AIPM C1-5 - Project Management PDF

Chapter 1: Introduction to Project Management Artificial Intelligence Project Management 1 Introduction  Many organizations today have a new or renewed interest in project management  Computer hardware, software, networks, and the use of interdisciplinary and global work...

Chapter 1: Introduction to Project Management Artificial Intelligence Project Management 1 Introduction  Many organizations today have a new or renewed interest in project management  Computer hardware, software, networks, and the use of interdisciplinary and global work teams have radically changed the work environment  The U.S. spends $2.3 trillion on projects every year, or one-quarter of its gross domestic product, and the world as a whole spends nearly $10 trillion of its $40.7 gross product on projects of all kinds 2  Project Management Statistics  Worldwide IT spending totaled more than $1.8 trillion in 2005, next 6 % increase from 2004, and spending is projected to grow 8 % in 2006 and 4% in 2007  In 2005, the total compensation for the average senior project manager was $99,183 per year in the United States, $94,646 in Australia, and $106,374 in the United Kingdom  The number of people earning their Project Management Professional (PMP) certification increased by more than 70 percent from 2004 to 2005, with more than 200,000 PMPs worldwide by the end of August, 2006 3 Self study: Identify growth 2007 onwards  Motivation for Studying AI Project Management  AI Projects have a terrible track record  A 1995 Standish Group study (CHAOS) found that  Average cost of an IT application development project was >$2.3 billion for a large company, >$1.3 billion for a medium company and > $434,000 for a small company  Only 16.2% of IT projects were successful in meeting scope, time, and cost goals  Over 31% of IT projects were canceled before completion, costing over $81 billion in the U.S. alone 4 Self study: Identify AI PM trends 2000 onwards  Advantages of Using Formal Project Management  Better control of financial, physical, and human resources  Improved customer relations  Shorter development times  Lower costs  Higher quality and increased reliability  Higher profit margins  Improved productivity  Better internal coordination  Higher worker morale (less stress) 5 Project Management Institute (PMI)  PMI was founded in 1969 by five individuals who wanted to network, share process information and discuss common project problems. It is now the leading membership association for the project management profession with more than 260,000 members in over 171 countries.  PMI is actively engaged in advocacy for the profession, setting professional standards, conducting research and providing access to a wealth of information and resources.  PMI also promotes career and professional development and offers certification, networking and community involvement opportunities.  PMIs Project Management Professional (PMP®) credential is the most 6 widely recognized and the only global certification in the profession. Project Management Certification  PMI provides certification as a Project Management Professional (PMP)  A PMP has documented sufficient project experience, has agreed to follow a code of ethics, and has passed the PMP exam  The number of people earning PMP certification is increasing quickly 7  Growth in PMP Certification 1993-2006 8 Self study: Identify growth in PMP certification today  Ethics in Project Management  Ethics, loosely defined, is a set of principles that guide our decision making based on personal values of what is “right” and “wrong”  Project managers often face ethical dilemmas  In order to earn PMP certification, applicants must agree to PMI’s Code of Ethics and Professional Conduct  Several questions on the PMP exam are related to professional responsibility, including ethics 9  PMBOK ®  Twenty years ago, PMI volunteers sat down to distill the project management body of knowledge. This eventually became the PMBOK® Guide, now considered one of the most essential tools in the profession and is the de facto global standard for the industry  More than a million copies of the PMBOK® Guide are use today  Updates occur on a four-year cycle to ensure PMI's commitment to continually improve and revise the information contained in this essential reference manual. 10  What Is a Project?  A project is “a temporary endeavor undertaken to create a unique product, service, or result” (PMBOK® Guide, Third Edition, 2004, p. 5)  Operations is work done to sustain the business  Projects end when their objectives have been reached or the project has been terminated  Projects can be large or small and take a short or long time to complete 11  Examples of IT Projects  A help desk or technical worker replaces ten laptops for a small department  A small software development team adds a new feature to an internal software application for the finance department  A college campus upgrades its technology infrastructure to provide wireless Internet access across the whole campus  A cross-functional task force in a company decides what Voice-over-Internet-Protocol (VoIP) system to purchase and how it will be implemented Self study: Identify AI Projects 12  Top 10 Technology Projects  VoIP  Business analytics  Outsourcing  Compliance tracking  Data networking  Green IT  Customer relationship  Unified management communications  Collaboration  Business process  Supply chain modeling management  Virtualization 2.0  Desktop upgrades  Social software  Application performance management Self study: Identify top 10 AI 13 Project today  Media Snapshot: Where IT Matters  In 2006, Baseline Magazine published “Where I.T. Matters: How 10 Technologies Transformed 10 Industries” as a retort to Nicholas Carr’s ideas (author of “IT Doesn’t Matter”) that IT doesn’t provide companies with a competitive advantage  VoIP has transformed the telecommunications industry and broadband Internet access  Global Positioning Systems and Business Intelligence has changed the farming industry  Digital supply chain has changed the entertainment industry’s distribution system 14 Self study: Identify Artificial Intelligence matters today  Project Attributes  A project:  Has a unique purpose  Is temporary  Is developed using progressive elaboration  Specifications of the project are initially broad and then refined and more detailed as the project progresses  Requires resources, often from various areas  Should have a primary customer or sponsor  The project sponsor usually provides the direction and funding for the project  Involves uncertainty  Unclear objectives, difficult to estimate time to complete and cost, dependence on external factors 15  Project and Program Managers  Project managers work with project sponsors, a project team, and other people involved in a project to meet project goals  Program: group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually (PMBOK® Guide, Third Edition, 2004, p. 16)  Program managers oversee programs and often act as bosses for project managers 16  The Triple Constraint of Project Management Successful project management means meeting all three goals (scope, time, and cost) – and satisfying the project’s sponsor! However, quality is the quadruple constraint 17 What is Project Management?  Project management is “the application of knowledge, skills, tools and techniques to project activities to meet project requirements” (PMBOK® Guide, Third Edition, 2004, p. 8)  Project managers strive to meet the triple constraint by balancing project scope, time, and cost goals 18 Project Management Framework 19  Project Stakeholders  Stakeholders are the people involved in or affected by project activities  Stakeholders include:  The project sponsor  The project manager  The project team  Support staff  Customers  Users  Suppliers  And yes - opponents to the project! 20 9 Project Management Knowledge Areas  Knowledge areas describe the key competencies that project managers must develop  4 core knowledge areas lead to specific project objectives (scope, time, cost & quality)  4 facilitating knowledge areas are the means through which the project objectives are achieved (human resources, communication, risk, and procurement management)  1 knowledge area (project integration management) affects and is affected by all of the other knowledge areas  All knowledge areas are important! 21 Self study: Any AI specific knowledge can be used in PM?  PM Tools and Techniques  Project management tools and techniques assist project managers and their teams in various aspects of project management 22  Super Tools  “Super tools” are those tools that have high use and high potential for improving project success, such as:  Software for task scheduling (such as project management software)  Scope statements  Requirements analyses  Lessons-learned reports  Tools already extensively used that have been found to improve project importance include:  Progress reports  Kick-off meetings  Gantt charts  Change requests 23  What Went Right? Improved Project Performance  The Standish Group’s 2001 CHAOS studies show improvements in IT projects in the past decade Measure 1994 Data 2001 Data 2003 data Successful projects 16% 28% 34% Pct projects cancelled 31% 23% 18% AverageTime Overruns 222% 63% 82% Average Cost Overruns 185% 45% 43% Delivery of required features 61% 67% 52% 24 Self study: What is improvement in Artificial Intelligence Project today  Why the Improvements? "The reasons for the increase in successful projects vary. First, the average cost of a project has been more than cut in half. Better tools have been created to monitor and control progress and better skilled project managers with better management processes are being used. The fact that there are processes is significant in itself.”