Chapter 1:

Introduction to Project Management

Information Technology Project Management, Fourth Edition

Learning Objectives
Understand the growing need for better project management, especially for information technology projects E!plain what a project is, pro"ide e!amples of information technology projects, list "arious attributes of projects, and describe the triple constraint of projects

Information Technology Project Management, Fourth Edition

Learning Objectives
$escribe project management and discuss %ey elements of the project management framewor%, including project sta%eholders, the project management %nowledge areas, common tools and techni&ues, and project success factors Understand the role of the project manager by describing what project managers do, what s%ills they need, and what the career field is li%e for information technology project managers

Information Technology Project Management, Fourth Edition

Learning Objectives
$escribe the project management profession, including its history, the role of professional organi(ations such as the Project Management Institute, the importance of certification and ethics, and the growth of project management software

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Introduction
Many organi(ations today ha"e a new or renewed interest in project management *omputer hardware, software, networ%s, and the use of interdisciplinary and global wor% teams ha"e radically changed the wor% en"ironment The U + spends ,2 # trillion on projects e"ery year, or one-&uarter its gross domestic product, and the world as a whole spends nearly ,./ trillion of its ,'/ 0 gross product on projects of all %inds 1
1PMI, The PMI Project Management Fact Book, +econd Edition, 2//.
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Project Management Statistics

3orldwide IT spending continues to grow, and Forrester 4esearch predicts that U + IT spending will grow by another ) 0 percent in 2//), to reach ,05) billion 1 In 2//#, the a"erage senior project manager in the U + earned almost ,5/,/// per year, and the a"erage Project Management 6ffice 7PM68 $irector earned more than the a"erage *hief Information 6fficer 7,..9,2## "s ,./#,52)8 11 The Apprentice, the number-one U + reality tele"ision show in 2//', portrayed the important role of project managers
1:utler, +te"e, ;IT +pending,< Analyst Views, February 2//' 11PMI, Project Management Salary Survey, Third Edition, 2//#
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Motivation for Studying Information Technology IT! Project Management

IT projects ha"e a terrible trac% record
= .55) +tandish >roup study 7*?=6+8 found that only .2 2 percent of IT projects were successful in meeting scope, time, and cost goals 6"er #. percent of IT projects were canceled before completion, costing o"er ,9. billion in the U + alone 1

1The +tandish >roup, ;The *?=6+ 4eport< 7www.stan ishgroup.com8 7.55)8 =nother reference is @ohnson, @im, ;*?=6+A The $ollar $rain of IT Project Failures,< Application !evelopment Tren s 7@anuary .55)8
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"dvantages of #sing Formal Project Management

:etter control of financial, physical, and human resources Impro"ed customer relations +horter de"elopment times Bower costs ?igher &uality and increased reliability ?igher profit margins Impro"ed producti"ity :etter internal coordination ?igher wor%er morale 7less stress8
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$hat Is a Project%
= &roject is ;a temporary endea"or underta%en to create a uni&ue product, ser"ice, or result <1 6perations is wor% done to sustain the business = project ends when its objecti"es ha"e been reached, or the project has been terminated Projects can be large or small and ta%e a short or long time to complete
1PMI, A "ui e to the Project Management Bo y o# $nowle ge %PMB&$' "ui e( 72//'8, p )
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Project "ttributes
= projectA
?as a uni&ue purpose Is temporary Is de"eloped using progressi"e elaboration 4e&uires resources, often from "arious areas +hould ha"e a primary customer or sponsor
The &roject s&onsor usually pro"ides the direction and funding for the project

In"ol"es uncertainty
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Project and Program Managers

Project managers wor% with project sponsors, project teams, and other people in"ol"ed in projects to meet project goals ProgramA ;= group of related projects managed in a coordinated way to obtain benefits and control not a"ailable from managing them indi"idually <1 Program managers o"ersee programs and often act as bosses for project managers
1PMI, A "ui e to the Project Management Bo y o# $nowle ge %PMB&$' "ui e( 72//'8, p .2
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The Tri&le 'onstraint

E"ery project is constrained in different ways by itsA
Sco&e goalsA 3hat wor% will be doneC Time goalsA ?ow long should it ta%e to completeC 'ost goalsA 3hat should it costC

It is the project managerDs duty to balance these three often-competing goals

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Figure ()(* The Tri&le 'onstraint of Project Management

+uccessful project management means meeting all three goals 7scope, time, and cost8 E and satisfying the projectDs sponsorF

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$hat is Project Management%

Project management is ;the application of %nowledge, s%ills, tools and techni&ues to project acti"ities to meet project re&uirements <1

1PMI, A "ui e to the Project Management Bo y o# $nowle ge %PMB&$' "ui e( 72//'8, p 9

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Figure ()+* Project Management Frame,or-

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Project Sta-eholders
Sta-eholders are the people in"ol"ed in or affected by project acti"ities +ta%eholders includeA
Project sponsor Project manager Project team +upport staff *ustomers Users +uppliers 6pponents to the project
.2

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.ine Project Management /no,ledge "reas

