SESSION 1  People – The stakeholders of a project

with varied roles and interests in the

 Information Technology (IT) projects are
project’s success or failure.
organizational investments that require
 Processes – This includes having a set
 Time
of project management and product
 Money
management processes.
 And other resources such as people,
 Technology – Only three percent of IT
technology, facilities, etc.
project failures can be attributed to
 IT projects enable the integration of
technical challenges but this
technology in new products, services, or
percentage can be increased if
processes that can change existing
obsolete, unproven, or incompatible
relationships between an organization
technologies are used.
and its customers and suppliers as well as
 Organization – Organizational issues
among the people within the
can lead to project failure. A lack of
organization.
clear direction, improper strategy,
 A project is a temporary endeavor
rapidly changing business
undertaken to create a unique product,
environment and/or customer needs
service, or result.
can create a moving target for the
 A project manager is the person assigned
product’s product or service.
by the performing organization to achieve
the project objectives.
 Project Attributes
 Time Frame
 Purpose (to provide value!)
 Ownership
 Resources (the triple constraint)
 Roles
 Risk & Assumptions
 Interdependent Tasks
 Planned Organizational Change
 Operate in Environments Larger than
the Project Itself
 Project Management is the application of  Improving the likelihood of success
knowledge, skills, tools and techniques to  A Value-Driven Approach  Plain &
project activities to meet project Simple: IT Projects must provide
requirements. value to the organization
 Project Portfolio – a collection of diverse  Socio-technical Approach  It’s not
projects managed collectively to align just about the technology or building
with the organization’s strategy and a better mouse trap
overall plan to achieve competitive  Project Management Approach 
advantage. processes and infrastructure
 Program – a collection of projects within a (Methodology), resources,
project portfolio whose activities are expectations, competition, efficiency
coordinated so that the benefits of the and effectiveness.
program are great than the sum of the  Knowledge Management
benefits of the individual projects. Approach lessons learned, best
 Project Failure can be grouped into four practices & shared knowledge
categories
SESSION 2  Final project report and presentation
to the client
 Project Methodology is a strategic-level
 Postmortem review
plan for managing and controlling the
 Lessons learned and best practices
project. Must be flexible and include “best
documented and shared
practices” learned from experiences over
 PMBOK® Guide – The 10 Project
time. E.g Traditional (e.g., Waterfall) and
Management Knowledge Areas
Agile (e.g., XPM, SCRUM)
 Project integration management
 The Project Life Cycle is Collection of
logical stages or phases that maps the life  Project scope management
of a project from its beginning, through its  Project time management
middle, to its end, to define, build, and  Project cost management
deliver the product.  Project quality management
 Generic PLC  Project human resource management
 Project communications management
 Project risk management
 Project procurement management
 Project stakeholder management
 The Five (5) PMBOK® Project
Management Process Groups
 Initiating
 Planning
 Executing
 Monitoring and Controlling
 Define Project Goal  Closing
 The project goal should be focused on
providing business value to the
organization
 Provides a clear focus and drives the
other phases of the project
 How will we know if this project is
successful given the time, money, and
resources invested?
 Plan Project
 Project Objectives
 Resources
 Controls
 Execute Project Plan
 Manage the project scope, schedule,
budget, and people to ensure the
project achieves its goal
 Progress must be documented and
compared to the baseline plan
 Project performance must be
communicated to all of the
stakeholders
 Close and Evaluate Project
 Ensures that all of the work is
completed as planned
 Figure 2-4 – PRINCE2® – The Seven (7)  The Project Life Cycle (PLC) and the
Processes Systems Development Life Cycle (SDLC)
 Start Project
 Initiate Project
 Direct Project
 Control Stage
 Manage Product Delivery
 Manage Stage Boundaries
 Close Project