* *The Standish Group, "CHAOS 2001: A Recipe for Success" (2001).  Despite these improvements, the 2004 survey showed that IT project success rates had fallen from 34% in 2002 to 29% in 2004 and failures had increased from 15% to 18%. There is still room for improvement. 25  Project Success  There are several ways to define project success  The project met scope, time, and cost goals  The project satisfied the customer/sponsor even if the scope, time and/or costs goals were not met  The results of the project met its main objective, such as making or saving a certain amount of money, providing a good return on investment, 26 or simply making the sponsors happy What Helps Projects Succeed?* 1. Executive support 7. Firm basic requirements 2. User involvement 8. Formal methodology 3. Experienced project 9. Reliable estimates manager 10. Other criteria, such as 4. Clear business small milestones, objectives proper planning, 5. Minimized scope competent staff, and 6. Standard software ownership infrastructure 27  What the Winners Do Recent research findings show that companies that excel in project delivery capability: – Use an integrated project management toolbox (use standard/advanced PM tools and lots of templates) – Grow project leaders, emphasizing business and soft skills – Develop a streamlined project delivery process – Measure project health using metrics, like customer satisfaction or return on investment 28  Program and Project Portfolio Management  A program is “a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually” (PMBOK® Guide, Third Edition, 2004, p. 16)  A program manager provides leadership and direction for the project managers heading the projects within the program  Examples of common programs in the IT field:  infrastructure- wireless Internet access, upgrading h/w & s/w, developing corporate standards for IT  applications development – updating an ERP system, purchasing a new off-the-shelf billing system, adding new feature to CRM system  user support – daily operational support, upgrade e-mail system, 29 develop technical training for users  AI Project Portfolio Management  As part of project portfolio management, organizations group and manage projects and programs as a portfolio of investments that contribute to the entire enterprise’s success  Portfolio managers help their organizations make wise investment decisions by helping to select and analyze projects from a strategic perspective 30  Project Management Compared to Project Portfolio Management 31  Best Practice  A best practice is “an optimal way recognized by industry to achieve a stated goal or objective”*  Prof. Rosabeth Moss Kanter, says that visionary leaders know “the best practice secret: Stretching to learn from the best of the best in any sector can make a big vision more likely to succeed”  She also emphasizes the need to have measurable standards for best practices *Project Management Institute, Inc., Organizational Project Management Maturity Model (OPM3) Knowledge Foundation (2003), p. 13. 32  Best Practice * Robert Butrick, author of The Project Workout, suggests that organizations need to follow basic principles of project management, including these two mentioned earlier in this chapter  Make sure your projects are driven by your strategy; be able to demonstrate how each project you undertake fits your business strategy, and screen out unwanted projects as soon as possible  Engage your stakeholders; ignoring stakeholders often leads to project failure  Be sure to engage stakeholders at all stages of a project, and encourage teamwork and commitment at all times 33 * Information Technology Project Management, Fifth Edition, Copyright 2007 Sample Project Portfolio Approach 34  Project Portfolio Management Screen Showing Project Health  Provides an integrated picture of the project portfolios 35 across the enterprise Suggested Skills for AI Project Managers  Project managers need a wide variety of skills  They should: 1. Be comfortable with change 2. Understand the social, political and physical environments of the organizations they work in and with 3. Be able to lead teams to accomplish project goals 36  The Role of the Project Manager  Job descriptions vary, but most include responsibilities like planning, scheduling, coordinating, and working with people to achieve project goals  Remember that 97% of successful projects were led by experienced project managers, who can often help influence success factors 37 Suggested Skills for Project Managers  The Project Management Body of Knowledge  Application area knowledge, standards, and regulations  Project environment knowledge  General management knowledge and skills  Soft skills or human relations skills 38  10 Most Important Skills and Competencies for Project Managers 1. People skills 2. Leadership 3. Listening 4. Integrity, ethical behavior, consistent 5. Strong at building trust 6. Verbal communication 7. Strong at building teams 8. Conflict resolution, conflict management 9. Critical thinking, problem solving 10. Understands, balances priorities 39 Self study: Identify other Artificial Intelligence skills for managers today  Different Skills Needed in Different Situations  Large projects: leadership, relevant prior experience, planning, people skills, verbal communication, and team-building skills are most important  High uncertainty projects: risk management, expectation management, leadership, people skills, and planning skills are most important  Very novel projects: leadership, people skills, having vision and goals, self-confidence, expectations management, and listening skills are most important 40 Importance Skills for AI Leadership  Effective project managers provide leadership by example  A leader focuses on long-term goals and big-picture objectives while inspiring people to reach those goals  A manager deals with the day-to-day details of meeting specific goals  Project managers often take on the role of both leader and manager “Managers do things right, leaders do the right thing” “Leaders determine the vision, managers achieve the vision” 41  IT or AI Project Managers Survey by CIO.com conducted survey, findings are IT executives ranked project/program management the skills that would be the most in demand until now. The findings are: SKILL % OF RESPONDENTS  Project/program management 60%  Business process management 55%  Business analysis 53%  Application development 52%  Database management 49%  Security 42%  Enterprise architect 41%  Strategist/internal consultant 40% 42 The Project Management Profession  The profession of project management is growing at a very rapid pace  It is helpful to understand the history of the field, the role of professional societies like the Project Management Institute, and the growth in project management software 43  History of Project Management  Some people argue that building the Egyptian pyramids was a project, as was building the Great Wall of China  Most people consider the Manhattan Project to be the first project to use “modern” project management  This three-year, $2 billion (in 1946 dollars) project had a separate project manager (General Leslie Groves) and a technical manager (Dr. Robert Oppenheimer)  The military realized that scientists and other technical specialists often did not have the desire or the necessary skills to manage large projects  Dr. Oppenheimer was asked repeatedly for an organization chart of the teams working on the project and their responsibilities. Eventually he threw a piece of paper at his director and said “Here’s your damn 44 organization chart.”  History of Project Management  In 1917, Henry Gantt developed the famous Gantt chart as a tool for scheduling work in factories  A Gantt chart is a standard format for displaying project schedule information by listing projects activities and their corresponding start and finish dates in a calendar format  The military was the key industry behind the development of several project management techniques.  Members of the US navy Polaris missile/submarine project first used network diagrams in 1958. These diagrams helped model the relationships among project tasks, which allowed them to create schedules that were more realistic.  Determining the relationships among tasks helps in finding the critical path of the network. This tells the manager the earliest completion date of the project.  