Project Integration Management

Chapter 4:
Project Integration
Management
Information Technology Project Management, Eighth Edition
Information Technology Project Management, Ninth Edition. © 2019 Cengage. May not be copied, scanned, or duplicated, in whole or in part, except
for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Learning Objectives (1 of 2)
• Describe an overall framework for project integration

management as it relates to the other project management
knowledge areas and the project life cycle
• Discuss the strategic planning process and apply different project
selection methods
• Explain the importance of creating a project charter to formally
initiate projects
• Describe project management plan development, understand the
content of these plans, and describe approaches for creating
them
• Explain project execution, its relationship to project planning, the
factors related to successful results, and tools and techniques to
assist in directing and managing project work
Information Technology Project Management, Ninth Edition. © 2019 Cengage. May not be copied, scanned, or duplicated, in whole or in part, except for
use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Learning Objectives (2 of 2)
• Apply the principles of knowledge management to the various

aspects of project integration
• Describe the process of monitoring and controlling a project
• Define the integrated change control process, relate this to the
steps for planning for and managing changes on information
technology (IT) projects, and create an appropriate change
control system for a project that incorporates both
• Explain the importance of developing and following good
procedures for closing projects
• Describe how software can assist in project integration
management
• Discuss considerations for agile/adaptive environments
What is Project Integration Management? (1 of 3)
• Project managers must coordinate all of the other knowledge

areas throughout a project’s life cycle
• Many new project managers have trouble looking at the “big
picture” and want to focus on too many details (See opening
case for a real example)
• Project integration management is not the same thing as
software integration
• Main processes
• Developing the project charter
• Developing the project management plan
• Directing and managing project work
• Monitoring and controlling project work
• Performing integrated change control
• Closing the project or phase
What Went Wrong?
• Making sure people are paid is crucial to employee satisfaction

• When a payroll system project doesn’t work, it is a disaster
• Phoenix system project goal: reduce payroll processing overhead
and staffing costs
• One of the worst government-managed IT implementations ever
• Civil servants paid through the system have been underpaid, overpaid,
or not paid at all since its rollout began
Strategic Planning and Project Selection (1 of 3)
• Strategic planning involves determining long-term objectives

• Analyzing the strengths and weaknesses of an organization
• Studying opportunities and threats in the business environment
• Predicting future trends
• Projecting the need for new products and services
• SWOT analysis
• Strengths, Weaknesses, Opportunities, and Threats
• Identifying potential projects
• Start of project initiation
• Aligning IT with business strategy
• Organization must develop a strategy for using IT to define how it will
support the organization’s objectives
Best Practice
• In 2017 Fortune released their Business by Design list,

highlighting the 24 companies they believe are using technology
and globalization to find their competitive advantage
• Apple: great design and learning to ‘think different’
• Dyson: robotics and artificial intelligence research
• Samsung: budget brand
• Capital One: reinvented itself as a software company and innovation
incubator
Methods for Selecting Projects
• Potential projects must be narrowed down

• Methods for selecting projects
• Focusing on broad organizational needs
• Categorizing information technology projects
• Performing net present value or other financial analyses
• Using a weighted scoring model
• Implementing a balanced scorecard
Focusing on Broad Organizational Needs
• Projects that address broad organizational needs are much more

likely to be successful because they will be important to the
organization
• Examples: improve safety or increase morale
• Important criteria for selecting projects
• Need
• Funding
• Will
Categorizing IT Projects
• Categorizations
• Respond to a problem, opportunity, or directive
• How long it will take to do and when it is needed
• Overall priority of the project
Performing Financial Analyses
• Financial considerations are often an important consideration in

selecting projects
• Regardless of current economics
• Primary methods for determining the projected financial value of
projects
• Net present value (NPV) analysis
• Return on investment (ROI)
• Payback analysis
Net Present Value Analysis (1 of 4)
• Method of calculating the expected net monetary gain or loss

