/industry

Information Technology
Project Management

Suggested Skills for Project Managers

36

1. People skills
2. Leadership
3. Listening
4. Integrity, ethical behavior, consistent
5. Strong at building trust
6. Verbal communication
7. Strong at building teams
8. Conflict resolution, conflict management
9. Critical thinking, problem solving
10. Understands, balances priorities

Information Technology
Project Management

Table 1-3. Ten Most Important Skills and

Competencies for Project Managers

37

Different Skills Needed in Different

Situations

High uncertainty projects: risk management,

expectation management, leadership, people
skills, and planning skills were most important
Very novel projects: leadership, people skills,
having vision and goals, self confidence,
expectations management, and listening skills
were most important

Information Technology
Project Management

Large projects: leadership, relevant prior

experience, planning, people skills, verbal
communication, and team-building skills were
most important

38

Importance of Leadership
Skills
A leader focuses on long-term goals and big-picture
objectives while inspiring people to reach those goals
A manager deals with the day-to-day details of
meeting specific goals
Project managers often take on the role of both leader
and manager

Information Technology
Project Management

Effective project managers provide leadership by

example

39

Careers for IT Project

Managers

Project/Program management topped the list!

Information Technology
Project Management

In a 2006 survey by CIO.com, IT executives ranked

the skills that would be the most in demand in the
next two to five years

40

Table 1-4. Top IT Skills (partial list)

Project/program management
Business process management
Business analysis
Application development
Database management
Security
Enterprise architect
Strategist/internal consultant

PERCENTAGE
OF
RESPONDENTS
60%
55%
53%
52%
49%
42%
41%
40%

Information Technology
Project Management

SKILL

41

 The profession of project management is growing at a

very rapid pace
It is helpful to understand the history of the field, the
role of professional societies like the Project
Management Institute (PMI), and the growth in
project management software

Information Technology
Project Management

The Project Management

Profession

42

History of Project Management

Some people argue that building the Egyptian pyramids
was a project, as was building the Great Wall of China

This three-year, $2 billion (in 1946 dollars) project had a

separate project manager and a technical manager

Information Technology
Project Management

Most people consider the Manhattan Project to be the

first project to use modern project management

43

Information Technology
Project Management

Figure 1-6. Sample Gantt Chart Created with

Microsoft Project

44

Information Technology
Project Management

Figure 1-7. Sample Network

Diagram in Microsoft Project

45

 The Project Management Institute (PMI) is an

international professional society for project managers
founded in 1969
PMI has continued to attract and retain members,
reporting 394,851 members worldwide by October 31,
2012
There are specific interest groups in many areas, like
engineering, financial services, health care, IT, etc.
Project management research and certification
programs continue to grow
Students can join PMI at a reduced fee (see
www.pmi.org for details)

Information Technology
Project Management

The Project Management Institute

46

 PMI provides certification as a Project Management

Professional (PMP)
A PMP has documented sufficient project experience,
agreed to follow a code of ethics, and passed the PMP
exam
The number of people earning PMP certification is
increasing quickly. Total Active PMPs: 494,594 as @
October 31, 2012
PMI and other organizations offer additional
certification programs [CAPM, PgMP, RMP, SP, ACP]

Information Technology
Project Management

Project Management Certification

47

Figure 1-8. Growth in PMP

Certification, 1993-2008
350,000
318,289
300,000
267,367

# PMPs

221,144
200,000
175,194
150,000
102,047

100,000

76,550

Information Technology
Project Management

250,000

52,443
40,343
27,052
18,184
10,086
1,000
- 1,900 2,800 4,400 6,415

50,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Year

48

PMI Statistics (2009 2010)

New PMI Members and new PMPs

Information Technology
Project Management

Total PMI members and PMP Certifications worldwide

49

Ethics in Project Management

Ethics, loosely defined, is a set of principles that guide
our decision making based on personal values of what is
right and wrong

In order to earn PMP certification, applicants must

agree to PMIs Code of Ethics and Professional Conduct

Several questions on the PMP exam are related to

professional responsibility, including ethics

Information Technology
Project Management

Project managers often face ethical dilemmas

50

Project Management Software

Low-end tools: handle single or smaller projects well, cost
under $200 per user
Midrange tools: handle multiple projects and users, cost $200600 per user, Microsoft Project most popular
High-end tools: also called enterprise project management
software, often licensed on a per-user basis, like Microsoft
EPM, VPMi Enterprise Online (www.vcsonline.com)
See
the
Project
Management
Center
Web
site
(http://www.infogoal.com/pmc/)
or
Top
Ten
Reviews
(http://online-project-management-review.toptenreviews.com/)
for links to many companies that provide project management
software
Top Ten Reviews of Project Management Software

Information Technology
Project Management

There are hundreds of different products to assist in

performing project management
Three main categories of tools:

51

 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 program is a group of related projects managed in a
coordinated way
Project portfolio management involves organizing and
managing projects and programs as a portfolio of
investments
Project managers play a key role in helping projects and
organizations succeed
The project management profession continues to grow
and mature

Information Technology
Project Management

Chapter Summary

52