 Implementing the SDLC

 Defines all of the subphases and
deliverables associated with the
Execute and Control Project
 The PRINCE2® – Themes (guidelines to aid Management Life Cycle phase.
project goal achievement)  Number of Ways to implement the
 Business Case SDLC : Waterfall, Agile.
 Organization  The Waterfall Model
 Risk
 Quality
 Planning
 Change
 Progress
 The PRINCE2® – Principles (Universal
guidance for all projects)
 Business Case Driven
 Product Focus
 Lessons Learned
 Manage the Stage
 Adapt to the Project
 Manage by Exception  Agile Systems Development
 Accountability  Condenses the SDLC into an iteration
 SDLC or sprint
 Users and developers work closely
together to define and prioritize
important (“must have”) features
 Emphasize working software to
measure progress and rely heavily on
face-to-face communication
 Umbrella term that includes a number
of approaches or methods
 Agile Systems Development – Four (4)  A Learning Cycle
Themes or Categories
 Customer
 Product
 Project Team
 Performance
 Agile Methods: Extreme Programming
(XP) and Scrum
 Methods for project management that
are becoming increasingly popular
 Characterize many of today’s projects
that exemplify speed, uncertainty,
changing requirements, and high risks
 XP
o User requirements first  Team Learning
documented as user stories
o Document user stories in an object
oriented model called a class
diagram
o Transfers the system in a series of
versions called releases
 Scrum
o Three important roles:
 Scrum master – similar to
project manager
 Product owner – represents
the business side, ensures the
most important features are
included
 Development team –
responsible for delivering a
quality product or system
o Product backlog – team prioritizes
features that need to be
developed/delivered
o Sprint – iterations lasting a few
weeks (usually) and delivers a
complete product
o Daily scrum – short stand-up
meeting
 SESSION 3-4

 Measurable Organizational Value (MOV)

and Project Objectives
 The MOV is a “Measure of Success”
 The MOV must support the
organization’s vision, mission, and
strategy
 Also, the MOV must:
o Be measurable
o Provide value
o Be agreed upon
o Be verifiable  Developing the MOV
 Project Objectives – support the MOV  Identify the desired area of impact
and include: Potential Areas:
o Scope (the project work to be • Customer
completed • Strategic
o Schedule (time) • Financial
o Budget (money) • Operational
o Quality (conformance or fitness • Social
for use)
 Project Alignment