from a project by discounting all expected future cash inflows and
outflows to the present point in time
• Projects with a positive NPV should be considered if financial value is a
key criterion
• Projects with higher NPVs are preferred
• NPV calculations
• Determine estimated costs and benefits for the life of the project and the
products it produces
• Determine the discount rate
• Calculate the net present value
• Important considerations
• Some organizations refer to the investment year or years for project
costs as Year 0 and do not discount costs in Year 0
• Discount rate can vary, often based on the prime rate and other
economic considerations
• Costs can be entered as negative numbers and can be listed first (and
then benefits)
Return on Investment
• Calculated by subtracting the project costs from the benefits and

then dividing by the costs
• ROI = (total discounted benefits - total discounted costs) / discounted
costs
• The higher the ROI, the better
• Many organizations have a required rate of return
• Minimum acceptable rate of return on investment for projects
• Internal rate of return (IRR) can by calculated by finding the
discount rate that makes the NPV equal to zero
Payback Analysis (1 of 2)
• Payback period is the amount of time it will take to recoup, in the

form of net cash inflows, the total dollars invested in a project
• Determines how much time will elapse before accrued benefits overtake
accrued and continuing costs
• Payback occurs when the net cumulative discounted benefits equals the
costs
• Many organizations have requirements for the length of the payback
period of an investment
Payback Analysis (2 of 2)
Using a Weighted Scoring Model (1 of 2)
• Provides a systematic process for selecting projects based on

many criteria
• Identify criteria important to the project selection process
• Assign weights (percentages) to each criterion so they add up to 100%
• Assign scores to each criterion for each project
• Multiply the scores by the weights and get the total weighted scores
Using a Weighted Scoring Model (2 of 2)
Implementing a Balanced Scorecard
• Drs. Robert Kaplan and David Norton developed this approach to

help select and manage projects that align with business strategy
• A balanced scorecard is a strategic planning and management system
that helps organizations align business activities to strategy, improve
communications, and monitor performance against strategic goals
Developing a Project Charter (1 of 2)
• After deciding what project to work on, it is important to let the

rest of the organization know
• A project charter is a document that formally recognizes the existence of
a project and provides direction on the project’s objectives and
management
• Key project stakeholders should sign a project charter to
acknowledge agreement on the need and intent of the project
• A project charter is a key output of the initiation process
Developing a Project Charter (2 of 2)
• Inputs for developing a project charter

• Business case
• Benefits management plan
• Agreements
• Enterprise environmental factors
• Organizational process assets
Developing a Project Management Plan
• Document used to coordinate all project planning documents and

help guide a project’s execution and control
• Plans created in the other knowledge areas are subsidiary parts of the
overall project management plan
• Common elements of a project management plan
• Introduction/overview of the project
• Description of how the project is organized
• Management and technical processes used on the project
• Work to be done
• Schedule and budget information
• References to other project planning documents
Using Guidelines to Create Project Management
Plans
Major Section Section Topics

Headings
Overview Purpose, scope, and objectives; assumptions and constraints; project deliverables;
schedule and budget summary; evolution of the plan
Project External interfaces; internal structure; roles and responsibilities
Organization
Managerial Process Start-up plans (estimation, staffing, resource acquisition, and project staff training
Plan plans); work plan (work activities, schedule, resource, and budget allocation); control
plan; risk management plan; closeout plan
Technical Process Process model; methods, tools, and techniques; infrastructure plan; product
Plans acceptance plan
Supporting Process Configuration management plan; verification and validation plan; documentation
Plans plan; quality assurance plan; reviews and audits; problem resolution plan;
subcontractor management plan; process improvement plan
.
Source: IEEE Standard 1058–1998
Table 4-3 Sample contents for the IEEE software project

management plan (SPMP)
Directing and Managing Project Work
• Involves managing and performing the work described in the

project management plan
• The majority of time and money is usually spent on execution
• The application area of the project directly affects project
execution
• Products of the project are produced during the execution phase
• The project manager needs to focus on leading the project team
and managing stakeholder relationships to execute the project
management plan successfully
• Project resource management, communications management, and
stakeholder management are crucial to a project’s success
Coordinating Planning and Execution
• Project planning and execution are intertwined and inseparable

activities
• The main function of creating a project management plan is to guide
project execution
• Those who will do the work should help to plan the work
• All project personnel need to develop both planning and executing skills,
and they need experience in these areas
Providing Strong Leadership and a Supportive
Culture
• Project managers must lead by example