In the 1990s, many companies created project management offices (PMO) to help them handle the increasing number and complexity of projects throughout an organization 45  Gantt Chart in MS Project 46  Network Diagram in MS Project 47  Project Management Software  There are hundreds of different products to assist in performing project management  Three main categories of tools  Low-end tools: handle single or smaller projects well, cost under $200 per user  Midrange tools: handle multiple projects and users, cost $200-600 per user, Project 2007 most popular  High-end tools: also called enterprise project management software, often licensed on a per-user basis, like VPMi Enterprise Online (www.vcsonline.com)  See the Project Management Center Web site (www.infogoal.com/pmc) or Top Ten Reviews (project- management-software-review.toptenreviews.com) for links to many companies that provide project management software 48  Chapter 2: Managing & Organizing Team: AI and IT Context Information Technology Artificial Intelligence Project Management  2 Projects Cannot Be Run in Isolation  Projects must operate in a broad organizational environment  People and team essential to run a project  Project managers need to use systems thinking  Taking a holistic view of carrying out projects within the context of the organization  Senior managers must make sure projects continue to support current business needs  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  Management must see how projects relate to the whole organization  Three parts include:  Systems philosophy: an overall model for thinking about things as systems  Systems analysis: problem-solving approach  Systems management: address business, technological, and organizational issues before making changes to systems  4 Media Snapshot  The Press Association Ltd, the largest news agency in the United Kingdom, hired a consulting firm to help turn things around after management noticed its profit margins were sliding  The organization’s rapid growth rate and acquisition of several news organizations help extend its reach throughout the country but these disparate groups were not sharing work processes and technologies causing high operating costs  The consultants suggested using a holistic view and a top-down strategy to make sure projects supported key business goals  Everything must be seen as being connected in order for organization change to be accomplished  They also suggested releasing short-term results to accrue benefits on an incremental basis and reviewing projects on a regular basis to ensure strategic alignment  5 Opening Case Analysis Tom Walters did not use a systems approach – the IT department did all of the planning  He did not address many of the organizational issues involved in such a complex project  He did not clearly define the business, technological and organizational issues associated with the project  He did not involve the stakeholders which led to his being blindsided by the problems raised at the meeting Self study: Identify consulting firm in Malaysia in PM  Three Sphere Model for 6 Systems Management of Laptop Project  Understanding Organizations 7 Structural frame: Human resources frame: Focuses on roles and Focuses on providing responsibilities, harmony between needs of coordination and control. the organization and needs Organization charts help of people. define this frame. Political frame: Symbolic frame: Focuses Assumes organizations on symbols and meanings are coalitions composed related to events. Was it of varied individuals and good the CEO came to the interest groups. Conflict kickoff meeting? Culture is and power are key important, particularly in issues. international projects.  What Went Wrong? 8  Many enterprise resource planning (ERP) projects fail due to organizational issues, not technical 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.”  People in different parts of the company had different terms for various items.  People had their daily work to do and did not want to take the required time to get the new system to work  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.*  9 Organizational Structures  Related to political and structural frames  3 basic organization structures 1. Functional: functional managers report to the CEO 2. Project: program managers report to the CEO 3. Matrix: middle ground between functional and project structures; personnel often report to two or more bosses; structure can be weak, balanced, or strong matrix Functional, Project, and Matrix 10 Organizational Structures  Organizational Structure 11 Project Influences on Projects Organizational Structure Type Characteristics Functional Matrix Project Weak Balanced Strong Matrix Matrix Matrix Project manager’s Little or none Limited Low to Moderate High to authority Moderate to high almost total Percent of Virtually none 0-25% 15-60% 50-95% 85-100% performing organization’s personnel assigned full-time to project work Who controls the Functional Functional Mixed Project Project project budget manager manager manager manager Project manager’s Part-time Part-time Full-time Full-time Full-time role Common title for Project Project Project Project Project project manager’s Coordinator/ Coordinator/ Manager/ Manager/ Manager/ role Project Project Project Program Program Leader Leader Officer Manager Manager Project Part-time Part-time Part-time Full-time Full-time management administrative staff PMBOK Guide, 2000, 19, and PMBOK Guide 2004, 28.  Organizational Structure 12  Project managers have the most authority in a pure project organizational structure and the least in a pure functional structure  A project leader in a functional organization who requires strong support from several different functional areas, should ask for top management sponsorship  The sponsor should solicit support from all relevant functional managers to ensure that they cooperate and that qualified people are available to work as needed  Even though PMs have the most authority in the project organizational structure, this is often inefficient for the company as a whole  Assigning full-time staff to the project an lead to underutilization and/or misallocation of resources  A full-time technical writer that has no work on a particular day is a wasted resource  Using a systems approach might lead the PM to suggest hiring an independent contractor to do the writing instead of using a full-time employee, thus saving money  Organizational Culture 13  Just as an organization’s structure affects its ability to manage, so does an organization’s culture.  Organizational culture is a set of shared assumptions, values, and behaviors that characterize the functioning of an organization  Many experts believe the underlying causes of many companies’ problems are not the structure or staff, but the culture  Even within one organization, one department’s culture may be different from another department’s culture (technology vs. finance)  Some cultures make it easier to manage projects  10 Characteristics of 14 Organizational Culture1 1. Member identity* 6. Risk tolerance* 2. Group emphasis* 7. Reward criteria* 3. People focus 8. Conflict tolerance* 4. Unit integration* 9. Means-ends orientation 5. Control 10. Open-systems focus* 1 as per Stephen P. Robbins *Project work is most successful in an organizational culture where these items are strong/high and other items are balanced 10 Characteristics of Organizational Culture 15 1. Member identity: The degree to which employees identify with the organization as a whole rather than with their type of job or profession.  A PM or team member might feel more dedicated to his or her company or project team than to their job or profession, or they might not have any loyalty to a particular company or team.  An organizational culture where 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. 10 Characteristics of Organizational Culture 16 3. People focus: The degree to which management’s decisions take into account the effect of outcomes on people within the organization.  A PM might assign tasks to certain people without considering their individual needs, or the PM might know each person very well and focus on individual needs when assigning work or making other decisions.  Good PMs 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 PMs 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 PMs know it is often best to balance the degree of control to get good project results. 10 Characteristics of Organizational Culture 17 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 since 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 non-performance 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 conflict openly. 10 Characteristics of Organizational Culture 18 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. 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.  Stakeholder Management 19  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  Since organizations have limited resources, projects affect top management, other functional managers and other project managers by using some of those resources  Senior executives/top management are very important stakeholders  20 Opening Case Analysis  Tom Walters focused on just a few internal project stakeholders  He did not involve the main customers of his project - the students – nor did he hold meetings with senior administration or faculty  At the faculty meeting, it became evident that there were many stakeholders Tom had excluded from his original plan  Structural frame – by looking at an organizational chart of the entire college he would have been able to see that his project would affect academic dept heads and members of different administrative areas  Human resource frame – tap his knowledge of the college and identify individuals who would most support or oppose his project  Political frame – consider the main interest group most affected by his project’s outcome  Symbolic frame – address what moving to a laptop environment would really mean to the college. He could have anticipated some of the opposition and solicited a strong endorsement from the college president or dean before talking to the faculty  The Importance of 21 Top Management Commitment  Several studies have found that one of the key factors associated with virtually all project success is the commitment and support PMs receive  A senior manager, called a champion, acts as a key proponent for the project  Makes sure adequate resources are provided – money, human resources, visibility  Help PMs meet specific needs in a timely manner – realize that unexpected problems