PROJECTMANAGEME

NT

Chapter 2

The Project Management and Information

PRE 1|Page
1
PROJECTMANAGEME
NT

What Is a Systems Approach?

The term systems approach emerged in the 1950s to describe a holistic and

analytical approach to solving complex problems that includes using a systems philosophy,

systems analysis, and systems management. Systems are sets of interacting components

that work within an environment to fulfill some purpose. For example, the human body is a

system composed of many subsystems, including the nervous system, the skeletal system, the

circulatory system, and the digestive system. Organizations are also systems, with people in

various roles working together to design, develop, deliver, and sell various products and services.

A systems philosophy is an overall model for thinking about things as systems.

Systems analysis is a problem-solving approach that requires defining the scope of

the system, dividing it into components, and then identifying and evaluating its problems, opportunities,

constraints, and needs. Once this is completed, the systems analyst then examines alternative

solutions for improving the current situation; identifies an optimum, or at least satisfactory, solution

or action plan; and examines that plan against the entire system.

Systems management addresses the business, technological, and organizational issues

associated with creating, maintaining, and modifying a system.

Using a systems approach is critical to successful project management. If top management

and project managers are to understand how projects relate to the whole organization, they must

follow a systems philosophy. They must use systems analysis to address needs with a problem-

solving approach. They must use systems management to identify key issues in

business, technological, and organizational spheres related to each project in order to identify

and satisfy key stakeholders and do what is best for the entire organization.

PRE 2|Page
1
PROJECTMANAGEME
NT

The Three-Sphere Model for Systems Management

Many business and IT students understand the concepts of systems and

performing a systems analysis. At the same time, they often overlook systems

management. However, addressing the three spheres of systems management—business,

organization, and technology— can have a huge impact on selecting and managing projects

successfully.

Figure 2-1. Three Sphere Model for Systems Management

UNDERSTANDING ORGANIZATIONS

The systems approach requires that project managers always view their projects in the

context of the larger organization. Organizational issues are often the most difficult part of

working on and managing projects. In fact, many people believe that most projects fail

PRE 3|Page
1
PROJECTMANAGEME
NT
because of organizational issues like company politics. Project managers often do not

spend enough time

PRE 4|Page
1
PROJECTMANAGEME
NT

identifying all the stakeholders involved in projects, especially the people opposed to the projects.

Also, project managers often do not spend enough time considering the political context of

a project or the culture of the organization. To improve the success rate of IT projects, it is

important for project managers to develop a better understanding of people as well as

organizations.

The Four Frames of Organizations

Organizations can be viewed as having four different frames: structural, human resources, political,

and symbolic.

 The structural frame deals with how the organization is structured (usually depicted in an

organizational chart) and focuses on different groups’ roles and responsibilities to meet the

goals and policies set by top management. This frame is very rational and focuses

on coordination and control. For example, within the structural frame, a key IT issue is

whether a company should centralize the IT personnel in one department or decentralize

across several departments. You will learn more about organizational structures in

the next section.

 The human resources (HR) frame focuses on producing harmony between the needs of

the organization and the needs of people. It recognizes that mismatches can

occur between the needs of the organization and those of individuals and groups, and

works to resolve any potential problems. For example, many projects might be more efficient

for the organization if employees worked 80 or more hours a week for several months.

However, this work schedule would conflict with the personal lives and health of many

employees. Important IT issues related to the human resources frame are the shortage of

skilled IT workers within the organization and unrealistic schedules imposed on many

PRE 5|Page
1
PROJECTMANAGEME
NT
projects.

PRE 6|Page
1
PROJECTMANAGEME
NT

 The political frame addresses organizational and personal politics. Politics in organizations

take the form of competition among groups or individuals for power, resources,

and leadership. The political frame emphasizes that organizations are coalitions composed

of varied individuals and interest groups. Often, important decisions need to be made

about the allocation of scarce resources. Competition for resources makes conflict a

central issue in organizations, and power improves the ability to obtain those

resources. Project managers must pay attention to politics and power if they are to be

effective. It is important to know who opposes your projects as well as who supports

them. Important IT issues related to the political frame are the differences in power

between central functions and operating units or between functional managers and

project managers.

 The symbolic frame focuses on symbols and meanings. In this frame, the most important

aspect of any event in an organization is not what actually happened, but what it means.