Gnowledge areas describe the %ey competencies that project managers must de"elop
Four core %nowledge areas lead to specific project objecti"es 7scope, time, cost, and &uality8 Four facilitating %nowledge areas are the means through which the project objecti"es are achie"ed 7human resources, communication, ris%, and procurement management8 6ne %nowledge area 7project integration management8 affects and is affected by all of the other %nowledge areas =ll %nowledge areas are importantF
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Project Management Tools and Techni0ues

Project management tools and techni&ues assist project managers and their teams in "arious aspects of project management +pecific tools and techni&ues includeA
Project charters, scope statements, and 3:+ 7scope8 >antt charts, networ% diagrams, critical path analyses, critical chain scheduling 7time8 *ost estimates and earned "alue management 7cost8 +ee Table .-. for other e!amples
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Project Portfolio Management

Many organi(ations support an emerging business strategy of &roject &ortfolio managementA
6rgani(ations group and manage projects as a portfolio of in"estments that contribute to the entire enterpriseDs success 7For more information, see *hapter 0, Project *ost Management 8

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Im&roved Project Performance

The +tandish >roupDs *?=6+ studies show impro"ements in IT projects in the past decade 1
Measure +uccessful projects Failed projects Money wasted on challenged and failed projects (112 3ata .2H #.H ,.'/ : out of ,2)/ : +44+ 3ata #'H .)H ,)) : out of ,2)) : 5esult $oubled ?al"ed More than hal"ed

1The +tandish >roup, ;Batest +tandish >roup *?=6+ 4eport +hows Project +uccess 4ates ?a"e Impro"ed by )/H< 7March 2), 2//#8
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$hy the Im&rovements%

;The reasons for the increase in successful projects "ary First, the a"erage cost of a project has been more than cut in half :etter tools ha"e been created to monitor and control progress and better s-illed &roject managers ,ith better management &rocesses are being used The fact that there are processes is significant in itself <1
1The +tandish >roup, ;*?=6+ 2//.A = 4ecipe for +uccess< 72//.8

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Project Success Factors6

. E!ecuti"e support 2 User in"ol"ement # E!perienced project manager ' *lear business objecti"es ) Minimi(ed scope 2 +tandard software infrastructure 0 Firm basic re&uirements 9 Formal methodology 5 4eliable estimates ./ 6ther criteria, such as small milestones, proper planning, competent staff, and ownership

1The +tandish >roup, ;E!treme *?=6+< 72//.8

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The 5ole of the Project Manager

@ob descriptions "ary, but most include responsibilities such as planning, scheduling, coordinating, and wor%ing with people to achie"e project goals 4emember that 50 percent of successful projects were led by e!perienced project managers

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Table ()7* Fifteen Project Management 8ob Functions6

$efine scope of project Identify sta%eholders, decisionma%ers, and escalation procedures $e"elop detailed tas% list 7wor% brea%down structures8 Estimate time re&uirements $e"elop initial project management flow chart Identify re&uired resources and budget E"aluate project re&uirements Identify and e"aluate ris%s Prepare contingency plan Identify interdependencies Identify and trac% critical milestones Participate in project phase re"iew +ecure needed resources Manage the change control process 4eport project status

1Iorthwest *enter for Emerging Technologies, ;:uilding a Foundation for TomorrowA +%ills +tandards for Information Technology,< :elle"iew, 3=, .555
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Suggested S-ills for Project Managers

Project managers need a wide "ariety of s%ills They shouldA
:e comfortable with change Understand the organi(ations they wor% in and with Bead teams to accomplish project goals

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Suggested S-ills for Project Managers

Project managers need both ;hard< and ;soft< s%ills
9ard s-ills include product %nowledge and %nowing how to use "arious project management tools and techni&ues Soft s-ills include being able to wor% with "arious types of people

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Suggested S-ills for Project Managers

'ommunication s-illsA Bistens, persuades Organi:ational s-illsA Plans, sets goals, analy(es Team)building s-illsA +hows empathy, moti"ates, promotes esprit de corps Leadershi& s-illsA +ets e!amples, pro"ides "ision 7big picture8, delegates, positi"e, energetic 'o&ing s-illsA Fle!ible, creati"e, patient, persistent Technology s-illsA E!perience, project %nowledge
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Media Sna&shot ; <ood Project Management S-ills from The Apprentice

Beadership and professionalism are crucial Gnow what your sponsor e!pects from the project, and learn from your mista%es Trust your team and delegate decisions Gnow the business +tand up for yourself :e a team player +tay organi(ed and donDt be o"erly emotional 3or% on projects and for people you belie"e in Thin% outside the bo! There is some luc% in"ol"ed in project management, and you should always aim high

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Table ()2* Most Significant 'haracteristics of Effective and Ineffective Project Managers
Effective Project Managers J Beadership by e!ample J Kisionary J Technically competent J $ecisi"e J >ood communicator J >ood moti"ator J +tands up to upper management when necessary J +upports team members J Encourages new ideas
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Ineffective Project Managers J +ets bad e!ample J Iot self-assured J Bac%s technical e!pertise J Poor communicator J Poor moti"ator