Organizational Drives
Vision & Mission

 Identify the desired value of the IT

Organizational
Drives project
Strategy
Supports Organizational Value:
• Better?
Project’s
Organizational
• Faster?
Supports
Measurable
Value
• Cheaper?
(MOV) • Do More? (growth)
 Develop an Appropriate Metric
 Provides the project team with a
performance target or directive
 Project Objectives
 Sets expectations among all
 Project Objectives – support the MOV
stakeholders
and include:
o Scope (the project work to be  Affords a means for evaluating
completed whether the project is a success
o Schedule (time)  Metrics are expressed in …
o Budget (money) 1. Money ($, £, ¥ – increase or
o Quality (conformance or fitness decrease)
for use) 2. Percentage (% – increase or
decrease)
3. Numeric Values (increase or
decrease)
  Set a time frame for achieving the
MOV
 When will these results (the MOV)
be achieved?
 Verify the MOV and get agreement
from the project stakeholders
 Project manager’s responsibility is
to guide the process, while the
project sponsor must identify and
specify the metrics and the
acceptable values for the metrics
 Summarize the MOV in a clear,
concise statement or table
 The Business Case
 Definition of Business Case: an analysis
of the organizational value, feasibility,
costs, benefits, and risks of several
proposed alternatives or options.
 Attributes of a Good Business Case
o Thorough in detailing all possible
impacts, costs, and benefits
o Clear and logical in comparing the
cost/benefit impact of each
alternative
o Objective through including all
pertinent information
o Systematic in terms of summarizing
findings
 Developing the Business Case
 Step 1: Define Measurable
Organizational Value (MOV)
 Step 2: Form a Cross-Functional
Business Case Team
Advantages:
o Credibility
o Alignment with organizational goals
o Access to the real costs
o Ownership
o Agreement
o Bridge building
 Step 3: Identify Alternatives
Possible Options
o Change existing process without
investing in IT
o Adopting or adapting an application
developed by a different area or
department within the organization
o Reengineer the existing system
o Purchasing an off-the-shelf
application package from a
software vendor
o Custom building a new application
using internal resources or
outsourcing the development to
another company
 Step 4: Define Feasibility and Assess
Risk
o Feasibility (“do able and worth
doing?”)
 Economic feasibility
 Technical feasibility
 Organizational feasibility
 Other feasibilities
o Risk
 Identification – What can go
wrong? What must go right?
 Assessment – What is the
impact of each risk?
 Response – How can the
organization avoid or minimize
the risk?
 Step 5: Define Total Cost of Ownership
o Direct or Up-front costs
o Ongoing Costs
o Indirect Costs
 Step 6: Define Total Benefits of
Ownership
o Increasing high-value work
o Improving accuracy and efficiency
o Improving decision-making
o Improving customer service
 Step 7: Analyze alternatives
o Payback
o Breakeven
Breakeven Point = Initial Investment /
Net Profit Margin
o Return on Investment
o Net Present Value
NPV = -I0 +  (Net Cash Flow / (1 + r)t)
Where:
I = Total Cost or Investment of the
Project
r = discount rate
t = time period
 o Scoring models
 provide a method for comparing
alternatives or projects based on a
weighted score.
 can combine both qualitative and
quantitative criteria
 weights and scores can be
subjective
o Things to keep in mind about financial
and scoring models
 Financial models can be biased
toward the short run
 Some criteria are reversed-scored
 Past experience may help create a
more realistic business case.
 Step 8: Propose and Support the
Recommendation
o Once the alternatives are identified
and analyzed, the last step is to
recommend one of the options.
 Business Case Template
SESSION 5-6
 Project’s have…
 An Infrastructure
 A Governance structure
 Required Resources (must
obtained)
 A Project Charter
 The Project Infrastructure
 Project Governance
 Should flow from organizational
governance
 Provides a framework to ensure that
a project aligns with a chosen
business strategy while ensuring that
the time, money, and resources
provide real value to the organization.
 Projects governance must define:
o Structure
o Authorization
o Oversight and Accountability
o Decision Making
o Resources
 The Project Team
 The Roles of the Project Manager
o Managerial role
o Leadership role
 Attributes of a successful project
manager
o ability to communicate with people
o ability to deal with people
oability to create and sustain
relationships
o ability to organize
 The Project Team
o Technology Skills
be o Business/organization knowledge
o Interpersonal skills
 The Formal Organization
 Formal groupings & specializations
 Published Lines of
o Authority
o Responsibilities
o Reporting Relationships
o Communication
o Decision-Making
 The Functional Organization
 Advantages
o Increased Flexibility
o Breadth & Depth of Knowledge &
