Information Technology Project Management, 4th Edition by Jack T Marchewka Solution Manual

Information Technology Project Management, 4th Edition By Jack T. Marchewka

Marchewka – Information Technology Project Management: Providing Measurable Organizational Value 4e

Chapter 1: The Nature of IT Projects TEACHING STRATEGIES The first class usually entails a great deal of organization and administration. I usually run through the class list, and then talk about the syllabus, and expectations for the course.

I have found that the first few classes are important in getting the students interested in the course and in the topic of IT project management. I like to check out some trade journals such as ComputerWorld, CIO, Information Week, etc. before classes start to find some recent statistics on the current state of the IT field. In particular, I look for statistics related to IT budget spending and demand for IT skills. Not surprisingly, project management skills are one of the skills most in demand.

In addition, I try to convey to my students that what we cover in this course will be important to their careers. Although most of my students may start out in entry-level positions, understanding projects and project management will prepare them for leadership and project management positions as part of a logical progression in their careers.

Examples of Husky Air assignments can be found on the Wiley Web site. These are some of the better assignments turned in by my students. This can give you a benchmark for grading.

TEACHING CHAPTER 1 IN A NUTSHELL

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➢ Discuss the software crisis so students understand that the track record for developing systems has not been all that great. In fact, this has been a problem since computers were first used by businesses. Unfortunately, this problem continues even today. Subsequently, this has led to a call for a project management approach for improving the likelihood of success for IT projects. ➢ IT project are not just about technology. Today, we must take a socio-technical approach, as well as a project management and knowledge management approach so that we understand how people, technology, and processes must work together within the organization. The knowledge management component allows us to create a learning organization so that we can learn from our experiences, share those experiences with others, create new knowledge, and identify best practices. ➢ Define what a project is and how project management is becoming more of a profession. A good discussion can center on whether professional certification such as the PMP will ever be on par with a CPA. ➢ Discuss the role and impact projects have on organizations. IT projects are planned organizational change; therefore, when you take on an IT project you are consciously planning on changing the organization. This can have intended and unintended consequences. In addition, IT projects tend to be very political because they can change the balances of power within the organization and change relationships among people within the organization. As a project manager or project team member, you must understand the organizational environment; otherwise, you can run the risk of walking into a political or cultural beehive. ➢ I also like to show my students how this course fits with their other IS/IT classes such as Systems Analysis & Design, Programming, Database, etc. Figure 1.6 is useful for illustration how courses such as Systems Analysis and Design focus more on the SDLC (enclosed within the dotted box), where my course will focus more on the project life cycle component. Both are equally important for developing systems. Moreover, the first stages of their career may tend to focus on performing the activities of the SDLC and then progress to include more and more activities of the PLC. ➢ Organizations are trying to improve the quality of their system development efforts while attempting to reduce the cycle time of their projects.

Subsequently, a number of approaches to implementing the SDLC have evolved.

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Years ago, systems were developed using the waterfall approach, but this has evolved to include RAD and Agile approaches. Similarly, extreme project management has gained interest as an approach to implementing the PLC much like the RAD and Agile approaches in systems development. ➢ Lastly, I like to provide a short overview of the nine PMBOK® areas. It is important that students understand that a body of knowledge exists for project management. In addition, an organization called the Project Management Institute (PMI) oversees this body of knowledge and provides certification in project management called the PMP. It’s useful for students to know what these requirements are and that what they will learn in the course will provide them with a basic knowledge for preparing for the PMP certification exam. (I don’t make any pretext that this course or the text will prepare them sufficiently for passing the PMP exam – but it’s a good start!)

REVIEW QUESTIONS

1. Describe the EDP Era in your own words.

The EDP Era began in the early 1960s and is characterized by the purchase of the first centralized mainframe or a mini-computer by large organizations. The IT projects during this era focused generally on automating various organizational transactions such as general accounting tasks, inventory management, and production scheduling. The manager of this technology resource was often called the Data Processing (DP) manager and usually reported to the head accounting or financial manager. The goal of using technology was to improve efficiency and reduce costs by automating many of the manual or clerical tasks performed by people. As Richard Nolan (2001) points out, software programmers applied computer technology similar to the ways that farmers or engineers applied steam engine technology to mechanize agriculture. The process remained relatively unchanged, while the means for doing the process became more efficient. Subsequently, IT projects during this era were generally structured, and therefore a structured approach for managing these projects could be used. Since the requirements or business processes were fairly stable, changing requirements were not a major issue and large, multi-year projects were common. Unfortunately in many cases these legacy systems created information silos as projects supported specific business

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functions that often employed different technology platforms and programming languages.

2. Describe the Micro Era in your own words.

In the early 1980s, the IBM personal computer (PC) and its subsequent clones signaled the beginning of the Micro Era. However, the transition or integration from a centralized computer to the PC did not happen immediately or without conflict. The often uncontrolled proliferation of the PC in many organizations challenged the centralized control of many MIS managers. For example, the first PCs cost less than $5,000 and many functional department managers had the authority to bypass the MIS manager and purchase these machines directly for their department. This often led to the rise of userdeveloped, independent systems that replicated data throughout the organization.

Security, data integrity, maintenance, training, support, standards, and the sharing of data became a rightful concern. The organization often had an IT resource that was split between a centralized computer and a collection of decentralized user-managed PCs.

3. Describe the Network Era in your own words.

In the late 1960s and early 1970s, a defense project called ARPANET allowed university researchers and scientists to share information with one another even in the event of a nuclear war. By the mid-1980s, this network of computers became known as the Internet and led to the Network Era that began around 1995. In the Network Era, IT projects focused primarily on the challenge of creating an IT infrastructure to support many partners, strategic alliances, vendors, and customers. The network architecture had to be scalable to that potentially thousands of networked computers could function in an efficient and timely manner. Moreover, digital convergence or the integration of data, voice, graphics, and video allowed for new and innovative ways to deliver new products and services to customers. While the Micro Era focused on creating an internal network within the organization, the thrust of the Network Era was to extend this network externally. Network Era projects not only faced the challenge of coordination and control, but also how to support a dynamic business strategy and new organizational structures. IT project members not only needed to understand the technology, but the organization and its competitive environment. As witnessed by the rise and fall of many dot com businesses in the late 1990s, the benefits and risks of managing IT projects were much higher than the two previous eras.

4. Describe the globalization era in your own words.

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Some people such as Thomas L. Friedman (2006) suggest that we may be entering into a new era called Globalization. According to Friedman, the combination of technology and lowering of political barriers have flattened the world so that it is possible for people and organizations to work with almost anyone in any place and at any time. Moreover, the real IT revolution is just beginning as the global competitive playing field becomes leveled for everyone.

5. How can a value-driven approach improve the likelihood of IT project success?

The decision to fund or invest in an IT project should be based on the value that the completed project will provide the organization. Otherwise, what is the point of spending all that time, effort, and money? Although senior management must make the difficult decision as to which IT projects receive funding and which ones do not, others must plan and carry out the project work. Which situation is worse: Successfully building and implementing an information system that provides little or no value to the organization, or failing to implement an information system that could have provided value to the organization, but was developed or managed poorly? It’s probably a moot point. In either situation everyone with a direct or indirect interest in the project’s success loses.

6. What is the socio-technical approach to systems development?

It is understanding of the importance of addressing the business and organizational aspects of IT projects as well as the purely technical tools and techniques of IT development and with that understanding in mind, involving end users and stakeholders early and often in the development process to the extent that they become partners with a vested interest in the project’s success. Using this approach holds the promise of technologically successful projects with add value to the organization.

7. What are the benefits to using a project management approach to developing information systems?

Using a project management approach to developing information systems has the potential to uncouple the results of undertaking a project from the selection individual team members. Results are more a function of the processes and infrastructure. Five additional benefits are: •

deployment a common set of tools and controls which provides a common language to compare projects throughout the organization

•

the ability to better estimate and control costs and schedules which leads to a more effective conservation of company resources

•

improved communication and status reports leads giving the developers the ability to manage

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expectations of stakeholders •

competitive advantage for internal developers whose work might have to be outsourced if the quality and cost of their work can be bettered by outside competition

•

efficiency and effectiveness can often be achieved resulting in shorter development times, lower costs, and higher quality.

8. What is a methodology? What are the advantages of following a methodology when developing an information system?

The step-by-step activities, processes, tools, quality standards, controls, and deliverables that are defined for a project.

9. How does sharing experiences in the form of lessons learned lead to best practices in managing and developing information systems?

By utilizing such technologies as the WWW and intranets, organizations can share the knowledge, experiences gained, and lessons learned in previous projects with the entire organization. Documenting both the successes and failures, makes the most effective and efficient practices available in the form of organizational best practices.

10. What is a project?

A project is a temporary endeavor undertaken to accomplish a unique purpose.

11. What is project management?

Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements.

12. What are the attributes of a project?

The attributes of a project are: time frame, purpose, ownership, resources, roles, risks and assumptions, interdependent tasks, organizational change, and operating in an environment larger than the project itself.

13. Describe the relationship among scope, schedule, and budget.

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The relationship among scope, schedule, and budget (also called the triple constraint) is based on the fact that it takes time, resources and technology to complete IT projects. Given the fact that computer technology today is relatively less expensive than a project’s labor, as the scope (work to be accomplished) increases, the costs (and therefore budgets) increase since more people must be deployed or the same number of people must devote more time to the project, thereby, extending the schedule as well as the cost. If the resources and schedule are fixed, the only way to decrease costs or schedules may be to reduce the project’s scope. Scope, schedule, and budget must remain in a sort of equilibrium to support a particular project goal.

14. Describe the different roles and skill sets needed for a project.

The roles and skill sets required for a typical project may include: •

Project Manager with team leadership and oversight skills

•

Project Sponsor with the ability to marshal resources and direction and champion the project

•

Subject Matter Expert(s) (SME) who have the specific knowledge, expertise, or insight into the functional areas that support the project

•

Technical Expert(s) who have the requisite technical skills to accomplish the project. These skills may include such areas as systems analysis, networking, programming, graphic arts, and training.

15. Describe three risks that could be associated with an IT project.

Internal risks: •

the risk that a key team member might leave a project

•

the risks of a team misestimating costs associated with the project and therefore founding the project on erroneous assumptions.

External risks: •

risks associated with dependence on outside contractors or vendors over which the organization has less control

16. Why should assumptions associated with a project be documented?

Assumptions should be documented because all estimates of a project’s scope, schedule, and budget depend on them, and it is important to make explicit the assumptions (and risks) that can impact the project.

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17. Discuss the statement: Projects operate in an environment larger than the project itself.

Organizational variables such as culture, environment, politics, structure, strategies differ across organizations. It is important for team members to be aware of the specific organizational variables so that the project can be aligned with their particular organization and so that the team can identify potential risks that might impede the project.

18. Describe extreme programming (XP). How does XP accelerate the SDLC? XP is Rad development approach that involves a series of versions of the system called releases. Releases are developed quickly in a similar fashion to prototyping (within a few weeks or months). Each release addresses one or a few functions that are a part of the full project specification. User requirements are documented using an object-oriented model as “user stories”. Acceptance testing is developed for each story. Releases that pass the acceptance test are deemed complete. XP can accelerate the SDLC process because in addition to the advantages of prototyping, XP often employs teams of programmers who can develop releases in parallel. End users are involved in the process early and their requirements uncovered and understood earlier.

19. Describe extreme project management. How does XPM differ from a more traditional approach to project management?

XPM provides a new approach and philosophy for managing many of today’s IT projects that exemplify speed, uncertainty, changing requirements, and high risk. XPM is viewed as an art and a science of facilitating and managing the flow of thoughts, emotions, and interactions in a way that produces valued outcomes under turbulent conditions. Traditional project management, on the other hand, tends to employ an orderly approach that attempts to fit “reality” to the project tools and processes, while XPM embraces the reality that projects are often chaotic and unpredictable.

20. What is knowledge management? Although many people believe knowledge cannot be managed, why do you think many companies are undertaking knowledge management initiatives?

Knowledge management is a systematic process for acquiring, creating, synthesizing, sharing, and using information, insights, and experiences to transform ideas into business value. In an information economy, knowledge and information are the currency which determine success. Being a wise steward of this valuable asset and attempting to leverage that currency makes sense. From the Standish Group quote “Out of knowledge you gain wisdom, and it is with wisdom that you can become truly successful”

21. Although the Guide to the Project Management Body of Knowledge describes the generally accepted principles and practices of project management, why wouldn’t these principles and practices work for every project?

As we understand from the socio-technical approach, projects don’t exist in isolation as pure technical 8

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exercises. They all occur in a much wider context which includes different organizational cultures, resources, stakeholders, and objectives. Because of the infinite combinations of organizational and technical variables, no one set of practices or principles can ensure success in every instance. This body of knowledge, however, becomes a useful starting place which when coupled with the experiences of the project team and its leadership greatly increases the probability of the project’s success.

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SAMPLE SYLLABUS

The following is a copy of the syllabus I use in my graduate IT Project Management class.

Currently, we do not have an undergraduate course in IT Project Management, but an undergraduate class would follow along similar lines. In addition, I have used the Husky Air cases in my classes with much success. The students are able to apply the concepts covered class and see the natural progression of the PLC in a project setting.

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SYLLABUS

OMIS 690 – Information Technology Project Management Fall 2005

Jack T. Marchewka, Ph.D. Associate Professor of Management Information Systems Department of Operations Management & Information Systems College of Business Barsema Hall 328X DeKalb, IL 60115 jmarchewka@niu.edu Office: 815.753.1332 Fax: 815.753.7460

Office Hours: Mondays & Wednesdays - 11:00 am to 12:00 pm Mondays – 5:30 pm to 6:30 pm (Naperville) Wednesdays – 5:30 – 6:30 pm Or by appointment

Course Description: Application and integration of the project management body of knowledge (PMBOK) areas to managing information technology (IT) projects. Focuses on project management tools and techniques for defining and managing the project’s goal, scope, schedule, and budget. Other topics include quality management, risk management, and knowledge management as they relate to IT projects.

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Meeting Times Wednesdays 6:30 pm to 9:10 pm Barsema Hall 340

Textbook Information Technology Project Management: Providing Measurable Organizational Value by Jack T. Marchewka. John Wiley & Sons, 2003. ISBN: 0-471-39203-0 Also, a book on MS Project would be useful.

Grading Criteria:

Midterm Exam

30%

Husky Air Case Assignments

10%

Project

30%

Final Exam

30%

Grading Definitions

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A

Takes an active interest in the course, consistently submits work of high quality

B

Participates actively in many course activities, consistently submits work of above average quality

C

Limited involvement in course activities, usually submits work of average quality

D

Definite lack of participation in many course activities, usually submits work below average quality

F

Little or no participation in course activities, usually submits work of unacceptable quality

Attendance Policy: All students are expected to attend class and take active part in all class and online discussions.

Academic Integrity: As stated in the NIU Graduate Catalog (page 19): Good academic work must be based on honesty. The attempt of any student to present as his or her own work that which he or she has not produced is regarded by the faculty and administration as a serious offense. Students are considered to have cheated, for example, if they copy the work of another or use unauthorized notes or other aids during an examination or turn in as their own a paper or an assignment written, in whole or in part, by someone else. Students are guilty of plagiarism, intentional or not, if they copy material from books, magazines, or other sources without identifying and acknowledging those sources or if they paraphrase ideas from such sources without acknowledging them. Students guilty of, or assisting others in, either cheating or plagiarism on an assignment, quiz, or examination may receive a grade of F for the course involved and may be suspended or dismissed from the university.

Barsema Code of Conduct: http://www.cob.niu.edu/barsema/conduct.asp

Miscellaneous: This syllabus provides a general outline for this course; deviations may be necessary.

Students with disabilities should contact me prior to the first exam so that reasonable accommodations

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may be made where necessary

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Project Description DUE DATE: 11/30/2005

Each student will conduct an in-depth case study analysis of an Information Technology Project summarized in a professional-grade project report.

You will need to contact someone in an organization who has worked on or is currently working on an IT project. This could be the project manager, a member of the project team, or the project client or sponsor. Therefore, you should plan on making the necessary contacts and securing commitment as early in the semester as possible. This may be a project with which you were involved; however, you must include at least one other person in order to minimize any bias. You may change the names of any persons involved and the company; however, this must be a real organization and project.

Suggested Outline:

The following provides a "general" outline for your report. Feel free to adapt it to your needs.

1: Provide a general overview and description of the organization (size, products, services, etc.), the industry, and so forth. You may change the identity of the organization, but be sure you have permission if you identify the organization by name.

2: Provide a detailed description of the project, as well as background information that may include the reasons for undertaking the project, its goal and objectives, and reason for selecting the project.

3: Schedule and budget information, if available, would be useful. In addition, be sure to describe the project stakeholders in terms of roles and backgrounds, but do not include any specific names. For example, you would refer to the project manager as the "project manager" or systems analyst as a "systems analyst" instead of Mary Jones or Fred Smith.

4: Describe a specific challenge or opportunity faced by the project manager, project team, or project sponsor. Try to focus on a specific aspect of the project. Examples may be a particular technical or project-related challenge or decision. Moreover, this could be an organizational issue that focuses on the relationship of the project team and the sponsor or the organization's willingness to change. Be sure to discuss how this challenge or opportunity relates to a particular project management area or topic covered in class or the text.

5: Describe the actions or decision taken or made. Be sure to discuss the reasons and process that led to the decision or actions.

6: Analyze the outcome and lessons learned and discuss what can be learned and shared with others.

This is the most important component to your project. I am interested in your thoughts and ideas.

What to Turn In: A professional-grade report that describes a "real-world" situation as described above. I am not

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looking for a specific number of pages; however, I am looking for depth and insight.

The report should be a hardcopy submitted to me in class. Also, please submit an electronic copy of your report via Blackboard

The project will be graded based on grammar, spelling, punctuation, etc. as well as professional appearance, degree of depth and insight, and the value of the lessons learned.

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Husky Air Assignments

Husky Air Assignment 1: The Team Charter (HA #1) Due 08/31/05 10 Points The assignments throughout the semester will be completed by teams of 2 or 3 students. These assignments relate to the Husky Air case that is located at the John Wiley and Sons Web Site (http://jwsedcv.wiley.com/college/bcs/redesign/student/resource/0,12264,_0471392030_BKS_1469___1073__,00.h tml)

You may want to cut, paste, and bookmark this URL. Although the Husky Air case includes 11 assignments, we will only have time to complete the first 10.

These assignments tend to build on the previous case assignment so choose your team wisely! More importantly, take this first assignment seriously because you will be expected to handle any team conflicts over the course of the semester.

All assignments are to be handed in at the beginning of class as hard copies. In addition, please submit an electronic copy of your assignment via Blackboard. Assignments received after the due date (and by the end of our class break) will be penalized two (2) points per day

Husky Air Assignment 2: The Business Case (HA #2) Due 09/07/05 10 Points You and your team will develop a business case for your client - Husky Air. By this time, you should have chosen a particular area of the organization that will be the focus for your assignments.

Husky Air Assignment 3: The Project Charter (HA #3) Due 09/14/05 10 Points For this assignment, you and your team will develop and define your project's infrastructure.

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Husky Air Assignment 4: The Scope Management Plan (HA #4) Due 10/05/05 10 Points You and your team will use the infrastructure defined in your project charter to develop a scope management plan for your client.

Husky Air Assignment 5: The Work Breakdown Structure (WBS) (HA #5) Due 10/19/05 10 Points Based upon your project's scope, you and your team will develop a WBS.

Husky Air Assignment 6: The Project Schedule & Budget (HA #6) Due 10/26/05 10 Points Using MS Project and your WBS, you and your team will develop a schedule and budget for your project.

Submit your MS Project file via Blackboard.

Husky Air Assignment 7: The Risk Management Plan (HA #7) Due 11/02/05 10 Points You and your team will develop a risk management plan. Turn in the 2 printouts to me and the project risk analysis and plan via Blackboard.

Husky Air Assignment 8: Tracking & Reporting (HA #8) Due 11/09/05 10 Points You and your team will conduct an analysis and develop and communications plan.

Husky Air Assignment 9: The Quality Management Plan (HA #9) Due 11/16/05 10 Points

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You and your team will develop a quality management plan for your client.

Husky Air Assignment 10: The Change Management Plan (HA #10) Due 11/03/05 10 Points You and your team will develop a strategy for planned organizational change.

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COURSE SCHEDULE

Class

Date

1

08/24/05

2

Topic

Chapter

Due Dates

Class Intro & the Nature of IT Projects

1

-

08/31/05

Conceptualizing & Initializing the IT Project

2

HA #1

3

09/07/05

Developing the Project Charter & Baseline Plan

3

HA #2

4

09/14/05

The Human Side of Project Management

4

HA #3

5

09/21/05

No class – I will be attending a conference

-

-

6

09/28/05

Defining and Managing Project Scope

5

-

7

10/05/05

The WBS & Project Estimation

6

HA #4

8

10/12/05

Midterm Exam

9

10/19/05

The Project Schedule & Budget

7

HA #5

10

10/26/05

Managing Project Risk

8

HA #6

11

11/02/05

Project Communication, Tracking, & Reporting

9

HA #7

12

11/09/05

IT Project Quality Management

10

HA #8

13

11/16/05

Managing Organizational Change, Resistance, & Conflict

11

HA #9

14

11/23/05

No Class - Thanksgiving Break

-

-

15

11/30/05

Project Implementation, Closure, & Evaluation

12

HA#10

-

Individual Projects

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Due 16

12/07/05

Final Examination - 6:00 PM – 7:50 PM

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Chapter 2: Conceptualizing and Initializing the IT Project TEACHING STRATEGIES The goal of this chapter is to give the students a basic overview of planning and managing IT projects. The details will follow throughout the book and the course.

Two important concepts provide a focal point for the remainder of the course. First, the notion of an IT project methodology is introduced. I like to show my students how the ITPM follows not only a natural progression of project stages and activities, but mirrors the syllabus for the course. Moreover, the ITPM that they will learn and follow throughout the course is a generic methodology that will evolve over time as the student and their organization gains experience, learns from those experiences, and then integrates those experiences in their methodology. As a result, two organizations, say a group of consultants and a manufacturing company, should end up with two very different methodologies that fit the types of projects they take on based on their competitive strategy, their culture and their capabilities.

The second important concept introduced in this chapter is the idea of Measurable Organizational Value or the MOV. This is an important concept that becomes integrated throughout the book as well as the project processes and decisions. The idea of the MOV evolved as I taught project management. Most material on project management (in other books and articles) dictates that a project must have a goal. Often, however, the idea of a project having a goal is left as that – a project must have a goal – with little insight as to what that goal should be or how it should be defined. On the other hand, many authors of books and articles tend to focus on schedule and budget being the primary goal of projects – i.e., the goal of the project should be to spend no more than a certain amount and have the project completed by a certain date. Adding to the confusion is the notion that the terms goal and objective are often used interchangeably. In teaching a project management course early on, I found that my students (and I) were confused and needed some direction. The easiest solution 1

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seemed to be to define our terms. As a result, I came up with the idea that a project should have a goal (provide value to an organization and become a measure of success) whereas a set of defined objectives (scope, schedule, budget, and quality) should support that goal. This then lead to the development of a process for defining the project’s goal or MOV.

Defining the project’s MOV can be a difficult task because it is easier to focus on tasks or activities. As an example, I like to ask my class whether installing a computer network is a project or an activity. Many will say it is a project. However, I like to point out that installing a network is a means to an end for an organization. Installing a network denotes an action (and probably a series of sub-tasks or activities), but why would an organization invest the time, resources, and money to install a network in the first place? The usual answers that follow generally include such things as improved communication, increased customer service, reduced paper costs if the network is used as an intranet, and so forth. This leads to an idea that we do not invest in technology for technology’s sake. We invest in technology to help provide value to an organization so that it can do something to improve effectiveness, increase efficiency, decrease costs, or grow the business. This value can be succinctly described as doing something better, faster, cheaper, or doing more of something. This value along with several alternatives should be summarized in a business case that serves as a business proposal.

I’ve also found from experience that the beginning of a project is much like wandering in a thick fog. In both situations, people tend to look for and pick a direction that they believe will get them where they want to go. Definition of a project’s MOV and development of the business case provide a project management compass and process for helping to improve the chances that we pick the right direction. Being lost can be a disconcerting feeling, but having the right tools and set of processes in place (as defined in our methodology) can help us be more confident.

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TEACHING CHAPTER 2 IN A NUTSHELL ➢ A methodology provides a framework for initiating, planning, carrying out, closing, and evaluating the IT project. The ITPM introduced in chapter 2 is generic project methodology that integrates the project life cycle, systems development life cycle and project management body of knowledge areas so that a set of phases, processes and tools are defined. This allows the methodology to adapt to and align with a particular organization’s culture, industry, strategy, etc. over time. ➢ The phases and infrastructure of the ITPM provide a logical sequence for planning and managing an IT project. A methodology provides structure, but must be flexible enough to fit or adapt to unique situations. ➢ Developing an MOV may not be an easy task, but it is well worth doing because it sets the direction for the project and provides a measure of success for the organization later on. The MOV can be developed using a statement or table format, but this does not mean people cannot be creative in terms of how the MOV is presented. In judging whether an MOV is defined correctly, one should focus on whether the MOV is: o Metric based (Is it quantifiable?) o Clear, focused, and understandable (Will this confuse the project’s stakeholders?) o Technology independent (This is not about the technology. Choosing a platform, vendor specific relational database management system, operating system, or programming language is not important at this point of the project). o Separate from project objectives (While objectives such as budget and schedule are important, they are not sufficient conditions for success.)

There is nothing wrong with listing project objectives separately. o Able to provide a measure of success within a time frame after the project is completed. (Will we be able to tell whether the project was a success at some point after the system is implemented?)

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➢ The business case acts as an investment proposal. Development of a business case can be a tradeoff. We often have a limited amount of time and resources available to analyze the organization’s needs, as well as specific alternatives, but we must be confident that we have sufficient information to make a wellinformed decision – i.e., fund or not fund the next stage of the project. ➢ A number of tools and approaches are available for analyzing the various project alternatives. I tell my students that even though they have not chosen accounting or finance as their major, they will still need to communicate intelligently with the accounting and financial people throughout their careers.

Therefore, they should have a good understanding of the different financial and quantitative tools that they will use. ➢ Project selection is an important organizational decision. We want to fund or take on projects that provide the most value to the organization, while blocking projects that will only drain the organization of valuable time and resources.

Although organizations can make this decision any number of ways, the balance scorecard approach is becoming increasingly popular so students should be aware of its existence and understand how it works.

REVIEW QUESTIONS 1. Describe the project life cycle.

•

The project life cycle (PLC) is a collection of logical stages or phases that maps the life of a project from its beginning to its end. Each phase should provide one or more deliverables.

2. What are phase exits, stage gates, and kill points? What purpose do they serve?

•

Projects should be broken up into phases to make the project more manageable and to reduce risk. Phase exits, stage gates, or kill points are the review of key deliverables that allow the organization to evaluate the project’s performance and to take immediate action to correct any errors or problems. These reviews take place at the end of each logical stage or phase to verify completion and determine whether to proceed to the next phase of the project.