can and will arise and support is needed to overcome them  As most IT projects cut across functional areas, assists in obtaining cooperation from people in other parts of the organization; fight political battles  Mentors and coaches PMs on leadership issues since most IT PMs are not experienced in management  Best Practice in Managing Project 22  IT governance addresses the authority and control for key IT activities in organizations, including IT infrastructure, IT use, and project management  A lack of IT governance can be dangerous, as evidenced by three well-publicized IT project failures in Australia (Sydney Water’s customer relationship management system, the Royal Melbourne Institute of Technology’s academic management system, and One.Tel’s billing system)*  Senior management had not ensured that prudent checks and balances were in place to enable them to monitor either progress of the projects or the alignment and impact of the new systems on their business  Project level planning and control were absent or inadequate – project status reports to management were unrealistic, inaccurate and misleading *Avison, David, Gregor, Shirley and Wilson, David, “Managerial IT Unconsciousness”, CACM, vol 49, No. 7, P.92  23 Commitment in to Team Organization  If the organization has a negative attitude toward project team, it will be difficult for the project to succeed  Having a Chief Information Officer (CIO) at a high level in the organization helps IT team  Assigning non-IT people to IT projects also encourages more commitment  Some CEOs take a strong leadership role in promoting the use of information technology in their organizations Self study: Can we assign AI project to non-IT people?  24 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 to help PMs achieve project goals  Development of career paths for PMs and/or requiring PMP certification  25 Project Life Cycle & Project Phases  A project life cycle is a collection of project phases that defines:  What work will be performed in each phase  What deliverables will be produced and when  Who is involved in each phase  How management will control and approve work produced in each phase  A deliverable is a product or service produced or provided as part of a project  26 More on Project Phases  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  Phases of the Traditional 27 Project Life Cycle 27  Phases of the Traditional 28 Project Life Cycle  Concept phase – managers briefly describe the project  Develop a very high-level or summary plan for the project describing the need for the project and basic underlying concepts  Rough cost estimate is developed and an overview of the work involved is created  A work breakdown structure (WBS) outlines project work by decomposing the work activities into different levels of tasks  The WBS is a deliverable-oriented document that defines the total scope of the project  Tom Walters should have created a committee of faculty and staff to study the concept of increasing the use of technology on campus  They might have developed a management plan that included an initial, smaller project to investigate alternative ways of increasing the use of technology  Prepare a report that studies what are similar campuses doing, surveys students, staff and faculty and estimates the impact of using more technology on costs and enrollments.  Phases of the Traditional 29 Project Life Cycle  Development phase – project team creates more detailed project management plans, a more accurate cost estimate and a more thorough WBS  If the concept phase suggested that laptops were one means of increasing the use of technology on campus, then further study would be required in this phase to determine buy/lease, type of hardware and software, how much to charge students, how to handle training and maintenance, etc.  If the concept phase suggested that laptops were not the way to go, the project would have been cancelled at that point thereby saving time and money  Phases of the Traditional 30 Project Life Cycle  Implementation phase – project team creates a very accurate cost estimate, delivers the required work and provides performance reports to stakeholders  Acquire the hardware and software, install necessary network equipment, deliver laptops to the students, create a process for collecting fees, provide training, etc.  Faculty need to consider how to take advantage of the laptops, security prepare for potential problems, admissions include this in recruiting brochures, etc.  Close-out phase – all the work is completed, customer acceptance of the entire project  Project team should document their experiences on the project  Survey students, faculty, administration on impact of technology  Product Life Cycles 31  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 life cycle: the scope of the project can be clearly articulated and the schedule and cost can be predicted  Project team spends a large portion of the project attempting to clarify the requirements of the entire system and then producting a design  Users are often unable to see tangible reults in terms of working software for an extended period Predictive Life Cycle Models 32  Project team spends a large portion of the project attempting to clarify the requirements of the entire system and then producing a design  Users are often unable to see tangible results in terms of working software for an extended period  Waterfall model: has well-defined, linear stages of systems development and support  Spiral model: shows that software is developed using an iterative or spiral approach rather than a linear approach  Incremental build model: provides for progressive development of operational software  Prototyping model: used for developing prototypes to clarify user requirements  Rapid Application Development (RAD) model: used to produce systems quickly without sacrificing quality  33 Product Life Cycles  Adaptive Software Development (ASD) life cycle: requirements cannot be clearly expressed, projects are mission driven and component based, using time-based cycles to meet target dates  Development proceeds by creating components that provide the functionality specified by the business group as these needs are discovered in a more free-form approach  Requirements are developed using an iterative approach and development is risk driven and change tolerant to address and incorporate rather than mitigate risks  34 Product Life Cycles  Large IT projects are usually composed of several smaller, more manageable projects, especially when there is a lot of uncertainty involved  Some aspect of project management need to occur during each phase of the product life cycle  Systems planning phase for a new information system can include a project to hire an outside consulting firm to help identify and evaluate potential strategies for developing a particular business application  Implementation phase might include a project to hire outside programmers code part of the system  Close-out phase might include a project to develop and run several training sessions for users of the new application Self study: How to adapt AI in IT project & produce life cycles?  The Importance of Project Phases 35 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  At the end of the concept phase, the project team could have presented information to the faculty, president and other staff members that described different options for increasing the use of technology, an analysis of what competing colleges were doing and results of a survey of local stakeholders’ opinions on the subject. Unfavorable results could have resulted in stopping the project at that point and not investing more time, effort and money.  What Went Right? 36 "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...In information technology 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.”* Many organizations, like Huntington Bancshares, Inc., use an executive steering committee to help keep projects on track. *Cabanis, Jeannette, "'A Major Impact': The Standish Group's Jim Johnson On Project Management and IT Project Success," PM Network, PMI, Sep.1998, p. 7  37 The Context of AI Projects  AI projects can be very diverse in terms of size, complexity, products produced, application area, and resource requirements  AI or IT project team members often have diverse backgrounds and skill sets  AI projects use diverse technologies that change rapidly; even within one technology area, people must be highly specialized  38 Case Wrap-Up  Due to the concerns raised from many people at the meeting, the president directed that a broad-based committee be formed to investigate the technology issue and report back in a month.  Not surprisingly, the committee recommended to terminate the concept.  Tom Walters learned the hard way about the need to pay more attention to the needs of the entire college before proceeding with future technology plans.  