Chapter 2:

The Project Management and

Information Technology Context

IT Project Management, Third Edition Chapter 2 1

 Learning Objectives
• Describe the systems view of project
management and how it applies to
information technology projects.
• Understand organizations, including the
four frames, organizational structures, and
organizational culture.
• Explain why stakeholder management and
top management commitment are critical
for a project’s success.
IT Project Management, Third Edition Chapter 2 2
 Projects Cannot Be Run
in Isolation
• Projects must operate in a broad
organizational environment.
• Project managers need to use systems
thinking:
– Taking a holistic view of a project and
understanding how it relates to the larger
organization.
• Senior managers must make sure projects
continue to support current business needs.
IT Project Management, Third Edition Chapter 2 3
 A Systems View of Project
Management
• A systems approach emerged in the 1950s to
describe a more analytical approach to management
and problem solving
• Three parts include:
– Systems philosophy: View things as systems, interacting
components working within an environment to fulfill
some purpose
– Systems analysis: problem-solving approach
– Systems management: Address business, technological,
and organizational issues before making changes to
systems

IT Project Management, Third Edition Chapter 2 4

Figure 2-1. Three Sphere Model
for Systems Management

IT Project Management, Third Edition Chapter 2 5

 Understanding Organizations
Structural frame: Human resources frame:
Focuses on roles and Focuses on providing
responsibilities, harmony between needs of
coordination and control. the organization and needs
Organizational charts help of people.
define this frame.

Political frame: Symbolic frame: Focuses

Assumes organizations on symbols and meanings
are coalitions composed related to events. Culture
of varied individuals and is important.
interest groups. Conflict
and power are key issues.

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 What Went Wrong?
Many enterprise resource planning (ERP) projects fail due to
organizational issues. For example, Sobey’s Canadian grocery
store chain abandoned its two-year, $90 million ERP system due to
organizational problems.
As Dalhousie University Associate Professor Sunny Marche states,
“The problem of building an integrated system that can
accommodate different people is a very serious challenge. You
can’t divorce technology from the sociocultural issues. They have
an equal role.” Sobey’s ERP system shut down for five days and
employees were scrambling to stock potentially empty shelves in
several stores for weeks. The system failure cost Sobey’s more than
$90 million and caused shareholders to take an 82-cent after-tax hit
per share.*
*Hoare, Eva. “Software hardships,” The Herald, Halifax, Nova Scotia (2001)
IT Project Management, Third Edition Chapter 2 7
 Many Organizations Focus on the
Structural Frame
• Most people understand what organizational
charts are
• Many new managers try to change
organizational structure when other changes are
needed
• 3 basic organizational structures
– functional
– project
– matrix

IT Project Management, Third Edition Chapter 2 8

Basic Organizational Structures

IT Project Management, Third Edition Chapter 2 9

 Table 2-1. Organizational Structure
Influences on Projects

The organizational structure influences the project manager’s authority,

but project managers need to remember to address the human resources,
political, and symbolic frames, too.
IT Project Management, Third Edition Chapter 2 10
 Recognize the Importance of
Project Stakeholders
• Recall that project stakeholders are the people
involved in or affected by project activities
• Project managers must take time to identify,
understand, and manage relationships with all
project stakeholders
• Using the four frames of organizations can
help meet stakeholder needs and expectations
• Senior executives are very important
stakeholders

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 Table 2-2. What Helps Projects
Succeed?
According to the Standish Group’s report “CHAOS 2001:
A Recipe for Success,” the following items help IT projects
succeed, in order of importance:
– Executive support
– User involvement
– Experienced project manager
– Clear business objectives
– Minimized scope
– Standard software infrastructure
– Firm basic requirements
– Formal methodology
– Reliable estimates

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 Need for Top Management
Commitment
• Several studies cite top management
commitment as one of the key factors associated
with project success
• Top management can help project managers
secure adequate resources, get approval for
unique project needs in a timely manner, receive
cooperation from people throughout the
organization, and learn how to be better leaders

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 Need for Organizational Commitment to
Information Technology (IT)

• If the organization has a negative attitude

toward IT, it will be difficult for an IT project to
succeed
• Having a Chief Information Officer (CIO) at a
high level in the organization helps IT projects
• Assigning non-IT people to IT projects also
encourages more commitment

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 Need for Organizational
Standards
• Standards and guidelines help project managers
be more effective
• Senior management can encourage
– the use of standard forms and software for project
management
– the development and use of guidelines for writing
project plans or providing status information
– the creation of a project management office or center
of excellence