3. What is fast tracking? When should fast tracking be used? When is fast tracking not appropriate?

•

Fast tracking is starting the next phase of the project before approval is obtained for the

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completion of the current phase of the project. The purpose of this is to reduce the project’s schedule. Overlapping of phases can be risky and should only be done when the risk to the project is deemed acceptable.

4. Describe the systems development life cycle (SDLC).

•

The Systems Development Life Cycle (SDLC) represents the sequential phases or stages an information system follows throughout its useful life. The SDLC is comprise of the following five phases: (1) planning, (2) analysis, (3) design, (4) implementation, (5) maintenance and support. o

Planning. The planning stage involves identifying and responding to a problem or opportunity and incorporates the project management and system development processes and activities. Here a formal planning process ensures that the goal, scope, budget, schedule, technology, and system development processes, methods, and tools are in place.

o

Analysis. The analysis phase investigates the problem or opportunity more fully. The specific needs and requirements for the new system are identified and documented during this phase.

o

Design. During the design phase, the project team uses the requirements and “to be” logical models created during the Analysis phase as input for designing the architecture to support the new information system. This architecture includes the network design, hardware configuration, databases, user interface, and application programs.

o

Implementation. Implementation is the development or construction of the system, testing of the system, and installation. Training, support, and documentation must also be in place.

o

Maintenance and Support. This phase involves the ongoing support for the system.

Changes to the system, in the form of maintenance and enhancements, are often requested to fix any discovered errors (i.e., bugs) within the system, to add any features that were not incorporated into the original design, or to adjust to a changing business environment.

5. What are the advantages of having and following a project methodology?

•

Methodologies provide the project team with a game plan for implementing the project and product life cycles so that the team can focus on the tasks at hand, instead of always worrying about what they are supposed to do next.

•

A methodology provides a common language that allows the project team, project sponsor, and others within the organization to communicate more effectively.

•

A standardized methodology allows management to compare different projects more objectively which in turn will allow management to make better-informed and more objective decisions with 5

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respect to which projects get selected and whether funding should continue to support a particular project.

6. Describe the five phases of the IT project methodology.

•

Phase 1: Conceptualize and Initialize: This phase focuses on defining the overall goal of the project. Alternatives that would allow the organization to meet its goal are then identified. Next, the costs and benefits, as well as feasibility and risk, of each alternative are analyzed. Based upon these analyses, a specific alternative is recommended for funding. Finally, the project’s goal and the analysis of alternatives that support the goal are summarized in a deliverable called the business case.

•

Phase 2: Develop the Project Charter and Detailed Project Plan: The project charter is a key deliverable for the second phase. The project charter clarifies the project’s goal and defines the project’s objectives in terms of scope, schedule, budget, and quality standards. In addition, the project charter identifies and gives authority to a project manager to begin carrying out the processes and tasks associated with SDLC. The project plan provides all the tactical details concerning who will carry out the project work and when. Additionally, the project’s scope, schedule, budget, and quality objectives are defined in detail.

•

Phase 3: Execute and Control the Project: focuses on execution and control—carrying out the project plan in order to deliver the IT product and managing the project’s processes in order to achieve the project’s goal. During this phase the project team uses a particular approach and set of systems analysis and design tools for implementing the systems development life cycle (SDLC).

In addition, the project manager must ensure that the environment and infrastructure support the project.

•

Phase 4: Close Project: After the information system has been developed, tested, and installed, a formal acceptance should transfer control from the project team to the client or project sponsor.

The project team should prepare a final project report and presentation to document and verify that all the project deliverables have been completed as defined in the project’s scope.

•

Phase 5: Evaluate Project Success: this phase focuses on evaluating four areas: o

First, a “postmortem,” or final project review, should be conducted by the project manager and team.

o

Second, an evaluation between the project manager and the individual project team members is conducted.

o

Third, an outside third party should review the project, the project manager, and project team.

o

Fourth, the project must be evaluated in order to determine whether the project provided value to the organization.

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7. Why is it important to have deliverables for each phase of the IT project methodology?

Deliverables are tangible product of the work completed in a phase and serve to define the work and resources needed for each phase.

8. How can the experiences of and lessons learned by past project team members be incorporated into a project methodology?

The experiences of and lessons learned by past project team members be incorporated into a project methodology by the developing a set of best practices that fit the organization and the projects it undertakes. The creation of a project management office affords a means for studying the company’s IT projects which can provide a basis for estimating and conducting reality checks for projects. Lessons learned and best practices should be documented in Phase 5 (Evaluate Project Success) of the project methodology and then added to the organization’s institutional practices.

9. Describe the “conceptualize and initialize phase” of the IT project methodology.

This phase focuses on defining the overall goal of the project. Alternatives that would allow the organization to meet its goal are then identified. Next, the costs and benefits, as well as feasibility and risk, of each alternative are analyzed. Based upon these analyses, a specific alternative is recommended for funding. Finally, the project’s goal and the analysis of alternatives that support the goal are summarized in a deliverable called the business case.

10. What is a project charter?

The project charter is a key deliverable for the second phase of the IT project methodology. It defines how the project will be organized and how the project alternative that was recommended and approved for funding will be implemented. The project charter provides another opportunity to clarify the project’s goal and defines the project’s objectives in terms of scope, schedule, budget, and quality standards. In addition, the project charter identifies and gives authority to a project manager to begin carrying out the processes and tasks associated with the systems development life cycle (SDLC).

11. What are the advantages of developing a detailed project plan after a project has been approved for funding?

The first advantage is that having the business case in place makes it easier to define the details of the project (who does what and when). The second advantage is that since the project plan is tactical in nature and the business case strategic, having goals and objectives in place prevents confusion between tactics and objectives. Finally if the project is not doable and/or worth doing (which the business plan should demonstrate), time and resources spent on a detailed plan would be wasted.

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12. Describe the “execute and control phase” of the IT project methodology.

The Execute and Control phase of the project focuses on carrying out the project plan in order to deliver the IT product and managing the project’s processes in order to achieve the project’s goal. During this phase the project team uses a particular approach and set of systems analysis and design tools for implementing the systems development life cycle (SDLC). In addition, the project manager must ensure that the environment and infrastructure support the project.

13. Describe the “close project phase” of the IT project methodology.

After the information system has been developed, tested, and installed, a formal acceptance should transfer control from the project team to the client or project sponsor. The project team should prepare a final project report and presentation to document and verify that all the project deliverables have been completed as defined in the project’s scope. At this time, the final cost of the project can be determined, the consultant may invoice the client for any remaining payments, or the accounting department may make any final internal charges to appropriate accounts. In addition, the project manager and team must follow a set of processes to formally close the project. These processes include such things as closing all project accounts, archiving all project documents and files, and releasing project resources.

14. Describe the “evaluate project success phase” of the IT project methodology.

This phase is marked by four different reviews: o

First, a “postmortem,” or final project review, should be conducted by the project manager and team.

o

Second, an evaluation between the project manager and the individual project team members is conducted.

o

Third, an outside third party should review the project, the project manager, and project team.

o

Fourth, the project must be evaluated in order to determine whether the project provided value to the organization.

Ultimately project success is measured by the value it brings to the organization and by the degree to which it met its intended goal. This value may not be clearly discernable immediately after the project is implemented. It may take some weeks or months before the value is fully known.

15. Describe the five project management processes.

•

Initiating processes—to start or initiate a project or phase once commitment is obtained.

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•

Planning processes—to develop and maintain a workable plan to support the project’s overall goal.

•

Executing processes—to coordinate people and other resources to execute the plan.

•

Controlling processes—to ensure proper control and reporting mechanisms are in place so that progress can be monitored, problems identified, and appropriate actions taken when necessary.

•

Closing processes—to provide closure in terms of a formal acceptance that the project or a project’s phase has been completed satisfactorily.

16. Why can a project that is developed under budget and before its deadline still not be considered successful?

Stating that a project was developed on time and under budget does not answer the important question: Did the project meet its goals in terms of such objectives as scope and quality and customer satisfaction and deliver all it promised?

17. What kinds of tools would be needed to support an IT project?

The project management tools include tools and techniques for estimation, as well as tools to develop and manage scope, schedule, budget, and quality. Similarly, tools support the development of the information system. For example, computer aided software engineering (CASE) tools and models support the analysis and design phases of development.

18. How does an organizational infrastructure support a project?

The organizational infrastructure determines how projects are supported and managed within the organization. The organizational infrastructure influences how project resources are allocated, the reporting relationships of the project manager and the project team members, and the role of the project within the organization.

19. What is a project infrastructure?

The project infrastructure supports the project team in terms of the project environment and the project team itself. It includes: o

The project environment—The physical workspace for the team to meet and work.

o

Roles and responsibilities of the team members —This determines the reporting relationships, as well as the responsibilities and authorities of the individual team members.

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o

Processes and controls—Processes and controls provide support for managing all aspects of the project. They ensure that the project’s goal and objectives are being met.

20. Describe a technical infrastructure that would be needed to support a consulting team working at a client site.

The technical infrastructure provides the hardware and software tools to support the project team. It may include such things as project management software, e-mail, voice mail, word processing, and access to the Internet.

21. Discuss how the project management knowledge areas support the IT project methodology.

The Project Management Body of Knowledge (PMBOK®) encompasses nine areas generally accepted as having merit for effectively managing projects. These nine areas support both the project processes and product by providing a foundation of knowledge for supporting projects within a particular organization.

As an organization gains more experience with projects over time, the lessons learned from every project contribute to each of these nine areas. Ideally, these lessons will lead to an IT project management knowledge base that can be used to identify best practices that adapt the IT project methodology to an organization’s needs, culture, and IT project environment. This base of knowledge can then be institutionalized throughout the organization and its projects.

22. What is a business case?

A business case is the first deliverable in the IT project life cycle. It provides an analysis of the organizational value, feasibility, costs, benefits, and risks of several proposed alternatives or options.

23. Why should an organization develop a business case?

The purpose of a business case is to show how an IT solution can create business value. Since firms have limited resources, they must have a way of deciding which projects to fund, this is done by comparing the potential value of proposed projects as shown in their respective business cases.

24. What is the purpose of selecting a core team to develop a business case?

By selecting a team to develop a business case instead of ceding responsibility to an individual, organizations enjoy an increase in credibility, the ability to align projects with organizational goals, and access to real costs. Additionally, the deployment of a team can lead to a wider sense of ownership, agreement on data and methods, and bridge building between interest groups.

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25. What is a project’s measurable organizational value (MOV)?

The MOV is the overall goal and measure of success of a project.

26. Develop a MOV for an organization that is contemplating developing a corporate intranet.

Examples may focus on such things as •

Provide current versions of 95% of all personnel policies, procedures, handbooks, and current job postings

•

Save $100,000 in annual paper costs

•

Reduce the number of full-time employees in HR from 3 to 2 (p. 40)

27. Why must a project’s MOV be agreed upon?

A clear and agreed upon MOV sets expectations for the project stakeholders. If multiple stakeholders are involved, it is sometime easy to attempt to satisfy everyone by agreeing to an unrealistic or unachievable MOV. Such a condition can be detrimental to careers, the project team, and everyone’s morale. Joint responsibility requires joint goals and agreed upon measures of success.

28. Describe how a project’s MOV can support an organization’s goals and strategies.

As shown by the IT Value Chain, an organizational goal leads to or defines certain organizational strategies. A project’s MOV should be designed to align with and support those strategies. At the project’s end, the project’s results can be compared to the initial MOV. With a successful project, one should see successful execution of organizational strategies and a measurable realization of some organizational goal.

29. Describe how an IT project can bring value to an organization.

IT projects can bring value to an organization in at least 4 ways identified by their key words: •

Better—What does the organization want to do better? (For example, improve quality or increase effectiveness?)

•

Faster—What does the organization want to do faster? (Increase speed, increase efficiency, or reduce cycle times?)

•

Cheaper—What does the organization want to do cheaper? (Reduce costs?)

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•

Do more—What does the organization want to do more than it is currently?

(Growth or expansion?)

30. What is a base case alternative? Why should a business case even consider a base case alternative?

The base case alternative is what the organization will do if no project is undertaken. That is – maintain the status quo and do not pursue any options described in the business case. Knowing what the benefits and costs of continuing with the status quo are will allow an organization to determine if an investment in another alternative will provide net positive value to the organization.

31. Describe Economic Feasibility.

Economic Feasibility requires an organization to consider if the funds and other resources are available to support the project and if the proposed project will yield the benefits envisioned in the project statement.

Conducting an economic feasibility should serve as a reality check for each option or alternative.

32. Describe Technical Feasibility.

Technical feasibility focuses on the existing technical infrastructure needed to support the IT solution. It will help determine if the current infrastructure can support the alternative or if new technology (if available) were needed. It also considers whether the current IT staff has the skills and experience to support the proposed solution and if not can a vendor that has the skills and experience to develop and implement the application be contracted?

33. Describe Organizational Feasibility.

Organizational feasibility considers the impact on the organization. It focuses mainly on how people within the organization will adapt to this planned organizational change. How will people and the way they do their jobs be impacted? Will they accept this change willingly? Will business be disrupted while the proposed solution is implemented?

34. What other types of feasibility issues should an organization consider?

Other feasibilities such as legal and ethical may also be considered.

35. How should the risk of each business case alternative be analyzed?

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Risk should focus on: •

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?

36. What is Total Cost of Ownership?

(TCO) is a concept that has gained widespread attention in recent years and generally refers to the total cost of acquiring, developing, maintaining, and supporting the application system over its useful life. TCO includes such costs as: •

Direct or up-front costs—Initial purchase price of all hardware, software, and telecommunications equipment, all development or installation costs, outside consultant fees, etc.

•

Ongoing costs—Salaries, training, upgrades, supplies, maintenance, etc.

•

Indirect costs—Initial loss of productivity, time lost by users when the system is down, the cost of auditing equipment (i.e., finding out who has what and where), quality assurance, and post implementation reviews.

37. What is Total Benefits of Ownership?

Total Benefits of Ownership (TBO) must include all of the direct, on-going, and indirect benefits associated with each proposed alternative. The TBO should address the benefits of an alternative over the course of its useful life. Benefits can arise from: •

Increasing high-value work—For example, a salesperson may spend less time on paperwork and more time calling on customers.

•

Improving accuracy and efficiency—For example, reducing errors, duplication, or the number of steps in a process.

•

Improving decision-making—For example, providing timely and accurate information.

•

Improving customer service—For example, new products or services, faster or more reliable service, convenience, etc.

38. What is the difference between tangible and intangible benefits? Give an example of each.

Tangible benefits associated with an IT project are those that are relatively easy to identify and quantify.

They will usually arise from direct cost savings or avoided costs. Intangible benefits are benefits that may

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be easy to identify, but certainly more difficult to quantify or demonstrate. For example, a corporate telephone directory on an intranet not only improves communication, but also can cut paper, printing, and labor costs associated with creating and distributing a paper-based telephone book. The savings on printing a hard copy telephone book are tangible benefits. The improvement in communication is an example of an intangible benefit. It is hard to know in some common metric the worth of being able to have an accurate, up-to-date company directory that is on line, searchable and perhaps linked to one’s telephone or email.

39. What are some ways of quantifying intangible benefits?

One way to quantify intangible benefits is to link them directly to tangible benefits that can be linked to efficiency gains. Another way to quantify intangible benefits is to estimate the level of service. For example, one could determine how much someone is willing to pay for a particular service or compare prices of products or services that have or do not have a particular feature.

40. Describe the payback method. What are some advantages and disadvantages of this method?

Payback is a method of analyzing the value of a project by determining how long it takes to recover the initial investment. Payback Period = Initial Investment/ Net Cash Flows Its advantages include ease of calculation and understanding and the fact that alternatives can be compared for risk as a function of how long it takes to recoup investment (longer is usually riskier). Its disadvantages include the fact that it ignores cash flows beyond the payback period and it ignores the time value of money.

41. Describe the breakeven method. What are some advantages and disadvantages of this method?

The breakeven method determines when the project recoups its original investment and thus begins to return positive net benefit. It is particularly useful when returns can be calculated on a per unit basis.

Breakeven Point = Initial Investment/Net Profit Margin Its advantage includes ease of calculation and the ability to compare project risk (higher breakeven points are usually more risky). Its disadvantages includes the fact that it does not address units produced after the breakeven point and does not account for the time value of money.

42. Describe the ROI method. What are some advantages and disadvantages of this method?

ROI is method of determining the percentage rate of return on a project. It is calculated as: Project ROI = (Total expected benefits-total expected costs)/ total expected costs In applying this method, an organization looks at the ROI and when choosing between competing

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(mutually exclusive) projects would choose the higher ROI (all other things being equal). If considering a project by itself, often organizations compare the ROI to a hurdle rate which must be equaled or exceeded before accepting. The usefulness of the ROI method is contingent on the ability to define accurately the total costs and benefits associated with the project and the ability to link to benefits directly to the initial investment. One of the disadvantages of the method relates to the difficulty of measuring those two contingencies because of intervening variables’ indirect influence. The advantage of the ROI method includes the clarification of the relationship between the benefits and the costs of a project (ROI increases as benefits increase or costs decrease).

43. Describe the NPV method. What are some advantages and disadvantages of this method?

The NPV method focuses on the time value of money. A project’s NPV is equal to the sum of all of the future net cash flows that derive from the project, discounted by the firm’s required rate of return, minus the initial investment. The rule for applying NPV is to take the higher NPV when considering mutually exclusive projects and to accept only positive value NPV projects when considering stand-alone projects.

The advantage of this method is that it takes into account the time value of money and also all relevant cash flows and when they are received. The disadvantage of the NPV method includes the fact that as with all methodologies, accurately estimating future cash flows can be difficult. The choice of the appropriate discount rate is also controversial at times.

44. What effect does increasing the discount rate have on a project’s NPV? Increasing the discount rate will decrease the project NPV since it is found in the denominator of the NPV formula.

45. What are the advantages of using a scoring model when comparing several project alternatives?

Any disadvantages?

The advantages of using a scoring model to compare several projects include the ability to combine both qualitative and quantitative variables, (leading to a quantification of intangible benefits) and the transcending of the short run bias of most financial models. The ability to rank and weight the impact value of multiple criteria may be either an advantage or a disadvantage if there is disagreement as to the appropriate weights and/or selection criteria. The disadvantage is that the outcome of a scoring model is heavily influence by subjective judgments.

46. What is an IT project portfolio?

An IT portfolio is a set of multiple projects that an organization may undertake. These projects may vary significantly as to their levels of risk, technological complexity, size, and strategic intent.

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47. Why shouldn’t an organization always take on less challenging projects?

Choosing only low risk projects may lead to stagnation of the organization, a lack of professional growth for the IT employees, and failure of organizations to move ahead strategically. It also may not always lead to a low risk portfolio if all projects are highly correlated.

48. Describe the criteria that should be used to make a project selection decision.

The decision to approve an IT project requires a number of conditions be met: •

The IT project must map directly to the organization’s strategies and goals.

•

The IT project must provide measurable organizational value that can be verified at the completion of the project.

•

The selection of an IT project should be based upon diversity of measures that include: o

Tangible costs and benefits

o

Intangible costs and benefits

o

Various levels throughout the organization (e.g., individual, process, department, and enterprise)

49. Describe the Balanced Scorecard approach.

The Balanced Scorecard approach helps balance traditional financial measures with operational metrics across four different perspectives: finance, customer satisfaction, internal business processes, and the organization’s ability to innovate and learn. An organization that utilizes the Balanced Scorecard approach must create a set of measurements, or key performance indicators, for each of the perspectives. In turn, these measures are used to create a report or scorecard for the organization that allows management to track, or keep score, of the organization’s performance. The four perspectives provide a balanced approach in terms of tangible and intangible benefits and long and short-term objectives, as well as how each perspective’s desired outcomes and drivers impact the other perspectives.

50. Describe the financial perspective of the Balanced Scorecard approach.

The Balanced Scorecard approach encourages managers to consider measures other than traditional financial measures. The Balanced Scorecard approach provides a means for linking financial performance with customer focused-initiatives, internal operations, and investments in employees and the infrastructure to support their performance. One new financial measure that represents the Balanced Scorecard financial perspective is the Economic Value Added (EVA). EVA is a measurement tool to determine if an organization is earning more than its true cost of capital.

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51. Describe the customer perspective of the Balanced Scorecard approach.

The customer perspective of the Balanced Scorecard approach focuses on how an organization’s performance is perceived by its customers. Customer-based measurements of satisfaction level with respect to products and services can be linked to financial rewards.

52. Describe the internal process perspective of the Balanced Scorecard approach.

The internal process perspective of the Balanced Scorecard approach focuses on the processes that an organization must excel at to attract and retain customers or satisfy stakeholders? Customer satisfaction can be achieved through improved operational activities by the organization, which in turn leads to improved financial performance. Therefore, internal-based measurements should focus on the efficiency and effectiveness of the organization’s processes.

53. Describe the innovation and learning perspective of the Balanced Scorecard approach.

The Balanced Scorecard approach gives considerable support to the importance of investing in the future by investing in people and makes investing in human infrastructure at least as important as investing in technical and physical infrastructures. Measures for the innovation and learning perspective may include training, certifications, and employee satisfaction and retention.

54. How does the concept of MOV support the Balanced Scorecard approach?

The concept of MOV can support the Balanced Scorecard approach by developing the MOV in such a way as to measure the projects success in terms of the four perspectives of the Balanced Scorecard. For example instead of settling for some particular ROI or having a project’s NPV be positive, the MOV might require the calculation of the EVA. Instead of just naming the project team and their current skill sets, the MOV might include among its goals the upgrading of team personnel skills through an included training program.

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Chapter 3: The Project Infrastructure TEACHING STRATEGIES This chapter is relatively short, but provides an important foundation for the next several chapters. Students should realize that the organization has now reviewed the business case and must make an important decision: fund the next stage of the project or cancel the project outright. Time and resources have been spent developing the business case, and this was done with the best information available at that time. Given the tradeoff, the business case may have included “ball park” estimates. Now, the project manager and team must take a more detailed and logical approach for developing the project charter and plan.

I like to emphasize that while the project charter and plan are not the same deliverable, they are very dependent on each other. The charter is similar to a contract between the project manager and the organization sponsoring the project. It outlines the project infrastructure and resources and summarizes the project schedule and budget. On the other hand, the project plan outlines a tactical approach that defines how the project resources will be used in order to develop a budget and schedule that the project team will follow and use as a benchmark to gauge its progress.

TEACHING CHAPTER 3 IN A NUTSHELL ➢

This chapter introduces the five project management processes that are defined in the PMBOK® Guide. One can view these processes as being part of each project phase supporting the entire ITPM.

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➢

A PMBOK® knowledge area introduced in this chapter is project integration management. It is important that the students understand that projects are made up of processes (related to managing the project and developing the product – i.e., the information system) and that these processes must work together in concert. Some processes may be emphasized at different stages of the project, but each is important in contributing to the overall success of the project.

➢

The project charter and plan are closely related, and to a great degree they are developed side by side. The charter provides a contract between the project manager and the other project stakeholders to outline the project infrastructure.

It is important to know, for example, what resources the project manager can count on having over the course of the project. Moreover, the quantity, quality, and time of resource availability will influence the project schedule and budget.

➢

Lastly, I developed the project-planning framework to illustrate how the project’s MOV relates to the project’s scope and plan. In short, the project’s goal or MOV should help us define the project’s scope (i.e. the various deliverables the team will be responsible for during the entire project and systems development life cycles). In turn, we can ask whether the project’s MOV will be achieved if the project’s scope is completed. Once scope is defined in terms of project deliverables, we can begin to identify phases and tasks to complete the various project and product deliverables. Tasks are sequenced (one after another or in parallel), assigned one or more resources (people, technology, etc.) to complete the tasks, and given an estimated or forecasted time for completion.

Since each task has an associated time estimate and cost of using a particular resource, we can then determine the project’s overall schedule and budget.

Details of the process, tools, and techniques will be introduced over the next several chapters.

REVIEW QUESTIONS

1. Describe project integration management and its relationship to the other eight Project Management Body of Knowledge areas.

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Project integration management is one of the most important Project Management Body of Knowledge areas. It coordinates and integrates the other knowledge areas and all of the project processes. Project integration management is concerned with three areas: (1) project plan development so that a useable, flexible, and consistent project plan is developed, (2) project plan execution so that the project plan is carried out in order achieve the project’s MOV, and (3) overall change control to help manage change so that change does not disrupt the focus of the project team.

2. What are project management processes? Give one example.

Project management processes are an integral component of project management and are concerned with defining and coordinating the activities and controls needed to manage the project. They support all of the activities necessary to create and implement the product of the project. Examples include: •

Initiating

•

Planning

•

Executing

•

Controlling

•

Closing

3. What are product-oriented processes? Give one example.

Product-oriented processes are those which focus on the tangible results of the project. They require specific domain knowledge, tools, and techniques in order to complete the work. An example would be the creation of a software application package.

4. Why must a balance exist between project management processes and product-oriented processes?

There must be a balance between project management processes and product-oriented processes because an emphasis or focus solely on the project management processes does not provide the expertise or ability to define the project’s scope or develop a quality system. However, a more productoriented focus does not provide the management or controls to ensure that the work is completed as required.

5. Describe the initiating processes. Give one example of an initiating process to support a particular phase of the IT project methodology.

The initiating process signals the beginning of the project or phase. It requires an organization to make a

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commitment in terms of time and resources. Although all phases of the project should have some type of initiating process, the first phase of the IT project methodology, conceptualize and initialize, requires the most detail and attention. For example, the first phase of the IT project methodology recommends the development of a business case to identify several viable alternatives that can support a particular organization’s strategy and goals. In short, the time and effort needed to develop the business case does not come without a cost. One can measure this cost directly in terms of the labor cost and time spent, and indirectly by the time and effort that could have been devoted to some other endeavor. Therefore, some type of organizational commitment is needed even during the earliest stages of a project.

6. Describe the planning process. Give one example of a planning process to support a particular phase of the IT project methodology.

Planning is more of an art than a science and relies on experience and good judgment. Although planning is important for each phase of the project, the second phase of the IT project methodology, developing the project charter and project plan, requires the most planning activities. An example of a planning process would be planning the costs and schedule requirements for a project in support of the development of the project charter and plan.

7. Describe the executing process. Give one example of an executing process to support a particular phase of the IT project methodology.

Executing processes are part of every project phase, the majority of the executing processes will occur during the execute and control phase of the IT project methodology. Executing processes often include those product-oriented processes that actually create the product of the project by executing or carrying out the activities of the project plan. An example would be using the tools and methods for developing and/or implementing a system which are critical for achieving the project’s end result.

8. Describe the controlling process. Give one example of a controlling process to support a particular phase of the IT project methodology.

The controlling processes allow for managing and measuring the progress towards the project’s MOV as well as the objectives of scope, schedule, budget, and quality. Controls not only tell the project team when deviations from the plan occur, but also measure progress towards the project’s goal. Examples of controlling processes include scope control, change control, schedule control, budget control, quality control, and a communications plan. The emphasis on controlling processes will occur during the execution and control phase of the IT project methodology.

9. Describe the closing process. Give one example of a closing process to support a particular phase of the IT project methodology.

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The closing process group focuses on bringing a project or project phase to a systematic and orderly completion. Examples of the closing process include: •

verifying that all deliverables have been satisfactorily completed

•

integrating the final product—the information system—into the day-to-day operations of the organization.