Was it a good sign that the CEO came to a kick-off meeting for a project, or was it a

threat? The symbolic frame also relates to the company’s culture. How do people dress? How

many hours do they work? How do they run meetings? Many IT projects are international

and include stakeholders from various cultures. Understanding those cultures is also a

crucial part of the symbolic frame.

Figure 2-2. Perspectives on

PRE 7|Page
1
PROJECTMANAGEME
NT

Organizational Structures

Many discussions of organizations focus on their structure. Three general classifications of

organizational structures are functional, project, and matrix.

A functional organizational structure is the hierarchy most people think of when picturing

an organizational chart. Functional managers or vice presidents in specialties such as engineering,

manufacturing, IT, and human resources report to the chief executive officer (CEO). Their staffs

have specialized skills in their respective disciplines. For example, most colleges and universities

have very strong functional organizations. Only faculty members in the business department teach

business courses; faculty in the history department teach history; faculty in the art department teach

art, and so on.

A project organizational structure also is hierarchical, but instead of functional managers

or vice presidents reporting to the CEO, program managers report to the CEO. Their staffs have a

variety of skills needed to complete the projects within their programs. An organization that uses

this structure earns its revenue primarily from performing projects for other groups under

contract. For example, many defense, architectural, engineering, and consulting companies use a

project organizational structure. These companies often hire people specifically to work on

particular projects.

A matrix organizational structure represents the middle ground between functional and

project structures. Personnel often report both to a functional manager and one or more project

managers. For example, IT personnel at many companies often split their time between two or more

projects, but they report to their manager in the IT department. Project managers in

matrix organizations have staff from various functional areas working on their projects, as shown in

Figure

PRE 8|Page
1
PROJECTMANAGEME
NT
2-3. Matrix organizational structures can be strong, weak, or balanced, based on the amount of

PRE 9|Page
1
PROJECTMANAGEME
NT

control exerted by the project managers. Problems can occur if project team members are assigned

to several projects in a matrix structure and the project manager does not have adequate control

of their time.

Figure 2-3. Functional, Project, and Matrix Organizational Structures

PRE 10 | P a g e
1
PROJECTMANAGEME
NT

Organizational Culture

Organizational culture is a set of shared assumptions, values, and behaviors that

characterize the functioning of an organization. It often includes elements of all four

frames described previously. Organizational culture is very powerful, and many people

believe the underlying causes of many companies’ problems are not in the organizational

structure or staff; they are in the culture. It is also important to note that the same organization

can have different subcultures. The IT department may have a different organizational

culture than the finance department, for example. Some organizational cultures make it easier

to manage projects.

According to Stephen P. Robbins and Timothy Judge, authors of a popular textbook

on organizational behavior, there are 10 characteristics of organizational culture:

1. Member identity: The degree to which employees identify with the organization as a

whole rather than with their type of job or profession. For example, project managers or

team members might feel more dedicated to their company or project team than to their

job or profession, or they might not have any loyalty to a particular company or team. As

you can guess, an organizational culture in which employees identify more with

the whole organization are more conducive to a good project culture.

2. Group emphasis: The degree to which work activities are organized around groups

or teams, rather than individuals. An organizational culture that emphasizes group work is best

for managing projects.

3. People focus: The degree to which management’s decisions take into account the effect of

outcomes on people within the organization. A project manager might assign tasks

to certain people without considering their individual needs, or the project manager might

PRE 11 | P a g e
1
PROJECTMANAGEME
NT
know each person very well and focus on individual needs when assigning work or making

PRE 12 | P a g e
1
PROJECTMANAGEME
NT

other decisions. Good project managers often balance the needs of individuals and

the organization.

4. Unit integration: The degree to which units or departments within an organization

are encouraged to coordinate with each other. Most project managers strive for strong

unit integration to deliver a successful product, service, or result. An organizational culture

with strong unit integration makes the project manager’s job easier.

5. Control: The degree to which rules, policies, and direct supervision are used to oversee and

control employee behavior. Experienced project managers know it is often best to balance

the degree of control to get good project results.

6. Risk tolerance: The degree to which employees are encouraged to be aggressive,

innovative, and risk seeking. An organizational culture with a higher risk tolerance is often

best for project management because projects often involve new technologies, ideas, and

processes.