• Demonstrate the importance of creating and then following good project
plans and following them in project execution
• Organizational culture can help project execution
• Providing guidelines and templates
• Tracking performance based on plans
• Project managers may still need to break the rules to meet
project goals
• Senior managers must support those actions
What Went Right?
• 2015 PMI report found that only 12 percent of organizations were

considered to be high performers
• Percentage has remained unchanged
• Organizations must make major cultural changes to improve
• Make sure everyone fully understands the value of project management
• Require executive sponsors are fully engaged on projects and programs
• Align projects to the organization’s strategy
Capitalizing on Product, Business, and Application
Area Knowledge
• It is often helpful for IT project managers to have prior technical

experience
• Small projects: the project manager may be required to perform some of
the technical work or mentor team members to complete the projects
• Large projects: the project manager must understand the business and
application area of the project
Project Execution Tools and Techniques
• Project managers can use specific tools and techniques to

perform activities that are part of execution processes
• Expert judgment
• Meetings
• Project management information systems
Managing Project Knowledge
• Basic types of knowledge

• Explicit knowledge: easily explained using words, pictures, or numbers
and is easy to communicate, store, and distribute
• Tacit knowledge: difficult to express and highly personal
• Knowledge management should be done before, during, and
after projects are completed
• Often very difficult to accomplish
Advice for Young Professionals
• Many college students excel in this area based on their

experiences doing rigorous coursework
• To stand out in your job, consider volunteering to be in charge of creating
your project team’s lessons-learned register
Monitoring and Controlling Project Work
• Changes are inevitable on most projects, so it’s important to

develop and follow a process to monitor and control changes
• Monitoring project work includes collecting, measuring, and
disseminating performance information
• The project management plan provides the baseline for identifying and
controlling project changes
• A baseline is a starting point, a measurement, or an observation that is
documented so that it can be used for future comparison.
Media Snapshot
• The 2002 Olympic Winter Games and Paralympics took five

years to plan and cost more than $1.9 billion
• PMI awarded the Salt Lake Organizing Committee (SLOC) the Project of
the Year award for delivering world-class games
• Four years before, the SLOC used a Primavera software-based system
with a cascading color-coded WBS to integrate planning
• Also used an Executive Roadmap, a one-page list of the top 100 Games-wide
activities, to keep executives apprised of progress
• Activities were tied to detailed project information within each department’s
schedule
• A 90-day highlighter showed which managers were accountable for each
integrated activity
• Fraser Bullock, SLOC Chief Operating Officer and Chief, said, “We knew
when we were on and off schedule and where we had to apply additional
resources. The interrelation of the functions meant they could not run in
isolation—it was a smoothly running machine.”*
*Foti, Ross, “The Best Winter Olympics, Period,” PM Network (January 2004) 23
Performing Integrated Change Control
• Main objectives
• Influencing the factors that create changes to ensure that changes are
beneficial
• Determining that a change has occurred
• Managing actual changes as they occur
Change Control on IT Projects
• Former view: the project team should strive to do exactly what

was planned on time and within budget
• Problem: project teams could rarely meet original project goals
• Modern view: project management is a process of constant
communication and negotiation
• Solution: changes are often beneficial and the project team
should plan for them
Change Control System (1 of 3)
• Formal, documented process that describes when and how

official project documents and work may be changed
• Describes who is authorized to make changes, paperwork required for
these changes, and any automated or manual tracking systems the
project will use
• Change control board (CCB) is a formal group of people
responsible for approving or rejecting changes on a project
• Provide guidelines for preparing change requests, evaluate change
requests, and manage the implementation of approved changes
• Some CCBs only meet occasionally, so it may take too long for
changes to occur
• Some organizations have policies in place for time-sensitive changes
• Configuration management ensures that the descriptions of the