Chapter 3: Project Management Process Artificial Intelligence Project Management  Project Management Process  A process is a series of actions directed toward a particular result  Project management can be viewed as a number of interlinked processes  The project management process phases can be combined in groups include:  Initiating processes  Defining and authorizing a project or project phase  Planning processes  Devising and maintaining a workable scheme to ensure that the project addresses the organization’s needs  Executing processes  Coordinating people and resources to carry out the various plans and produce the products, services or results of the project or phase  Monitoring and controlling processes  Regularly measuring and monitoring progress to ensure that the project objectives are met  Closing processes  Formalizing acceptance of the project or phase, closing out contracts, documenting 2 lessons learned 3 Process Groups Outcomes  Initiating processes  The organization recognizes that a new project exists – completion of a business case and project charter  Planning processes  Completing the WBS and scope statement, project schedule and cost estimate  Executing processes  Performing actions necessary to complete the work described in the planning activities  Monitoring and controlling processes  Measuring progress toward the project objectives, monitoring deviation from the plan and taking corrective action to match progress with the plan  Closing processes  Formal acceptance of the work and creation of closing documents 4 Project Management Process Groups  Level of activity and length of each process group varies for every product  On the average:  Executing process requires 50-60% of the resources and time  The planning process requires about 15-25%  The initiating and closing processes are usually the shortest and require the least amount of resources, usually 5 -10% each  Monitoring and controlling is done throughout the project and generally takes 5-15% 5  Level of Activity and Overlap of Process Groups Over Time 6 7  Developing an IT and AI Project Management Methodology  Just as projects are unique, so are approaches to project management  Many organizations develop their own project management methodologies, especially for IT projects  A methodology describes how things should be done  Blue Cross Blue Shield of Michigan implemented a SDLC for the entire organization but developers and PMs were often working on different IT projects in different ways  Deliverables were often missing or looked different from project to project  An IT project management methodology was developed using PMBOK as a guide 8  Mapping the Process Groups to the Knowledge Areas  You can map the main activities of each PM process group into the nine knowledge areas using the PMBOK® Guide 2004  Note that there are activities from each knowledge area under the planning and monitoring and controlling process groups  All initiating activities are part of the project integration management knowledge area 9  Relationships Among Process Groups and Knowledge Areas 10 10 PMBOK® Guide 2004, p. 69  Relationships Among Process Groups and Knowledge Areas (continued) PMBOK® Guide 2004, p. 69 11  PROJECT MANAGEMENT - KNOWLEDGE AREA PROCESSES MIND MAP BASED ON PMBOK'S GUIDE FIFTH EDITION, 2013 12  PROJECT MANAGEMENT - KNOWLEDGE AREA PROCESSES MIND MAP BASED ON PMBOK'S GUIDE 13 14 Chapter 3 - The Project Management Process Groups 15 Chapter 3 - The Project Management Process Groups 16 Chapter 3 - The Project Management Process Groups 17 Chapter 3 - The Project Management Process Groups  What Went Wrong?  Philip A. Pell, PMP, commented on how the U.S. IRS needed to improve its project management process. “Pure and simple, good, methodology-centric, predictable, and repeatable project management is the SINGLE greatest factor in the success (or in this case failure) of any project… The project manager is ultimately responsible for the success or failure of the project.”*  In 2006, the IRS lost over $320 million due to a botched fraud-detection system project *Comments posted on CIO Magazine Web site on article “For the IRS, There’s No EZ Fix,” (April 1, 2004). 18  Media Snapshot  Just as information technology projects need to follow the project management process groups, so do other projects, such as the production of a movie.  Processes involved in making movies might include screenwriting (initiating), producing (planning), acting and directing (executing), editing (monitoring and controlling), and releasing the movie to theaters (closing).  Many people enjoy watching the extra features on a DVD that describe how these processes lead to the creation of a movie…  This acted “…not as promotional filler but as a serious and meticulously detailed examination of the entire filmmaking process.”*  Project managers in any field know how important it is to follow a good process. *Jacks, Brian, “Lord of the Rings: The Two Towers Extended Edition (New Line)”, Underground Online (accessed from www.ugo.com August 4, 2004). 19 What Went Right? Jordan Telecom (JT), Jordan’s only telecom operator, introduced new customized project management processes to improve efficiency and reduce costs in its Information Technology department…JT created three lines of processes based on the size of the project: high, medium, or low...Rula Ammuri, JT’s Chief Information Officer, believes this new methodology will result in a 40- 50 percent increase in productivity.”* *Al-Tamimi, Fairooz, “Jordanian Company Uses PMI Methods to ‘Go Global,’ Improve Productivity,” PMI Today (August 2004). 20 Chapter 3 - The Project Management Process Groups  Case Study: JWD Consulting’s Project Management Intranet Site  This case study provides an example of what’s involved in initiating, planning, executing, controlling, and closing an IT project  This case study provides a big picture view of managing a project; later chapters provide detailed information on each knowledge area  Download Full report at JWD’s Case Study at Ulearn https://ulearn-ictm.utem.edu.my/sem1202021/mod/resource/view.php?id=19031 21  JWD Consulting Case Project Learning Objectives Describe the five project management process groups, the typical level of activity for each, and the interactions among them Understand how the project management process groups relate to the project management knowledge areas Discuss how organizations develop information technology (IT) project management methodologies to meet their needs Review a case study of an organization applying the project management process groups to manage an IT project, describe outputs of each process group, and understand the contribution that effective initiating , planning, executing, monitoring and controlling, and closing make to project success Review the same case study of a project managed with an agile focus to illustrate the key differences in approaches Describe several templates for creating documents for each process group 22 Chapter 3 - The Project Management Process Groups  Project Initiation  Initiating a project includes recognizing and starting a new project or project phase  Some organizations use a pre-initiation phase, while others include items like developing a business case as part of initiation  The main goal is to formally select and start off projects  Key outputs include:  Assigning the project manager  Identifying key stakeholders  Completing a business case  Completing a project charter and getting signatures on it 23  Project Initiation Documents  Business case: see pp. 91-93  Charter: see pp. 94-95  Note: Every organization has its own variations of what documents are required for project initiation  It’s important to identify the need for projects, who the stakeholders are, and what the main goals are for the project 24 Chapter 3 - The Project Management Process Groups  Project Planning  The main purpose of project planning is to guide execution  Every knowledge area includes planning information (see Table 3-5 on pp. 96-97)  Key outputs included in the JWD project include:  A team contract  A project scope statement  A work breakdown structure (WBS)  A project schedule, in the form of a Gantt chart with all dependencies and resources entered  A list of prioritized risks (part of a risk register)  See sample documents on pp. 99-106 25 JWD Consulting Intranet Site Project Baseline Gantt Chart 26 26  List of Prioritized Risks 27  Project Executing  Usually takes the most time and resources to perform project execution  Project managers must use their leadership skills to handle the many challenges that occur during project execution  Table 3-9 on pp. 106-107 lists the executing processes and outputs; many project sponsors and customers focus on deliverables related to providing the products, services, or results desired from the project  A milestone report (example on pp. 108-109) can help focus on completing major milestones 28  Part of Milestone Report 29 Chapter 3 - The Project Management Process Groups  Best Practice  One way to learn about best practices in project management is by studying recipients of Project Management Institute (PMI)’s Project of the Year award  The Quartier International de Montreal (QIM), Montreal’s international district, was a 66-acre urban revitalization project in the heart of downtown Montreal  This $90 million, five-year project turned a once unpopular area into a thriving section of the city with a booming real estate market, and generated $770 million in related construction. Strategies included:  Divided work into packages that allowed for smaller-scale testing of management techniques and contract awards. Based on these experiences, managers could adjust future work segments and management styles accordingly  Identified champions in each stakeholder group to help inspire others to achieve to project goals  Implemented a web site dedicated to public concerns  Two-day review meetings at the beginning of each project phase to discuss 30 problems and develop solutions to prevent conflict Project Monitoring and Control Changes  Involves measuring progress toward project objectives, monitoring deviation from the plan, and taking correction actions  Affects all other process groups and occurs during all phases of the project life cycle  Outputs include performance reports, requested changes, and updates to various plans 31  Project Closing  Involves gaining stakeholder and customer acceptance of the final products and services  Even if projects are not completed, they should be closed out to learn from the past  Outputs include project archives and lessons learned, part of organizational process assets  Most projects also include a final report and presentation to the sponsor/senior management 32  Chapter 4: Project Integration Management Information Technology & Artificial Intelligence Project Management Process Groups Outcomes  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.  