Experience
o Less Duplication
 Disadvantages
o Determining Authority &
Responsibility
o Poor Response Time
o Poor Integration
 The Project-Based Organization
 Advantages
o Clear Authority & Responsibility
o Improved Communication
o High Level of Integration
 Disadvantages
o Project Isolation
o Duplication of Effort
o “Projectitis”
 The Matrix Organization
 Advantages
o High Level of Integration
o Improved Communication
o Increased Project Focus
 Disadvantages
o Higher potential for conflict
 Team members may wonder
“Who’s my boss?”
o Poorer Response Time
 Procuring External Project Resources
The decision depends on
 The project scope
  Availability of the products and
services in the marketplace
 Cost
 Quality
 Terms and Conditions
 Procurement Planning
 Begins by determining which project
needs can be fulfilled internally or
externally by the project team
 Focuses on not only what can best be
filled internally or externally, but How,
When, How Many and Where these
products or services will be acquired
 A Request for Proposal (RFP) may be
developed and used to solicit bids,
quotes, or proposals for services or
goods from prospective sellers.
 Contracts Between Sellers and Buyers
 Once a seller is selected, the buyer
may enter into contract negotiations
so that a mutual agreement can be
reached
 A contract is a document signed by the
buyer and seller that defines the terms
and conditions of the buyer-seller
relationship. IT serves as a legally
binding agreement that obligates
seller to provide specific products,
services, or even results, while
obligating the buyer to provide specific
monetary or other consideration.
 General Categories of Procurement-type
Contracts
 Fixed-Price or Lump-Sum Contracts
 A total or fixed price is negotiated
or set as the final price for a product
or service
 May include incentives for meeting
certain performance objectives or
penalties if those objectives are not
met
 Cost-Reimbursable Contracts
o Payment or reimbursement is made
to the seller to cover the seller’s
actual direct costs (i.e., labor,
materials, etc.) and indirect costs
(i.e., admin. salaries, rent, utilities,
etc.)
o May include incentives for meeting
certain objectives or penalties if
those objectives are not met
o Types
 Cost-Plus- Fee (CPF) or Cost-Plus-
Percentage (CPPC)
o The seller is paid for the costs
incurred in performing the
work as well as a fee based
upon an agreed on percentage
of the costs
 Cost-Plus-Fixed-Fee (CPFF)
o The seller is reimbursed for
the total direct and indirect
costs of doing the work, but
receives a fixed amount that
does not change unless the
project’s scope changes
 Cost-Plus-Incentive-Fee (CPIF)
o The seller is reimbursed for
the costs incurred in doing the
work and receives a
predetermined fee plus an
incentive bonus for meeting
certain objectives
 Time and Materials (T&M) Contracts
o A hybrid of cost-reimbursable and
fixed-price contracts
o The buyer pays the seller for both the
time and materials required to
complete the work
 Resembles a cost-reimbursable
contract because it is open-ended
and full cost of project is not
predetermined
 But can resemble a fixed-price
contract if unit rates are set
 The Project Environment
 A place to call home
 Technology
 Office supplies
 Culture
 The Project Charter
 Serves as an agreement and as a
communication tool for all of the
project stakeholders
 Documents the project’s MOV
 Defines the project’s infrastructure
 Summarizes the details of the project
plan
 Defines the project’s governance
structure
 Shows explicit commitment to the
project
SESSION 7-10
 Scope – defines the work boundaries and
deliverables of the project so what needs
to get done, gets done – and only what
needs to get done, gets done.
 is determined directly by the project’s
MOV.
 Defines all the work, activities, and
deliverables that the project team
much provide for the project to
achieve its MOV
 Work Breakdown Structure – a project
management tool that provides a
hierarchical structure that acts as a
bridge, or link, between the project’s
scope and the detailed project plan that
will be created.
 The triple constraint
 Scope Management Processes
 Plan Scope Management - Defines and
Documents how the project and
product scope will be defined, verified,
and changed if necessary.
 Collect Requirements - Defining and
documenting the customer, sponsor,
or stakeholder needs and
expectations. This may be a formal
document.
 Define Scope - A detailed description
of the product, service, or information
system to be designed, built and
implemented. A detailed scope
statement defines what work will and
will not be part of the project and will
serve as a basis for all future project
decisions
 Create the Work Breakdown
Structure - The decomposition or
dividing of the major project
deliverables (i.e., scope) into smaller
and more manageable components
 Validate Scope - Confirmation and
formal acceptance that the project’s