7. Reward criteria: The degree to which rewards, such as promotions and salary increases, are

allocated according to employee performance rather than seniority, favoritism, or other

nonperformance factors. Project managers and their teams often perform best

when rewards are based mostly on performance.

8. Conflict tolerance: The degree to which employees are encouraged to air conflicts and

criticism openly. It is very important for all project stakeholders to have good

communications, so it is best to work in an organization where people feel

comfortable discussing differences openly.

9. Means-ends orientation: The degree to which management focuses on outcomes rather

than on techniques and processes used to achieve results. An organization with a

balanced approach in this area is often best for project work.

PRE 13 | P a g e
1
PROJECTMANAGEME
NT

10. Open-systems focus: The degree to which the organization monitors and responds

to changes in the external environment. Projects are part of a larger

organizational environment, so it is best to have a strong open-systems focus.

FOCUSING ON STAKEHOLDER NEEDS

 Project managers must take time to identify, understand, and manage relationships with all

project stakeholders

 Senior executive’s/top management are very important stakeholders

The Importance of Top Management Commitment

A very important factor in helping project managers successfully lead projects is the level

of commitment and support they receive from top management. Without this commitment, many

projects will fail.

Top management commitment is crucial to project managers for the following reasons:

 Project managers need adequate resources. The best way to kill a project is to withhold

the required money, human resources, and visibility. If project managers have top

management commitment, they will also have adequate resources and not be distracted

by events that do not affect their specific projects.

 Project managers often require approval for unique project needs in a timely manner. For

example, on large IT projects, top management must understand that

unexpected problems may result from the nature of the products being developed and

the specific skills

of people on the project team. The team might need additional hardware and

software halfway through the project for proper testing, or the project manager might

need to offer special pay and benefits to attract and retain key project personnel. With

top management commitment, project managers can meet these needs.

 Project managers must have cooperation from people in other parts of the organization.

Because most IT projects cut across functional areas, top management must help project

managers deal with the political issues that often arise. If certain functional managers are

not responding to project managers’ requests for necessary information, top management

must step in to encourage the functional managers to cooperate.

 Project managers often need someone to mentor and coach them on leadership issues.

Many IT project managers come from technical positions and are inexperienced

as managers. Senior managers should take the time to give advice on how to be good leaders.

They should encourage new project managers to take classes to develop leadership skills

and allocate the time and funds for managers to do so.

PROJECT PHASES AND THE PROJECT LIFE CYCLE

Because projects operate as part of a system and involve uncertainty, it is good practice

to divide projects into several phases. General phases in traditional project management are often

called the concept, development, implementation, and close-out phases.

A project life cycle is a collection of phases. Phases break projects down into smaller,

more manageable pieces, which will reduce uncertainty.

PRE 15 | P a g e
1
PROJECTMANAGEME
NT

Project life cycles define what work will be performed in each phase, what deliverables

will be produced and when, who is involved in each phase, and how management will

control and approve work produced in each phase. A deliverable is a product or service, such as a

technical report, a training session, a piece of hardware, or a segment of software code, produced or

provided as part of a project.

🞂 In early phases of a project life cycle

◦ resource needs are usually lowest

◦ the level of uncertainty (risk) is highest

◦ project stakeholders have the greatest opportunity to influence the project

🞂 In middle phases of a project life cycle

◦ the certainty of completing a project improves

◦ more resources are needed

🞂 The final phase of a project life cycle focuses on

◦ ensuring that project requirements were met

◦ the sponsor approves completion of the project

The first two traditional project phases (concept and development) focus on planning, and

are often referred to as project feasibility. The last two phases (implementation and closeout) focus

on delivering the actual work, and are often referred to as project acquisition. Each phase of

a project should be successfully completed before the team moves on to the next phase. This

project life cycle approach provides better management control and appropriate links to the

ongoing

PRE 16 | P a g e
1
PROJECTMANAGEME
NT
operations of the organization.

PRE 17 | P a g e
1
PROJECTMANAGEME
NT

Product Life Cycles

A systems development life cycle (SDLC) is a framework for describing the phases

of developing information systems. Some popular models of an SDLC include the waterfall model,

the spiral model, the incremental build model, the prototyping model, and the Rapid

application development (RAD) model. These life cycle models are examples of a predictive life

cycle, meaning that the scope of the project can be articulated clearly and the schedule and cost

can be predicted accurately.