project’s products are correct and complete
• Involves identifying and controlling the functional and physical design
characteristics of products and their support documentation
• Configuration management specialists identify and document
configuration requirements, control changes, record and report changes,
and audit the products to verify conformance to requirements
View project management as a process of constant communication and negotiation.
Plan for change.
Establish a formal change control system, including a change control board (CCB) and
IT steering committee.
Use effective configuration management.
Define procedures for making timely decisions about smaller changes.
Use written and oral performance reports to help identify and manage change.
Use project management software and other software to help manage and
communicate changes.
Focus on leading the project team and meeting overall project goals and expectations.
Table 4-4 suggestions for performing integrated change control
Information Technology Project Management, Ninth Edition. © 2019 Cengage. May not be copied, scanned, or duplicated, in whole or in
part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website
for classroom use.
Global Issues
• Rapid changes in technology, such as the increased use of

mobile roaming for communications, often cause governments
around the world to take action
• Incompatible hardware, software, and networks can make
communications difficult in some regions, and a lack of competition can
cause prices to soar
• Organisation for Economic Co-operation and Development
(OECD) promotes policies that will improve the economic and
social well-being of people around the world
• In February 2012, the OECD called upon its members’ governments to
boost competition in international mobile roaming markets
• By the end of 2013, wireless broadband penetration grew to 72.4% in
the OECD area
Closing Projects or Phases
• To close a project or phase, you must finalize all activities and

transfer the completed or cancelled work to the appropriate
people
• Main inputs are the project charter, project management plan, project
documents, accepted deliverables, business documents, agreements,
procurement documentation, and organizational process assets
• Main tools and techniques are expert judgment, data analysis, and
meetings
Using Software to Assist in Project Integration
Management (1 of 2)
• Several types of software can be used to assist in project

integration management
• Documents can be created with word processing software
• Presentations are created with presentation software
• Tracking can be done with spreadsheets or databases
• Communication software can facilitate communications
• Project management software can pull everything together and show
detailed and summarized information
Using Software to Assist in Project Integration
Management (2 of 2)
Considerations for Agile/Adaptive Environments
• Iterative and agile approaches promote the engagement of team

members
• Expectations of the project manager do not change in an
adaptive environment, but control of the detailed product
planning and delivery is delegated to the team
• Project managers using any product life cycle should focus on
creating a collaborative decision-making environment and
providing opportunities for team members to develop additional
skills
Chapter Summary
• Project integration management ties together all the other areas

of project management
• Primary focus should be on project integration management
• Main processes
• Develop the project charter
• Create an assumption log
• Develop the project management plan
• Direct and manage project execution
• Manage project knowledge
• Monitor and control project work
• Perform integrated change control
• Close the project or phase

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Chapter 4:

• Describe an overall framework for project integration

• Apply the principles of knowledge management to the various

• Project managers must coordinate all of the other knowledge

• Making sure people are paid is crucial to employee satisfaction

• Strategic planning involves determining long-term objectives

• In 2017 Fortune released their Business by Design list,

• Potential projects must be narrowed down

• Projects that address broad organizational needs are much more

• Financial considerations are often an important consideration in

• Method of calculating the expected net monetary gain or loss

• Calculated by subtracting the project costs from the benefits and

• Payback period is the amount of time it will take to recoup, in the

• Provides a systematic process for selecting projects based on

• Drs. Robert Kaplan and David Norton developed this approach to

• After deciding what project to work on, it is important to let the

• Inputs for developing a project charter

• Document used to coordinate all project planning documents and

Major Section Section Topics

Table 4-3 Sample contents for the IEEE software project

• Involves managing and performing the work described in the

• Project planning and execution are intertwined and inseparable

• Project managers must lead by example

• 2015 PMI report found that only 12 percent of organizations were

• It is often helpful for IT project managers to have prior technical

• Project managers can use specific tools and techniques to

• Basic types of knowledge

• Many college students excel in this area based on their

• Changes are inevitable on most projects, so it’s important to

• The 2002 Olympic Winter Games and Paralympics took five

• Former view: the project team should strive to do exactly what

• Formal, documented process that describes when and how

• Configuration management ensures that the descriptions of the

View project management as a process of constant communication and negotiation.

Plan for change.

Define procedures for making timely decisions about smaller changes.

Table 4-4 suggestions for performing integrated change control

• Rapid changes in technology, such as the increased use of

• To close a project or phase, you must finalize all activities and

• Several types of software can be used to assist in project

• Iterative and agile approaches promote the engagement of team

• Project integration management ties together all the other areas

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