CH4.pptx

Chapter 4: Project Integration Management Information Technology Project Management, Eighth Edition Note: See the text itself for full citations. Learning Objectives Describe an overall framework for project integration management as it relates to the other project management knowledge areas and...

Chapter 4: Project Integration Management Information Technology Project Management, Eighth Edition Note: See the text itself for full citations. Learning Objectives 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 review approaches for creating them  Information Technology Project Management, Eighth Edition Copyright 2016 2 Learning Objectives 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  Describe the process of monitoring and controlling a project  Understand the integrated change control process, planning for and managing changes on information technology (IT) projects, and developing and using a change control system  Explain the importance of developing and following good procedures for closing projects  Describe how software can assist in project integration management  Information Technology Project Management, Eighth Edition Copyright 2016 3 Information Technology Project Management, Eighth Edition Copyright 2016 4 The Key to Overall Project Success: Good Project Integration Management Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle  Project integration ensures that all the elements of a project come together at the right times to complete a project successfully  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  Information Technology Project Management, Eighth Edition Copyright 2016 5 Project Integration Management Processes    Developing the project charter involves working with stakeholders to create the document that formally authorizes a project—the charter. Developing the project management plan involves coordinating all planning efforts to create a consistent, coherent document—the project management plan. Directing and managing project work involves carrying out the project management plan by performing the activities included in it  deliverables, work performance information, change requests, project management plan updates, and project documents updates. Information Technology Project Management, Eighth Edition Copyright 2016 6 Project Integration Management Processes (cont’d) Monitoring and controlling project work involves overseeing activities to meet the performance objectives of the project  change requests, project management plan updates, and project documents updates.  Performing integrated change control involves identifying, evaluating, and managing changes throughout the project life cycle  change request status updates, project management plan updates, and project documents updates.  Closing the project or phase involves finalizing all activities to formally close the project or phase  final product, service, or result transition and organizational process assets updates  Information Technology Project Management, Eighth Edition Copyright 2016 7 Project Integration and Project Manager Coordinate all the plan, work and people required to complete the project  Steer the project team toward successful completion of the project  Make final decision when conflicts occur between people or project goals  Communicate key project information  Information Technology Project Management, Eighth Edition Copyright 2016 8 Project Interface Management Interface management involves identifying and managing the points of interaction between various elements of a project  communication and relationships  project manager should establish and maintain good communication and relationships across organizational interfaces  project manager must communicate well with all project stakeholders  Information Technology Project Management, Eighth Edition Copyright 2016 9 Strategic Planning and Project Selection Strategic planning involves determining longterm objectives, predicting future trends, and projecting the need for new products and services  Organizations often perform a SWOT analysis  ◦ analyzing Strengths, Weaknesses, Opportunities, and Threats  As part of strategic planning, organizations ◦ identify potential projects ◦ use realistic methods to select which projects to work on ◦ formalize project initiation by issuing a project charter Information Technology Project Management, Eighth Edition Copyright 2016 10 Figure 4-2. Mind Map of a SWOT Analysis to Help Identify Potential Projects Information Technology Project Management, Eighth Edition Copyright 2016 11 Identifying Potential Projects     A steering committee develops an IT strategic plan that is tied to the organization’s overall strategic plan  Includes people from different departments and responsibilities Perform a business area analysis that outlines business processes that are central to achieving strategic goals and helps determine which processes could most benefit from IT. Define the scope, benefits, and constraints of potential IT projects. Choosing which projects to do and assigning resources for working on them Information Technology Project Management, Eighth Edition Copyright 2016 12 Methods for Selecting Projects   There are usually more projects than available time and resources to implement them Methods for selecting projects include: ◦ ◦ ◦ ◦ focusing on broad organizational needs categorizing information technology projects performing net present value or other financial analyses using a weighted scoring model Information Technology Project Management, Eighth Edition Copyright 2016 13 Focusing on Broad Organizational Needs    Projects that address broad organizational needs are more likely to be successful because they will be important to the organization  e.g improve safety, provide better customer services …etc It is often difficult to provide strong justification for many IT projects, but everyone agrees they have a high value  i.e estimating the financial value of customer service project Three important criteria for projects: ◦ There is a need for the project ◦ There are funds available ◦ There’s a strong will to make the project succeed Information Technology Project Management, Eighth Edition Copyright 2016 14 Categorizing IT Projects  Organizations categorize projects based on ◦ Time window ◦ General priority  One categorization (project impetus) is whether the project addresses ◦ a problem that prevent an organization from achieving its goals (current or anticipated) ◦ an opportunity (chances to improve the organization)  creating new products or services ◦ Or a directive new requirements imposed by management, government, or some external influence It is easier to get approval for projects that address problems or directives  the organization must respond to these categories to avoid hurting their business  Another categorization is how long it will take to do and when it is needed  Another is the overall priority of the project  high, medium, or low  ◦ An organization should always complete high-priority projects first. Information Technology Project Management, Eighth Edition Copyright 2016 15 Financial Analysis of Projects Financial considerations are often an important consideration in selecting projects  Three primary methods for determining the projected financial value of projects:  ◦ Net present value (NPV) analysis ◦ Return on investment (ROI) ◦ Payback analysis Information Technology Project Management, Eighth Edition Copyright 2016 16 Net Present Value Analysis  Net present value (NPV) analysis is a 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  a dollar earned today is worth more than a dollar earned five years from now Projects with a positive NPV should be considered if financial value is a key criterion  The higher the NPV, the better  Information Technology Project Management, Eighth Edition Copyright 2016 17 NPV Calculations Determine estimated costs and benefits for the life of the project and the products it produces  Determine the discount rate (check with your organization on what to use)  Interest rate used to discount cash flows  risk or uncertainty of future cash flows  Calculate the NPV (see text for details)  Notes: Some organizations consider the investment year as year 0, while others start in year 1. Some people entered costs as negative numbers, while others do not. Check with your organization for their preferences  Information Technology Project Management, Eighth Edition Copyright 2016 18 Information Technology Project Management, Eighth Edition Copyright 2016 19 Figure 4-4. Net Present Value Example Information Technology Project Management, Eighth Edition Copyright 2016 20 Figure 4-5. JWD Consulting NPV Example Note: See the template called business_case_financials.xls Information Technology Project Management, Eighth Edition Copyright 2016 21 Return on Investment  Return on investment (ROI) is 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 or 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 Information Technology Project Management, Eighth Edition Copyright 2016 22 Payback Analysis Another important financial consideration is payback analysis  The 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  Payback occurs when the net cumulative discounted benefits equals the costs  Many organizations want IT projects to have a fairly short payback period  Information Technology Project Management, Eighth Edition Copyright 2016 23 Figure 4-6. Charting the Payback Period Information Technology Project Management, Eighth Edition Copyright 2016 24 Weighted Scoring Model  A weighted scoring model is a tool that 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 The higher the weighted score, the better Information Technology Project Management, Eighth Edition Copyright 2016 25 Figure 4-7. Sample Weighted Scoring Model for Project Selection Information Technology Project Management, Eighth Edition Copyright 2016 26 Developing a Project Charter 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 signed charter is a key output of project integration management  Information Technology Project Management, Eighth Edition Copyright 2016 27 Inputs for Developing a Project Charter A project statement of work  A business case  Agreements  Enterprise environmental factors  Culture, market conditions, regulations …etc  Organizational process assets, which include formal and informal plans, policies, procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information  Information Technology Project Management, Eighth Edition Copyright 2016 28 Table 4-1. Project Charter for the DNA-Sequencing Instrument Completion Project Information Technology Project Management, Eighth Edition Copyright 2016 29 Table 4-1. Project Charter (cont.) Information Technology Project Management, Eighth Edition Copyright 2016 30 Developing a Project Management Plan A project management plan is a 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  ◦ Document Assumptions ◦ Decisions regarding the choices ◦ Communication among key stakeholders ◦ Time management review Information Technology Project Management, Eighth Edition Copyright 2016 31 Common Elements of a Project Management Plan Introduction or overview of the project  Description of how the project is organized  Management and technical processes used on the project (Dev. Approach, Project Lifecycle..etc)  Work to be done, schedule, and budget information  Referencing other plans i.e scope management plan..etc  Information Technology Project Management, Eighth Edition Copyright 2016 32 Table 4-2. Sample Contents for a Software Project Management Plan (SPMP) Information Technology Project Management, Eighth Edition Copyright 2016 33 What the Winners Do "The winners clearly spell out what needs to be done in a project, by whom, when, and how. For this they use an integrated toolbox, including PM tools, methods, and techniques…If a scheduling template is developed and used over and over, it becomes a repeatable action that leads to higher productivity and lower uncertainty. Sure, using scheduling templates is neither a breakthrough nor a feat. But laggards exhibited almost no use of the templates. Rather, in constructing schedules their project managers started with a clean sheet, a clear waste of time.