Chapter 2:The Project Management andInformation Technology Context
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Learning Objectives
•Understand the systems view of project managementand how it applies to information technology projects
•Analyze a formal organization using the structural,human resources, political, and symbolic organizationalframes
•Explain the differences among functional, matrix, andproject organizational structures
•Explain why stakeholder management and topmanagement commitment are critical for a project’ssuccess
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Learning Objectives – Cont..
•Understand the concept, development,implementation, and close-out phases of theproject life cycle
•Distinguish between project development andproduct development
•Discuss the unique attributes and diversenature of information technology projects
•List the skills and attributes of a good projectmanager in general and in the informationtechnology field
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Projects Cannot Be Runin Isolation
•Projects must operate in a broad organizationalenvironment
•Project managers need to take a holistic orsystems view of a project and understand howit is situated within the larger organization
•See example in opening and closing case toillustrate this concept
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A Systems View of Project Management
•A systems approach emerged in the 1950s todescribe a more analytical approach tomanagement and problem solving
•Three parts include:
–Systems philosophy: View things as systems,interacting components working within anenvironment to fulfill some purpose
–Systems analysis: problem-solving approach
–Systems management: Address business,technological, and organizational issues beforemaking changes to systems
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Figure 2-1. Three Sphere Model forSystems management
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Understanding OrganizationsWe can analyze a formal organization using the following 4(four) frames;
Structural frame:Focuses on roles andresponsibilities,coordination and control.Organizational charts helpdefine this frame.
Human resources frame:Focuses on providingharmony between needs ofthe organization and needsof people.
Political frame:Assumes organizationsare coalitions composedof varied individuals andinterest groups. Conflictand power are key issues.
Symbolic frame: Focuseson symbols and meaningsrelated to events. Cultureis important.
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What Went Wrong?
Many enterprise resource planning (ERP) projects fail due to organizational issues. For example, Sobey’s Canadian grocerystore chain abandoned its two-year, $90 million ERP system due toorganizational problems.
As Dalhousie University Associate Professor Sunny Marche states, “Theproblem of building an integrated system that can accommodate differentpeople is a very serious challenge. You can’t divorce technology from thesociocultural issues. They have an equal role.” Sobey’s ERP system shutdown for five days and employees were scrambling to stock potentiallyempty shelves in several stores for weeks. The system failure costSobey’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)
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Many Organizations Focus on theStructural Frame
•Most people understand whatorganizational charts are
•Many new managers try to changeorganizational structure when otherchanges are needed
•3 basic organizational structures
–functional
–project
–matrix
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Basic Organizational Structures
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Table 2-1. Organizational StructureInfluences on Projects
The organizational structure influences the project manager’sauthority, but project managers need to remember to address thehuman resources, political, and symbolic frames, too.
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Recognize the Importance of ProjectStakeholders
•Recall that project stakeholders are the peopleinvolved in or affected by project activities
•Project managers must take time to identify,understand, and manage relationships with allproject stakeholders
•Using the four frames of organizations can helpmeet stakeholder needs and expectations
•Senior executives are very important stakeholders
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Table 2-2. What Helps ProjectsSucceed?