•

contract closure--ensuring that all of the deliverables and agreed upon terms of the project have been completed and delivered so that the project can end.

•

administrative closure--documenting and archiving all project documents and evaluating the project in terms of whether it achieved its MOV.

Although each phase must include closing processes, the major emphasis on closing processes will occur during the close project phase of the IT project methodology. (p.67)

10. Describe how the output of project management process groups in one phase becomes the input or catalyst for the process group in the next phase. Provide an example.

The project management phases are sequential in nature. Each phase requires the output of the previous phase to use as input for the subsequent phase. Because of this, there is overlap between process groups. An example of this would be the creation of a Business case in the first phase that identifies a strategic goal or target and frames it terms of a MOV. This output, is then takes as input for the second phase where in the project charter, tactical plans are laid to enable the project to obtain its MOV objective.

11. What is the difference between contract closure and administrative closure?

Contract closure focuses on the agreed upon (contractual) deliverables to be sure that all have been satisfactorily completed. Administrative closure on the other hand is concerned with wrapping up the means of project production, by completing documentation, evaluating the project and the project team, and preserving organizational intelligence in the form of documentation of lessons learned.

12. Describe the waterfall model for systems development. When should the waterfall model be used?

The waterfall model is a simple and disciplined method that closely follows the SDLC in a very sequential and structured way. The waterfall model stresses a sequential and logical flow of software development activities. In using this model, a great deal of time and effort is spent in the early phases obtaining the requirements and generating appropriate design..

This approach is most useful when developing large, complex systems with known requirements that will not change much over the life of the project. It is also used for large government systems and by

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companies that develop commercial software. In addition, because it will provide a solid structure that can minimize wasted effort, the waterfall model may work well when the project team is inexperienced or less technically competent (McConnell 1996).

13. Describe the prototyping approach to systems development. When is prototyping appropriate?

Prototyping is an iterative approach to systems development where the user and developer work closely together to develop a partially or fully functional system as soon as possible. Sometimes. a prototype may be developed to discover or refine system requirement specifications that can be used as a model for developing a real system. It may also be used to help the user define the look, feel, and features of a large, multi-user system.

14. Describe the spiral approach for iterative development. What advantages does this model have in comparison with the waterfall model?

The spiral approach breaks up a software project into a number of miniprojects that address one or more major risks until all the risks have been addressed. This method begins development of a system on a small scale where risks can be more easily identified. Once identified, the development team then develops a plan for addressing these risks and evaluates various alternatives. Next, deliverables for the iteration are identified, developed, and verified before planning and committing to the next iteration. As a result, the completion of each iteration brings the project closer to a fully functional system.

In comparison to the waterfall model, the spiral approach breaks down a project into smaller miniprojects which may be easier to address.

15. Describe extreme programming (XP). How does XP accelerate the SDLC? Under XP, the system is transferred to the users in a series of versions called releases. A release is developed using several iterations that are developed and tested within a few weeks or months. Each release is a working system that includes only one or several functions that are part of the full system specifications. XP first documents requirements as a user story. A set of acceptance tests is then developed for each user story. Releases that pass the acceptance tests are considered complete.

XP accelerates the SDLC by delivering incremental working code to the users. These releases are then used to verify understanding of user requirements or make changes to requirements as the project progresses.

16. What is the purpose of a project charter?

The project charter and baseline project plan provide a tactical plan for carrying out or executing the IT

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project. It serves as an agreement or contract between the project sponsor and project team— documenting the project’s MOV, defining its infrastructure, summarizing the project plan details, defining roles and responsibilities, showing project commitments, and explaining project control mechanisms.

17. Why can a project charter serve as an agreement or a contract?

It is the responsibility of the project manager to ensure that the project charter and plan are developed, agreed upon, and approved. Like the business case, the project charter and plan should be developed with both the project team and the project sponsor to ensure that the project will support the organization and that the goal and objective of the project are realistic and achievable. Furthermore, in order to proceed certain elements must be nailed down. The MOV for instance must be agreed upon and then cast in stone. Team members’ roles and responsibilities must be clarified. If foundational elements are allowed to change on a whim, progress toward the project’s goal is severely jeopardized.

18. Why is a project charter a useful communication tool?

The project charter summarizes the scope, schedule, budget, quality objectives, deliverables, and milestones of the project. It therefore serves as an important communication tool that provides a consolidated source of information about the project that can be referenced throughout the project life cycle.

19. Why should the project charter and project plan be developed together?

The project charter and plan should be developed with both the project team and the project sponsor to ensure that the project will support the organization and that the goal and objective of the project are realistic and achievable.

20. How does the project charter support the project plan?

The infrastructure outlined in the project charter will influence the estimates used in developing the project plan. The project charter serves as an agreement and communication tool. It provides a clarified summary of the project elements that need to be addressed in the project plan.

21. How does the project plan support the project charter?

The project plan supports the project charter by providing an explication of the elements that are presented in the project charter in summary fashion. The project plan can serve as guide to understanding the minute details that lie beneath the broader statements and claims of the charter.

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22. Describe the project planning framework.

The project planning framework is part of the IT project methodology and provides the steps and processes necessary to develop the detailed project plan that will support the project’s MOV. The steps in the project planning framework are: •

finalize the definition of the project MOV

•

define the project scope

•

organize the work of the project into logical stages or phases

•

identify the tasks that comprise the phases taking into account sequence, resources, and time

•

the result of the above steps yields the Baseline Plan which details the schedule and budget

23. Why is it important to finalize the definition and agreement of the project's MOV? Any changes in the project’s MOV will have significant effects on the planning process. One cannot plot a course to moving target. The MOV drives the project planning process and is fundamental for all project related decisions.

24. Describe how the project's MOV supports the development of the project's scope, schedule, and budget.

Since the project’s scope is the work that needs to be completed in order to achieve the project’s MOV, the MOV supports the project scope by defining what work should comprise the scope and which things should be left out or avoided if they do not move the project toward the realization of the MOV. The schedule and budget as well are defined and deemed adequate if they allow the project to achieve the MOV. MOV provides a “raison d'être” for scope, schedule, and budget.

25. What is a project's scope?

The Project Management Body of Knowledge defines scope as the product or services to be provided by the project and includes all of the project deliverables. One can think of scope as the work that needs to be completed in order to achieve the project’s MOV.

26. Why should a project be divided into phases?

Breaking a project down into phases and subphases reduces complexity and risk. In many cases it is

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easier to focus on the pieces instead of the whole.

27. What is a deliverable? What is the relationship between phases and deliverables?

A deliverable is a tangible and verifiable piece of work. Each phase should focus on providing at least one specific deliverable.

28. What is a milestone? Why are milestones useful?

A milestone is a significant event or achievement that provides evidence that that deliverable has been completed and that the phase or subphase is complete.

29. What is a task? Provide three examples of some typical tasks in an IT project.

A task may be thought of as a specific activity or unit of work to be completed. Examples of some tasks in an IT project may be to interview a particular user, write a program, or test links in a Web page.

30. What impact can the sequence of tasks have on a project's schedule?

Some tasks may be linear—i.e., have to be completed in a particular sequence—while others can be completed in parallel—i.e., at the same time. Performing parallel tasks often provides an opportunity to shorten the overall length of the project. A project is constrained by the longest tasks, and any opportunity to perform tasks in parallel can shorten the project schedule.

31. How can resources impact the schedule of a project?

It will take a resource a specific amount of time to complete a task. The longer it takes a resource to complete a specific task, however, the longer the project will take to finish. The ability to add resources to a project may shorten or lengthen the timeframes depending. The fact that resources may be deployed in parallel or must be linear will likewise impact schedules.

32. What is a baseline plan? What purpose does it serve once the project team begins to execute the project plan?

Once the project plan is approved, it becomes the baseline plan that will serve as a benchmark to measure and gauge the project’s progress. The project manager will use this baseline plan to compare the actual schedule to the estimated schedule and the actual costs to budgeted costs.

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33. What is a kick-off meeting? What purpose does it serve?

Once the project charter and project plan are approved, many organizations have a kick-off meeting to officially start work on the project. The kick-off meeting is useful for several reasons. First, it brings closure to the planning phase of the project and signals the initiation of the next phase of the IT project methodology. Second, it is a way of communicating to everyone what the project is all about.

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Chapter 4: The Human Side of Project Management TEACHING STRATEGIES Choosing the project team is one of the most important decisions a project manager or organization can make. Often IT projects become too focused on the technology while downplaying the human element.

This chapter describes the various organizational structures and their potential impact on the IT project. More specifically, the choice of who should be the project manager is sometimes dependent on the organizational structure. For example, should the project manager be someone from one of the functional areas? Or should the project manager have more of an IT background. I have found that this question often stirs a lively debate, especially in classes where the students are predominately MIS majors. I enjoy taking the less supported (i.e., devil advocate) view if the class tends to lean toward one side.

However, the formal organization only tells part of the story. The real interest lies with the informal organization. The project manager and team must understand that relationships between people in the organization have evolved over time. This can result in an organizational beehive if the project manager and team do not understand the politics and culture of an organization. This can be more problematic for outsiders, especially consultants, who may not be aware of who supports or who does not support the project. Subsequently, I like to show my students how conducting a stakeholder analysis that identifies the players (i.e., stakeholders) and their interests helps one to understand the human side of project management.

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In addition, the project manager is responsible for recruiting a project team that has the right skills and experience. However, this group will not become a cohesive team just because we call them a team. I have found that Katzenbach and Smith (see cite at end of chapter) have provided some of the most thoughtful and useful ideas for developing high-performance teams.

In addition, I have had the opportunity to be the director of a Center that allowed students to work on real-world projects that were sponsored (and paid for) by various organizations. In that experience, I found the concepts of learning cycles to be very useful. More importantly, so did the students who worked on these teams. The concept of learning cycles provides an excellent foundation for knowledge management. Moreover, the concepts of learning cycles can be used as a tool for Extreme Project Management. I would encourage you to have your students use this valuable tool not only in your class, but in other team-situations as well.

TEACHING CHAPTER 4 IN A NUTSHELL ➢ The three major organizational structures – functional, pure project and matrix – often determine who will be the project manager. They also determine lines of formal communication, resource availability, and reporting relationships in the organization. Organizations can adopt a unique organizational structure so the project manager and team must understand how the project aligns within the organization. ➢ While the formal organization may be relatively easy to understand, the informal organization can create the most problems, risks, and issues for the project team. ➢ Subsequently, a stakeholder analysis provides a useful tool for understanding the informal organization. Identifying the various stakeholders, their interests and roles in the project, as well as a strategy for engaging the stakeholders can help the project manager and team avoid many of the problematic situations that can arise as a result of the “soft side” of information systems projects.

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➢ Again, the ideas of Katzenbach and Smith provide an interesting approach for understanding the nature of teams and more importantly, applying these concepts in the real world. ➢ Although the idea of learning cycles (and double-loop learning) have been around since the late 1930’s, John Redding provides a novel approach that can be used for improving team communication, understanding, and knowledge management. The project team can acknowledge that they don’t always have the answer, but can use a structured approach for reframing the problem as it was handed to them so that they can act, reflect, and learn in order to provide innovative and effective solutions.

REVIEW QUESTIONS 1. What is the relationship between an organization’s strategy and organizational structure?

The structure of an organization must fit its strategy, and since organizations may follow different strategies, it makes sense that no single structure can work well for every organization. Therefore, there are different organizational structures and ways to efficiently and effectively manage not only the organizational resources but also the work and processes involved. As long as the firm performs well, a particular structure and strategy will exist. On the other hand, when a firm performs poorly, a change in structure and/or strategy may be required.

2. What is meant by the formal organization?

By formal organization, we mean the formal groupings and specializations of activities which are generally documented in an organizational chart to clarify and portray the lines of authority, communication, reporting relationships, and responsibilities of individuals and groups within the organization.

3. Why is it important for a project manager to understand the formal organization?

The formal organizational structure will determine how resources are allocated, who has authority over those resources, and who is really in charge of the project.

4. Describe the functional organizational structure.

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This particular structure is based upon organizing resources to perform specialized tasks or activities in order to attain the goals of the organization. Individuals and subunits (i.e., groups of individuals) perform similar functions and have similar areas of expertise. Subsequently, projects are managed within the existing functional hierarchy. Projects in a functional organization are typically coordinated through customary channels and housed within a particular function.

5. What are some challenges for IT projects under the functional organizational structure?

If a project crosses functional boundaries, the project team may consist of individuals from two or more functional areas. There are two main issues that must be resolved at the outset of a project: Who will be responsible for the project? What resources will each subunit provide? Additional challenges include poor response times, and poor integration.

6. What are some opportunities for IT projects under the functional organizational structure?

There are a number of advantages for projects sponsored by organizations with functional structures.

These include: •

Increased flexibility

•

Breadth and depth of knowledge and experience—

•

Less duplication

7. Describe the project organizational structure.

At the other end of the spectrum from the functional organization is the project organization or the pure project organization. This organizational structure supports projects as the dominant form of business.

Typically, a project organization will support multiple projects at one time and integrate project management tools and techniques throughout the organization. Each project is treated as a separate and relatively independent unit within the organization. The project manager has sole authority over and responsibility for the project and its resources, while the parent or supporting organization provides financial and administrative controls. Both the project manager and the project team are typically assigned to a particular project on a full-time basis.

8. What are some challenges for IT projects under the project organizational structure?

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These disadvantages include: •

Project isolation

•

Duplication of effort

•

Projectitis

9. What are some opportunities for IT projects under the project organizational structure?

Advantages include: •

Clear authority and responsibility

•

Improved communication

•

High level of integration

10. Describe the matrix organizational structure.

The matrix organization is a combination of the vertical functional structure and the horizontal project structure. As a result, the matrix organization provides many of the opportunities and challenges associated with the functional and project organizations. The main feature of the matrix organization is the ability to integrate areas and resources throughout an organization. Moreover, people with specialized skills can be assigned to the project either on a part-time or on a more permanent basis.

11. What are some challenges for IT projects under the matrix organization structure?

There are several disadvantages for projects supported by the matrix organization. These include: •

Higher potential for conflict

•

Poorer response time

12. What are some opportunities for IT projects under the matrix organizational structure?

The advantages include: •

High level of integration

•

Improved communication

•

Increased project focus

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13. What is projectitis? When might you expect to encounter projectitis? How could an organization minimize the likelihood of projectititis?

Projectitis sometimes occurs when the project manager and project team develop a strong attachment to the project and to each other. As a result, these individuals may have a difficult time letting go, and the project begins to take on a life of its own with no real end in sight. The program manager or project office must ensure that proper controls are in place to reduce the likelihood of this happening.

14. Describe the balanced matrix, functional matrix, and project matrix organizational structures.

•

Balanced matrix—In the balanced matrix form, the project manager focuses on defining all of the activities of the project, while the functional managers determine how those activities will be carried out.

•

Functional matrix—The functional matrix organization tends to take on more of the qualities of a functional organization. Here the project manager focuses on coordinating the project activities, while the functional managers are responsible for completing those activities that are related to their particular area.

•

Project matrix—It follows, then, that a project matrix structure would take on more of the qualities of a project organization. In this case, the project manager has most of the authority and responsibility for defining and completing the project activities, while the functional managers provide guidance and resources, as needed.

15. Describe what is meant by the informal organization. Why should the project manager or project team be concerned with understanding the informal organization?

While the formal structure tells us how individuals or groups within an organization should relate to one another, it does not tell us how they actually relate. In many cases the informal organization bypasses the formal lines of communication and authority because of the inevitable positive and negative relationships that occur over time in any organization. While communication in the formal organization is supposed to flow through published channels, it can flow in any direction and at a much faster pace through the network of informal relationships—the famous grapevine. Power in an organization, therefore, is not only determined by one’s place in the hierarchy, but also how well one is connected in the informal network. A person’s degree of connectedness in the informal organization largely determines what information is received or not received.

16. What is a stakeholder?

Stakeholders are individuals, groups, or even organizations that have a stake, or claim, in the project’s

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outcome.

17. How does conducting a stakeholder analysis help the project manager and project team understand the informal organization?

To help the project manager and project team understand the informal organization better, one can develop a stakeholder analysis as a means of determining who should be involved with the project and understanding the role that they must play.

18. Why would the project manager and project team not want to make a stakeholder analysis public to the entire organization?

Since the purpose of the stakeholder analysis is to understand the informal organization, it may be best to view this as an exercise rather than a formal document to be made public. Stakeholder analysis requires making judgments about attitudes and power wielded by individuals in the organizations. Political and interpersonal fallout are potential risks of sharing those judgments with the entire organization.

19. In conducting a stakeholder analysis, why is it important not only to identify those who will gain from the project’s success, but also those who may gain from its failure?

It is important to know if a stakeholder stands to gain from the project’s failure. It is even more important to know if that stakeholder either holds the key to needed resources or has to power or ability to terminate the project. If such a stakeholder exists, an appropriate stance should be taken that increases chances for project stance. This may include an appeal to senior management for project support that would insulate the project from negative interference or an attempt to reach an understanding with that stakeholder which attempts to align interest in a mutually agreeable direction.

20. What is the purpose of defining a role and objective for each stakeholder identified in the stakeholder analysis?

Identifying the roles and objectives for stakeholders can provide the project team with a list of resources and warning signs that will contribute to the project’s success. The roles that may be identified include that of: champion or someone prominent within the organization who will be a public supporter of the project, owner of the project, an individual, group, or organization that will accept the transfer of the project’s product, consultant, decision maker, advocate, ally, rival, foe, and so forth.

21. Describe the roles of a project manager.

The project manager must play a managerial role that focuses on planning, organizing, and controlling.

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S/he must play an administrative role and finally, the project manager must also play a strong leadership role.

22. What qualities are required for a good project manager? Can you come up with any on your own?

Some attributes of a successful project manager include: •

The ability to communicate with people

•

The ability to deal with people

•

The ability to create and sustain relationships

•

The ability to organize

23. What skills or qualities are important in selecting a project team?

Although a project manager should strive to acquire the brightest and the best, project team members should be chosen based on the following skills: •

Technology skills

•

Business/organization skills

•

Interpersonal skills

24. What is the difference between a work group and a real team?

The work group is based on the traditional approach where a single leader is in control, makes most of the decisions, delegates to subordinates, and monitors the progress of the assigned tasks. Although the members may be interested in each other’s success, work groups do not necessarily share the same performance goals, do not necessarily provide joint work-products, and are not necessarily held mutually accountable.

Teams, in contrast, are a small number of people with complimentary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable.

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25. What is the difference between a performance based goal and an activity-based goal? Give an example of each.

Katzenbach and Smith distinguish between activity goals (e.g., install a local area network) and performance goals (e.g., ship all orders within twenty-four hours of when they are received). The concept of a performance goal is similar to the concept of the MOV and sets the tone and aspirations of the team while providing a foundation for creating a common team purpose. The difference is like the difference between doing something (activity goal) and getting somewhere or reaching a milestone (performance goal).

26. Why is focusing on a performance-based goal, such as a project’s MOV, more important than having the team go through a series of teambuilding exercises?

Strong performance goals tend to spawn more real teams. A project team cannot become a real team just because we call them a team or require them to participate in team-building activities or exercises.

However, their findings suggest that real teams tend to thrive as a result of clearly defined performancebased goals.

27. Why do you think many teams accept the project opportunity at face value and never question the way the project was originally framed?

Because many teams are concerned only with activity goals, they lose sight of the bigger picture and never question the original framing of the problem, but instead assume the big picture questions are nailed down by some higher level of management and their task is tactical and not strategic.

28. Describe the concept of a learning cycle?

Learning cycles provide a way to resolve ambiguous situations through the repeated pattern of thinking through a problem. A learning cycle has four phases: •

Understand and frame the problem

•

Plan

•

Act

•

Reflect and learn

29. What purpose does creating a lesson learned at the end of a learning cycle provide?

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The completion of a team’s lessons learned marks the ending of one learning cycle and the beginning of another. Based on the learning that has transpired, the team can focus once again on understanding and reframing the problem and then repeat the plan, act, reflect and learn phases again.

30. What advantage does a team have when it encourages open humility instead of trying to solve the problem or provide a solution as soon as possible?

If the team approaches the project with a high degree of certainty then opinions are often accepted without question and can result in erroneous assumptions that lead the project team in the wrong direction or keep the team from getting at the real problem. The project team must come to understand two things: Preconceived solutions are likely to produce run-of-the-mill results, and teams should encourage open humility. In other words, it is all right for team members to recognize and admit that they do not have all the answers, especially at the beginning of a project. As a result, team members may feel more comfortable admitting they have more questions than answers and the potential for preconceived ideas leading to mediocre solutions is reduced.

31. What is meant by the speed of learning cycles? How is speed associated with team learning?

Speed refers to the number of learning cycles completed. Therefore, the opportunity to learn can be increased if a team can complete more cycles in a given amount of time.

32. What is meant by depth of learning cycles? How is depth associated with team learning?

Depth of learning refers to the degree to which a team can deepen its understanding of the project from cycle to cycle. This learning includes challenging the framing of the problem and various assumptions. In short, depth focuses on how well the team is able to dig below the surface in order to get to the root of the problem.

33. What is meant by breadth of learning cycles? How is breadth associated with team learning?

The breadth of learning refers to the impact the project has on the organization. It also focuses on whether the learning that has taken place within the team stays within the team or is shared and used throughout the organization.

34. What is the project environment? Why must a project manager ensure that a proper project environment is in place?

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The project environment includes not only the physical space where the team will work, but also the project culture as well. More specifically, the project environment includes: •

A place to call home

•

Technology

•

Office supplies

•

Culture

A project manager must ensure that a proper project environment is in place in order to ensure that: •

The team cohesiveness and effectiveness is enhanced by being able to either gather together in one spot or have the necessary technology to transcend geography and time

•

The team has the necessary resources to do their job

•

The team culture is sufficiently developed and understood so that the team comes to agreement on a set of values and expectations.

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Chapter 5: Defining and Managing Project and Product Scope TEACHING STRATEGIES From my experience, I have seen many projects become challenged as result of the project team not properly defining or managing the project’s scope. Being able to define exactly what needs to be done requires a clear direction. Therefore, it is important that the project stakeholders understand the project’s goal or MOV before trying to define the work that has to be done. The students should understand that there is an important link between the project’s MOV and scope.

Scope is really the deliverables that the project team must deliver. This chapter has been updated in the new edition to include the revised scope management processes in the third edition of the PMBOK® Guide. In short, the revised scope management process includes a “create work breakdown structure” process. However, I believe it is important not to confuse scope with activities. While both may be considered “work,” it is important that the project team (and students) separate deliverables from activities or tasks. Project scope, defined in terms of tangible, verifiable products or deliverables, provides a clearer focus and direction. Moreover, it sets clearer expectations for all the stakeholders involved. Subsequently, activities or tasks are actions to create the work products. This can lead to people being busy, but accomplishing little.

The students should understand that we must put a boundary around the project’s scope much like a fence to keep certain things in and other things out. The project manager should act as a gatekeeper so that once the project scope is defined only work products that will help us achieve the MOV (without increasing schedule and budget unnecessarily) should be let in. Once again, the concept of the triple constraint should

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be revisited to highlight the relationships between scope, schedule, and budget. This chapter introduces several tools for defining the project’s scope. Some tools like a context DFD or use case diagram come from the MIS/Software Engineering bodies of knowledge, while the deliverable structure chart and table have been adapted or inspired by the work of Graham McLeod and Derek Smith. Once we have a clear understanding of the work products we call scope, we can use the WBS introduced in the next chapter to create work packages that include phases, deliverables, activities or tasks, and milestones. This WBS becomes the foundation for developing the detailed baseline project plan that yields the project schedule and budget.

TEACHING CHAPTER 5 IN A NUTSHELL ➢ This chapter introduces the five PMBOK® scope management processes called scope planning, scope definition, create-work breakdown structure, scope verification, and scope control. The create work breakdown structure process is covered in more detail in the next chapter. The remaining processes provide a central focus for this chapter. ➢ Scope can be classified or viewed as being product or project scope. Project scope centers on the deliverables defined in the ITPM. This includes the business case, project charter, baseline plan, etc. On the other hand, product scope focuses on the product of the project – in other words, the information system solution. Product scope concerns the features, functionality, or requirements of the system. ➢ Several tools for defining the project’s scope are introduced. These tools include the context data flow diagram, the use case diagram, deliverable structure chart, and the deliverable definition table. ➢ Once the project’s scope is defined, it must be verified and controlled against scope leap and creep. Scope grope is a situation that may arise if the scope was never defined properly in the first place. Subsequently, the project team may try to grope their way in terms of finding a direction.

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REVIEW QUESTIONS

1. What is meant by project scope?

The term scope is used to define 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.

2. Briefly describe the five scope management processes.

•

Scope planning: The development of a scope management plan that defines the project’s scope and how it will be verified and controlled throughout the project.

•

Scope definition: A detailed scope statement that defines what work will and will not be part of the project and will serve as a basis for all future project decisions.

•

Create work breakdown structure: The decomposition or dividing of the major project deliverables into smaller and more manageable components.

•

scope verification: Confirmation and formal acceptance that the project’s scope is accurate, complete, and supports the project’s MOV.

•

scope change control: Ensures that controls are in place to managed proposed scope changes once the project’s scope is set. These procedures must be communicated and understood by all project stakeholders.

3. Briefly describe the scope planning process.

Scope planning is a process for defining and documenting the project work. More specifically, a project’s scope defines all the work, activities, and deliverables that the project team must provide in order for the project to achieve its MOV. It is an important step in developing the project plan since one must know what work must be done before an estimate can be made on how long it will take and how much it will cost.

4. Briefly describe the scope definition process.

Developing a scope statement is a useful first step for defining the scope of the project and setting a boundary. A project’s scope, however, should also be defined in terms of the deliverables that the team must provide. These deliverables can be divided into project-oriented deliverables and product-oriented

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deliverables. This separation gives the team a clearer definition of the work to be accomplished and improves the likelihood of accurately assigning resources and estimating the time and cost of completing the work. Moreover, a clear definition of the project’s deliverables sets unambiguous expectations and agreement among all of the project stakeholders.

5. Briefly describe the scope verification process.

Project scope verification is the scope management process that provides a mechanism for ensuring that the project deliverables are completed according to the standards described in the DDT. Gray and Larson (2000) provide a project scope checklist for ensuring that the deliverables are completed—and completed correctly. The checklist items include: MOV, Deliverables, Quality standards, Milestones, Review and acceptance.

6. Briefly describe the scope change control process.

Scope change control is concerned with ensuring that any changes to the project scope will be beneficial, with determining that an actual scope change has occurred, and with managing the actual changes when and as they occur. Scope control is also concerned with: Scope grope, Scope creep, and Scope leap.

7. Describe the scope management plan.

Together, the processes and techniques for defining and managing scope make up the scope management plan. Depending on the size and nature of the project, this plan can be separate and/or summarized in the project charter. Regardless, Figure 5.1 summarizes the components and processes of a scope management plan. The outer ring is comprised of the scope management processes and the inner ring is comprised of the deliverables and components that support the processes and which when combined with the processes define the illustration center, the scope.