Many new project managers have trouble looking at the “big picture” and want to focus on too many details.  Project integration management is not the same thing as software or AI techniques 3 integration Project Integration Management Processes 1. Develop the project charter: working with stakeholders to create the document that formally authorizes a project—the charter 2. Develop the preliminary project scope statement: working with stakeholders, especially users of the project’s products, services, or results, to develop the high- level scope requirements and create a preliminary project scope statement 3. Develop the project management plan: coordinating all planning efforts to create a consistent, coherent document—the project 4 management plan Project Integration Management Processes 4. Direct and manage project execution: carrying out the project management plan by performing the activities included in it 5. Monitor and control the project work: overseeing project work to meet the performance objectives of the project 6. Perform integrated change control: coordinating changes that affect the project’s deliverables and organizational process assets 7. Close the project: finalizing all project 5 activities to formally close the project Project Integration Management Summary 6 Project Integration Management Processes The project managers takes responsibility to  Coordinate all the people, plans and work required to complete a project  Focuse on the big picture and steering the project team toward successful completion  Make the final decisions when there are conflicts among project goals or people involved  Communicate key project information to 7 top management Project Integration Management Processes  Good project integration management is critical to providing stakeholder satisfaction  Interface management – identifying and managing the points of interaction between various elements of the project:  The number of interfaces can increase exponentially as the number of people involved in the project increases.  Therefore, the PM must establish and maintain good communication and relationships with all stakeholders, customers the project team, top management , other PMs and opponents 8 of the project.  Strategic Planning & Project Selection  Strategic planning involves determining long-term 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  Very important to have managers from outside the IT dept assist in the planning process as they can help to understand organizational strategies and identify the business areas that support them  As part of strategic planning, organizations:  Identify potential projects  Use realistic methods to select which projects to work on 9  Formalize project initiation by issuing a project charter End of Life Vehicle (ELV) Remanufacturing and Recycling – An example 10  IT Planning Process 11 Information Technology Project Management, Fifth Edition, Copyright 2007  Aligning AI with IT Business Strategy  This is consistently the top concern for CIO/CDO’s  Research shows that supporting explicit business objectives is the number one reason cited for why organizations invest in IT projects  An organization’s strategic plan should guide the IT project selection process  Many IT systems are “strategic” because they directly support key business 12 strategies  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  Implementing a balanced scorecard  In practice, organizations usually use a combination of these approaches to select projects. 13 Each approach has its pros and cons 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  It is often difficult to provide strong justification for many IT projects and/or estimate their financial value, but everyone agrees they have a high value  “It is better to measure gold roughly than to count pennies precisely”  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 14  Categorizing IT & AI Projects  One categorization is the impetus for a project i.e., responding to :  A problem is an undesirable situation that prevents an org. from achieving its goals – system slow, needs upgrades  An opportunity is a chance to improve the org. – creating a new product  A directive is a new requirement imposed by management, govt or some external influence – medical technologies must meet govt requirements  Another categorization is how long it will take to do and when it is needed  Another is the overall priority of the project 15  Financial Analysis of Projects  Financial considerations are often an important consideration in selecting projects  “Projects are never ends in themselves. Financially they are always a means to an end, cash” Dennis Cohen and Robert Graham, The Project Manager’s MBA  Three primary methods for determining the projected financial value of projects  Net present value (NPV) analysis  Return on investment (ROI)  Payback analysis  PMs must become familiar with the language of 16  business executives in order to make their case  Net Present Value Analysis  A dollar earned today is worth more than a dollar earned five years from now  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  Projects with a positive NPV should be considered if financial value is a key criterion because that means the return from a project exceeds the cost of capital (the return available by investing the capital elsewhere) 17  The higher the NPV, the better  Net Present Value Analysis  NPV is the difference between the present value of cash inflows and the present value of cash outflows.  NPV compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account.  For example, if a retail clothing business wants to purchase an existing store, it would first estimate the future cash flows that store would generate, and then discount those cash flows into one lump- sum present value amount, say $565,000.  If the owner of the store was willing to sell his business for less than $565,000, the purchasing company would likely accept the offer as it presents a positive NPV investment.  Conversely, if the owner would not sell for less than $565,000, the purchaser would not buy the store, as the investment would present a negative NPV at that time and would, therefore, reduce the overall value of the clothing company. 18  Net Present Value Analysis  NPV = Net Present value = Present value of net cash flows  Each cash inflow/outflow is discounted back to its PV and then they are summed. or shortened t - the time of the cash flow N - the total time of the project r - the discount rate (the rate of return that could be earned on an investment in the financial markets with similar risk.) Ct - the net cash flow (the amount of cash) at time t C0- the initial investment 19  NPV = the difference between the present value of cash inflows and the present value of cash outflows over a period of time. 20  Net Present Value Analysis $943.39 21  Net Present Value Example Note that totals are equal, but NPVs are not because of the time value of money 22 Information Technology Project Management, Fifth Edition, Copyright 2007  JWD Consulting NPV Example Multiply by the discount factor each year, then take cum. benefits – costs to get NPV 23  NPV Calculations  Determine estimated costs and benefits for the life of the project and the products it produces  Determine the discount rate  Calculate the NPV Use NPV function in Excel (npv9discount rate, cash flows range) Calculate total discounted benefits and total discounted costs. NPV is 24 benefits - costs  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 of all 25 cash flows equal to zero  Return on investment (ROI) is calculated by dividing the profit earned on an investment by the cost of that investment. 26  Internal Rate of Return  Internal Rate of Return (IRR): The discount rate that makes the net present value of investment zero.  It is an indicator of the efficiency of an investment, as opposed to NPV, which indicates value or magnitude.  The IRR is the annualized effective compounded return rate which can be earned on the invested capital, i.e., the yield on the investment.  A project is a good investment proposition if its IRR is greater than the rate of return that could be earned by alternate investments (investing in other projects, buying bonds, even putting the money in a bank account).  Thus, the IRR should be compared to any alternate costs of capital including an appropriate risk premium. 27  Internal Rate of Return  Mathematically the IRR is defined as any discount rate that results in an NPV of zero of a series of cash flows.  In general, if the IRR is greater than the project's cost of capital, or hurdle rate (minimum rate of return that must be met for a company to undertake a particular project), the project will add value for the 28 company.  