According to the Standish Group’s report “CHAOS 2001:A Recipe for Success,” the following items help ITprojects 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 ManagementCommitment
•Several studies cite top managementcommitment as one of the key factorsassociated with project success
•Top management can help project managerssecure adequate resources, get approval forunique project needs in a timely manner,receive cooperation from people throughoutthe organization, and learn how to be betterleaders
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Need for Organizational Commitment toInformation Technology (IT)
•If the organization has a negative attitudetoward IT, it will be difficult for an IT project tosucceed
•Having a Chief Information Officer (CIO) at ahigh level in the organization helps IT projects
•Assigning non-IT people to IT projects alsoencourages more commitment
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Need for Organizational Standards
•Standards and guidelines help project managersbe more effective
•Senior management can encourage
–the use of standard forms and software for projectmanagement
–the development and use of guidelines for writingproject plans or providing status information
–the creation of a project management office orcenter of excellence
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Project Phases and the Project LifeCycle
•A project life cycle is a collection of projectphases
•Project phases vary by project or industry, butsome 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 aframework for describing the phases involved indeveloping and maintaining information systems
•Systems development projects can follow
–predictive models: the scope of the project can be clearlyarticulated and the schedule and cost can be predicted
–adaptive models: projects are mission driven andcomponent based, using time-based cycles to meet targetdates
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Predictive Life Cycle Models
•The waterfall model has well-defined, linear stages ofsystems development and support
•The spiral model shows that software is developed usingan iterative or spiral approach rather than a linearapproach
•The incremental release model provides for progressivedevelopment of operational software
•The prototyping model is used for developing prototypesto clarify user requirements
•The RAD model is used to produce systems quicklywithout sacrificing quality
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Adaptive Life Cycle Models
•Extreme Programming (XP): Developers programin pairs and must write the tests for their owncode. XP teams include developers, managers, andusers
•Scrum: Repetitions of iterative development arereferred to as sprints, which normally last thirtydays. Teams often meet every day for a shortmeeting, called a scrum, to decide what toaccomplish that day. Works best for object-oriented technology projects and requires strongleadership to coordinate the work
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Distinguishing Project Life Cycles andProduct Life Cycles
•The project life cycle applies to all projects,regardless of the products being produced
•Product life cycle models vary considerably basedon the nature of the product
•Most large IT systems are developed as a seriesof projects
•Project management is done in all of theproduct life cycle phases
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Why Have Project Phases andManagement Reviews?
•A project should successfully pass through eachof the project phases in order to continue on tothe next
•Management reviews (also called phase exits orkill points) should occur after each phase toevaluate the project’s progress, likely success,and continued compatibility withorganizational goals
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What Went Right?
"The real improvement that I saw was in our ability toin the wordsof Thomas Edisonknow when to stop beating a deadhorse.…Edison's key to success was that he failed fairly often; but ashe said, he could recognize a dead horse before it started to smell...asa result he had 14,000 patents and was very successful…In IT we ridedead horsesfailing projectsa long time before we give up. Butwhat we are seeing now is that we are able to get off them; able toreduce cost overrun and time overrun. That's where the major impactcame on the success rate.”
Cabanis, Jeannette, "'A Major Impact': The Standish Group's Jim Johnson OnProject Management and IT Project Success," PM Network, PMI, September1998, p. 7
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The Context of IT Projects
•IT projects can be very diverse in terms of size,complexity, products produced, applicationarea, and resource requirements
•IT project team members often have diversebackgrounds and skill sets
•IT projects use diverse technologies that changerapidly. Even within one technology area,people must be highly specialized
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•Define scope of project
•Identify stakeholders, decision-makers, and escalation procedures
•Develop detailed task list (workbreakdown structures)
•Estimate time requirements
•Develop initial projectmanagement flow chart
•Identify required resources andbudget
•Evaluate project requirements
•Identify and evaluate risks
•Prepare contingency plan
•Identify interdependencies
•Identify and track criticalmilestones
•Participate in project phasereview
•Secure needed resources
•Manage the change controlprocess
•Report project status
Table 2-3. Fifteen ProjectManagement Job Functions*
*Northwest Center for Emerging Technologies, "Building a Foundation forTomorrow: 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 projectgoals
•Project managers need both “hard” and “soft” skills.Hard skills include product knowledge and knowinghow to use various project management tools andtechniques, and soft skills include being able towork with various types of people
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Suggested Skills for aProject Manager
Communication skills: listening, persuading
Organizational skills: planning, goal-setting, analyzing
Team Building skills: empathy, motivation, esprit decorps
Leadership skills: set examples, be energetic, havevision (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 ofEffective and Ineffective Project Managers
•Lead by example
•Are visionaries
•Are technically competent
•Are decisive
•Are good communicators
•Are good motivators
•Stand up to upper managementwhen necessary
•Support team members
•Encourage new ideas
•Set bad examples
•Are not self-assured
•Lack technical expertise
•Are poor communicators
•Are poor motivators
Effective Project Managers Ineffective Project Managers
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