8. Why is it important to define the project’s scope accurately and completely?

The procedures for defining and managing the scope of a project must be communicated and understood by all of the project’s stakeholders to minimize the likelihood of misunderstandings. Moreover, the project’s scope must align and support the project’s MOV. Why spend time and resources to perform work that will not add any value to the organization or help the project achieve its MOV? Again, work that does not add value consumes valuable time and resources needlessly.

9. What is a scope boundary? What purpose does it serve?

Defining the scope boundary is the first step to establishing what is, and what is not, part of the project

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work to be completed by the project team. Think of the scope boundary as a fence designed to keep certain things in and other things out. The scope boundary must protect the scope from activities that will not help the project achieve its MOV.

10. What is the difference between product-oriented deliverables and project-oriented deliverables?

Product scope therefore focuses on identifying the features and functionality of the information system to be implemented.

The role of project-oriented deliverables is to ensure that the project processes are being competed so that the project’s product (i.e., the information system) achieves the project’s MOV and objectives. Project-oriented deliverables also provide tangible evidence of the project’s progress (or lack of progress). Finally, they allow the project manager to set a baseline for performance and quality control because they usually require some form of approval before work on the next project phase or deliverable begins.

11. How does a project’s scope support the MOV concept?

The project’s scope defines and limits the project’s activities to only those things which support the project MOV. It makes sure that time and resources are only expended on things that contribute to the project MOV.

12. What is a Statement of Work? What purpose does it serve?

A statement of work (SOW) is a narrative description of the product, service, or information system. Its purpose is based upon whether the project is internal or external to the organization. For internal projects, the SOW should tie together the business need with the specific requirements or expectation of the project. For external projects, an organization would create a SOW that includes specifications, quantities, quality standards, or performance requirements for inclusion in a document that may be called a request for proposal (RFP), request for information (RFI), or request for bid (RFB).

13. What is a scope statement? What purpose does it serve?

A scope statement documents the project sponsor’s needs and expectations. It serves to clarify what work is within the scope boundary as well as what work is outside of the scope boundary and therefore not to be included.

14. What is a context dataflow diagram (DFD)? What purpose does it serve?

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A context level data flow diagram (DFD) presents a high-level representation of the system that has one process (i.e., a circle or rounded rectangle that represents the system as a whole) and depicts all the inflows and outflows of data and information between the system and its external entities. It is a useful modeling tool for refining the scope boundary and defining what the system must do.

15. How does a use case diagram help to define the project’s scope?

The use case diagram provides a simple yet effective overview of the functions and interactions between the use cases and the actors. The box separating the use cases from the actors also provides a system boundary that defines the scope boundary. Use cases inside the boundary are considered within the scope of the project, while anything outside of the boundary is considered outside the scope of the project.

16. What is a deliverable definition table (DDT)? What purpose does it serve?

All of the project deliverables must have a clear and concise definition. One way to communicate the project’s deliverables is to create a deliverable definition table (DDT). The purpose of the DDT is to: •

define all of the project-oriented deliverables

•

define the structure of the deliverable.

•

define the standards that provide a means to verify whether the deliverable was produced correctly

•

name the person or position responsible for approving deliverables

•

list the resources required for each deliverable

17. What is a deliverable structure chart (DSC)? How does it map to a deliverable definition table (DDT)?

Once the deliverables have been defined in the DDT, a deliverable structure chart (DSC) can be developed as an interim step to define detailed work packages that will be used to estimate the project schedule and budget. A Deliverable Structure Chart maps the project life cycle and systems development life cycle phases to the deliverables defined in the DDT.

18. What is a work breakdown structure (WBS)? How does it map to the DDT and DSC? A work breakdown structure (WBS) is a tool used to help create the project plan. The WBS uses the output of the DDT and DSC to develop the project plan needed to fulfill the requirements defined in the

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project scope.

19. Briefly describe what must be included in a scope verification checklist?

The scope verification checklist addresses: •

MOV—Are the project’s MOV clearly defined and agreed upon?

•

Deliverables—Are the deliverables tangible and verifiable?

•

Quality standards—Are controls in place to ensure that the work was not only completed, but also completed to meet specific standards?

•

Milestones—Are milestones defined for each deliverable? Milestones are significant events that mark the acceptance of a deliverable and give the project manager and team the approval to begin working on the next deliverable.

•

Review and acceptance—Are both sides clear in their expectations? The project’s scope must be reviewed and accepted by the project stakeholders.

20. What is the purpose of verifying a project’s scope?

The project scope must be verified to ensure that the deliverables are completed—and completed correctly.

21. What is the purpose of scope change control procedures?

The purpose of scope change control procedures is to ensure that any changes to the project scope will be beneficial, to determine that an actual scope change has occurred, and to manage the actual changes when and as they occur.

22. Briefly describe scope grope.

Scope grope is a metaphor that describes a project team’s inability to define the project’s scope. This situation is common early in a project when the project team and sponsor have trouble understanding what the project is supposed to accomplish.

23. Briefly describe scope creep.

Scope creep refers to increasing featurism, adding small yet time- and resource-consuming features to the

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system once the scope of the project has been approved.

24. Briefly describe scope leap.

Scope leap is a fundamental and significant change in the project scope.

25. What are the benefits of having scope control procedures?

The most important benefit of scope change control procedures is that they keep the project manager in control of the project. More specifically, they allow the project manager to manage and control the project’s schedule and budget. Scope control procedures also allow the project team to stay focused and on track in terms of meeting its milestones because it does not have to perform unnecessary work.

26. Briefly describe what should be included on a scope change request form.

•

First, the description of the change request should be clearly defined so that the project manager and project team understand fully the nature and reason for the scope change.

•

Second, the scope change should be justified, which separates the would likes from the must haves.

•

Third several alternatives may be listed.

•

Fourth an assessment of the impact on scope, schedule, resources, and cost.

•

Fifth an approval of those scope changes to be implemented.

27. What is the purpose of a scope change request log?

To prevent requests from falling through the cracks, leading to credibility concerns and accusations that the project manager or project team is not being responsive to the client’s needs.

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Chapter 6: The Work Breakdown Structure and Project Estimation TEACHING STRATEGIES Although the work breakdown structure (WBS) is defined as one of the new scope management processes in the third edition of the PMBOK® Guide, I like to cover the WBS on its own because of its importance to project planning. The WBS is an important tool that ties the project’s scope to resources and activities. In turn, if we know what activities need to be completed in order to produce a particular project deliverable as well as each activity’s estimated time and the cost of the resources assigned, we can then develop a project network that allows us to estimate the project schedule and budget. I like to reinforce the idea that the WBS must be tied to the project’s scope and therefore indirectly tied to the project’s MOV.

This chapter also introduces a number of approaches and tools for estimating the project activities. Although there is no perfect estimation tool, having an understanding and clear definition of the project deliverables can provide a higher degree of confidence in our estimates. I also like to point out to the students that there are two basic approaches to project estimation. The first is the traditional project management approach (i.e., time boxing, top-down, bottom-up, and the Delphi technique), which may be better suited for estimating project-oriented scope/deliverables. However, the most difficult (and perhaps the most important) deliverable to estimate is the system solution – especially if a custom system artifact is to be designed and developed. It is important the students appreciate the fact that we will not have a clear idea of what this system will even look like until we are well into the SDLC. However, we need to know enough about the system solution at this point to develop a realistic and usable project plan. To estimate the product-oriented deliverable/scope, a software engineering approach may be more useful. The tools for estimating the schedule and budget associated with the creation and delivery of the system may be best suited using

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such tools as function point analysis, COCOMO, and heuristics (with limited effectiveness using the traditional counting of lines of code).

In my classes, I don’t expect my students to be effective function point counters. If you do, then there’s an appendix that provides more detail in counting function points.

However, I do expect that they understand and hope that they gain an appreciation for the function point and COCOMO approaches. While these approaches may not provide the perfect estimation tool, they are better than trying to estimate how many lines of code will be required for software programs that are yet to be written. Like most things in life, we tend to get better at them through repetition and experience. I have used the Husky Air cases extensively in my classes and like to compare how teams working on the same case can come up with a wide range of schedule and budget estimates.

TEACHING CHAPTER 6 IN A NUTSHELL ➢ The WBS is an important and widely used tool for planning projects.

Unfortunately, there is no general standard or accepted WBS style or approach.

Since the WBS must be tied to the project’s scope (and in turn to the project’s MOV), the WBS should follow a work package approach that breaks up the project into phases, with each phase tied to one or more deliverables.

Moreover, each deliverable should include specific tasks (or activities) that represent actions needed to complete the deliverable. Examples of the work package concept can be found in the Husky Air case examples that are part of the instructor’s materials. ➢ Deliverables and milestones are tightly linked. Deliverables are the specific work products defined in the project’s scope. Milestones represent quality checks to show that deliverables and phases have not only been completed, but completed according to predefined standards. Milestones also play other important roles such as cruxes or proof of concepts, and tend to keep the project team focused because a project team that hits its milestones should be on track. ➢ As mentioned above, the traditional project management approaches to estimation are useful for estimating many of the project-oriented deliverables, while the software engineering approaches may be better for estimating the product-oriented deliverables. No one approach is best, so using more than one approach may help triangulate the estimates for the project activities. On the

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other hand, estimating with little experience is similar to shooting in the dark – one may hit the target, but it may be a matter of luck instead of skill. Experience and repetition are keys to better estimation and confidence in those estimates.

REVIEW QUESTIONS

1. Describe the PMBOK area of project time management.

The Project Management Body of Knowledge (PMBOK) area called project time management focuses on the processes necessary to develop the project schedule and to ensure that the project is completed on time. As defined in the PMBOK, project time management includes: •

Define Activities—identifying what activities must be completed in order to produce the project scope deliverables.

•

Sequence Activities—determining whether activities can be completed sequentially or in parallel and any dependencies that may exist among them.

•

Estimate Activity Resources – identifying the type of resources (people, technology, facilities, etc.) and the quantity of resources needed to carry out project activities.

•

Estimate Activity Durations—estimating the time to complete each activity.

•

Develop Schedule—based upon the availability of resources, the activities, their sequence, and time estimates, a schedule for the entire budget can be developed.

•

Control Schedule—ensuring that proper processes and procedures are in.

2. What is a WBS? What purpose does it serve?

A work breakdown structure (WBS) provides a hierarchical structure that outlines the activities or work that needs to be done in order to complete the project scope. The WBS also provides a bridge or link between the project’s scope and the detailed project plan that will be entered into a project management software package.

3. Discuss why a project’s scope must be tied to the WBS. Once the project’s scope is defined, the next step is to define the activities or tasks the project team must do to fulfill the scope deliverable requirements. The work breakdown structure (WBS) is a useful tool for

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developing the project plan and links the project’s scope to the schedule and budget. The WBS provides a framework for developing a tactical plan to structure the project work.

4. What is a work package?

The WBS decomposes, or subdivides, the project into smaller components and more manageable units of work called work packages. Work packages provide a logical basis for defining the project activities and assigning resources to those activities so that all the project work is identified. (p. 134-135)

5. What is the difference between a deliverable and a milestone?

•

•

Deliverables o

–Tangible, verifiable work products

o

–Reports, presentations, prototypes, etc.

Milestones o

Significant events or achievements

o

Acceptance of deliverables or phase completion

6. What purpose do milestones serve?

Milestones provides evidence that that deliverable has been completed or that a phase is formally over.

7. What are some advantages of including milestones in the WBS? If a project team succeeds in meeting all of its scheduled milestones, then the project should finish as planned. Milestones can keep the project team focused and they can motivate a project team if their attainment is viewed as a success. Milestones also reduce the risk of a project. The passing of a milestone, especially a phase milestone, should provide an opportunity to review the progress of the project.

8. What is a crux? Why should the project manager and project team identify the cruxes of a project?

A crux is a proof of concept. A crux can be the testing of an idea, concept, or technology that is critical to the project’s success. Solving a crux is a milestone that would encourage the organization to invest more time and resources to complete the project.

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9. What is the proper level of detail for a WBS? The level of detail should support not only the development of the project plan but also allow the project manager and project team to monitor and compare the project’s actual progress to the original plan’s schedule and budget. The two most common errors when developing a WBS are too little or too much detail. Too little detail may result in a project plan that overlooks and omits important activities and tasks.

This will lead to an overly optimistic schedule and budget. On the other hand, the WBS should not be a todo list of one-hour tasks. This excessive detail results in micromanagement that can have several adverse effects on the project.

10. Why should the WBS be deliverable-oriented?

The focus of a project should be to produce something, not merely on completing a specified number of activities. It may be necessary to repeat an activity or task until quality standards are met.

11. Explain why people who do the work on a project should be involved in developing the project plan?

Developing the WBS may require several versions until everyone is comfortable and confident that all of the work activities have been included. It is also a good idea to involve those who will be doing the work— after all, they probably know what has to be done better than anyone else.

12. How does the concept of knowledge management support the development of the project plan?

By using the concept of learning cycles, the project team can focus on what they know (the facts), what they think they know (assumptions), and what they need to find out (research) in order to develop a more useful WBS. Lessons learned from previous projects can be helpful in ensuring that the WBS and subsequent project plan are realistic and complete.

13. How is estimating an IT project different from estimating a construction project?

The challenge of estimating an IT project lies in trying to estimate something that is logical, rather than physical like a construction project.

14. What makes estimating an IT project challenging?

In an IT project, often specific requirements, in terms of features and functionality, are generally not

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defined until later, during the design phase. In addition, the complexity and technical challenges of implementing those features are either unknown or optimistically glossed over in the early stages of the project. As a result, estimating an IT project can be like trying to hit a moving target—hitting either one accurately requires continuous adjustments.

15. What is guesstimating? Why should a project manager not rely on this technique for estimating a project?

Guesstimating is picking numbers out of the air or off the top of one’s head. It should not be relied on for many reasons, but the most common error when guesstimating is to be overly optimistic and to underestimate the requirements to complete a project.

16. Describe the potential problems associated with providing an off-the-record estimate?

There is always the risk of the off-record guesstimate becoming the requirement of record.

Underestimating can result in long hours, reduced quality, and unmet client expectations.

17. What is the Delphi technique? When would it be an appropriate estimating technique for an IT project?

The Delphi technique requires several experts who are recruited to estimate the same item. Based upon information supplied, each expert makes an estimate and then all the results are compared. If the estimates are reasonably close, they can be averaged and used as an estimate. Otherwise, the estimates are distributed back to the experts who discuss the differences and then make another estimate. In general, these rounds are anonymous and several rounds may take place until a consensus is reached. It can be very effective and provide reasonable assurance when the stakes are high and the margin for error is low.

18. What is time boxing? What are some advantages and disadvantages of time boxing project activities?

Time boxing is a technique whereby a box of time is allocated for a specific activity or task. This allocation is based more on a requirement rather than on just guesswork. Used effectively, time boxing can help focus the project team’s effort on an important and critical task. The schedule pressure to meet a particular deadline, however, may result in long hours and pressure to succeed. Used inappropriately or too often, the project team members become burned out and frustrated.

19. Describe top-down estimating. What are some advantages and disadvantages of top-down

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estimating?

Top-down estimating involves estimating the schedule and/or cost of the entire project in terms of how long it should take or how much it should cost. It may allow one to respond to a requirement from the business environment. Top-down estimating works well when the target objectives are reasonable, realistic, and achievable. Top-down estimating can be a very effective approach to cost and schedule analysis. More specifically, a top-down approach may force the project manager to examine the project’s risks more closely so that a specific budget or schedule target can be achieved. By understanding the risks, trade-offs, and sensitivities objectively, the various project stakeholders can develop a mutual understanding that leads to better estimation. When made by people independent from the project team, however, these targets are often overly optimistic or overly aggressive. These unrealistic targets often lead to what Ed Yourdon (1999) calls a death march project.

20. Describe bottom-up estimating. What are some advantages and disadvantages of bottom-up estimating?

Bottom-up estimating involves dividing the project into smaller modules and then directly estimating the time and effort in terms of person-hours, person-weeks, or person-months for each module. The project manager, or better yet the project team, can provide reasonable time estimates for each activity. Bottomup estimated is straightforward; however, confusing effort with progress can be problematic. When doing bottom-up estimating often analogous estimating is employed. If the analogy is not well chosen or unanticipated differences emerge, the estimation error will likely be compounded.

21. What is a death march project? What situations in project planning can lead to a death march project?

The term is used as a metaphor, to suggest a “forced march” imposed upon relatively innocent victims, the outcome of which is usually a high casualty rate. Project parameters include schedule, staff, budget or other resources, and the functionality, features, performance requirements, or other aspects of the project. A death march software project means one or more of the following constraints has been imposed: •

The project schedule has been compressed to less than 50 percent of its original estimate.

•

The staff originally assigned or required to complete the project has been reduced to less than 50 percent.

•

The budget and resources needed have been reduced by 50 percent or more.

•

The functionality, features, or other performance or technical requirements are twice what they should be under typical circumstances.

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22. Discuss why adding people to a project that is already behind schedule can make it later?

When schedule slippage is recognized, the natural tendency (and traditional) response it to add more manpower. Like dousing a fire with gasoline, this makes matters worse, much worse. More fire requires more gasoline, and thus begins a regenerative cycle which ends in disaster.” Brooks Law, “Adding manpower to a late software project makes it later.” When new people are added, often the time it takes to acclimate them to the project, bring them up to speed on what has gone on before their arrival, and fit them into a productive role in the now larger project is greater than the time saved by their output.

23. What is software engineering?

The discipline of software engineering focuses on the processes, tools, and methods for developing a quality approach to developing software.

24. Why is counting lines of code (LOC) a popular method for estimating and tracking programmer productivity? What are some problems associated with this method?

Counting lines of code seems intuitively obvious—a 1,000 LOC Java program will be ten times larger than a 100 LOC Java program—counting LOC is not all that straightforward. First, what counts as LOC? Adding comments or declaring variables may or may not count a LOC. In addition, experienced programmers tend to write less code than novice programmers. After all, an experienced programmer can write more efficient code, code that does the same thing in fewer lines of code than a novice programmer would use.

The same can be said for different programming languages. In fact, one could argue that counting LOC could encourage programmers to write inefficient code, especially when LOC are used as a productivity metric. Finally, it is much easier to count the lines of code after a program is written than it is to estimate how many lines of code will be required to write the program.

25. What is a function point? What advantages do function points have over counting lines of code?

Function points are a synthetic metric, similar to ones used every day, such as hours, kilos, tons, nautical miles, degrees Celsius, and so on. However, function points focus on the functionality and complexity of an application system or a particular module. Function points are independent of the technology. We can compare one application written in one language with another application developed in another.

Moreover, function point analysis is reliable—i.e., two people who are skilled and experienced in function point analysis will obtain function point counts that are the same, that is, within an acceptable margin of error.

26. How can function point analysis be used to help manage scope creep?

Early on in the project, a function point analysis can be conducted based on the project’s scope. Then a

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more detailed analysis of the user’s requirements can be made during the analysis and design phases.

Then, function point analysis can and should be conducted at various stages of the project life cycle. For example, a function point analysis conducted based on the project’s scope definition can be used for estimation and developing the project’s plan. During the analysis and design phases, function points can be used to manage and report progress and for monitoring scope creep.

27. What is backfiring? How could an organization use backfiring to improve the accuracy of estimating IT projects?

Backfiring is a technique which allows direct conversion from an application’s source code to an equivalent function point count. Backfiring can provide an easy way to create a function point inventory of an organization’s project portfolio.

28. What is COCOMO? COCOMO is an acronym for COnstructive COst MOdel, which was first introduced in 1981 by Barry Boehm in his book Software Engineering Economics. Based on LOC estimates, it is used to estimate cost, effort, and schedule.

29. Under the COCOMO model, describe the organic, semi-detached, and embedded models.

Project types can be classified as: •

Organic—These are routine projects where the technology, processes, and people are expected to all work together smoothly. One may view these types of projects as the easy projects where few problems are expected.

•

Embedded—An embedded project is viewed as a challenging project. For example, it may be a system to support a new business process or an area that is new ground for the organization. The people may be less experienced, and the processes and technology may be less mature.

•

Semi-Detached—If organic projects are viewed as easy and embedded as difficult or challenging, then semi-detached fall somewhere in the middle. These projects may not be simple and straightforward, but the organization feels confident that its processes, people, and technology in place are adequate to meet the challenge.

30. What are heuristics? Discuss some of the advantages and disadvantages of using heuristics for estimating IT projects.

Heuristics are rules of thumb. Heuristic approaches rely on the fact that the same basic activities will be required for a typical software development project and these activities will require a predictable

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percentage of the overall effort. The main advantage of heuristics is that they are easy to use. The major disadvantage is that they are not accurate.

31. What can lead to inaccurate estimates? How can an organization improve the accuracy of estimating IT projects?

Improper application of an estimating technique or reliance on a single method of estimating can lead to inaccurate estimates. From the “Mythical Man Month” we learn: “First, our techniques of estimation are poorly developed. More seriously, they reflect an unvoiced assumption which is quite untrue—i.e., that all will go well.” “Second, our estimating techniques fallaciously confuse effort with progress, hiding the assumption that men and months are interchangeable.” “Third, because we are uncertain of our estimates, software managers often lack the courteous stubbornness of Antoine’s chef: Good cooking takes time. If you are made to wait, it is to serve you better, and to please you.” (From the menu of Antoine’s, a restaurant in New Orleans)

Estimating the effort and duration of an IT project is not an exact science. No single method or technique will provide 100 percent accuracy. Using a combination of approaches may help triangulate an estimate, which provides a confidence greater than when merely guessing or using a single estimation technique.

To be realistic, estimates should be revised as understanding of the project increases and new information acquired. Accurate estimating is a function of applying a process and recognizing that effort must be expended in creating a baseline of experience that will allow for increased accuracy of that process. Estimating does not require a crystal ball; it simply requires commitment.

32. What is the impact of consistently estimating too low? Too high?

Underestimating can result in long hours, reduced quality, and unmet client expectations. The schedule pressure to meet deadlines may result in long hours and pressure to succeed. Ultimately, the project team members may become burned out and frustrated. Credibility will suffer with consistently misestimating either too high or too low. Estimating too high can lead to missed opportunities and rejection of what would have been profitable projects. If one consistently estimates too high, management may assume all estimates you produce are “fat” and automatically cut time and budget from any estimate you provide; setting you up for a death march project.

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Chapter 7: The Project Schedule and Budget TEACHING STRATEGIES This chapter brings everything together to produce the baseline project plan. I have attempted to provide a logical process that ties the project’s goal and plan together so that execution of the project plan ties directly to the success of the project. In addition, this chapter introduces several “traditional” project management tools that are often confused as being “project management.” I try to convey two important ideas to my students. First, project management is more than Gantt charts, PERT charts, or Critical Paths. Although understanding and using these tools are important, project management is more like a philosophy than just a set of tools and techniques. Secondly, although project management software tools can be easy to learn and use, a project plan can be the greatest fiction ever written if a logical thought process is not followed.

In presenting this material, I like to give the students an overview and history of the various project management tools before demonstrating and having them work with a project management software tool. I have found that students understand the software application better once they understand what the various project management tools such as Gantt Charts, PERT charts, and network diagrams are and how they are used in the software package.

TEACHING CHAPTER 7 IN A NUTSHELL ➢ This chapter introduces a number of traditional project management tools such as Gantt Charts, network diagrams (Activity on the Node), PERT diagrams, precedence diagramming, and the critical path. ➢ In addition, the PMBOK® knowledge area called project cost management is introduced to provide the fundamentals for developing the project budget.

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➢ Together with the WBS introduced in the previous chapter, the base line project plan can be developed in order to provide the project’s schedule and budget.

The baseline project plan often requires a number of iterations before it is finally approved and ultimately executed by the project team. ➢ New to this chapter is a section on Critical Chain Project Management and the Project Management Office

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REVIEW QUESTIONS

1. Describe the PMBOK® area of project cost management.

According to PMBOK, project cost management includes: •

Estimate Costs – Focuses on the processes to estimate the monetary resources needed to complete the project work or activities.

•

Determine Budget – Aggregating the individual cost for each of the project activities or work package components to determine the cost baseline or overall project budget.

•

Control Costs – Updating the project’s status while monitoring the project’s budget and managing any changes to the baseline plan.

2. Discuss why no project ever failed because of someone’s inability to draw a nice looking project network diagram.

If one were able to create a beautiful network diagram, but which contained grossly inaccurate estimates, the project might likely fail despite the lovely project network diagram. Conversely, accurate estimates of task durations, their logical sequences and interrelationships crudely sketched on the back of an envelope would have a much greater chance of contributing to a successful project. It is the veracity and completeness of the information that adds value to the process as much or more so than its formatting and display.

3. What are some advantages project network diagrams have over traditional Gantt charts?

Project network diagrams provide valuable information about the logical sequence and dependencies among the various activities or tasks. In addition, project network diagrams provide information concerning when specific tasks must start and finish, and what activities may be delayed without affecting the deadline target date. In addition, the project manager can make decisions regarding scheduling and resource assignments to shorten the time required for those critical activities that will impact the project deadline.

4. Define predecessor, successor, and parallel activities. Give a real world example of each.

Predecessor activities are those activities that must be completed before another activity can be started—

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e.g., a computer’s operating system must be installed before loading an application package. On the other hand, successor activities are activities that must follow a particular activity in some type of sequence. For example, a program must be tested and then documented after it is compiled. A parallel activity is an activity or task that can be worked on at the same time as another activity.

5. How can parallel activities help shorten the project schedule? Are there any trade-offs?

Parallel activities may be thought of as an opportunity to shorten the project schedule since separate tasks can be done at the same time instead of sequentially. They also can be a trade-off since doing more than one thing at the same time can have a critical impact on project resources.

6. What is meant by slack (or float)?

Slack, which is sometimes called float, is the amount of time an activity can be delayed, that is, take longer than expected, before it delays the project.

7. What is the difference between crashing and fast tracking a project’s schedule?

Crashing a project’s schedule is the process of adding additional resources to some activity on the critical path (or diverting resources from some activity with some slack) in order to shorten the project. Fasttracking on the other hand is involved in finding activities that were originally planned to be sequential and making them in parallel – that is doing them simultaneously.

8. What is the difference between AON and PERT? AON is a project network diagramming tool that graphically represents all of the project’s activities and their logical sequences and dependencies. It includes a single estimate of the most likely activity durations. PERT is also a project network diagramming tool which shows, in a manner similar to AON, all of the project’s activities and their logical sequences and interrelationships. The main difference is that in the PERT tool, the activities’ duration is not the most likely estimate, but a weighted average of estimates including the most likely and an optimistic and pessimistic estimate as well.

9. Define the following and give a real world example of each (other than the ones described in this book): Finish-to-Start; Start-to-Start; Finish-to-Finish; Start-to-Finish.

•

Finish-To-Start (FS)—A finish-to-start relationship is the most common relationship between activities and implies a logical sequence. Here, activity or task B cannot begin until task A is completed.

•

Start-To-Start (SS)—A start-to-start relationship between tasks or activities occurs when two tasks

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can or must start at the same time. Although the tasks start at the same time, they do not have to finish together—i.e., the tasks can have different durations. A start-to-start relationship would be one type of parallel activity that can shorten a project schedule.

•

Finish-To-Finish (FF)—Another type of parallel activity is the finish-to-finish relationship. Here, two activities can start at different times, have different durations, but are planned to be competed at the same time. Once both of the FF activities are completed, the next activity or set of activities can be started, or if no more activities follow, the project is complete.