“* *Milosevic, Dragan and And Ozbay. “Delivering Projects: What the Winners Do.” Proceedings of the Project Management Institute Annual Seminars & Symposium (November 2001). Information Technology Project Management, Eighth Edition Copyright 2016 34 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 because the products of the project are produced during execution  Information Technology Project Management, Eighth Edition Copyright 2016 35 Coordinating Planning and Execution Project planning and execution are intertwined and inseparable activities  Those who will do the work should help to plan the work  Project managers must solicit input from the team to develop realistic plans  Information Technology Project Management, Eighth Edition Copyright 2016 36 Providing Leadership and a Supportive Culture Project managers must lead by example to demonstrate the importance of creating and then following good project plans  Organizational culture can help project execution by  ◦ providing guidelines and templates ◦ tracking performance based on plans  Project managers may still need to break the rules to meet project goals, and senior managers must support those actions Information Technology Project Management, Eighth Edition Copyright 2016 37 What Went Right? 2015 PMI report found that only 12 percent of organizations were considered to be high performers  Percentage remained unchanged in past few years  Organizations must make major cultural changes to improve  Information Technology Project Management, Eighth Edition Copyright 2016 38 Capitalizing on Product, Business, and Application Area Knowledge It is often helpful for IT project managers to have prior technical experience  On small projects, the project manager may be required to perform some of the technical work or mentor team members to complete the projects  On large projects, the project manager must understand the business and application area of the project  Information Technology Project Management, Eighth Edition Copyright 2016 39 Project Execution Tools and Techniques     Expert judgment: Experts can help project managers and their teams make many decisions related to project execution Meetings: Meetings allow people to develop relationships, pick up on important body language or tone of voice, and have a dialogue to help resolve problems. Project management information systems: There are hundreds of project management software products available on the market today, and many organizations are moving toward powerful enterprise project management systems that are accessible via the Internet See the What Went Right? example of Kuala Lumpur’s Integrated Transport Information System on p. 169 Information Technology Project Management, Eighth Edition Copyright 2016 40 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 A baseline is the approved project management plan plus approved changes ◦ Project Documents ◦ KPIs – Performance info ◦ Agreement – ◦ EEF ◦ OPA Information Technology Project Management, Eighth Edition Copyright 2016 41 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 Games began, the SLOC used a Primavera software-based system with a cascading color-coded WBS to integrate planning…The SLOC 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. Information Technology Project Management, Eighth Edition Copyright 2016 42 Performing Integrated Change Control  Three main objectives are: ◦ Influencing the factors that create changes to ensure that changes are beneficial   ◦ Determining that a change has occurred   ◦ Not all changes are beneficial Trade-offs Time/Cost/Quality Status of the project at all stages Communicate any significant changes – Mang. Do not like surprises Managing actual changes as they occur Information Technology Project Management, Eighth Edition Copyright 2016 43 Change Control on Information Technology Projects Former view: The project team should strive to do exactly what was planned on time and within budget  Problem: Stakeholders rarely agreed up-front on the project scope, and time and cost estimates were inaccurate  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  Information Technology Project Management, Eighth Edition Copyright 2016 44 Change Control System A change control system is a formal, documented process that describes when and how official project documents and work may be changed  Describes who is authorized to make changes and how to make them  Information Technology Project Management, Eighth Edition Copyright 2016 45 Change Control Board (CCB) A change control board is a formal group of people responsible for approving or rejecting changes on a project  CCBs provide guidelines for preparing change requests, evaluate change requests, and manage the implementation of approved changes  Includes stakeholders from the entire organization  Information Technology Project Management, Eighth Edition Copyright 2016 46 Making Timely 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  ◦ “48-hour policy” allows project team members to make decisions, then they have 48 hours to reverse the decision pending senior management approval ◦ Delegate changes to the lowest level possible, but keep everyone informed of changes Information Technology Project Management, Eighth Edition Copyright 2016 47 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. Fortunately, a group called the Organisation for Economic Cooperation 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 Information Technology Project Management, Eighth Edition Copyright 2016 48 Configuration Management 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  See www.icmhq.com for more information  Information Technology Project Management, Eighth Edition Copyright 2016 49 Table 4-3. Suggestions for Performing Integrated Change Control Information Technology Project Management, Eighth Edition Copyright 2016 50 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 outputs include  ◦ Final product, service, or result transition ◦ Organizational process asset updates Information Technology Project Management, Eighth Edition Copyright 2016 51 Using Software to Assist in Project Integration Management  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 Information Technology Project Management, Eighth Edition Copyright 2016 52 Figure 4-8. Sample Portfolio Management Software Screen Source: www.projectmanager.com Information Technology Project Management, Eighth Edition Copyright 2016 53 Chapter Summary Project integration management involves coordinating all of the other knowledge areas throughout a project’s life cycle  Main processes include  ◦ Develop the project charter ◦ Develop the project management plan ◦ Direct and manage project execution ◦ Monitor and control project work ◦ Perform integrated change control ◦ Close the project or phase Information Technology Project Management, Eighth Edition Copyright 2016 54