Predictive Life Cycle Models

 The waterfall life cycle model has well-defined, linear stages of systems analysis, design,

construction, testing, and support. This life cycle model assumes that requirements will

remain stable after they are defined. The waterfall life cycle model is used when risk must

be tightly controlled and when changes must be restricted after the requirements

are defined. The waterfall approach is used in many large-scale systems projects

where complexity and cost are so high that the more rigid steps of the approach help to

ensure careful completion of all deliverables.

 The spiral life cycle model was developed based on refinements of the waterfall model as

applied to large government software projects. It recognizes the fact that most software

is developed using an iterative or spiral approach rather than a linear approach. The

project team is open to changes and revisions later in the project life cycle, and

returns to the requirements phase to more carefully clarify and design the revisions.

This approach is suitable for projects in which changes can be incorporated with

reasonable cost increases or with acceptable time delays. Figure 2-5 illustrates the

differences between the waterfall and spiral life cycle models.

PRE 18 | P a g e
1
PROJECTMANAGEME
NT

 The incremental build life cycle model provides for progressive development of operational

software, with each release providing added capabilities. This type of approach is often used

by organizations like Microsoft, which issues a specific release of a software package while

working on future revisions that will be distributed later in another release with a higher

“build” or version number. This approach helps to stage the priorities of the features and

functions with user priorities or the costs, time, and scope of the revisions.

 The prototyping life cycle model is used for developing software prototypes to clarify user

requirements for operational software. It requires heavy user involvement, and developers

use a model to generate functional requirements and physical design specifications

simultaneously. Developers can throw away or keep prototypes, depending on the project.

This approach is often used in systems that involve a great deal of user interface design,

such as website projects, in systems that automate previously manual functions, or in

systems that change the nature of how something is done, such as mobile applications.

 The RAD life cycle model uses an approach in which developers work with an

evolving prototype. This life cycle model also requires heavy user involvement and helps

produce systems quickly without sacrificing quality. Developers use RAD tools such as

computer- aided software engineering (CASE), joint requirements planning (JRP), and joint

application design (JAD) to facilitate rapid prototyping and code generation. These tools are

often used in reporting systems in which programmers enter parameters into software to

generate reports for user approval. When approved, the same parameters will generate

the final production system without further modification by the programmer.

PRE 19 | P a g e
1
PROJECTMANAGEME
NT

Figure 2.4 Waterfall and Spiral Life Cycle Models

In contrast to the predictive models, the adaptive software development (ASD) life cycle

model assumes that software requirements cannot be clearly expressed early in the life cycle, so

software is developed using a less structured, flexible approach.

Examples of ASD include extreme programming, feature driven development, dynamic systems

development model, and scrum. Today ASD approaches are collectively referred to as

agile software development, named after the Agile Manifesto published in 2001.

Whether predictive or agile, all of these models are examples of SDLCs. The type

of software and complexity of the information system in development determines which life

cycle models to use. Most important, to meet the needs of the project environment, the project

manager needs to understand the product life cycle.

PRE 20 | P a g e
1
PROJECTMANAGEME
NT

The Importance of Project Phases and Management Reviews

A project should successfully pass through each of the project phases in order to continue

on to the next.

Management reviews, called phase exits or kill points, are very important for

keeping projects on track and determining if they should be continued, redirected, or terminated.

Recall that projects are just one part of the entire system of an organization. Changes in other

parts of the organization might affect a project’s status, and a project’s status might likewise

affect events in other parts of the organization. By breaking projects into phases, top

management can make sure that the projects are still compatible with other needs of the

organization.

RECENT TRENDS AFFECTING INFORMATION TECHNOLOGY PROJECT MANAGEMENT

Recent trends such as increased globalization, outsourcing, virtual teams, and agile

project management are creating additional challenges and opportunities for IT project managers and

their teams. Each of these trends and suggestions for addressing them are discussed in this

section.