•

Start-To-Finish (SF)—The start-to-finish relationship is probably the least common and can be easily confused with the finish-to-start relationship. A SF relationship, as illustrated in Figure 7.5, is exactly the opposite of a FS relationship. In addition, a SF relationship means that task A cannot end until task B starts.

10. What is the difference between lead and lag? Give real world examples (other than the ones used in this book) of how a project manager may use lead and lag in a project schedule.

Lead time is the amount of time by which the start or finish of two or more activities may overlap each other. If it took three times as long to install a window in a house as to paint it, then allowing sufficient lead time for the installer to put in two thirds of the windows before the painter started painting them would allow them to finish about the same time. Lag time is the time delay between the start or finish of one activity and the start or finish of another. If a house being renovated required fumigation before remodeling and the fumigated house needed to be aired out for two days before it was safe to be worked in, then a two-day lag time (or negative lead) must be built into the schedule.

11. Why do many people inflate their estimates?

People often inflate or add cushioning to their time estimates in order to give themselves a form of “safety” to compensate for uncertainty. People may build safety into each task for three basic reasons.

First, you may inflate an estimate if your work is also dependent upon the work of someone else. For example, you may add a cushion to your time estimates if you believe there’s a good chance your work will be delayed if the person you are depending upon will not finish their task or work on time. Second, you may increase an estimate of an activity because of pessimism arising from a previous experience where things did not go as planned. Third, the project sponsor or customer may not be happy with a proposed schedule and therefore decides to cut the schedule globally by say 20 percent. If you know this is going to happen, you may inflate your estimates by 25 percent just to guard against the cut.

12. Does adding safety to each task or activity ensure that the project will be completed as scheduled?

Why or why not?

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The answer is mainly due to human nature. More specifically, many people tend to wait until the last minute before they begin to work on a task. This is often referred to as “student’s syndrome” as many students procrastinate and then begin working on an assignment right before it’s due – regardless of how much time is available. If things don’t go exactly as planned, the task or assignment ends up being late.

The second reason why projects are still late has to do with “Parkinson’s Law.” In essence, this law states that “work expands to fill the time available.” For example, an individual or team assigned to complete a particular task will rarely report finishing early because there is no incentive. They may be afraid that management will cut their estimates next time or the individual or team waiting for them to complete their task won’t be ready. As a result, the safety built into an estimate disappears. Any time saved by completing a task early is wasted while any overruns get passed along. A third reason why added safety does not ensure that projects are completed on time has to do with the multitasking of resources.

Goldratt calls this “resource contention” whereby a project team member often is assigned to more than one project. In addition, this person may be required to attend meetings, training, or find him or herself pulled off one project task to work on another. As a result, this person can become a “constraint” to the project because they are no longer able to devote their time and energy to tasks on the critical path.

Subsequently, the task takes longer and so does the project.

13. In the context of critical chain project management, what is resource contention?

The critical chain is different from the critical path in that it also takes into account resource contention.

Continuing with our example, let’s say that each project task is to be completed by a different resource (i.e., person or team). Task C is on the critical path but is also part of the critical chain because of its potential to become a bottleneck if the resource assigned to this task must multitask by working on different projects. If this is the case, the CCPM approach takes a more project portfolio view and would suggest that other projects begin or start so that the person or team working on task C can be dedicated to work solely on this particular task for this project.

14. In the context of CCPM, what is the purpose of buffers?

CCPM follows a completely different assumption: instead of adding safety to each task, put that safety in the form of buffers where needed the most. This would be in the form of feeding buffers, resource buffers, and a buffer at the end of the project.

15. What is the critical chain? How is it different from the concept of a critical path?

The critical chain is different from the critical path in that it also takes into account resource contention.

16. Describe the steps necessary for estimating the cost of a particular activity or task that has an estimated duration.

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1. Defining what resources will be needed to perform the work 2. Determining the quantity of resources that are needed 3. Defining the cost of using each resource 4. Calculating the cost of the task or activity 5. Ensuring that the resources are leveled, that is, resources have not been over allocated

17. What does prorating the cost of a resource mean?

Prorating the cost of a resource is allocating portions of the total cost to more than one activity.

18. Why should the project manager ensure that the project resources are leveled?

The project manager should ensure that the project resources are leveled to prevent resources from being over allocated – that is requiring the same resource to be utilized on more than one task at the same time.

19. Why should assumptions used in estimating be documented?

Assumptions used in estimating should be documented to give the cost estimates greater credibility, to help keep things organized, and to support multiple iterations of the schedule or budget as may be needed.

20. What is a baseline plan?

The baseline plan is the project schedule and project budget that has been approved by the project client or upper management.

21. When does the project manager or team have the authority to begin executing the project plan?

Once the project schedule and project budget has been approved by the project client or upper management it becomes the baseline plan and then the project manager and team has the authority to begin executing the plan.

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Chapter 8: Managing Project Risk TEACHING STRATEGIES Risk management can be viewed as a discipline in itself. This chapter provides an overview and how it can be applied to IT project management. The project risk planning framework introduced in the chapter provides a structure and process for understanding and managing project risks. Risks – in terms of opportunities and threats – can occur throughout the project life cycle. Similar to many of the other project management processes, commitment by the appropriate project stakeholders is crucial.

The chapter introduces a number of tools for identifying and assessing project risk. I developed the IT Project Risk Framework (Figure 8.2) as a communication tool for identifying risks and for understanding the complexities of risks. In addition, I like to impress upon my students that not all risks can be identified, but a social discourse among the project stakeholders be beneficial. In addition, this chapter includes a number of traditional risk management tools and techniques for analyzing and assessing risk. Although this chapter provides an overview of some quantitative approaches, I do not spend a great deal of time reviewing (or teaching) statistics. Instead, I try to approach the concepts of expected value and probability distributions from a more intuitive point of view. For example, if a particular task always takes three days to complete, the average time to complete this task would be three days and there would be no variation. We might then have some confidence in using the average of three days as an estimate for completing this task next time it is scheduled. On the other hand, if a particular task has taken two, three, and four days to complete, then the average would still be three days, but now we have some variation. This variation can be considered risk because now we have some uncertainty as to how long it will take to complete the task next time – i.e., it could be finished perhaps in two days or as many as four, but we expect it to be completed in three. Moreover, the larger the variation, the higher the risk or uncertainty of completing the task based on its average. Therefore, if we learn more about how a particular task is completed over time – that is, its

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distribution, we can then create a model and simulation to gain more insight. This is where a tool like @Risk™ can be useful. I have been able to demonstrate the usefulness of a simulation tool using the screen shots illustrated in the text.

TEACHING CHAPTER 8 IN A NUTSHELL ▪

As mentioned above, the project risk management planning framework (Figure 8.1) provides a structure and process for managing and understanding IT Project Risk. This framework includes risk planning, risk identification, risk assessment, risk strategies, risk monitoring and control, risk response, and risk evaluation.

▪

Project risk may be viewed in terms of threats and opportunities. However, it can be difficult to identify all project risks. Moreover, not all risks can or should be addressed since a project will have a limited amount of time and resources.

Subsequently, addressing project risk becomes a trade-off and an important business decision.

▪

The framework in Figure 8.2 provides a tool to support a social discourse among the project stakeholders. This framework allows for risks to be identified in terms of a timeframe (i.e., during specific project phases) and the impact on the project goal or objectives. Again, it is not so important to try and “pigeon hole” a particular risk, but to understand the integrative nature or interdependencies of risk.

▪

This chapter introduces several tradition tools for analyzing and assessing project risk. I like to point out that these tools are at the student’s disposal and is analogous to a carpenter’s tool box filled with various tools. It’s important to choose the right tool for the right job and not try to use a single tool for all tasks at hand.

▪

Identifying project opportunities and threats is a continuous process throughout the project lifecycle. In addition, deciding which risks to address is a business decision that can impact the project’s schedule and budget. However, the risks that the project stakeholders determine to address require a strategy. These strategies include avoidance, mitigation (i.e., take appropriate steps to lower the probability of the risk occurring and/or reducing the impact if the risk does occur), or insurance. Although insurance might include purchasing a policy from

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an insurance carrier, an organization could pass a particular risk onto a third party such as a consultant or outsourcer who may have a particular expertise or skill.

▪

Risks must be monitored and controlled in terms of having an owner assigned to a particular risk. If a particular risk does occur, the owner of that risk should be empowered to act in terms of deploying resources and the appropriate risk strategy.

▪

The theme of knowledge management in terms of lessons learned is also integrated in this chapter. The project stakeholders should evaluate the entire project risk approach in terms of the risk planning framework in Figure 8.1.

Lessons learned provide a valuable resource for project stakeholders to learn from other people’s experiences so that best practices can be identified and subsequently become part of an organization’s IT project methodology.

REVIEW QUESTIONS

1.

What leads to uncertainty in an IT project?

Uncertainty comes from having to make predictions about some future events or states based on estimates, assumptions, and limited information.

2.

How does a project risk management approach provide an early warning signal for impending problems or issues?

The second step in the project risk management planning process is risk identification. If this step is carefully addressed, potential problem areas will likely be highlighted early.

3.

What is meant by crisis management? And why do many organizations find themselves in this mode?

Because of their failure to plan for the unexpected, many organizations find themselves in a state of perpetual crisis characterized by an inability to make effective and timely decisions. Many people call this approach crisis management or fire fighting because the project stakeholders take a reactive approach or only address the project risks after they have become problems.

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4.

Describe some of the common mistakes in project risk management.

Common mistakes in managing project risk include: •

Not Understanding the Benefits of Risk Management

•

Not Providing Adequate Time for Risk Management

•

Not Identifying and Assessing Risk Using a Standardized Approach

5.

Briefly describe what is required for effective and successful project risk management.

•

Commitment by all stakeholders

•

Stakeholder Responsibility

•

Different Risks for Different Types of Projects

6.

What is project risk?

PMBOK® defines project risk as: An uncertain event or condition that, if it occurs, has a positive or negative effect on the project objectives.

7.

What is project risk management?

PMBOK® defines project risk management as: Project Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, and monitoring and control on a project; most of these processes are updated throughout the project. The objectives of Project Risk Management are to increase the probability and impact of positive events, and decrease the probability and impact of events adverse to the project.

8.

What are the seven IT project risk management processes?

•

Risk Planning

•

Risk Identification

•

Risk Assessment

•

Risk Strategies

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•

Risk Monitoring and Control

•

Risk Response

•

Risk Evaluation

9.

What types of commitment are necessary for risk planning?

Risk Planning Risk planning requires a firm commitment to the entire risk management approach from all project stakeholders. This includes a commitment to: providing resources (time, people, and technology) and undertaking the process of identifying, analyzing, and responding to threats and opportunities.

10. Why can identifying IT project risks be difficult?

Risk identification can be difficult because many risks can affect a project in different ways and during different phases of the project life cycle. At times it is not possible to distinguish between internal and external risks. Finally, when attempting to address the future, there exists a category of risks (unknownunknown) that by definition are unknowable a priori.

11. What is a “known” risk? Give an example of one.

Known risks are events that are going to occur. In short, these events are like death and taxes—they will happen and there is no uncertainty about it.

12. What is a “known-unknown” risk? Give an example of one.

Known-unknown risk is identifiable uncertainty. For example, if you own a home or rent an apartment, you know that you will receive a bill next month for the utilities you use. The precise amount you will owe the utility company will be unknown until you receive the actual bill.

13. What is an “unknown-unknown” risk? Give an example of one.

Unknown-unknown risks are residual risks or events that we cannot even imagine happening. For example, it was not too long ago that people had never even heard about the Internet. How could they comprehend the impact it would have on many of us? Unknown-unknown risks are really just a way to remind us that there may be a few risks remaining even after we may think we identified them all. In general, these are the risks that we identify after they have occurred.

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14. What is the difference between an internal and external risk? Give an example of each.

Internal risks are those risks that the project manager is directly responsible for, which are direct part of the project and therefore under his/her control. It may be something like the skill set of a team member or adequacy of a project plan. External risks are risks that arise from the environment outside of the project and which are not under the project manager’s control. An earthquake that takes out a major supplier and thus puts market supply price pressure on some project inputs would be an example of an external risk. At times the distinction is not so clear as in the case where a project manager chooses an unreliable supplier because of an inadequate investigation of the qualifications of the supplier. In this case, the risk is really a result of internal processes.

15. Describe some of the tools and techniques that can be used to identify IT project risks.

•

Learning Cycles--identify facts (what they know), assumptions (what they think they know), and research (things to find out), to identify various risks.

•

Brainstorming-- encouraging contributions from everyone in the group. Thus, initially ideas must be generated without being evaluated. Once ideas are generated by the group as a whole, they can be discussed and evaluated by the group.

•

Nominal Group Technique (NGT)— a.

Each individual silently writes her or his ideas on a piece of paper.

b.

Each idea is then written on a board or flip chart one at a time in a

c.

The group then discusses and clarifies each of the ideas.

d.

Each individual then silently ranks and prioritizes the ideas.

e.

The group then discusses the rankings and priorities of the ideas.

f.

Each individual ranks and prioritizes the ideas again.

g.

The rankings and prioritizations are then summarized for the group.

•

Delphi Technique-- a group of experts are asked to identify potential risks or discuss the impact of a particular risk. Initially, in order to reduce the potential for bias, the experts are not known to each other. Their responses are collected and made available anonymously to each other. The experts are then asked to provide another response based upon the previous round of responses. The process continues until a consensus exists.

•

Interviewing--technique for identifying and understanding the nature of IT project risks is to interview various project stakeholders. This technique can prove useful for determining alternative points of view; but the quality of the information derived depends heavily on the skills of the interviewer and the interviewees, as well as the interview process itself.

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•

Checklists--provides a structured tool for identifying risks that have occurred in the past. They allow the current project team to learn from past mistakes or to identify risks that are known to a particular organization or industry.

•

SWOT Analysis-- Strengths, Weaknesses, Opportunities, and Threats.

•

Cause and Effect Diagrams— diagram can also be used for understanding the causes or factors of a particular risk.

•

Past Projects-- Lessons learned from past projects can provide insight and best practices for identifying and understanding the nature of IT project risks.

16. Describe the nominal group technique and how it can be applied to identifying IT project risks.

A. Each individual silently writes her or his ideas on a piece of paper.

B.

Each idea is then written on a board or flip chart one at a time in a

C.

The group then discusses and clarifies each of the ideas.

D. Each individual then silently ranks and prioritizes the ideas.

E.

The group then discusses the rankings and priorities of the ideas.

F.

Each individual ranks and prioritizes the ideas again.

G. The rankings and prioritizations are then summarized for the group.

17. Describe how learning cycles can be used to identify IT project risks.

The project team and stakeholders can use this technique, whereby they identify facts (what they know), assumptions (what they think they know), and research (things to find out), to identify various risks. Using these three categories, the group can create an action plan to test assumptions and conduct research about various risks. Based on the team’s findings, both risks and lessons learned can then be documented.

18. What is the Delphi Technique? How can this technique be used to identify IT project risks?

A group of experts are asked to identify potential risks or discuss the impact of a particular risk. Initially, in order to reduce the potential for bias, the experts are not known to each other. Their responses are collected and made available anonymously to each other. The experts are then asked to provide another response based upon the previous round of responses. The process continues until a consensus exists.

The advantage of using the Delphi technique is the potential for getting an insightful view into a threat or opportunity; but the process takes time and may consume a good portion of the project’s resources.

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19. How can interviewing be used as a technique for identifying IT project risks? What are some of the advantages and disadvantages of using this technique?

A technique for identifying and understanding the nature of IT project risks is to interview various project stakeholders. This technique can prove useful for determining alternative points of view; but the quality of the information derived depends heavily on the skills of the interviewer and the interviewees, as well as the interview process itself.

20. How do checklists help in identifying IT project risk? Discuss the pros and cons of using this technique.

Checklist provides a structured tool for identifying risks that have occurred in the past. They allow the current project team to learn from past mistakes or to identify risks that are known to a particular organization or industry. One problem with checklists is that they can lead to a false sense of security— i.e., if we check off each of the risks on the list, then we will have covered everything. Table 8.2 provides an example of items that may be included in a project risk checklist.

21. What is SWOT analysis? How can this technique be used to identify IT project risks?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Brainstorming, NGT, or the Delphi technique could be used to identify and understand the nature of IT project risks by categorizing risks using the four-part framework. The usefulness of using SWOT analysis is that it allows the project team to identify threats and opportunities as well as their nature in terms of project or organizational strengths and weaknesses.

22. What is a fishbone (Ishikawa) diagram? How can this tool be used to identify IT project risks?

The fishbone, or Ishikawa, diagram developed by Kaoru Ishikawa was developed to analyze the causes of poor quality in manufacturing systems. The diagram can also be used for understanding the causes or factors of a particular risk, as well as its effects. An example of an Ishikawa diagram is illustrated in Figure 8.4. The diagram shows the possible causes and effects of a key member of the team leaving the project.

This technique itself can be used individually or in groups by using the following steps: a. Identify the risk in terms of a threat or opportunity. b. Identify the main factors that can cause the risk to occur. c. Identify detailed factors for each of the main factors. d. Continue refining the diagram until satisfied that the diagram is complete.

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23. What is the purpose of risk analysis and assessment?

Risk analysis and assessment provides a systematic approach for evaluating the risks that the project stakeholders identify. The purpose of risk analysis is to determine each identified risk’s probability and impact on the project. Risk assessment, on the other hand, focuses on prioritizing risks so that an effective risk strategy can be formulated. (p. 190)

24. What is the difference between qualitative and quantitative risk analysis?

The qualitative approach includes subjective assessments based on experience or intuition. Quantitative analysis, on the other hand, is based on mathematical and statistical techniques.

25. Describe the concept of expected value.

Expected value is an average, or mean, that takes into account both the probability and impact of various events or outcomes.

26. What is the purpose of a decision tree? What are the advantages and disadvantages of using a decision tree?

A decision tree provides a visual, or graphical, view of various decisions and outcomes. The advantages of using a decision tree include the ability to make better decisions because they are informed by not only the magnitude of possible outcomes, but also the probability of their occurrence. Having to make decisions in a stochastic world requires allowing for uncertainty of outcomes. The deployment of a decision tree does not guarantee a successful result, because not only are the probability assessments and outcome values subjective, but even when the properly applied, low probability, undesirable outcomes still can occur.

27. What is the purpose of a risk impact table?

The purpose of a risk impact table is to analyze and prioritize various IT project risks. It provides a mechanism for determining which risks should be monitored and which risks may require a response.

28. What is the difference between a discrete probability distribution and a continuous probability distribution?

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Discrete probability distributions use only integer or whole numbers where fractional values are not allowed or do not make sense. Continuous probability distributions are useful for developing risk analysis models when an event has an infinite number of possible values within a stated range.

29. What are the rules of thumb that can be applied to a normal distribution?

•

About 68 percent of all the values will fall between +1 of the mean

•

About 95 percent of all the values will fall between +2 of the mean

•

About 99 percent of all the values will fall between +3 of the mean

30. Compare and contrast the normal distribution, the PERT distribution, and the triangular distribution.

The normal distribution is a continuous distribution and its shape is determined by its mean (µ) and standard deviation (). When graphed forms the familiar bell-shaped curve. The PERT distribution is also a continuous distribution that looks like a skewed normal distribution and is described by a three point estimate where a denotes an optimistic estimate, b denotes a most likely estimate, and c, a pessimistic estimate. The mean and standard deviation of the PERT distribution are computed as follows: PERT Mean = (a + 4b + c) / 6 PERT Standard Deviation = (c - a) / 6 The triangular distribution is based on the same three point estimates as the PERT distribution, but with different weighting.

TRIANG Mean = (a + b + c) / 3 TRAING Standard Deviation = [((c-a)2 + (b-a)(b-c)) /18]1/2

31. What is a simulation? What value do simulations provide when analyzing and assessing IT project risks?

In general, when people want to study a particular phenomenon, they pick a random sample. If you wanted to study projects, you might randomly select a certain number of projects and then collect data about certain attributes in order to make comparisons. This same approach can be used to analyze and understand how different input variables (e.g., task durations) can impact some output variable (e.g., project completion date).

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32. What is a Monte Carlo simulation? Describe a situation (other than the one used in this chapter) that could make good use of a Monte Carlo simulation.

Monte Carlo simulation is a technique that randomly generates specific values for a variable with a specific probability distribution. The simulation goes through a specific number of iterations or trials and records the outcome. We can perform simulations using almost any continuous or discrete probability distribution. If one was attempting to develop a budget in the face of uncertain factor input prices, a Monte Carlo simulation could be conducted that would make random picks from probability distributions that reflect ones estimation of the true underlying population parameters. One then might run a thousand simulated picks generating one thousand budget estimates which could then be averaged to calculate the expected budget costs.

33. Define and discuss the four risk strategies described in this chapter.

•

Accept or Ignore—Choosing to accept or ignore a particular risk is a more passive approach to risk response. The project stakeholders can either be hopeful that the risk will not occur or just not worry about it unless it does. This can make sense for risks that have a low probability of occurring or a low impact. However, reserves and contingency plans can be active approaches for risks that may have a low probability of occurring but with a high impact.

•

Avoidance—The avoidance strategy focuses on taking steps to avoid the risk altogether. In this case, an active approach is made to eliminate or prevent the possibility of the threat occurring.

•

Mitigate—The term mitigate means to lessen. Therefore, a mitigation risk strategy focuses on lessening the probability and/or the impact of threat if it does occur.

•

Transfer—A transfer strategy focuses on transferring ownership of the risk to someone else. This transfer could be in the form of purchasing insurance against a particular risk or subcontracting a portion of the project work to someone who may have more knowledge or expertise in the particular area. As a result, this strategy may result in a premium, or added cost, to managing and responding to the risk.

34. What is the difference between a management reserve and a contingency reserve?

•

Management Reserves—These are reserves that are controlled and released by senior management at its discretion. These reserves are not usually included in the project’s budget, but provide a cushion for dealing with the unexpected.

•

Contingency Reserves—A contingency reserve is usually controlled and released within specific guidelines by the project manager when a particular risk occurs. This reserve is usually included in the project’s budget.

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35. What is a contingency plan?

Contingency plans—Sometimes called an alternative plan, or Plan B, this plan can be initiated in the event a particular risk occurs. Although these types of plans are viewed as plans of last resort, they can be useful in a variety of ways.

36. Why can’t a project team respond to all project risks?

A project team may be too close to the project to see the risk or opportunity and therefore fail to respond. The team may not respond to a risk because the required resources are not adequate or because the cost associated with the risk or the probability of occurrence do not warrant response.

37. What is a risk response plan? What should be included?

Once the project risks and strategies are identified, they can be documented as part of the risk response plan. This plan should include the following: •

The project risk

•

The trigger which flags that the risk has occurred

•

The owner of the risk (i.e., the person or group responsible for monitoring the risk and ensuring that the appropriate risk response is carried out)

•

The risk response based on one of the four basic risk strategies

38. What are risk triggers or flags?

The risk triggers defined in the risk response plan provide risk metrics for determining whether a particular threat or opportunity has occurred.

39. Why is having a risk owner a good idea? What role does a risk owner play?

The owner is someone who will be involved in the project, who will take the responsibility to monitor the project in order to identify any new or increasing risks, and who will make regular reports to the project sponsor or client. The position may also require the risk owner to ensure that adequate resources be available for managing and responding to a particular project risk.

40. What is risk monitoring and control?

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Once the risk response plan is created, the various risk triggers must be continually monitored to keep track of the various IT project risks. In addition, new threats and opportunities may present themselves over the course of the project, so it is important that the project stakeholders be vigilant. Risk monitoring and control should be part of the overall monitoring and control of the project. Monitoring and control focus on metrics to help identify when a risk occurs, and also on communication. (p. 203)

41. Describe the three risk monitoring tools that were discussed in this chapter.

•

Risk Audits—The audit should focus on ensuring that the project manager and team have done a good job of identifying and analyzing project risks and on ensuring that proper procedures and processes are in place. Risk audits should be conducted by people outside the project team. Using outsiders provides a fresh perspective; the project team may be too close to the project and miss significant threats or opportunities.

•

Risk Reviews—Risk audits should be conducted by individuals outside the project team; but risk reviews can be conducted internally. Throughout the project life cycle, the project stakeholders should hold scheduled, periodic risk reviews. These reviews should be part of each team meeting and part of the project team’s learning cycles.

•

Risk Status Meetings and Reports—Similar to risk reviews, a monitoring and control system should provide a formal communication system for monitoring and controlling project risks.

42. What is the purpose of evaluating a response to a particular risk?

The outcome of the risk response will either be favorable or unfavorable. Therefore, a great deal can be learned about the entire process of risk management (i.e., the preparedness of risk planning, identifying risks, analyzing and assessing risks, risk responses, and so forth). Lessons learned can lead to the identification of best practices that can be shared throughout the project organization. In summary, lessons learned and best practices help us to: •

Increase our understanding of IT project risk in general.

•

Understand what information was available to managing risks and for making risk-related decisions.

•

Understand how and why a particular decision was made.

•

Understand the implications not only of the risks but also the decisions that were made.

•

Learn from our experience so that others may not have to repeat our mistakes.

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Chapter 9: Project Communication, Tracking, and Reporting TEACHING STRATEGIES In my experience, lack of communication is the underlying reason for most project issues and problems. This chapter introduces the PMBOK® area of Project Communications Management and the often poorly understood concept of earned value. In presenting this material to my students, I like to refer back to the human side of project management, and, in particular, the formal and informal organizations.

Effective project communication will focus on both sides of the organization so that all project stakeholders are included in the communication plan.

Metrics play an important role in project communication. A project stakeholder may be interested in a particular metric or a set of metrics that make up a particular report.

Collecting metrics is important, but a project team can waste time and energy if they are asked to report constantly on their progress. Therefore, asking a project team member to report on his or her progress can be a trade-off between working on the scheduled tasks in the project plan and collecting or summarizing information to report on what they’ve accomplished. In addition, project metrics can provide a motivation when used as key performance indications (i.e., what gets measured gets done), but can lead to confusion and even lower morale if used improperly.

I like to use the analogy of schedule and budget as being fuel in a car or airplane. When we start on a trip, we generally begin with a full tank of fuel. Similarly, project schedule and budget are the fuel for the project. Just like a car or airplane, once we begin our journey, fuel is consumed. If we are in an airplane, we would like to land safely with a certain amount of fuel in reserve. Similarly, we would like to have a certain amount of

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schedule and budget that in reserve at the end of the project. I ask my students to draw and present to the class a project metric using a metaphor of an automobile gauge to show how one can monitor and communicate a project objective (i.e., scope, schedule, budget, or quality).

In addition, I also introduce the concept of earned value using an intuitive approach using the example in the chapter to show how an EV analysis can be conducted. Then, I like to do a demonstration of MS Project™ to illustrate the various canned reports and metrics as well as the software package’s Earned Value reporting tool.

TEACHING CHAPTER 9 IN A NUTSHELL ➢ This chapter introduces the PMBOK® knowledge area called Project Communications Management. This area includes communications planning, information distribution, performance reporting, and administrative closure.