Internal Rate of Return 29  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 benefits equals the net cumulative costs  Many organizations want IT or AI projects to have a fairly short payback period 30  Charting the Payback Period 31  Weighted Scoring Model  A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria 1. Identify criteria important to the project selection process, e.g., a. Supports key business objectives b. Has strong internal sponsor c. Has strong customer support 2. Assign weights (percentages) to each criterion so they add up to 100% 3. Assign scores to each criterion for each project 4. Multiply the scores by the weights and get the total weighted scores 32 The higher the weighted score, the better  Sample Weighted Scoring Model for Project Selection 33  Implementing a Balanced Scorecard  Drs. Robert Kaplan and David Norton developed this approach to help select and manage projects that align with business strategy  A balanced scorecard: - Is a methodology that converts an organization’s value drivers, such as customer service, innovation, operational efficiency, and financial performance, to a series of defined metrics  Organizations record and analyze these metrics to determine how well projects help them achieve strategic goals  See www.balancedscorecard.org for more information 34  Balanced Scorecard Institute  The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.  It can help your organization by translating high level organizational strategy into something that employees can understand and act upon in their day-to-day operations and initiatives 35  Balanced Scorecard Institute  The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives  Balanced Scorecard Example Defense Finance and Accounting Service, “DFAS Strategic Plan,” Nov 2001 (http://balancedscorecard.org/files/DFAS-strategic-plan.pdf ), p. 13. 37  Project Charters  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 38 Information Technology Project Management, Fifth Edition, Copyright 2007  Project Charters  Input  Contract  Statement of work  Enterprise environmental factors  Organizational process assets  Tools & Techniques  Project selection methods  Project management methodology  Project management information system  Expert judgment  Outputs 39  Project charter Project Integration Management Overview 40  Preliminary Scope Statements  Once the existence of the project has been formally recognized via the project charter, the next step is preparing a preliminary scope statement  A scope statement is a document used to develop and confirm a common understanding of the project scope  It is important for preventing scope creep - The tendency for project scope to keep getting bigger  It’s good practice to develop a preliminary or initial scope statement during project initiation and a more 41 detailed scope statement as the project progresses  Project Management Plans  A project management plan is a document used to coordinate all project planning documents and help guide a project’s execution and control  Documents project planning assumptions and decisions regarding choices, facilitates communication among stakeholders, provides a baseline for progress measurement and project control  Should be dynamic, flexible and subject to change when the environment or project changes  Includes all project planning documents  Plans created in the other knowledge areas are subsidiary parts of the overall project management plan 42  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  Work to be done, schedule, and budget information  Many govt. agencies (e.g., DOD, IEEE) provide guidelines for creating PMPs 43  Sample Contents for AI or Software Project Management Plan 44  Stakeholder Analysis  Needed because the ultimate goal of project management is to meet or exceed stakeholder needs and expectations from a project  A stakeholder analysis documents important information about stakeholders such as: 1. Stakeholders’ names and organizations 2. Roles on the project 3. Unique facts about stakeholders 4. Level of influence and interest in the project 5. Suggestions for managing relationships  Info is often sensitive; available only to PMs and key team members  Can provides insights in how to relate to stakeholders to best accomplish the project 45  Sample Stakeholder Analysis for Opening Case 46  Project Execution  Project execution 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 47 of the project are produced during execution  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 48  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: i. Providing guidelines and templates ii. 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  Requires excellent leadership, communication and 49 political skills  Important Skills for Project Execution  General management skills like leadership, communication, and political skills  Product, business, and application area skills and knowledge - Northwest Airlines spent millions of dollars and had a team of 70 full-time people working on the project led by a PM who had never worked in an IT dept but had extensive knowledge of the airline industry and reservation process  Use of specialized tools and techniques 50 Project Execution Tools & Techniques  Project management methodology: many experienced project managers believe the most effective way to improve project management is to follow a methodology that describes not only what to do in managing a project, but how to do it  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  PMs should delegate these tasks to other team members and concentrate on providing leadership 51  for the whole project Monitoring & Controlling Project Work  Changes are inevitable on most projects, so it’s important to develop and follow a process to monitor and control changes  On large projects, 90% of the PMs job is communicating and managing changes  Monitoring project work includes collecting, measuring, and disseminating performance information  Two important outputs of monitoring and controlling project work include recommended corrective and preventive actions  Corrective result in improvements in project performance and preventive reduce the chances of negative consequences associated with project risks  Other outputs – forecasts, recommended defect repairs and requested changes 52  Integrated Change Control 3 main objectives are: i. Influencing the factors that create changes to ensure that changes are beneficial - Tradeoff on scope, time and cost and quality ii. Determining that a change has occurred - PM must be on top of the status of key project areas at all times and communicate changes to top management and stakeholders iii. Managing actual changes as they occur  Change is unavoidable so careful change control is a critical success factor to a project A baseline is the approved project management plan plus approved changes 53  Change Control on IT or AI 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 54 project team should plan for them  Change Control System  A formal, documented process that describes when and how official project documents and work may be changed - Change is necessary but it needs to be properly managed and controlled  Describes who is authorized to make changes and how to make them 55  Change Control Board (CCB)  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 56  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, examples: i. “48-hour policy” allows project team members to make decisions, then they have 48 hours to reverse the decision pending senior management approval ii. Delegate changes to the lowest level possible, but keep everyone informed of changes 57  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 58 Suggestions for Performing Integrated Change Control It is the responsibility of the PM to integrate all project changes so that the project stays on track 59  Closing Projects  To close a project, you must finalize all activities and transfer the completed or cancelled work to the appropriate people  Main outputs include: Administrative closure procedures Contract closure procedures Final products, services, or results Organizational process asset updates  Project documentation, project closure documents, historical information produced by the project, lessons-learned report 60  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 eg. MS Word Presentations are created with presentation software eg. MS Powerpoint Tracking can be done with spreadsheets or databases eg. MS Excel Communication software like e-mail and Web authoring tools facilitate communications eg. MS 61 Outlook  Using Software to Assist in Project Integration Management Several types of software can be used to assist in project integration management Project management software can pull everything together and show detailed and summarized information eg. MS Project Business Service Management (BSM) database to track the execution of business process flows eg. MS Access DBMS  Can help improve alignment between IT projects (network upgrade) and business goals (reduce cost by processing customer 62 order more quickly)  Summary Project integration management includes: Developing a project charter Developing a preliminary project scope statement Developing a project management plan Directing and managing project execution Monitoring and controlling project work Performing integrated change control 63 Closing the project  Chapter 5 Project Scope Management Information Technology Artificial Intelligence Project Scope Management  What is Project Scope Management?  