🞂 Globalization

🞂 Outsourcing: Outsourcing is when an organization acquires goods and/or sources from an

outside source. Offshoring is sometimes used to describe outsourcing from

another country

🞂 Virtual teams/distributed teams: A virtual team is a group of individuals who work

across time and space using communication technologies

PRE 21 | P a g e
1
PROJECTMANAGEME
NT
🞂 Agile project management

PRE 22 | P a g e
1
PROJECTMANAGEME
NT

It is important for project managers to address several key issues when working on global projects:

🞂 Issues

 Communications

 Trust

 Common work practices

 Tools

🞂 Suggestions

 Employ greater project discipline

 Think global but act local

 Keep project momentum going

 Use newer tools and technology

The main advantages of virtual teams include:

🞂 Increasing competiveness and responsiveness by having a team of workers available 24/7

🞂 Lowering costs because many virtual workers do not require office space or support

beyond their home offices.

🞂 Providing more expertise and flexibility by having team members from across the globe

working any time of day or night

🞂 Increasing the work/life balance for team members by eliminating fixed office hours and

the need to travel to work.

Disadvantages of virtual teams include:

🞂 Isolating team members

PRE 23 | P a g e
1
PROJECTMANAGEME
NT

🞂 Increasing the potential for communications problems

🞂 Reducing the ability for team members to network and transfer information informally

🞂 Increasing the dependence on technology to accomplish work

🞂 See text for a list of factors that help virtual teams succeed, including team

processes, trust/relationships, leadership style, and team member selection

List of factors that influence their success:

 Team processes

 Leadership style

 Trust and relationships

 Team member selection and role preferences

 Task-technology fit

 Cultural differences

 Computer-mediated communication

 Team life cycles

 Incentives

 Conflict management

PRE 24 | P a g e
1
PROJECTMANAGEME
NT

Agile Project Management

Agile means being able to move quickly and easily, but some people feel that

project management, as they have seen it used, does not allow people to work quickly or easily.

Early software development projects often used a waterfall approach, as defined earlier in

this chapter. As technology and businesses became more complex, the approach was often

difficult to use because requirements were unknown or continuously changing.

Agile today means using a method based on iterative and incremental development,

in which requirements and solutions evolve through collaboration. Agile can be used for

software development or in any environment in which the requirements are unknown or change

quickly. In terms of the triple constraint, an agile approach sets time and cost goals but leaves

scope goals flexible so the project sponsors or product owners can prioritize and reprioritize the

work they want done. An agile approach makes sense for some projects, but not all of them.

The Manifesto for Agile Software Development

In the business world, the term agile was first applied to software development projects.

In February 2001, a group of 17 people that called itself the Agile Alliance developed and agreed

on the Manifesto for Agile Software Development.

Scrum

According to the Scrum Alliance, Scrum is the leading agile development method

for completing projects with a complex, innovative scope of work. The term was coined in 1986 in

PRE 25 | P a g e
1
PROJECTMANAGEME
NT
a

PRE 26 | P a g e
1
PROJECTMANAGEME
NT

Harvard Business Review study that compared high-performing, cross-functional teams to the

scrum formation used by rugby teams. The basic Scrum framework is summarized in the following

list and illustrated in the Figure below:

 A product owner creates a prioritized wish list called a product backlog.

 During sprint planning, the team pulls a small chunk from the top of that wish list, a sprint

backlog, and decides how to implement those pieces.

 The team has a certain amount of time, a sprint, to complete its work— usually two to

four weeks—but meets each day to assess its progress (daily Scrum).

 Along the way, the Scrum Master keeps the team focused on its goal.

Figure 2-4. Scrum Framework

PRE 27 | P a g e
1
PROJECTMANAGEME
NT

Kanban

Kanban can be used in conjunction with Scrum. Kanban was developed in Japan by

Toyota Motor Corporation. It uses visual cues to guide workflow. For example, teams can place

cards on boards to show the status of work in the backlog, such as new, in progress, and complete.

Cards on the board are moved to the right to show progress in completing work. Kanban also helps

limit work in progress by making a bottleneck visible so people can collaborate to solve problems

that created the bottleneck. Kanban helps improve day-to-day workflow, while Scrum provides the

structure for improving the organization of projects. Scrum was initially applied to software

development projects, but today other types of projects use this technique to help focus on

teamwork, complete the most important work first, and add business value.

The Project Management Institute (PMI) recognized the increased interest in Agile, and

introduced a new certification in 2011 called Agile Certified Practitioner (ACP).

PRE 28 | P a g e
1