Although administrative closure is part of this knowledge area, a more thorough discussion is reserved for Chapter 14 – Project Implementation, Closure, and Evaluation. ➢ A number of reporting tools are introduced in this chapter as well. These reporting tools should focus on supporting both the formal and informal organizations covered in Chapter 4 – The Human Side of Project Management. ➢ This chapter also introduces the new approach for earned value that is now part of the third edition of the PMBOK® Guide. I have found that my students are less confused by the new terms (planned value, actual cost, etc. versus BCWS, ACWP, etc.). However, please note that the review questions at the end of the chapter concerning the EV concepts were not changed in this edition to reflect the terminology. My apologies for any inconvenience. ➢ Included in the instructor’s materials are two spreadsheets for the Husky Air Assignment. One spreadsheet provides the answer to the HA assignment, and the other can be given to the students as a start point for the assignment. You can also change the numbers from term to term to reduce the likelihood of students passing answers from one class to another. ➢ Lastly, technology plays an important role in supporting communication among the various project stakeholders. This may include tracking the project’s

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progress using a project management tool such as MS Project™, or using collaborative technology. There are a number of free tools that the students can download and test or use as part of their project teams.

REVIEW QUESTIONS

1. Why should a project manager be concerned with monitoring a project’s progress?

Project sponsors do not like surprises. Regardless of how well a project is planned, unexpected situations will arise. These unexpected events will require adjustments to the project schedule and budget. In fact, many cost overruns and schedule slippages can be attributed to poorly monitored projects.

2. Describe the PMBOK® area called communications planning.

•

•

•

• •

Identify Stakeholders – Includes the process of identifying people or organizations that have a positive or negative interest in the project’s outcome. A stakeholder analysis was described in Chapter 4 to facilitate the understanding of the informal organization.

Plan Communications – A stakeholder analysis provides a basis for identifying the various stakeholders as well as their interest, influence, and project role. However, providing relevant and timely information is an important part in carrying out the different strategies defined for each stakeholder.

Distribute Information – Focuses on getting the right information to the right stakeholders in the right format. This may include documenting minutes from meetings and organizing other project documents.

Manage Stakeholder Expectations – Ensuring that clear, consistent, and timely communication satisfies the information needs and that any project stakeholder issues are resolved.

Report Performance – Focuses on the collection and dissemination of project information to the various project stakeholders. This should include status, progress, and forecast reports.

3. Compare the information requirements of a project sponsor to those of a project team member. How are they similar? How are they different?

The project client or sponsor may be interested in the overall performance of the project. More specifically, is the work defined in the project scope being completed on time and within budget? And what is the likelihood of the project achieving its MOV? On the other hand, members of the project team may be interested in knowing what tasks or activities they should be working on and how their work relates to the activities and tasks being performed by other members of the project team. It is important

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that the people doing the actual work be empowered to take corrective action so that problems and issues can be resolved sooner rather than later.

4. What kinds of contingencies would be difficult for a project manager to anticipate when developing the project plan?

Contingencies that lie in the environment outside of the project manager’s control may be difficult to anticipate. Examples include a key project team member leaving, the client, vendor, or subcontractor going out of business, and natural disaster.

5. What is the purpose of a project communications plan? What kinds of things should this plan address?

The purpose of a project communications plan is to ensure that all of the project stakeholders know how their interests stand in relation to the project’s progress. The plan should address the following questions: • Who has specific information needs?

• What are those information needs?

• How will a particular stakeholder’s information needs be met?

• When can a stakeholder expect to receive this information?

• How will this information be received?

6. Why is effective and efficient communication vital to a project?

It is important that everyone associated with the project know what is going on. A project manager can develop an accurate and realistic project plan, but that plan is useless unless it is executed effectively.

And, because no project plan is perfect, communication allows timely and intelligent adjustments to be made so it can be executed effectively.

7. What are project metrics?

A project metric may be defined as a qualitative measurement of some attribute of the project. This metric should be obtained from observable, quantifiable data (Edberg 1997). In addition, these metrics can be useful for developing a measurement program that allows the team and other stakeholders to gauge the efficiency and effectiveness of the work being done.

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8. Describe the qualities of a good project metric.

Understandable—A metric should be intuitive and easy to understand; otherwise, the metric will be of little value and will most likely not be used.

Quantifiable—A quantifiable metric is objective. A metric should have very little bias as a result of personal influence or subjectivity.

Cost Effective—Data must be collected in order to produce a metric. Subsequently, a metric should be relatively easy and inexpensive to create and should not be viewed as a major disruption.

Proven—A metric should be meaningful, accurate, and have a high degree of validity in order to be useful.

The metric must measure exactly what one wants to measure. “What gets measured gets done!”

High Impact—Although the efficiency of computing a metric is important, the metric must be effective.

Why measure something that has little impact on the project?

9. Why should a project have a good measurement system in place?

As Meyer (1994) suggests, trying to run a team without a good measurement system is like trying to drive a car without a dashboard. He suggests the following principles as a guide: 1.

A measurement system should allow the team to gauge its progress

2.

The team should design its own measurement system

3.

Adopt only a handful of measures

4.

Measures should track results and progress

10. Discuss why a good measuring system should guide the progress of the project team rather than management alone.

Having a good measuring system in place will let the team know when to take corrective measures without waiting for management to discover the project is off track and needs correcting. Having a few good project metrics will help keep the team focused and will create a common language among the team members and project stakeholders.

11. What are the advantages of having the project team design its own metrics and measuring system?

Among the reasons the team should design its own metrics and measuring system are the notions that the people actually doing the work tend to know what metrics are best suited and furthermore if the

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team is involved in developing the metrics, they will have a sense of ownership in the measures and likely be more committed to being guided by them.

12. If “what gets measured gets done,” why should a project team not be accountable to numerous project metrics?

Adding more and more measures as a means of encouraging team members to work harder can have the opposite effect. Collecting data to support a measurement system takes time and can interfere with the planned work.

13. Describe the concept of earned value.

Earned value (EV) provides a performance measurement that tells us how much of the budget for a given task, WBS component, or the project, that we really should have spent for the work completed so far.

14. What is Planned Value (PV)?

Planned Value (PV) is the planned or budgeted cost of work scheduled for an activity or component of the work breakdown structure.

15. What is Actual Cost (AC)?

Actual Cost (AC) is the total cost incurred for completing a scheduled task or work breakdown structure component.

16. What is Budget at Completion (BAC)?

The budgeted at completion (BAC) is total planned cost of a project.

17. Describe how the SPI and CPI can be used to forecast the final cost of a project.

The schedule performance index (SPI) provides a ratio of the work performed to the work scheduled. This metric provides a measure of schedule efficiency. An SPI ratio greater than one indicates that the project is ahead of schedule and an SPI under one indicates the project is behind schedule. The cost performance index (CPI) tells us how much work we are completing for every dollar we spend. It is the ratio the budgeted cost of work performed to the actual cost of work performed. Suppose one were to calculate the SPI and the CPI in the midst of a project and find their values different from one (i.e. the project is

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ahead or behind schedule and over or under budget). If nothing changes (i.e., the project’s performance does not get any better or any worse) then the minimum cost of completing the project could be estimated by dividing the original total budget by the CPI. However, if the SPI ratio were to persist and things continued to get better or worse (depending on the SPI value), then the final project cost could be estimated by dividing the original budget by the product of the CPI and the SPI.

18. What is a project review and what purpose does it serve?

Project reviews may be formal or informal meetings that include various project stakeholders. These reviews may focus on specific deliverables, milestones, or phases. The purpose of a review is to not only show evidence that the project work has been completed, but also that the work has been completed according to certain standards or agreed upon requirements.

19. What is a status report?

A status report describes the present state of the project. In general, a status report compares the project’s actual progress to the baseline plan. Analogous to a balance sheet used by accountants, a status report may include, for example, a variance analysis that compares actual schedule and cost information to the baseline schedule and budget.

20. What is a progress report?

A progress report tells us what the project team has accomplished. This report may compare the activities or tasks that were completed to the activities or tasks outlined in the original project network.

21. What is a forecast report?

A forecast report focuses on predicting the future status or progress of the project. For example, it may include a trend analysis that tells us when the project is most likely to finish and how much it will cost.

22. When are face-to-face meetings more appropriate than phone calls or email?

The advantage of face-to-face meetings is that one can see other people’s expressions and body language.

Sometimes the way someone says something can be more expressive than what they say.

23. Describe the role IT can play in supporting the project communications plan.

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Cellular phones, pagers, and other wireless devices are commonplace and have increased our mobility and accessibility. Although these communication devices are not as personal as face-to-face meetings, they certainly make communication possible when people cannot be at the same place at the same time.

24. When are Internet, intranet, and extranet applications appropriate in supporting the project communications plan?

For example, an Internet application would be available to anyone who has access to the World Wide Web or Internet. An intranet, on the other hand, may be developed using the same technology, but access is limited to the project team by means of passwords or firewalls. An extranet may include others outside the immediate project team or organization, such as the project sponsor or client. Similar to an intranet, access may be limited through the use of passwords or firewalls.

25. Give an example of a type of meeting project stakeholders may have under the following circumstances. Describe how IT might support their communications needs. a.

Same time – same place Users and developer meeting face to face to develop a prototype

b. Same time – different places Users and developers meeting via teleconference to discuss requirements. c.

Different times – same place – An intranet application could be used so users and developers could list problems and fixes during testing

d. Different times – different places – Email to send status reports.

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Chapter 10: IT Project Quality Management TEACHING STRATEGIES Project Quality Management is another PMBOK® knowledge area and is an important project objective. I believe that one cannot appreciate the concepts and approaches to quality without knowing the history of the quality movement. This includes the teachings and philosophies of the quality gurus who started this worldwide campaign.

Even though this is the tenth chapter of the text, I remind my students that quality is a critical consideration from the very outset of the project. IT projects focus on products (i.e., deliverables) and processes (project management and software engineering).

Therefore, quality must be integrated throughout the project and systems development lifecycles.

The Project Quality Management framework illustrated in Figure 10.1 provides the basis for this chapter. Although PMBOK tends to focus on project planning, quality assurance, and quality control (based on the works of Juran), I believe this somewhat limits our view of project quality management. Subsequently, I’ve tried to provide a much broader perspective that can be applied in an IT project quality plan (see Figure 10.8).

This chapter also introduces the students to the Capability Maturity Model. While many quality programs such as Six Sigma or ISO are broad in nature and were originally focused on manufacturing, the CMM was developed specifically for software projects. It appears that the CMM and CMMI are gaining popularity in many organizations. I find a growing number of my students work for organizations that have conducted a CMM initiative. I also like to point out that many of the level 5 CMMI companies are found in India. A discussion of the relevance of this fact – in terms of the offshoring phenomenon – usually provides for an interesting discussion.

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TEACHING CHAPTER 10 IN A NUTSHELL •

The PMBOK® area of Project Quality Management focuses on supporting the quality objective in terms of plan quality, performing quality assurance, and performing quality control. In addition, the concepts of continuous improvement of a project’s products and processes are a central theme for a total quality management (TQM) approach.

•

As mentioned above, an understanding and appreciation for the quality management gurus and their teachings/philosophies play an important role in developing an effective quality management plan. In addition, many of these ideas and best practices can become part of an organization’s IT project methodology.

•

A host of approaches is available for instituting a quality management program.

This chapter introduces several approaches such as six sigma, ISO certification, and the Capability Maturity Model for software engineering.

•

In addition, the concepts of verification (process-related activities) and validation (product-oriented activities) are important concepts that focus our attention on improving both the processes and product of IT projects.

•

Configuration management is also related to quality by providing adequate processes to ensure quality through controls

•

Lastly, the quality concepts, methods, and tools introduced in this chapter provide a foundation for developing a project quality plan.

REVIEW QUESTIONS

1. Define quality in your own words. How would you define quality in a word processing, spreadsheet, or presentation software package?

In business, quality has been defined in terms of “fitness for use” and “conformance to requirements.”

“Fitness for use” concentrates on delivering a system that meets the customer’s needs, while “conformance to requirements” centers more on meeting some predefined set of standards. Therefore, quality depends on the needs or expectations of the customer.

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2. Why is the number of features of a software system not necessarily the best measure of that system’s quality?

The number of features of a software system does not tell us anything about how well those features perform nor whether those features are what the customer wanted or needed.

3. How does “conformance to requirements” or “fitness for use” provide a definition of quality for an information system or software product?

“Conformance to requirements” or “fitness for use” provides a definition of quality for an information system or software product by focusing on the needs and expectations of the customer while meeting a predetermined set of standards.

4. What is PQM? PQM is an abbreviation for Project Quality Management which is defined as: Project Quality Management includes the processes and activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken. It implements the quality management system through policy and procedures with continuous process improvement activities conducted throughout, as appropriate.

5. Define the following: (a) Quality Planning; (b) Quality Assurance; (c) Quality Control • •

•

Plan Quality – Determining which quality requirements and/or standards are important for the project and the product and then documenting how compliance will be demonstrated.

Perform Quality Assurance – Provides the basis for continuous improvement by auditing and evaluating the results from quality control measurements so that appropriate quality standards and operational definitions are used.

Perform Quality Control – Monitoring and documenting the results of executing project quality activities to eliminate causes of unsatisfactory performance and implement new processes and techniques to improve project quality throughout the organization.

6. Why should quality management include both the products and processes of a project?

By focusing on both the product and chain of project processes, the project organization can use its resources more efficiently and effectively, minimize errors, and meet or exceed project stakeholder expectations.

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7. What is scientific management? Why was it so popular? Why was it so controversial?

Using an approach called scientific management, Taylor believed that a task could be broken down into smaller tasks and studied to identify the best and most efficient way of doing each subtask. In turn, a supervisor could then teach the worker and ensure that the worker did only those actions essential for completing the tasks, in order to remove human variability or errors. At that time, most workers in U. S. factories were immigrants, and language barriers created communication problems among the workers, their supervisors, and even with many coworkers. The use of a stopwatch as a basis for time-motion studies provided a more scientific approach. Workers could produce at their full potential, and arbitrary rates set by management would be removed. To be successful, Taylor also believed that the scientific management approach would require a spirit of cooperation between the workers and management.

Although the scientific management approach became quite popular, it was not without controversy.

Many so-called efficiency experts ignored the human factors and tended to believe that profits could be increased by speeding up the workers. Dehumanizing the workers led to conflict between labor and management that eventually laid the foundation for labor unions. Just three years before Taylor died, he acknowledged that the motivation of a person can affect output more than just engineered improvements.

8. What is a control chart? When is a process said to be in statistical control? How would you know if it was not?

A control chart provides a picture of how a particular process is behaving over time. All control charts have a centerline and control limits on either side of the centerline. The centerline represents the observed average, while the control limits on either side provide a measure of variability. In general, control limits are set at ±3_ (i.e., ±3 sigma) or ±3s, where _ represents the population standard deviation and s represents the sample standard deviation. If a process is normally distributed, control limits based on three standard deviations provides .001 probability limits. Variation attributed to common causes is considered normal variation and exists as a result of normal interactions among the various components of the process—i.e., chance causes. These components include people, machines, material, environment, and methods. As a result, common cause variation will remain stable and exhibit a consistent pattern over time. This type of variation will be random and vary within predictable bounds. If all observations fall within the control limits and the variation pattern is random, the process is said to be in statistical control.

When one of the following conditions is observed, the process may be exhibiting nonrandom behavior and be out of statistical control: •

A single point falls outside of the 3 control limit

•

At least two of three successive values fall on the same side of and more than two standard deviations from the centerline.

•

At least four out of five successive values fall on the same side of and more than one standard deviation away from the centerline.

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•

At least eight successive values that fall on the same side of the centerline.

9. Why did the teachings of Deming and Juran have such an important impact on Japan just after World War II? As Japan was attempting to rebuild after WWII, they faced a problem of having a reputation for inferior products. Having few natural resources, they were dependent on exporting manufactured goods. If their export programs were to be successful they needed to change both the fact and perception of producing low quality products. The success they enjoyed as a result of embracing quality improvement methodologies made the work of Deming and Juran central to their industrial culture.

10. What is an Ishikawa diagram? How can it be used as a quality control tool for an IT project?

The fishbone, or Ishikawa, diagram developed by Kaoru Ishikawa was developed to analyze the causes of poor quality in manufacturing systems. The diagram can be used for understanding the causes or factors of a particular quality characteristic or problem. A particular quality characteristic or problem is represented by targeted box and then the major causes are identified and linked to the subject of study. Each major cause then is further subdivided into potential sub-causes. This approach is often deployed by using either brainstorming or learning cycle approaches. Once the diagram is completed, the project team can investigate the posited causes and recommend solutions to address the problem.

11. What is a Pareto diagram? How can it be used as a quality control tool for an IT project?

A Pareto diagram is based on the 80/20 rule that infers that 80% of effects flow from 20% of the causes.

The diagram is essentially a chart which rank orders the most important problem causes from left to right in descending order of magnitude. In this way the most import problem areas are highlighted and which, when appropriately addressed, offer the greatest improvement to the product or process.

12. What is a flow chart? How can it be used as a quality control tool for an IT project?

A flow chart is a graphical representation of the logical progression of a product or service from one process or procedure to the next. Flow charts can be useful for documenting a specific process in order to understand how products or services move through various functions or operations. A flow chart can help visualize a particular process and identify potential problems or bottlenecks. Standardized symbols can be used, but are not necessary. It is more important to be able to identify problems or bottlenecks, reduce complexity, and determine who is the next customer.

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13. What is a standard? What role do standards play in developing an information system?

Standards are documented agreements, protocols, or rules that outline the technical specifications or criteria to be used to ensure that products, services, processes, and materials meet their intended purpose. Standards also provide a basis for measurement because they provide criterion, or basis, for comparison. In order to provide an information system that has to ability to interface with other systems and in order to coordinate hardware and software and network compatibility, information systems must conform to the relevant protocols that make up industry standards.

14. What is ISO? Why would an organization wish to be ISO certified?

The International Organizations for Standardization (ISO) is one of the most widely known standards organizations whose mission is “to facilitate the international coordination and unification of industrial standards.” Countries that do business with each other need to have an agreed upon set of standards to make the process of trade more logical and because a lack of standardization can create trade barriers.

15. Briefly describe Six Sigma and its objectives.

Six Sigma focuses on defects per opportunities (DPO) as a basis for measuring the quality of a process rather than products it produces. A defect may be thought of as anything that results in customer dissatisfaction. The sigma value tells us how often defects are likely to occur. The higher the value of sigma, the lower the probability of a defect occurring.

16. How does achieving a Six Sigma objective improve quality?

Six Sigma can be viewed as a quality objective whereby customer satisfaction will increase as a result of reducing defects.

17. What is software process capability?

Software Process Capability—The expected results that can be achieved by following a particular software process. More specifically, the capability of an organization’s software processes provides a way of predicting the outcomes that can be expected if the same software processes are used from one software project to the next.

18. What is software process maturity?

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Software Process Maturity—The extent to which a particular software process is explicitly and consistently defined, managed, measured, controlled, and effectively used throughout the organization.

19. Describe an immature software organization.

In an immature software organization, software processes are improvised or developed ad hoc. Even if a well defined process that specifies the steps, tools, resources, and deliverables required is in place, the team may not follow the specified process very closely or at all. The immature software organization is characterized as being reactive; the project manager and project team spend a great deal of their time reacting to crises or find themselves in a perpetual state of fire fighting. Schedules and budgets are usually exceeded. As a result, the quality and functionality of the software system and the associated project deliverables are often compromised. Project success is determined largely by who is (or who is not) part of the project team. In addition, immature software organizations generally do not have a way of judging or predicting quality. Since these organizations operate in a perpetual crisis mode, there never seems to be enough time to address problem issues or improve the current processes.

20. Describe a mature software organization.

In a mature software organization, software processes and the roles of individuals are defined explicitly and communicated throughout the organization. The software processes are consistent throughout the organization and continually improved based on experimentation or experiences. The quality of each software process is monitored so that the products and processes are predictable across different projects. Budgets and schedules are based on past projects so they are more realistic and the project goals and objectives are more likely to be achieved. Mature software organizations are proactive and they are able to follow a set of disciplined processes throughout the software project.

21. What is the relationship between standards and metrics?

The project’s standards can be defined in terms of the project’s deliverables and, most importantly, by the IT solution to be delivered. Once the features, functionality, or requirements are defined, the next step is to identify specific quality attributes or dimensions associated with each project deliverable. A customerdriven quality assurance plan first identifies each customer’s requirements, represents them as quality attributes or dimensions, and then translates those dimensions into metrics. Kan suggests several dimensions that can serve as quality standards for the software product. These include the application’s features, reliability, usability, performance, response, conformance, aesthetics, and maintainability.

Although these dimensions focus on the application system, other dimensions can be identified for each of the project deliverables (e.g., business case, project charter and baseline project plan, project reporting, user documentation, etc.). Metrics are vital for gauging quality by establishing tolerance limits and identifying defects.

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22. What is a process metric? Give an example.

A process metric is a measurement of the defects introduced by the processes required to develop or create the product deliverables. Example would include such metrics as a defect arrival rate, defects by phase, defect backlog, fix response time, and defective fixes.

23. What is a product metric? Give an example.

Metrics that attempt to describe the intrinsic quality and characteristics of the project’s deliverables and final product are called product metrics. Examples would include mean time to failure, defect density, customer found defects, and customer satisfaction.

24. What is a project metric? Give an example.

Metrics that measure the control of project processes and which are used to determine whether the software product and project deliverables meet requirements for “fitness for use” and “conformance to requirements” as defined by the internal or external customers are called project metrics. Examples include: Scope change requests, Scope change approvals, Overdue tasks, Tasks that should have started, Over budgeted tasks, Earned value, Over allocated resources, Turnover, and Training hours.

25. What is a defect? Give an example of a software defect.

A defect is an undesirable behavior associated with the product or process (Ginac 1998). It is a failure to comply with a requirement (Lewis 2000). In software development, defects are often referred to as bugs.

A program that caused a computer system to crash when it ran would be said to have a bug.

26. Describe verification. What activities support verification?

Verification focuses on the process-related activities of the project to ensure that the product or deliverable meets its specified requirements before final testing of the system begins. Verification requires that the standards and metrics be defined clearly. Moreover, verification activities focus on asking the question of whether we followed the right procedures and processes. Verification is supported by three types of reviews: Technical, Business, and Management.

27. Describe validation. What activities support validation?

Validation is a product-oriented activity that attempts to determine if the system or project deliverable meets the customer or client’s expectations and ensures that the system performs as specified. Validation is supported primarily by testing using one or more of several approaches: Unit, Integration, Systems,

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and/or Acceptance Testing.

28. Describe how technical, management, and business reviews are different.

A technical review ensures that the IT solution will conform to the specified requirements. This review may include conformance to graphical user interface (GUI) standards, programming and documentation standards, naming conventions, and so forth. Two common approaches to technical reviews include structured walkthroughs and inspections. A business review is designed to ensure that the IT solution provides the required functionality specified in the project scope and requirements definition. A management review basically compares the project’s actual progress against the baseline project plan. In general, the project manager is responsible for presenting the project’s progress to provide a clear idea of the project’s current status. Issues may need to be resolved, resources adjusted, or decisions made to either stay or alter the project’s course. In addition, management may review the project to determine if it meets the scope, schedule, budget, and quality objectives.

29. What is the purpose of change control?

The purpose of change control is to ensure that those working on a project know which iteration, version, or state of the project and/or its components is the current and desired form of the project. Formal change control is a procedure in which changes to an accepted work are formally proposed and assessed and decisions to accept or reject proposed changes are documented to provide an element of stability beyond the informal change controls.

30. Why should some changes be allowed to be made informally, while other changes should be made formally?

Informal change control allows changes that can be traced and captured sequentially to be made to an evolving project deliverable. It provides for rapid development while allowing for backup and some measures of control. On the other hand, formal change control is a procedure in which changes to an accepted work are formally proposed and assessed and decisions to accept or reject proposed changes are documented to provide an element of stability beyond the informal change controls. At some point informal changes should be no longer permitted. After final acceptance, the deliverable should be frozen until it is released.

31. What is configuration management? How does it support change control?

Configuration management is an important aspect of PQM that helps control and manage document and software product change. It provides the project team with an environment for efficiently accessing different versions of past documents or files. Its basic purpose is to establish and maintain the integrity of the various project work products and deliverables throughout the project life cycle. In short,

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configuration management attempts to answer the following basic questions: •

What changes were made?

•

Who made the changes?

•

When were the changes made?

•

Why were the changes made?

Configuration management tools allow different project team members to work on a specific section of a document or file. Configuration management also provides formal change control to ensure that changes to accepted work are formally proposed and assessed and any decisions to make the changes are documented.

32. What role does knowledge management play in continuous quality improvement?

Continuous improvement leads to competitive advantage by incorporating the lessons learned from their experiences and then translating those experiences into best practices that can be repeated throughout the organization.

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Chapter 11: Managing Organizational Change, Resistance, and Conflict TEACHING STRATEGIES I believe the topic of organizational change management should be the tenth PMBOK® knowledge area. Even though this chapter comes toward the end of the book, planning for organizational change and dealing with resistance and conflict should be addressed and managed at the outset of the project. An effective change management plan is important for smoothing the way for implementation of the systems solution.

Resistance and conflict can occur once more than one stakeholder becomes involved in the project.

I like to tell my students that this material tends to be viewed as “touchy-feely” or “fuzzy bunny slipper” concepts. Often, the more technically oriented students tend to shy away from such topics. I like to point out that the technical problems usually do not keep us awake at night – or at least not for very long. Usually the people-related problems tend to irritate us. Moreover, even though IT projects generally involve technology, they are planned organizational developments that can change the social and political relationships between or among the various stakeholders. As a project team member, they will act as change agents and their association to the project may be viewed as a threat to other stakeholders. I also like to refer back to the concept of the MOV. An organization invests in an IT project in order to achieve expected value.

This expected value may not be achieved fully if we implement a system that is a technical marvel, but not accepted and used as intended by the various stakeholders. In other words, we end up with a technical success, but an organizational failure.

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As a result, we must prepare the organization for the impending change. As a change agent, a project team member must understand his or her role, as well as the roles stakeholders may play. In this chapter, I have attempted to create a process or framework for managing organizational change. This begins with understanding that change has an impact, change is a process, and that change can be emotional.

Understanding these underlying facets of change then allows us to develop a more effective change management plan as illustrated in Figure 11.4.

Regardless, project team members will inevitably have to deal with resistance and conflict, which can occur internally or externally. I suspect the majority of people do not like conflict and tend to shy away. Unfortunately, this may inhibit one from being an effective project leader. The main issue may be not understanding the nature of conflict and resistance, but not knowing some different approaches for dealing with it. As I like to point out to my students, “you may still not like to deal with it, but at least you’ll understand it better and know what options you have.”

Lastly, I’ve included a summary of Barry Johnson’s work on Polarity Mapping. From my experience, I have found this to be an effective tool for teams that have conflict-related issues. Since my class involves a high degree of team interaction, I have found that giving my students a number of tools they can use over the semester allows them to address and work out any issues that may inhibit them from working on their assignments effectively.