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 Project Phases and the Project
Life Cycle
• A project life cycle is a collection of project
phases
• Project phases vary by project or industry, but
some general phases include
– concept
– development
– implementation
– support

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Phases of the Project Life Cycle

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 Product Life Cycles
• Products also have life cycles
• The Systems Development Life Cycle (SDLC) is a
framework for describing the phases involved in
developing and maintaining information systems
• Systems development projects can follow
– predictive models: the scope of the project can be clearly
articulated and the schedule and cost can be predicted
– adaptive models: projects are mission driven and component
based, using time-based cycles to meet target dates

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 Predictive Life Cycle Models
• The waterfall model has well-defined, linear stages of
systems development and support
• The spiral model shows that software is developed using
an iterative or spiral approach rather than a linear
approach
• The incremental release model provides for progressive
development of operational software
• The prototyping model is used for developing prototypes
to clarify user requirements
• The RAD model is used to produce systems quickly
without sacrificing quality

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 Adaptive Life Cycle Models
• Extreme Programming (XP): Developers
program in pairs and must write the tests for
their own code. XP teams include developers,
managers, and users
• Scrum: Repetitions of iterative development are
referred to as sprints, which normally last thirty
days. Teams often meet every day for a short
meeting, called a scrum, to decide what to
accomplish that day. Works best for object-
oriented technology projects and requires strong
leadership to coordinate the work
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 Distinguishing Project Life
Cycles and Product Life Cycles
• The project life cycle applies to all projects,
regardless of the products being produced
• Product life cycle models vary considerably
based on the nature of the product
• Most large IT systems are developed as a series
of projects
• Project management is done in all of the product
life cycle phases

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 Why Have 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 (also called phase exits or
kill points) should occur after each phase to
evaluate the project’s progress, likely success,
and continued compatibility with organizational
goals

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 What Went Right?
"The real improvement that I saw was in our ability toin the words
of Thomas Edisonknow when to stop beating a dead horse.…
Edison's key to success was that he failed fairly often; but as he said,
he could recognize a dead horse before it started to smell...as a result
he had 14,000 patents and was very successful…In IT we ride dead
horsesfailing projectsa long time before we give up. But what
we are seeing now is that we are able to get off them; able to reduce
cost overrun and time overrun. That's where the major impact came
on the success rate.”

Cabanis, Jeannette, "'A Major Impact': The Standish Group's Jim Johnson On
Project Management and IT Project Success," PM Network, PMI, September
1998, p. 7

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 The Context of IT Projects

• IT projects can be very diverse in terms of size,

complexity, products produced, application
area, and resource requirements
• IT project team members often have diverse
backgrounds and skill sets
• IT projects use diverse technologies that change
rapidly. Even within one technology area,
people must be highly specialized

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 Table 2-3. Fifteen Project
Management Job Functions*
• Define scope of project
• Identify stakeholders, • Identify and evaluate risks
decision-makers, and • Prepare contingency plan
escalation procedures • Identify interdependencies
• Develop detailed task list • Identify and track critical
(work breakdown structures) milestones
• Estimate time requirements • Participate in project phase
• Develop initial project review
management flow chart • Secure needed resources
• Identify required resources • Manage the change control
and budget process
• Evaluate project • Report project status
requirements
*Northwest Center for Emerging Technologies, "Building a Foundation for Tomorrow:
Skills Standards for Information Technology,"Belleview, WA, 1999

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 Suggested Skills for Project
Managers
• Project managers need a wide variety of skills
• They should be comfortable with change,
understand the organizations they work in and
with, and be able to lead teams to accomplish
project goals
• Project managers need both “hard” and “soft”
skills. Hard skills include product knowledge and
knowing how to use various project management
tools and techniques, and soft skills include being
able to work with various types of people

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 Suggested Skills for a
Project Manager
 Communication skills: listening, persuading
 Organizational skills: planning, goal-setting,
analyzing
 Team Building skills: empathy, motivation, esprit
de corps
 Leadership skills: set examples, be energetic, have
vision (big picture), delegate, be positive
 Coping skills: flexibility, creativity, patience,
persistence
 Technological skills: experience, project
knowledge

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 Table 2-4. Most Significant Characteristics of
Effective and Ineffective Project Managers
Effective Project Managers Ineffective Project Managers
• Lead by example • Set bad examples
• Are visionaries • Are not self-assured
• Are technically competent • Lack technical expertise
• Are decisive • Are poor communicators
• Are good communicators • Are poor motivators
• Are good motivators
• Stand up to upper management
when necessary
• Support team members
• Encourage new ideas

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