Im&ortance of Leadershi& S-ills

Effecti"e project managers pro"ide leadership by e!ample = leader focuses on long-term goals and big-picture objecti"es while inspiring people to reach those goals = manager deals with the day-to-day details of meeting specific goals Project managers often ta%e on both leader and manager roles
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Table ()=* To& Ten Most In)3emand IT S-ills

5anIT S-ill>8ob "verage "nnual Salary . +LB $atabase =nalyst ,9/,22' 2 6racle $atabase =nalyst ,90,.'' # *M*NN Programmer ,5),925 ' Kisual :asic Programmer ,02,5/# ) E-commerceM@a"a $e"eloper ,95,.2# 2 3indows ITM2/// E!pert ,9/,2#5 0 3indowsM@a"a $e"elopert ,5#,09) 9 +ecurity =rchitect ,92,99. 5 Project Manager ,5),0.5 ./ Ietwor% Engineer ,92,5/2 Paul Oi", ;The Top ./ IT +%ills in $emand,< >lobal Gnowledge 3ebcast 7www.glo)alknowle ge.com8 7..M2/M2//28
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Figure ()7* To& Information Technology S-ills

70% 60% 60% 58% 42% 41%

Percentage of 4espondents

50% 40% 30% 20% 10% 0% Application development Project management

Database management

et!or"ing

Information Technology 7IT8 +%ill

*osgro"e, Borraine, ;@anuary 2//' IT +taffing Update,< *I& +esearch +eports 7February #, 2//'8
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Figure ()2* Sam&le <antt 'hart

3or% :rea%down +tructure 73:+8

The 3:+ is shown on the left, and each tas%Ds start and finish dates are shown on the right First used in .5.0, early >antt charts were drawn by hand
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Figure ()=* Sam&le .et,or- 3iagram

Each bo! is a project tas% from the 3:+ =rrows show dependencies between tas%s The bolded tas%s are on the critical path If any tas% on the critical path ta%es longer to complete than planned, the whole project will slip unless something is done Ietwor% diagrams were first used in .5)9 on the Ia"y Polaris project before project management software was a"ailable
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Project Management Office PMO!

= PM6 is an organi(ational group responsible for coordinating the project management function throughout an organi(ation Possible goals includeA
*ollect, organi(e, and integrate project data for the entire organi(ation $e"elop and maintain templates for project documents $e"elop or coordinate training in "arious project management topics $e"elop and pro"ide a formal career path for project managers Pro"ide project management consulting ser"ices Pro"ide a structure to house project managers while they are acting in those roles or are between projects
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Project Management Soft,are

Enterprise PM software integrates information from multiple projects to show the status of acti"e, appro"ed, and future projects across an entire organi(ation It also pro"ides lin%s to more detailed information on each project Many managers li%e to see status in color E red, yellow, and green

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Figure ()?* Sam&le Enter&rise Project Management Tool

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The Project Management Profession

Professional societies such as the Project Management Institute 7PMI8 ha"e grown significantly There are specific interest groups in many areas, such as engineering, financial ser"ices, health care, and IT Project management research and certification programs continue to grow

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Project Management 'ertification

PMI pro"ides certification as a Project Management Professional 7PMP8 = PMP has documented sufficient project e!perience, agreed to follow a code of ethics, and passed the PMP e!am The number of people earning PMP certification is increasing &uic%ly PMI and other organi(ations are offering new certification programs 7see =ppendi! :8
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Figure ()@* <ro,th in PMP 'ertification, (117)+447

80#000 70#000 60#000 # PMPs 50#000 40#000 30#000 20#000 10#000 0
1#000 1#$00 2#800 4#400 10#086 6#415 18#184 27#052 40#343 52#443 76#550

1$$3 1$$4 1$$5 1$$6 1$$7 1$$8 1$$$ 2000 2001 2002 2003

Year
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Ethics in Project Management

Ethics is an important part of all professions Project managers often face ethical dilemmas In order to earn PMP certification, applicants must agree to the PMP code of professional conduct +e"eral &uestions on the PMP e!am are related to professional responsibility, including ethics

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Project Management Soft,are

There are currently hundreds of different products to assist in performing project management Three main categories of toolsA
Lo,)end toolsA ?andle single or smaller projects wellP cost under ,2// per user Midrange toolsA ?andle multiple projects and usersP cost ,2//-)// per userP Project 2//# most popular 7includes an enterprise "ersion8 9igh)end toolsA =lso called enterprise project management softwareP often licensed on a per-user basisP KPMi Enterprise 6nline 7www "csonline com8
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'ha&ter Summary
=s the number and comple!ity of projects continue to grow, it is becoming e"en more important to practice good project management = project has se"eral attributes, such as being uni&ue, temporary and de"eloped incrementally = framewor% for project management includes project sta%eholders, the nine %nowledge areas, tools and techni&ues, and creating project portfolios to ensure enterprise success +uccessful project managers must possess and de"elopment many s%ills and lead their teams by e!ample The project management profession continues to mature as more people become certified and more tools are created
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