TEACHING CHAPTER 11 IN A NUTSHELL ➢ As mentioned above, I believe organizational change management is a missing PMBOK® knowledge area. This chapter focuses on describing change management in terms of understanding the nature of change. These concepts can then be applied in the development of a change management plan to support the project. ➢ Change has an impact. The work of Daryl Conner provides a fundamental approach for understanding how change impacts us personally and as an organization. Moreover, Kurt Lewin provides a model that helps us to

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understand change as a process of moving from a present state to a desire state.

Change itself can be quick. Unfortunately, this process requires a transition that is pushed and pulled by driving and resisting forces. Eventually, an individual will be pushed to the desired state or back to the present state. Change is also emotional as pointed out by Elizabeth Kubler-Ross. People may go through an emotional rollercoaster, so as an agent of change, you must expect and be prepared to deal with people’s emotions. ➢ Once we understand the nature of change, we are better prepared to deal with the change an IT project will create. This involves developing a change management plan to ensure the successful transition of the current system to the new system. This framework includes: 1) assessing the willingness, readiness, and ability to change, 2) developing or adopting a strategy for change, 3) implementing change management plan and tracking progress, and 4) evaluating experiences and developing lessons learned. ➢ Lastly, this chapter includes several concepts for understanding resistance and conflict, as well as some tools and approaches for dealing with it more effectively.

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REVIEW QUESTIONS

1. As an IT professional, why does your mere existence in an organization suggest change?

IT professionals are hired to conduct IT projects and in Chapter 1, IT projects are defined as planned organizational change. Employing IT professionals implies, therefore, that the organization is planning for changes by bringing in change agents.

2. Why is it just as important to deal with the people issues of an IT project as it is to deal with the technical issues?

Because IT projects represent change in the organization, individuals in the organization have a natural response to the project of suspicion, fear and/or hostility as their perceived stability is threatened.

3. Why do many IT professionals shy away from dealing with the people issues, the soft side of IT projects?

Most technical people do not enjoy the people side of projects because that is where conflicts and loss of control so often occurs. Conflict resolution can be stressful and is often an area that is not a part of their technical training or natural skill set. Furthermore, many technical people and managers believe that producing a technically proficient system will in and of itself lead to its acceptance from everyone in the organization.

4. How can a system be a technical success, but an organizational failure?

Yes it is possible to build an IT system that is a technical success but an organizational failure since the success of a project ultimately rests on its acceptance and full implementation. If people in the organization have not been prepared for the impacts of the new system and buy into its potential benefits, then even though they may comply with the system implementation, the compliance may not last, may lead to them finding ways to work around the new system, or may lead to only a partial acceptance. The result of these responses is a failure to realize the full benefits of the project.

5. How does change management fit with IT project management?

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Change management is the area of project management that helps soothe the transition and implementation of the new IT solution. It is something that must be built into the project management process and enacted before the implementation of the new system.

6. What is wrong with the idea of just expecting people to adapt to a new system by compliance?

Compliance may not be effective, may not be long lasting, and may not be complete in terms of realizing the full benefits of the new system.

7. Why is acceptance more powerful than compliance?

The idea of compliance is that because someone has authority that flows from some organization chart, s/he can compel subordinates to accept a new system. If, however, that positional authority has none of the authority that comes from earned respect or from successfully communicating the benefits and importance to the organization of the new system, then there is no sense of ownership or vested interest in the successful implementation of the system. When this occurs, one has adversaries for the project, not advocates and undermining and sabotaging of the project may occur.

8. What are some down sides if an organization does not accept the project’s final product as originally envisioned?

The main down side is that the organization fails to realize the entire MOV of the project. Additionally, the project cannot be deemed a success which may lead to frustration and a loss of confidence and morale for the project team.

9. In your own words, define change management.

Change management is the process of bringing individuals in the organization to the point where they accept and support new processes or systems and understand the linkage between their personal success, the success of those processes or systems and the organization’s success.

10. What is the difference between positive change and negative change? Do positive changes create stress for an individual? Why or why not?

Positive change is change that we associate with hope and anticipation while negative change is associated with dread and apprehension. Yes, even positive change can create stress because of the anxiety that results when leaving the familiar for the unknown and the need to adjust to new conditions.

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11. Define assimilation and its importance to understanding how people deal with change.

Assimilation is the process of adapting to change and determines our ability to handle current and future change. It takes time to assimilate change because we must adjust to the transition. Major changes, whether positive or negative, will require more time to assimilate than small ones. But once change is assimilated, it no longer creates the same level of anxiety or stress.

12. What happens when an individual cannot assimilate change fast enough?

Problems occur when we have to deal with too many changes or when we cannot assimilate change fast enough. When an individual passes a certain threshold, he or she may become stressed out and exhibit dysfunctional behaviors. The behaviors depend largely on the person and may range from mild irritability to depression or dependence on alcohol or drugs.

13. What happens when an organization cannot assimilate change fast enough?

Each change adopted by an organization must be assimilated and managed within the change threshold.

Just like people, organizations can exhibit dysfunctional behaviors. These behaviors may include an inability to take advantage of new opportunities or solve current problems. Eventually, an organization’s inability to assimilate change will be reflected in the organization’s ability to make a profit. Like an individual who cannot effectively deal with change and the associated stress, the long-term health and sustainability of the organization becomes questionable.

14. Describe Force Field Analysis.

Force Field Analysis is a technique for developing a big picture that involves all the forces in favor of or against a particular change. Forces that are viewed as facilitating the change are viewed as driving forces, while the forces that act as barriers or that work against the change are called restraining forces. By understanding all of the forces that act as aids or barriers to the change, one may enact strategies or decisions that take into account all of the various interests.

15. Describe the three stages of Lewin’s model for change.

The first stage is the status quo or present state. It is the product of current habits and perceptions. If it is not the desired state, then it requires driving forces to motivate and initiate a change and it also requires unfreezing of the current habits, perceptions and stability. Once this process begins, the second stage called the transition state exists and becomes the battle ground for resisting forces and driving forces and habits, perceptions and stability undergo changes. It is often a time of confusion and instability. Hopefully the process will lead to the final stage where the desired state is obtained. At this point, refreezing should take place to cement the new habits, perceptions, and stability as the new status quo.

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16. Why is the transition state often referred to as the neutral zone?

The transition state is often referred to as the neutral zone which like the football line of scrimmage, represents the midpoint where opposing forces (driving and resisting) meet and where there is unsettled territory which is neither the stability of the old status quo nor the promised land of the desired state. It is a neutral state, neither the old nor the new.

17. What might happen if the project manager and sponsor do not understand, expect, or acknowledge the neutral zone?

Problems arise when managers do not understand, expect, or acknowledge the neutral zone. Those in the organization who act and support the driving forces for the change may be likely to rush individuals through the transition. This rushing often results in confusion on the part of those in the neutral zone, and the resisting forces (i.e., the emotional and psychological barriers) tend to push those individuals back to their present state.

18. What is the difference between a change and a transition? Give an example of each.

A change represents an exchange of something old for something new. It requires letting go of something and obtaining something else. A transition represents the state between the two somethings (old and new). It is the passage between states where equilibrium is upset and the person or organization that is in transition does not fully possess the old or the new. Consider an individual who has always used a paper based appointment book who decides to do away with the date book and rely completely on a PDA. The change is represented by the two states: giving up the pen and paper state in exchange for the electronic state. The transition is journey between the two states, that is, when the individual began logging new appointments and contact information into the PDA. During the transition, the person is still carrying both the PDA and the date book for fear of not having important information available and not fully knowing how to operate the PDA to its fullest advantage. When s/he finally throws away the date book and relies solely on the PDA, the change is completed, the desired state is obtained, and the transition is over.

19. Why would a person have emotional responses when faced with doing her or his job differently or being forced to use and learn new technology?

Change can also bring out emotional responses. An individual may have an emotional response to a change when the change is perceived as a significant loss or upsets a familiar or well-established equilibrium. In her book On Death and Dying, Elizabeth Kubler-Ross (Kubler-Ross 1969) provides insight into the range of emotions one may experience from the loss of a loved one. These same emotional responses can be applied to managing change whenever people experience the loss of something that matters to them.

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20. Describe the emotional responses a person might go through when given the news that her job has been eliminated as a result of the implementation of a new accounts payable system.

A person may go through five stages of emotional response which include: denial, anger, bargaining, depression, and acceptance.

21. Why is having a change management plan important?

A change management plan is important in order to addresses the human side of change. The mere existence of such a plan can send an important message throughout the organization that management cares about the people in the organization and will listen and take their needs and issues seriously.

22. Why should the project manager assess the willingness, readiness, and ability of the organization to change?

The project manager should assess the willingness, readiness, and ability of the organization to change so that the stakeholders and their roles (sponsor, change agent, or target) can be identified. If an organization cannot adapt to change, the project’s envisioned value to the firm will be lost along with some of the credibility of those responsible for it.

23. What is a change sponsor? What is the difference between an initiating sponsor and a sustaining sponsor?

The sponsor can be an individual or group that has the willingness and power, in terms of authority and making resources available, to support the project. Although this person or group is often the project sponsor, an initiating sponsor may hand off the project to a sustaining sponsor. More specifically, after making the decision to fund and support the project, the initiating sponsor may become completely removed from the project. Without the support of a sustaining sponsor, the project will eventually lose steam and direction. Therefore, the sustaining sponsor must become the primary sponsor for the project.

24. What important criteria should be used to determine whether a sponsor can help the organization through the planned change?

Effective leadership manifested in how well they communicate with the rest of the organization is one of the important criteria for determining whether a sponsor can help the organization through the planned change.

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25. What is a change agent? What role does a change agent play?

An agent may be an individual or group responsible for making the change happen in order to achieve the project’s goal and objectives. Their role is to act as a conduit of communication between the sponsor and the targets of change.

26. What is a target? Why are targets important to a change initiative?

The target is the individual or group that must change. In general, these may be the users of the new system or those who will use or be directly involved with final product of the project. Targets play a critical role in the ultimate success of the project. The willingness, ability, and readiness to change also rest largely with the change targets.

27. Why should the real impacts of change be clarified in the change management plan?

The project team and sponsor often do not think about how the planned change and transition will really affect people within the organization. Change often brings about endings and a sense of loss of control.

The project team and sponsor should take the time to think about what various individuals or groups stand to lose. For example, perceptions of loss may include power, relationships with other people, stability, or even control. As a result, people may become confused and disoriented.

28. Using Leavitt’s model, provide an example of how an electronic commerce application would affect the organization’s people, technology, task, and structure.

Leavitt’s model suggests that changes in people, technology, task, or organizational structure can influence or impact the other areas. These four components are interdependent where a change in one can result in a change in the others For example, a change in the organization’s technology (e.g., implementing an electronic commerce application) can impact the people within the organization (e.g., new roles, responsibilities, etc.) as well as the tasks the individual’s perform (i.e., the work they perform), and the organization’s structure (i.e., formal or informal). As a result of the planned change, people will go through a variety of emotions. On first learning of the impending change, people may feel shock, anger, and even denial. Later on, they may try to bargain or negotiate as a way of maintaining stability. This time is difficult because compromise, or appeasement, may seem to be a good alternative for avoiding conflict and resistance. Unfortunately, this tactic will only undermine the effectiveness of the change initiative.

Therefore, it is important that a boundary be defined in a way that allows the change to happen as planned, but also allows individuals to “take something with them” by giving them something familiar to hold on to so as to ease the transition. This allows the past to be remembered with reverence and can also mark the end and the new beginning.

29. Why should the project team and sponsor be clear on defining what is over and what is not before a

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new system is implemented?

The project team and sponsor should be clear on defining what is over and what is not before a new system is implemented because in the absence of consistent clear information, rumors, suspicion, confusion, misinformation, opinions, and gossip rush in to fill the vacuum. At this point anger, resentment and fear may rise up against imagined but false scenarios.

30. What are rules for success? Why is it important to determine whether the rules for success have changed in an organization before a new system is implemented?

Rules for success are those things that can be observed in an organizational culture that lead to advancement and career enhancement. They are often unwritten but usually apparent to those who are a part of the culture. If the rules for success change or are no longer clearly defined, people become confused and disoriented. They may loose a sense of direction and become resentful or fearful when they no longer understand the organization’s expectations.

31. Describe the rational-empirical approach to change. What things would a change management plan address under this approach?

The rational-empirical approach to change management is based on the idea that people follow predictable patterns of behavior and that people will follow their own self-interests. Therefore, a change agent must be persuasive in convincing, explaining, and demonstrating how a particular change will benefit a particular person or group identified as a target of the change. It is important that the individuals affected by the change be provided with consistent and timely information. The change management plan based on this strategy should provide each individual with the purpose, a picture, and a part to play.

32. Describe the normative-reeducation approach to change. What things would a change management plan address under this approach?

This approach takes the basic view that people are social beings and that human behavior can be changed by changing the social norms of a group. Instead of trying to change an individual, one must focus on the core values, beliefs, and established relationships that make up the culture of the group. The focus for managing change under this strategy becomes helping people redefine their existing social norms into a new set that supports the change effort.

33. Describe the power-coercive approach to change. What things would a change management plan address under this approach?

The power-coercive approach to change management attempts to gain compliance from the change

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targets through the exercise of power, authority, rewards, or threat of punishment for non-conformance.

People’s dependency on an organization largely dictates how effective the power-coercive approach and the use of sanctions can be. If people are highly dependent on the organization; live paycheck to paycheck; have few job alternatives; and are not financially, mentally, or emotionally prepared to walk, you are on relatively safe ground using the power-coercive approach judiciously. The objective is to change the behaviors of the targets so that their new behavior supports the change effort. Sanctions should be imposed on an individual level and should focus on what an individual values and what they dread losing—perhaps a bonus, a paycheck, or a position within the organization. Sanctions can be imposed in ascending order to demonstrate a point in the beginning and to keep any target’s losses at a minimum.

34. Describe the environmental-adaptive approach to change. What things would a change management plan address under this approach?

The premise of the environmental-adaptive approach is that although people avoid disruption and loss, they can still adapt to change. Following this approach, the change agent attempts to make the change permanent by abolishing the old ways and instituting the new structure as soon as possible.

35. How can you track the progress of your change management plan?

Tracking progress should be integrated into the overall project plan and monitored using the various project tools, such as the Gantt chart, PERT chart, and so forth, introduced in an earlier chapter, milestones and other significant events should be identified and used to gauge how well the organization is adapting to the change.

36. Why is it important to evaluate your change management experiences and document them as lessons learned?

As the project team carries out the change management plan, they will, no doubt, learn from their experiences. These experiences should be documented and made available to other team members and other projects so that experiences can be shared and best practices can be identified. At the end of the project, it is important that the overall success of the change management plan be evaluated. This evaluation may help determine the effectiveness of the different players or a particular change management strategy. The important thing is to learn from experience and to share those experiences with others while adding new form and functionality to the project organization’s IT project methodology.

37. What is resistance? How might an individual or group resist the implementation of a new information system?

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Resistance can be either overt, in the form of memos, meetings, etc., or covert, in the form of sabotage, foot dragging, politicking, etc. Resistance is human nature and a natural part of any change process.

Resistance can arise for many valid reasons. For example, someone may resist an information system because the response time is too slow or because it does not provide the features or functionality that were originally specified as part of the requirements. Resistance in this case could take many forms.

Deliberately slowing down production to cast the system in a bad light or intentionally making errors with the new system are potential ways individuals or groups might resist the implementation of a new system.

38. Why would people resist change even if it was beneficial to them?

People may resist change even though they understand that the change will be beneficial For example: •

Some people perceive the change as requiring more time and energy than they are willing to invest.

•

Sometimes people feel that that a change will mean giving up something that is familiar, comfortable, and predictable.

•

People may be annoyed with the disruption caused by the change, even if they know that it will be beneficial in the long run.

•

People may believe that the change is being imposed on them externally, and their egos will not tolerate being told what to do.

•

In addition, people may resist because of the way the decision to change was announced or because it was forced upon them.

39. Why would a manager think that an individual or group is overacting to a planned change?

Because the project team and sponsor are the agents of change, it is easy to see those who resist as overreacting or not being logical. As the proponents of change, the project team and sponsor have had the luxury of knowing about the change early and, therefore, have had the time to become used to it. The rest of the organization, however, may learn about the change much later and, therefore, may not be at the same place for digesting the change.

40. What is conflict? Why should you anticipate conflict over the course of your project?

Closely associated with resistance is the concept of conflict. Conflicts arise when people perceive that their interests and values are challenged or not being met. Although conflict is one of the things most of us dislike intensely, it is inevitable. Most often when we try to avoid conflict, it will nevertheless seek us out.

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41. In your own words, define conflict management.

Conflict management focuses on preventing, managing, or resolving conflicts. Depending on which view you hold with respect to conflict, the goal of conflict management will be to avoid it, handle it in a positive manner, or embrace it as process stimulant.

42. Why is it worse to try to ignore conflict than to deal with it?

Some people wrongly hope that conflict will go away if it is ignored. In fact, conflict ignored is more likely to get worse, which can significantly reduce project performance. The best way to reduce conflict is to confront it.

43. Describe the traditional view of conflict.

The traditional view considers conflict in a negative light and feels conflict should be avoided. Conflict, according to this view, leads to poor performance, aggression, and devastation if left to escalate.

Therefore, it is important to manage conflict by suppressing it before it occurs or eliminating it as soon as possible. Harmony can be achieved through authoritarian means, but the root causes of the conflict may not be adequately addressed.

44. Describe the contemporary view of conflict The contemporary view, on the other hand, suggests that conflict is inevitable and natural. Depending on how conflict is handled, conflict can be either positive or negative. Positive conflict among people can stimulate ideas and creativity; however, negative conflict can have damaging effects if left unresolved.

Therefore, positive conflict should be encouraged, while keeping negative conflict in check.

45. Describe the interactionist view of conflict.

Today, the interactionist view holds that conflict is an important and necessary ingredient for performance. Although the contemporary view accepts conflict, the interactionist view embraces it because teams can become stagnant and complacent if too harmonious or tranquil. Subsequently, the project manager should occasionally stir the pot in order to encourage conflict to an appropriate level so that people engage in positive conflict.

46. What is the avoidance approach to dealing with conflict? When is it most useful? When is it not appropriate?

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Avoiding conflict focuses on retreating, withdrawing or ignoring conflict. Sometimes, a cooling-off period may be a wise choice, especially when emotions and tempers are high. Avoidance may be appropriate when you can’t win, the stakes are low, or gaining time is important. However, it may not be useful when the immediate, successful resolution of an issue is required.

47. What is the accommodation approach to dealing with conflict? When is it most useful? When is it not appropriate?

Accommodation, or smoothing, is an approach for appeasing the various parties in conflict. This approach may be useful when trying to reach an overall goal when the goal is more important than the personal interests of the parties involved. Smoothing may also be effective when dealing with an issue that has low risk and low return or when in a no-win situation. Because accommodation tends to work only in the short run, conflict may reappear in another form later on.

48. What is the forcing approach to dealing with conflict? When is it most useful? When is it not appropriate?

When using this approach, a person uses his or her dominant authority to resolve the conflict. This approach often results in a one-sided or win-lose situation in which one party gains at the other’s expense. This approach may be effective when no common ground exists, when you are sure you are right, when an emergency situation exists, or when time is of the essence. Forcing resolution may, however, cause the conflict to redevelop later because people dislike having a decision or someone else’s.

49. What is the compromise approach to dealing with conflict? When is it most useful? When is it not appropriate?

Compromise includes aspects of both forcing and accommodation; it gives up more than forcing and less than accommodation. Compromise is essentially bargaining—one person or group gives up something in exchange for gaining something else. In this case, no party actually wins and none actually loses, so that some satisfaction is gained from resolution of the conflict. This approach may be useful when attempting to resolve complex problems that must be settled in a short time and when the risks and rewards are moderately high. Unfortunately, important aspects of a project may be compromised as a means of achieving short-term results—for example, quality standards may be compromised in order to meet the project’s schedule.

50. What is the collaboration approach to dealing with conflict? When is it most useful? When is it not appropriate?

When the risks and benefits are high, collaboration may be the best approach for dealing with conflict.

This approach requires confronting and attempting to solve the problem by incorporating different ideas,

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viewpoints, and perspectives. The focus of collaboration is learning from others and gaining commitment, trust, respect, and confidence from the various parties involved. Collaboration takes time and requires a sincere desire to work out a mutually acceptable solution. In addition, it requires a willingness to engage in a good-faith problem-solving process that facilitates open and honest communication.

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Chapter 12: Project Procurement Management and Outsourcing TEACHING STRATEGIES Although students with an entrepreneurial spirit may find the material on contracts particularly interesting, all students involved in project management will find themselves entering into various contractual obligations. Therefore, understanding contracts will be an important determinant of a successful career.

Project procurement management is one of the nine PMBOK® knowledge areas. This provides a more tactical approach for acquiring outside resources for both the organization and the project. The project procurement management processes outlined in this chapter provide a structure for understanding and managing the various relationships with vendors and subcontractors.

Outsourcing has become a controversial topic, especially in the field of IT. I’ve tried to provide a balanced view that looks at both the advantages and disadvantages of outsourcing. The plain fact is that outsourcing and offshoring is here to stay. Instead of being apprehensive of outsourcing and offshoring, students should realize that this phenomenon can be to their advantage if outsourcing and offshoring can be utilized strategically – especially if a selective outsourcing approach is followed. Although the outsourcing of IT has received the most attention, any job or function can be outsourced so no career choice or major is immune. In fact, regardless where work is performed, subcontracting work either domestically or overseas will require a project management approach. Looking at both sides of the outsourcing equation provides an interesting topic for debate.

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TEACHING CHAPTER 12 IN A NUTSHELL ➢ Project procurement management focuses on the acquisition of resources, products, or services as well as managing the relationship and administration or the contractual obligations. ➢ The PMBOK® Guide defines four processes that make up project procurement management. These processes include plan procurements, conduct procurements, administer procurements, and close procurements. ➢ This chapter also outlines three general categories for procurement-type contracts: Fixed-price or lump-sum contracts, cost reimbursable contracts (including cost-plus-fee or cost-plus percentage of cost, cost-plus-fixed-fee, and cost-plus-incentive-fee), and time and materials contracts. ➢ Although outsourcing is similar to procurement management, outsourcing provides a more strategic approach for obtaining products or services from an external vendor, supplier, or manufacturer. Today, organizations have the option of turning over other business functions other than just IT to an external party. ➢ This chapter also provides three approaches to outsourcing: full in-sourcing, fulloutsourcing, and selective outsourcing. ➢ The topic of outsourcing and offshoring remain especially controversial because many believe jobs are being sent overseas and will never be reclaimed. While there may be some truth to this phenomenon, the impact on domestic jobs and the economy may not be that severe. In fact, many have proposed that offshoring the boring, repetitive, and low-level jobs create opportunity for higher-paying and more mission-critical jobs domestically. ➢ Regardless, the outsourcing relationship must be managed. The allure of outsourcing can be diminished if the wrong activities are outsourced, the wrong vendor is selected, a contract is poorly written, personnel issues are overlooked, control of the outsourced activity is lost, hidden costs of outsourcing are overlooked, or an exit strategy does not exist.

REVIEW QUESTIONS

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1. Describe the Project Management Body of Knowledge (PMBOK) area called Project Procurement Management.

According to PMBOK, project procurement management is the contract management and change control processes required to administer contracts or purchase orders issued by authorized team members. It also includes the administration of any contract issued by an outside organization (the buyer) that is acquiring the project from the performing organization (the seller), and administering contractual obligations placed on the project team by the contract.

2. Describe the Project Management Body of Knowledge (PMBOK®) process called Plan Procurements.

The process of identifying and documenting the project needs that can or must be met by acquiring products, services, or results outside of the project organization. It also includes identifying potential sellers, vendors, suppliers, contractors, subcontractors, etc. to obtain bids, quotes, proposals, or other information to make the procurement decisions.

3. Describe the Project Management Body of Knowledge (PMBOK®) process called Conduct Procurements.

The process of obtaining seller responses, selecting a seller, and then negotiating and awarding a contract to a seller for a specific product or service.

4. Describe the Project Management Body of Knowledge (PMBOK®) process called Administer Procurements.

The process of managing the relationship and contract between the buyer and seller. This includes monitoring contract performance and making changes or taking corrective actions when needed.

5. Describe the Project Management Body of Knowledge (PMBOK®) process called Close Procurements.

The process of completing and settling each contract or project procurement. This may include resolving any open items if necessary.

6.

What is the purpose of a contract?

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 the seller to provide

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specific products, services, or even results, while obligating the seller to provide specific monetary or other compensation. A contract defines the terms and conditions of such things as responsibilities and authorities, technical and project management approaches, proprietary rights, financing, schedule, payments, quality requirements, and prices, as well as remedies and process for revision to the contract.

7.

Describe how a fixed-price or lump-sum contract works. Give an example.

A total or fixed price is negotiated or set as the final price for a specific product or service. They may include incentives for meeting certain objectives or penalties if those objectives are not met.

Example: Payment of $1,000 to develop a Web site for an organization.

8.

What are the three types of cost-reimbursable contracts?

Payment or reimbursement is made to the seller to cover the seller’s actual (direct and indirect) costs.

Cost-Plus-Fee (CPF) or Cost-Plus-Percentage (CPP) – seller is paid for the costs incurred in performing the work plus either a agreed upon fee or percentage.

Cost-Plus-Fixed-Fee (CPFF) – seller is reimbursed for the total direct and indirect costs of performing the work, but receives a fixed amount.

Cost-Plus-Incentive-Fee (CPIF) – seller is reimbursed for the costs incurred in doing the work, receives a predetermined fee, and an incentive or bonus if specified objectives are met.

9.

Describe how a cost-plus-fee or cost-plus- percentage of cost contract works. Give an example.

Cost-Plus-Fee (CPF) or Cost-Plus-Percentage (CPP) – seller is paid for the costs incurred in performing the work plus either a agreed upon fee or percentage. Example: Contractor is paid to cover $800 in expenses plus $200. Alternatively, the contractor is paid to cover $800 in expenses plus an additional 25% (i.e., $200).

10. Describe how a cost-plus-fixed-fee contract works. Give an example.

Cost-Plus-Fixed-Fee (CPFF) – seller is reimbursed for the total direct and indirect costs of performing the work, but receives a fixed amount. Example: Contractor is paid $1,000 to develop a Web site for an organization regardless of the amount of expenses incurred. In other words, the contractor receives $1,000 in payment if $200 or $1,200 in expenses is incurred.

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11. Describe how a cost-plus-incentive fee contract works. Give an example.

Cost-Plus-Incentive-Fee (CPIF) – seller is reimbursed for the costs incurred in doing the work, receives a predetermined fee, and an incentive or bonus if specified objectives are met. Example: Contract is paid $1,000 to cover $800 in expenses plus $200 fee. However, the contractor may receive $1,200 in payment if the Web site is operational by the end of the month.

12. Describe how a time and materials contract works. Give an example.

T & M is a hybrid of cost-reimbursable and fixed-price contracts. Under a T&M contract, the buyer pays the seller for both the time and materials required to complete the work; however, the unit rates are set. Example: Contractor is hired to build a garage. You will pay for all the building materials (i.e., expenses or costs incurred) plus $30 an hour for the contractor’s time for completing the work.

13. What is outsourcing? How does it related to Project Procurement Management?

Outsourcing can be defined as the procurement of products and services from an external vendor, supplier, or manufacturer. In this respect, outsourcing is analogous to procurement management.