scope is accurate, complete, and
supports the project’s MOV. The
project team and sponsor must agree
to all deliverables
 Control Scope - Ensuring that controls
are in place to manage proposed scope
changes once the project’s scope is set.
Must be communicated to all project
stakeholders.
 Scope Boundary
Work within the Scope Boundary
Must Support the
Project’s MOV
Work Outside of the Project Scope
 Statement of Work (SOW)
 Narrative description of the product,
service, or information system.
 For internal projects, this is tied to the
business need
 For external projects,
o this would include specifications,
quantities, quality standards, and
performance requirements for
prospective bidders and
o The SOW is often included in a
document that may be called a
request for proposal (RFP), request
 for information (RFI), or request for  Review and Acceptance - Are both
bid (RFB). sides clear in their expectations?
 Scope Statement  Control Scope and Scope Change Control
A scope statement is another way to Procedures
define the scope boundary; it is a detailed  Concerned with managing changes to
documentation of the sponsor’s needs the project’s scope and to ensure that
and expectations these changes are beneficial when
 Scope they occur
 Project-Oriented Scope - Support the  Potential Issues:
project management processes o Scope Grope
defined by the Project Life Cycle (PLC) o Scope Creep
and the chosen project methodology. o Scope Leap
 Product-Oriented Scope - Specific  Procedures:
features and functionality of the o Scope Change Request Form
application system o Scope Change Request Log
 Out of Scope  Work Breakdown Structure (WBS) - The
 Technology and organizational PMBOK® Guide states that the WBS
assessment of the current represents a logical decomposition of the
environment work to be performed and focuses on
 Customer resource management and how the product, service, or result is
data mining components naturally subdivided. It is an outline of
 Project Scope Definition what work is to be performed.
 The scope boundary and scope  Work Package
statement provide a useful first step
 The project’s scope must now be
defined in more detail in terms of
specific deliverables that provide a
basis for developing the project’s
work breakdown structure (WBS)
 Tools:
o Deliverable Definition Table
o Deliverable Structure Chart
o Context Level Data Flow Diagram  Deliverables versus Milestones
o Use Case Diagram
 Deliverables - Tangible, verifiable
 Validate Scope work products. E.g: Reports,
 Verification of the MOV - Has the presentations, prototypes, etc.
project’s MOV been clearly defined  Milestones - Significant events or
and agreed upon? achievements. Acceptance of
 Documentation of All Deliverables - deliverables or phase completion
Are the deliverables tangible and Cruxes (proof of concepts), Quality
verifiable? Do they support the control, Keeps team focused
project’s MOV?  Things to Keep in Mind When developing
 Specification of Quality Standards - the WBS…
Are controls in place to ensure that  Should support the project’s MOV
the work was not only completed but
 Should be “deliverable-oriented”
completed to meet specific
 The level of detail should support
standards?
planning and control
 Identification of Milestones - Are
 Developing the WBS should involve
milestones defined for each
those who will be doing the work
deliverable?
 Estimation Techniques - Traditional o Uses a deck of cards that
Project Management Approaches represents an estimate in days
 Guesstimating - Estimation by o Moderator describes particular
guessing or just picking numbers out task, feature, deliverable, or user
of the air is not the best way to derive story to be estimated.
a project’s schedule and budget. o Attempts to reach consensus in a
Unfortunately, many inexperienced few rounds of “play”
project managers tend to
guesstimate, or guess at the
estimates, because it is quick and
easy.
 Delphi Technique
o Involves multiple, anonymous
experts
o Each expert makes an estimate
o Estimates compared
 If close, can be averaged
 If not, do another iteration until
consensus is reached
 Time Boxing
o Often used on Agile projects
o A “box” of time is allocated for a
specific activity, task, or
deliverable
o Can focus a team if used effectively
o Can demoralize a team if not used
effectively
 Top-Down
o Top & middle managers determine
overall project schedule &/or cost
o Lower level managers are expected
to breakdown schedule/budget
estimates into specific activities
(WBS)
 Bottom-Up
o Schedules & budgets are
constructed from WBS
o Starts with people who will be
doing the work
o Schedules & budgets are the
aggregate of detailed activities &
costs
o May use analogous estimation –
developing estimates based on
one’s opinion that there is a
significant similarity between the
current project and others.
 Poker Planning
o Variation of Delphi Technique
SESSION 11-14  Activity Analysis for AON