Scope refers to all the work involved in creating the products of the project and the processes used to create them  A deliverable is a product produced as part of a project, such as hardware or software, planning documents, or meeting minutes  Project scope management includes the processes involved in defining & controlling 2 what is included or not in the project  Project Scope Management Processes  Scope planning: deciding how the scope will be defined, verified, and controlled  Scope definition: reviewing the project charter and preliminary scope statement and adding more information as requirements are developed and change requests are approved  Creating the WBS: subdividing the major project deliverables into smaller, more manageable components  Scope verification: formalizing acceptance of the project scope by key project stakeholders  Scope control: controlling changes to project scope 3 which impact project cost and time goals Project Scope Management Summary 4  Scope Planning and the Scope Management Plan  The scope management plan is a document that includes descriptions of how the team will prepare the project scope statement, create the WBS, verify completion of the project deliverables, and control requests for changes to the project scope  Key inputs include the project charter, preliminary scope statement, and project management plan  It should be reviewed with the project sponsor to 5 make sure the approach meets expectations  What should we do? The Seven Steps 1. Analyze the project atmosphere, stakeholders and centers of influence 2. Align the project scope with the organization’s strategic objectives and business challenges 3. Determine where to add value to the business 4. Study the process flow between the business units 5. Develop an efficient communication strategy 6. Develop the project approach 7. Coordinate the new project with the other initiatives 6 already under way  Sample Scope Management Plan 7  Sample Project Charter 8  Scope Definition and the Project Scope Statement  The project team develops a preliminary scope statement in initiating a project as part of the project integration management knowledge area  The preliminary scope statement, project charter, organizational process assets, and approved change requests provide a basis for creating the more specific project scope statement 9  Scope Definition and the Project Scope Statement  Project scope statements should contain at a minimum:  Description of the project – overall objectives, justification  Detailed descriptions of all project deliverables  Characteristics and requirements of products and services produced as part of the project  Other helpful information:  Project success criteria  Project boundaries  Product acceptance criteria  Schedule milestones  Order of magnitude costs estimates 10  Further Defining Project Scope 11  Work Breakdown Structure (WBS)  A WBS is a deliverable-oriented grouping of the work involved in a project that defines the total scope of the project  WBS is a foundation document that provides the basis for planning and managing project schedules, costs, resources, and changes  Decomposition is subdividing project deliverables into smaller pieces  A work package is a task at the lowest level of the WBS  Tasks on a WBS represent work that needs to be done to complete the project, not specifications (e.g., type of server) 12  Work Breakdown Structure (WBS)  The project scope statement and project management plan are the primary inputs for creating a WBS  The outputs include the WBS itself, the WBS dictionary, a scope baseline and updates to the project scope statement and scope management plan  The WBS is often depicted as a task-oriented family tree of activities  The WBS can be organized around project products, project phases or using the project management 13 process groups  Partial WBS Organized by Product Areas 14  Partial WBS Organized by Project Phase 15  Partial Intranet WBS in Tabular Form 1.0 Concept 1.1 Evaluate current systems 1.2 Define Requirements 1.2.1 Define user requirements 1.2.2 Define content requirements 1.2.3 Define system requirements 1.2.4 Define server owner requirements 1.3 Define specific functionality 1.4 Define risks and risk management approach 1.5 Develop project plan 1.6 Brief Web development team 2.0 Web Site Design 3.0 Web Site Development 4.0 Roll Out 5.0 Support 16  Intranet WBS and Gantt Chart in Microsoft Project 17  Intranet Gantt Chart Organized by Project Management Process Groups 18  Approaches to Developing WBSs  Using guidelines: some organizations provide guidelines for preparing WBSs  The analogy approach: review WBSs of similar projects and tailor to your project  The top-down approach: start with the largest items of the project and break them down  The bottom-up approach: start with the specific tasks and roll them up  Mind-mapping approach: mind mapping is a technique that uses branches radiating out from a core idea to structure thoughts and ideas 19  Mind Mapping  Mind Mapping is a way of creating pictures that show ideas in the same way that they are represented in your brain.  Your brain uses words, pictures, numbers, logic, rhythm, color and spatial awareness to build up unique pictures of information.  The ideas are linked together in a way that makes it easy to understand and remember. http://www.youtube.com/watch?v=MlabrWv25qQ 20  Mind Mapping 21  Mind Mapping  Use just key words, or wherever possible images.  Start from the center of the page and work out.  Make the center a clear and strong visual image that depicts the general theme of the map.  Create sub-centers for sub-themes.  Put key words on lines. This reinforces structure of notes.  Print rather than write in script. It makes them more readable and memorable. Lower case is more visually distinctive (and better remembered) than upper case.  Use color to depict themes, associations and to make things stand out.  Anything that stands out on the page will stand out in your mind.  Think three-dimensionally.  Use arrows, icons or other visual aids to show links between different elements.  Don't get stuck in one area. If you dry up in one area go to another branch.  Put ideas down as they occur, wherever they fit. Don't judge or hold back.  Break boundaries. If you run out of space, don't start a new sheet; paste more paper onto the map. (Break the 8x11 mentality.)  Be creative. Creativity aids memory.  From http://www.peterrussell.com/MindMaps/HowTo.php 22  Sample Mind-Mapping Approach for Creating a WBS 23  Resulting WBS in Chart Form 24  Scope Verification  It is very difficult to create a good scope statement and WBS for a project  It is even more difficult to verify project scope and minimize scope changes  Scope verification involves formal acceptance of the completed project scope by the stakeholders  Acceptance is often achieved by a customer inspection and then sign-off on key deliverables 25  Scope Control  Scope control involves controlling changes to the project scope  Goals of scope control are to:  Influence the factors that cause scope changes  Assure changes are processed according to procedures developed as part of integrated change control  Manage changes when they occur  Tools for performing scope control include a change control system and configuration management  Variance is the difference between planned and actual performance 26 Best Practices for Avoiding Scope Problems 1. Keep the scope realistic: Don’t make projects so large that they can’t be completed; break large projects down into a series of smaller ones 2. Involve users in project scope management: Assign key users to the project team and give them ownership of requirements definition and scope verification 3. Use off-the-shelf hardware and software whenever possible: Many IT people enjoy using the latest and greatest technology, but business needs, not technology trends, must take priority 4. Follow good project management processes: As described in this chapter and others, there are well-defined processes for managing project scope and others aspects of projects 27  Suggestions for Improving User Input  Develop a good project selection process and insist that sponsors are from the user organization  Have users on the project team in important roles  Have regular meetings with defined agendas, and have users sign off on key deliverables presented at meetings  Deliver something to users and sponsors on a regular basis  Don’t promise to deliver when you know you can’t  Co-locate users with developers 28  Suggestions for Reducing Incomplete and Changing Requirements  Develop and follow a requirements management process  Use techniques such as prototyping or use case modeling to get more user involvement  Put all requirements in writing, keep them current and readily available  Create a requirements management database for documenting and controlling requirements 29  Suggestions for Reducing Incomplete and Changing Requirements  Provide adequate testing and conduct testing throughout the project life cycle  Review changes from a systems perspective  Project scope changes must include associated cost and schedule changes  Focus on approved scope goals and don’t get side tracked  Emphasize completion dates to help focus on what’s most important  What should we drop in order to add something new?  Allocate resources specifically for handling change requests/enhancements 30  Using Software to Assist in Project Scope Management  Word-processing software helps create several scope-related documents  Spreadsheets help to perform financial calculations and weighed scoring models, and develop charts and graphs  Communication software like e-mail and the Web help clarify and communicate scope information  Project management software helps i