 Schedule and Budget Development

 The project’s schedule can be
determined based upon the tasks and
time estimates in the WBS
o The schedule will also depend on
how these activities are sequenced
 The project’s budget can be
determined based upon the activities
and time estimates from the WBS as
well as the cost of the resources
assigned to the WBS tasks
 Iterations may still be necessary
 Activity on the Node (AON)
 The objective is to create a realistic
Network Diagram
project schedule and budget!
 The Project Planning Framework

 Possible Activity Paths

 Developing the Project Schedule
 Project Management Tools
o Gantt Charts
o Project Network Diagrams
 Activity on the Node (AON)
 Critical Path Analysis
 Program Evaluation and Review
Technique (PERT)
 Precedence Diagramming
Method (PDM)
 Gantt Chart
* The Critical Path

 Critical Path
 Longest path
 Shortest time project can be
completed
o Zero slack (or float) - The amount
of time an activity can be delayed
before it delays the project
 Must be monitored and managed!
o Project manager can expedite or
crash by adding resources
 o Fast tracking – running activities in
parallel which were originally
planned as sequential
o The CP can change
o Can have multiple CPs
 PERT
 Program Evaluation and Review
Technique
 Developed in 1950s to help manage
the Polaris Submarine Project
 Developed about the same time as the
Critical Path Method - Often
combined as PERT/CPM
 Employs both a project network
diagram with a statistical distribution
 Activity Analysis for PERT
 Possible PERT Activity Paths
 Precedence Diagramming Method – PDM
 Based on 4 fundamental relationships
o Finish-To-Start (FS)
o Start-To-Start (SS)
o Finish-To-Finish (FF)
o Start-To-Finish (SF)
 Lead and Lag times
 Lead is starting the next task before
the first task is complete
Example: Begin installing the
operating systems when half of the
PCs are set up
 Lag (or negative lead) is the adding of
a buffer of time before the next task
begins
Example: Once the walls have been
painted, wait one day before laying
the carpet so that the walls have had
a chance to dry
 Critical Chain Project Management
(CCPM)
 CCPM is based on the idea that people
often inflate or add cushioning to their
estimates to create a form of “safety”
to compensate for uncertainty or risk
because …
 Your work is dependent upon the
work of someone else, and you
believe that starting your work will
be delayed
 Your pessimism from previous
experience where things did not go
as planned
 Your belief that the project
sponsor or customer will cut your
project schedule or budget so you
inflate your estimates to guard
against this cut
 Why are projects still late?
 Student’s Syndrome or
procrastinating until the last minute
before starting to work on a task
 Parkinson’s Law or the idea that work
expands to fill the time available
 People will rarely report finishing
something early because there is little
incentive to do so or because they
may fear that management will cut
their estimates next time
 Multitasking of resources or “resource
contention”
A person is often assigned to more
than one project or required to attend
meetings, training, etc. As a result,
they can no longer devote their time
to tasks that are on the critical path
 CCPM Assumptions
 Begins by asking each person or team
working on a task to provide an
estimate that would have a 50%
chance of being completed as planned
o About half of the project tasks will
be completed on time, about half
won’t
 Instead of adding safety to each task,
put that safety in the form of buffers
where it is needed most
o Feeding buffers- Reduce the
likelihood of bottlenecks by
ensuring that critical tasks will start
on time when a task acts as a
feeder to another task on the
critical path
o Resource buffers - Reduce
resource contention
o End of Project buffers - Are equal
to one-half of the time saved from
putting safety into each task
 The Critical Chain Project Schedule
 Critical Chain Project Management
 And the critical path are similar
- The difference is the CCPM takes
into account resource contention
 Takes a more project portfolio view
- Other projects should be
scheduled so that a resource can
be dedicated to a particular task
 Requires that everyone understand
that each project task has a 50%
chance of being completed as
scheduled, so about half of the tasks
will be late.
- This is the reason for having the
project buffer.
- Instead of tracking each task
individually, we become more
concerned with the project
buffer –i.e., the project will be
late only if it uses more than the
allotted project buffer.
 Instead of penalties for being late,
bonuses or other incentives for
completing tasks early may be needed
 Project Management Software Tools
 A number of project management
software tools are available to plan
and track the progress of your project
 However, having a fundamental
understanding of these project
management techniques is important
to make the most of these software
tools
 Developing the Project Budget
1. Define what resources will be needed
to perform the work
2. Determine the quantity of resources
that are needed
3. Define the cost of using each resource
4. Calculate the cost of the task or
activity
5. Ensure that the resources are leveled,
that is, not over allocated. An
example of over allocation is assigning
a project team member to two tasks
scheduled at the same time.
 Other Costs
 Direct Costs- The direct cost of labor
or other resources
 Indirect Costs - The cost for covering
such things as rent, utilities,
insurance, etc.
 Sunk Costs - Costs incurred prior to
the project, such as a project that has
been restarted after a failed attempt
 Learning Curve - Often have to “Build
one and throw it away” to understand
a problem or a new technology
 Prorated Costs - The idea that there is
a cost associated with using a
resource
 Reserves - Contingency funds to be
used at the discretion of the project
manager
 Finalizing the Project Schedule and
Budget
 The project schedule and budget may
require several iterations before it is
acceptable to the sponsor, the project
manager, and the project team.
 Resource Allocation – PM reviews
project to make sure resources are
properly allocated – leveled – not over
allocated
 Once the project schedule and project
plan are accepted, the project plan
becomes the baseline plan.
 Once accepted, the project manager
and project team have the authority
to execute or carry out the plan and
can have a Kickoff Meeting.