However, outsourcing is more of an organizational or project strategic approach and project procurement management is more of a tactical approach that includes a group of processes.

14. What is business process outsourcing?

A situation when an organization turns over processes other than just IT (i.e., accounting, human resources, research and development) to another organization that specializes in that process.

15. What is offshoring or offshore outsourcing?

The outsourcing of jobs, products, or services overseas in order to take advantage of labor arbitrage (i.e., cheaper labor).

16. What is meant by full in-sourcing?

All products and services are retained internally by the organization or project team.

17. What is meant by full outsourcing?

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All products and services are outsourced or subcontracted externally to the organization or project team. This would be a virtual organization or virtual project team.

18. What is meant by selective outsourcing? Why is selective outsourcing a better approach than full in-sourcing or full outsourcing?

Selective outsourcing provides greater flexibility to choose which project or organizational products and services should be outsourced and which should be kept internal.

19. Why is it important than organizations and project managers understand which activities should and should not be outsourced?

Many believe that outsourcing results in an automatic reduction of costs and an increase in performance. Others may try to mimic their competitors or hear about the virtues of outsourcing from the media. For outsourcing to be successful, an organization must understand where it gets its competitive advantage. These activities may be best served by retaining them internally.

20. Why is selecting the right vendor important when considering an outsourcing agreement?

Although this may seem like common sense, vendors can be selected for the wrong reasons.

Reducing costs may be one reason, but some organizations outsource because a vendor may be able to deliver a product or service better or faster. Also, financial strength, qualifications, and experience should be included in this decision instead of just price.

21. Why is writing a good contract important for an outsourcing relationship?

A well-written contract establishes a balance of power between the two parties so that it does not become one-sided and remains flexible so that changes in business conditions can allow for changes in the contract.

22. Why are personnel issues important when an organization or project manager is considering the outsourcing of activities?

Decisions to outsource or even rumors can negatively impact employee morale, loyalty, and their sense of job security. This may lead to reduced productivity, dysfunctional behaviors, or a mass exodus of valued employees even before the outsourcing decision is final. Organizations must retain and motivate key employees so that organization-specific knowledge is retained.

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23. Why is it not a good idea for a manger to consider outsourcing an activity that is not managed well or an activity that is not well understood?

Often managers are tempted to outsource an activity that is performing poorly or not well understood. Outsourcing does not mean full abdication of that activity. Even if the activity is outsourced, that activity must still be managed whether it is performed internally or externally. This is just good governance.

24. What are some hidden costs of outsourcing? Why is it important to consider these costs?

The main types of hidden costs include searching for vendors, negotiation, and writing contracts, and managing the outsource relationship. These costs are an important consideration since they can turn a potentially attractive outsourcing arrangement into one that challenges the rationale for outsourcing.

25. What is the importance of having an exit strategy when entering into an outsourcing agreement?

It may be beneficial for some outsourcing relationships to be short-term, while others more longterm. All outsourcing relationships should include an exit strategy that allows the client a means to switch vendors or reintegrate the outsourced activity later on.

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Chapter 13: Leadership and Ethics TEACHING STRATEGIES I’ve tried to include a number of topics that are relevant for today’s project leader. The section on leadership provides an overview of what a leader is and how to become a more effective leader. A project manager must be more than just a detailed-oriented person knowledgeable of the project management tools and processes. He or she must be able to inspire the project team and set the right example so that others are willing to follow. The Five Practices of Exemplary Leadership developed by Kouzes and Posner provide an excellent approach for understanding the various leadership styles as well as when a particular style may be effective or ineffective. This provides a foundation for understanding not only ourselves but why a particular boss was or was not a good leader. Moreover, the section on emotional intelligence provides a means for becoming a more effective leader.

In addition, a leader today must promote ethical behavior. Although ethics has received a great deal of attention in business schools, I’ve found that the material by Trevino and Nelson can be applied to a project management setting. No doubt, our students will encounter ethical dilemmas throughout their careers, but following the process for making ethical decision can be applied without becoming too philosophical.

Lastly, diversity has also received a great deal of attention in a business curriculum. The section on diversity provides a framework for understanding how people are different and sometimes similar. Although an increasing number of IT projects are international, project team members will encounter challenges because of inherent individual differences. The Diversity Wheel provides a useful framework for understanding those differences and overcoming those challenges.

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TEACHING CHAPTER 13 IN A NUTSHELL ➢ Leadership and management are closely related. While traditional management focuses on activities related to planning, organizing, controlling, staffing, evaluating, and monitoring, leadership centers on inspiring a vision, implementing change, and getting results. ➢ The Five Practices of Exemplary Leadership focus on Modeling the Way, Inspiring a Shared Vision, Challenging the Process, Enabling Others to Act, and Encouraging from the Heart. ➢ Although the Five Practices of Exemplary Leadership provide a model for effective leadership, research has identified six distinct leadership styles.

Effective leaders do not rely on only one leadership style, but tend to use several or a combination of styles depending on the situation. These styles include The Coercive Style, The Authoritative Style, The Affiliative Style, The Democratic Style, and the Coaching Style. ➢ Emotional Intelligence is the ability to understand and manage our relationships better. Self-awareness, self-management, social awareness, and social skills comprise a set of competencies for understanding ones predominate leadership style and for developing the flexibility to switch among the five leadership styles. ➢ Ethics has become increasingly important to organizations and curriculum.

Ethics can be defined as a set of moral principles and values. The relationship between ethics and legality is not always clear-cut. Therefore, an effective project leader must also create an appropriate ethical environment through formal and informal structures. ➢ In addition, leaders can fall into four ethical leadership categories. These categories include unethical leadership, hypocritical leadership, ethically neutral leadership, and ethical leadership. Clear ethical leadership is important because people look to their leaders for guidance. Acting unethically can cost organizations money and jobs. Moreover, acting unethically can mean breaking the law, which can lead to financial penalties and/or jail time. People want to work for and do business with organizations they can trust. ➢ Students will no doubt encounter ethical dilemmas in their careers that put their moral values and beliefs in conflict. These ethical dilemmas include human

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resource situations, conflicts of interests, confidence issues, and corporate resource issues. It is important to recognize these typical types of dilemmas so that each student is better prepared to make sound ethical decisions. ➢ This chapter also includes a useful process for making ethical decisions. This process includes gather the facts, define the ethical issues, identify the affected stakeholders, identify the consequences, identify the obligations, and consider your character and integrity. ➢ Culture and diversity play important roles in today’s IT project environment.

Culture can be defined as the shared beliefs, assumptions, and values that we learn from a society or group that guides or influences our behavior. As a leader, it is important to create, change, or maintain a particular culture for the team.

This can guide not only performance, but ethical behavior as well. In addition, this culture can influence people’s attitudes, opinions, and behaviors toward others. Therefore, understanding and managing diversity in terms of differences in culture, nationality, ethnicity, religion, gender, or generation becomes increasingly important in order to develop an awareness of the different dimensions that can make up the various project stakeholder groups.

REVIEW QUESTIONS

1.

Develop your own definition of leadership.

Based upon the definition in the text, leadership is different from management. Leadership centers on inspiring a shared vision, change, and getting results.

2.

What is the relationship between leadership and management?

Management focuses on policies and procedures that bring order and predictability to complex organizational situations. It is traditionally defined within such activities as planning, organizing, controlling, staffing, evaluating, and monitoring. Management and leadership tend to overlap; however, leadership centers on change, getting results, and inspiring a shared vision.

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3.

What role does leadership play in project management?

Successful projects require leadership that involves setting direction, aligning people, and monitoring them in order to meet or exceed stakeholder expectations.

4.

What does a leader do?

(1) Leadership centers on inspiring a vision, change, and getting results. Or (2) model the way, inspire a shared vision, challenge the process, enable others to act, encourage the heart.

5.

Describe the 5 Practices for Exemplary Leadership.

Model the Way – A leader’s behavior wins respect. Therefore, leaders set an example of what they expect from others by modeling the way they want others to behave.

Inspire a Shared Vision – An exemplary leader has an exciting vision or dream that acts as a force for inventing the future. This vision should ignite a passion and inspire people so that they become committed to a purpose.

Challenge the Process – Leaders are pioneers who challenge the status quo by seeking new challenges to seek out new opportunities to innovate, grow, and improve. However, good leaders are good listeners who recognize good ideas, support those ideas, and then challenge the process to make these good ideas happen.

Enable Others to Act – The ability of a leader to get others to act is crucial. Leaders enable others to act by encouraging collaboration and building trust among the project stakeholders. People should feel empowered and motivated to do their best, feel a sense of ownership, and take pride in what they do.

Encourage from the Heart – Often people can become tired, disillusioned, frustrated, and willing to give up. Leaders should rally others to carry on by encouraging from the heart. This may include simple or dramatic gestures to show appreciation or to celebrate recognitions or accomplishments.

6.

Describe the coercive leadership style.

Summarized as a “do as I say” approach to leadership. This style may be effective in a crisis or to kickstart a turnaround situation, when dealing with a problem employee, or when attempting to achieve immediate compliance. It can have a negative impact on the climate of the project or organization if used as an extreme top-down approach to decision making whereby communication and new ideas are obstructed. People can lose their initiative, motivation, commitment, and sense of ownership.

7.

Describe the authoritative leadership style.

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Described as a “come with me” type of approach where the leader outlines a clearly defined goal but empowers people to choose their own means for achieving it. The authoritative leader provides vision and enthusiasm, and motivates people by showing them how their work fits into the larger picture so that they know that what they are doing has meaning and purpose. Works well in most situations, but is best suited for situations when people are adrift. May not work best for inexperienced leaders.

8.

Describe the affiliative leadership style.

Follows the attitude that “people come first.” Centers on the value of the individual rather than goals and tasks and attempts to keep people happy by creating harmony among them. The affiliative leader attempts to build strong emotional bonds that translate into strong loyalty. The idea is that people who like each other tend to communicate more, share ideas, and inspiration. Flexibility is high. Works well in situations that require building team harmony, morale, trust, or communication. Does not work well when people need structure or advice to navigate through complex tasks or situations.

9.

Describe the democratic leadership style.

Attempts to develop consensus through participation by asking “what do you think?” The leaders spends most of his or her time getting other people’s ideas, while building trust, respect, and commitment.

People have more say in the decisions that affect their goals and work. Subsequently, morale tends to be higher and more realistic expectations. Works best when the leader needs to build buy-in, consensus, or valuable input from others. Can lead to seemingly endless meetings in a vain attempt to gain group consensus and cause conflicts, confusion, and the perception that the group is leaderless. Not appropriate in crisis situation or when the group does not have the competence or experience to offer sound advice.

10. Describe the pacesetting leadership style Follows a “do as I say” attitude. The leader exemplifies an obsession with doing things better and faster.

Poor performers are quickly identified and replaced. Although the leader tries to set high standards for performance, morale can deteriorate if people feel overwhelmed by the demands for excellence and performance. Goals may be clear to the leader but poorly communicated to the group. People may lose energy and enthusiasm if the work becomes too task-focused, routine, or boring. The pacesetting leader may try to micromanage and people can lose their direction or sense of how their work fits within the larger picture. If the leader leaves, people may feel adrift since the pacesetter sets all direction.

Appropriate in situations that require quick results from a highly motivated, self-directed, and competent team.

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11. Describe the coaching leadership style.

Follows the “try this” approach to help people identify their unique strengths and weaknesses so that they can reach their full potential and career goals. This leader encourages people to set long-term goals and then helps them develop a plan for achieving them. Coaching leaders are good at delegating and giving people attainable challenges. Short-term and minor failures are acceptable and viewed as learning experiences. Although this style appears to be the least often used, it can be a good approach when people want to be coached. It is least effective when people are resistant to change or when the leader does not have the knowledge, capability, or desire to be a coach.

12. What is emotional intelligence?

Is the ability to understand and manage our relationships and ourselves better. It is different from a person’s IQ in that improving one’s emotional intelligence requires time, patience, and effort.

13. Describe the emotional intelligence competency called self-awareness.

Emotional Self-Awareness - Reading and understanding your emotions as well as how your emotions impact your job performance and those around you.

Accurate Self-Assessment - Evaluating realistically your strengths and weaknesses.

Self-Confidence - Having a strong and positive sense of self-worth.

14. Describe the emotional intelligence competency called self-management.

Self-Control - Keeping your impulses and negative emotions in check.

Trustworthiness - Maintaining a high level of honesty and integrity.

Conscientiousness - Managing yourself and responsibilities effectively Adaptability - Adjusting to new situations and overcoming challenges.

Achievement Orientation - Meeting high internal standards of excellence.

Initiative - Seizing new opportunities

15. Describe the emotional intelligence competency called social awareness.

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Empathy - Sensing and understanding other people’s emotions, perspectives, and being genuinely concerned in their problems and interests.

Organizational Awareness - Being perceptive to the currents of every-day organizational life, building networks, and navigating through organizational politics.

Service Orientation - Recognizing and meeting customer needs.

16. Describe the emotional intelligence competency called social skills.

Visionary Leadership - Taking charge and inspiring others with a compelling vision.

Influence - Having a wide range of persuasive tactics at your disposal.

Developing Others - Bolstering the abilities of others through feedback and guidance.

Communication - Listening and sending clear, convincing, and well-aimed messages.

Change Catalyst - Initiating new ideas and leading people in the right direction.

Conflict Management - Being able to de-escalate disagreements and facilitate resolutions.

Building Bonds - Cultivating and maintaining a web of relationships inside and outside of the organization.

Teamwork and Collaboration - Facilitating cooperation and building teams.

17. What is the definition of ethics?

Ethics can be defined as a set of moral principles and values.

18. Why is the application of ethics to business settings important?

Unethical business behaviors cost organizations money and jobs. Acting unethically can mean breaking a law that entails financial penalties and/or jail time. Acting ethically is just the right thing to do because it is in everyone’s best interest. People want to work for and do business with organizations they can trust.

19. What is the difference between ethical and legal? Can something be ethical but illegal? Unethical but legal?

Ethics is defined as a set of moral principles. Legal depends on the laws of society. Unfortunately, the difference is not always clear-cut because some things can be ethical but illegal or legal but unethical.

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20. Define culture.

Culture can be defined as the shared beliefs, assumptions, and values that we learn from society or a group that guides or influences our behavior.

21. How can a project leader change, maintain, or create culture?

Culture can be created, changed, or maintained in terms of the formal systems that are in place. This includes such factors as the authoritative structure as well as policies and procedures for hiring, firing, rewarding performance, and training. Culture can also be influenced by informal systems such as acceptable everyday norms and behaviors. Examples include how people associated with a particular group dress, as well as their heroes, myths or stories, rituals, and language.

22. What is the difference between a formal system and an informal system with respect to culture?

Formal systems include such factors as the authoritative structure as well as policies and procedures for hiring, firing, rewarding performance, and training. Informal systems center on acceptable everyday norms and behaviors. Examples include how people associated with a particular group dress, as well as their heroes, myths or stories, rituals, and language.

23. What is socialization?

People who are brought into an organization learn its culture through a process called socialization. This is the process of “learning the ropes” and occurs through formal means such as training or mentoring. It also occurs through informal means such as how to dress appropriately, as well as what behaviors are acceptable and unacceptable. Subsequently, socialization can encourage or discourage ethical behaviors.

24. Describe unethical leadership.

Unethical leaders tend to be weak moral individuals and weak moral managers.

25. Describe hypocritical leadership.

Hypocritical leaders tend to extol the virtues of integrity of ethical conduct, but then engage in unethical behavior, encourage others to do so, reward bottom-line results by any means, or fail to discipline any wrongdoing.

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26. Describe ethically neutral leadership.

Tend to fall into a neutral zone whey they are neither strong or weak ethical leaders. As a result, they tend to not provide any clear ethical guidance because people do not know what the leader’s ethical beliefs are or whether the leaders cares.

27. Describe ethical leadership.

A leader who makes it clear that bottom-line results are important, but only if they can be achieved in an ethical manner.

28. What is an ethical dilemma? Give an example of one.

A situation when a person’s values or ethical beliefs are in conflict.

29. Develop a hypothetical ethical dilemma for a human resource situation.

Example: A project manager who makes a hiring decision between two equally qualified candidates other than qualifications.

30. Develop a hypothetical ethical dilemma for a conflict of interest situation.

Example: A client offers you tickets to the Super Bowl (or some other championship sporting event) if you are willing to reduce the total cost of the project by 10%.

31. Develop a hypothetical ethical dilemma for confidence situation.

Example: You find out from the client that a department within the organization is going to be downsized.

You have a close friend who works in that department, but you’ve been asked to keep this information confidential.

32. Develop a hypothetical ethical dilemma for a corporate resource situation.

Example: A close friend who worked with you was terminated for taking office supplies without permission. Now this friend has asked you to write a letter of recommendation on his behalf using company letterhead.

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33. For a hypothetical ethical dilemma you develop, use the 8-stage process for making a sound ethical decision.

Gather the facts Define the ethical dilemma Identify the Affected Stakeholders Identify the consequences Identify the obligations Consider your character and integrity

34. Why are international projects more complex than domestic projects?

Number of locations Currency exchange Regulations and laws Political instability Attitude toward work and time Religion Language

35. What is diversity?

Diversity is defined as differences in culture as well as nationality, ethnicity, religion, gender, or generation.

36. Why is understanding diversity important when managing a multicultural project?

To be an effective leader, it is important that one develop an awareness of the different dimensions of culture that make up the various project stakeholder groups.

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Chapter 14: Project Implementation, Closure, and Evaluation TEACHING STRATEGIES The implementation of the IT solution or the project’s product is a technical undertaking. However, I like to emphasize that a number of human issues must still be addressed. For example, choosing a particular conversion or installation strategy can place pressures on a particular group of project stakeholders such as the project team if a direct cutover approach is taken or the users of the current and new systems run in parallel. While the organizational change management helps prepare many of the external project stakeholders for the impending change initiative, the implementation of an information system can create a number of non-technical challenges and issues for the project team. These issues may include a sense of panic to get things finished on time and within budget, the likelihood of project success or failure, or moving on to a new assignment after the project is completed. The end of the project can be stressful and emotional and often brings out the best or the worst in people.

I also like to tie several ideas back to beginning of the course. For example, I like to revisit the definition of a project where projects are temporary endeavors meant to meet or exceed stakeholder expectations. In addition, the project was undertaken to provide specific and measurable value to the organization as defined in the project’s MOV. The big question is: How close are we to meeting those expectations? If we defined and controlled our project scope carefully, at this point, all we need to do is look at the approved Scope Definition Table or Chart to see whether the project sponsored signed off on the various deliverables as milestones. If we have, then closing the project should be fairly straight-forward as expectations have been managed. On the other hand, missing deliverables or unapproved milestones may lead to confusion, panic, and strained relationships.

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Once the system is installed and working properly, the work of the project team is still not quite finished. I like to use the analogy of having to clean up after a construction project. For example, tools must be put away and the floor needs to be swept.

Similarly, all project documents need to be archived and the project and project team needs to be evaluated. Reviews should focus on the individuals involved closely with the project as well as the project itself. Experiences lead to lessons learned, and lessons learned can lead to new best practices. Finally, the project’s MOV must be evaluated to determine the project’s value to the organization.

TEACHING CHAPTER 14 IN A NUTSHELL ➢ The three approaches for installing or converting to the new system are described. These approaches include direct cutover, parallel, and phased. While each approach focuses on delivery of a technical solution, choosing a particular approach can have an impact on the organization and the various project stakeholders. ➢ The project methodology introduced in Chapter 2 provided a framework for initiating the project in an orderly manner. Moreover, a set of plans and processes guide the project and the development of the IT solution. While we have tried to provide structure for beginning the project, we must not lose control of the project at this late stage. Therefore, a project should have an orderly beginning and an orderly end. ➢ The project and project team need evaluation. This includes a number of reviews such as individual and team performance reviews, audits, and reviews by outside members, and the evaluation of project success – a review of the project’s MOV.

REVIEW QUESTIONS

1. What is implementation?

Project implementation focuses on installing or delivering the project’s major deliverable in the organization—the information system that was built or purchased.

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2. Describe the three approaches to implementing an information system.

The direct cutover approach is an approach where the old system is shut down and the new system is turned on. In general, a target, or go live, date is agreed upon, and the new system simply replaces the old.

The parallel approach to implementation allows the old and the new systems to run concurrently for a time. At some point, the organization switches entirely from the old system to the new.

Following the phased approach, the system is introduced in modules or in different parts of the organization incrementally.

3. What are the advantages and disadvantages of the direct cutover approach?

Advantages: • Implementation can be quick Disadvantages: • Can be risky if system is not fully tested • Places more pressure on the project team

4. What are the advantages and disadvantages of the parallel approach?

Advantages: • Provides a safety net or backup in case problems are encountered with the implementation of the new system • Can increase confidence in the new system when output of old system and new system is compared Disadvantages: • Takes longer and may cost more than direct cutover approach • Places more pressure on the users of the system

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5. What are the advantages and disadvantages of the phased approach?

Advantages: • Allows for an organized and managed approach for implementing system modules or a system/upgrades in different departments or geographical locations • Experience with early implementation can guide and make later implementations go more smoothly Disadvantages • Takes longer and may cost more than the direct cutover approach • Problems encountered during early phases can impact the overall implementation schedule

6. Describe the various scenarios for project termination.

Normal—A project that ends normally is one that is completed as planned. The project scope is achieved within the cost, quality, and schedule objectives, although there probably was some variation and modification along the way. The project is transferred to the project sponsor, and the end of the project is marked with a celebration, awards, and recognition for a good job well done by those involved Premature—Occasionally, a project team may be pushed to complete a project early even though the system may not include all of the envisioned features or functionality Perpetual—Some projects seem to take on a “life of their own” and are known as runaway, or perpetual, projects. These projects never seem to end. Perpetual projects may result from delays or a scope or MOV that was never clearly defined or agreed upon. Then, the project sponsor (or even the team) may attempt to add on various features or functionality to the system, which results in added time and resources that increase the project schedule and drain the project budget.

Failed—Sometimes projects are just unsuccessful. In general, an IT project fails if insufficient attention is paid to the people, processes, or technology. Even though the project’s MOV may define the project’s value to the organization, cost and schedule overruns may drain the project’s value to a point where the costs of completing the project outweigh the benefits.

Changed Priority—In some circumstances, a project may be terminated as a result of a change in priorities. Financial or economic reasons may dictate that resources are no longer available to the project.

Or, management may decide to divert resources to higher priority projects. This change can happen when the original importance or value of the project was misjudged or misrepresented or when organizational needs or technology change over the course of a long-term project.

7. Why might an organization terminate a project prematurely? What are the risks?

For example, an organization may need to have a new system operational—with only a core set of original

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requirements— to respond to a competitor’s actions, to enter a new market early, or as a result of a legal or governmental requirement. Although there is pressure to finish the project early, the risks of this decision should be carefully thought through by all the project stakeholders. These risks include buggy systems, incomplete feature sets, and general quality degradation as a result of incomplete testing and/or development.

8. What is a perpetual project? Why might an organization be reluctant to terminate a project that many would consider unsuccessful?

Projects seem to take on a “life of their own” and are known as runaway, or perpetual, projects. These projects never seem to end. Perpetual projects may result from delays or a scope or MOV that was never clearly defined or agreed upon. Then, the project sponsor (or even the team) may attempt to add on various features or functionality to the system, which results in added time and resources that increase the project schedule and drain the project budget. Some runaway projects result from an organization not making the appropriate decision to “pull the plug” on an unsuccessful project. This phenomenon may also occur when the project has a high payoff to the organization and when admitting to failure is strongly against the corporate culture.

9. Why would senior management cut a project’s budget without officially terminating the project?

Some projects are “terminated by starvation.” As Meredith and Mantel describe it, successive budget cuts over time can slowly starve a project budget to the point where it is ended but the termination is masked.

Senior management may not want to admit that it had championed a failed project or that a project will be unsuccessful in meeting its goals. The project budget receives a large cut or a series of smaller cuts.

The result is that the project will eventually die and the project resources will be reassigned, even though the project is never officially closed.

10. Why might some project team members be reluctant to see the end of a project?

Some team members are reluctant to see a project end because it often means the breakup of a closeknit relationship with the other team members. Sometimes the end of a project means the end of the familiar and comfortable and the beginning of the unknown or even the end of employment.

11. Why can the end of a project be stressful for many of the project stakeholders?

Because of number of undesirable but possible realities, many project stakeholders find the end of a project stressful. These end of project realities may include the fact that: •

Team members are concerned about future jobs

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•

Bugs still exist

•

Resources are running out

•

Documentation attains paramount importance

•

Promised delivery dates may not be met

•

The players may possess a sense of panic

12. Why is the sponsor’s acceptance of the project important to project closure?

The most important requirement for closure under normal circumstances is obtaining the project sponsor’s acceptance of the project. Delivery, installation, and implementation of the information system do not necessarily mean that the project sponsor or client will accept the project’s product. Since acceptance depends heavily on the fulfillment of the project’s scope, the project manager becomes responsible for demonstrating that all project deliverables have been completed according to specifications. Finally, without the sponsor’s acceptance, the project cannot be termed finished and most likely will not be paid for.

13. How can the project manager and project team facilitate the project sponsor’s acceptance of the project?

The project manager and team can improve the likelihood that the project will be accepted if they (1) clearly define the acceptance criteria for the project at the early stages of the project, and (2) document the completion of all project deliverables and milestones. A clear definition of the project deliverables is an important concern for project scope management (discussed in an earlier chapter). Yet, defining and verifying that the project scope and system requirements are accurate and complete is only one component. Having scope change procedures in place that are understood by all the project stakeholders also ensures that everyone has the same expectations concerning what will and what won’t be delivered at the end of the project.

14. What is the difference between a shortsighted and a knowledgeable project sponsor? How can making this distinction help the project manager during project closure?

Shortsighted sponsors tend to view the project as a short-term buyer-seller relationship in which getting the most for their money is the most important criteria for accepting the project. This view often leads to an adversarial relationship if the sponsor attempts to renegotiate the project scope or price at the end of the project. Knowledgeable sponsors realize that they have an important stake in the outcome of the project. As a result, they will be actively involved throughout the project in a constructive manner. A knowledgeable sponsor may ask tough questions during project reviews, but their objective is not to embarrass the project team or manager, but to ensure the success of the project. Instead of an adversary

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trying to get the most in a “win-lose” situation, the knowledgeable sponsor will negotiate intelligently and in good faith.

15. What is the purpose of the final project report?

In general, the project manager and team should develop a final report and presentation for the project sponsor and other key stakeholders. The objective of the report and presentation should be to give the project sponsor confidence that the project has been completed as outlined in the business case, project charter, and project plan. By gaining this confidence, the sponsor or client will be more likely to formally accept the project that will allow for a smooth termination of the project. The report may be circulated to key stakeholders before the presentation in order to get feedback and to identify any open or unfinished items that need to be scheduled for completion.

16. What is the purpose of the final meeting and presentation?

The final meeting and presentation is useful for: • Communicating that the project is over • Transferring the information system from the project team to the organization • Acknowledging contributions • Getting formal signoff

17. Describe some of the steps for administrative closure.

The requirements for administrative closure include: 1. Verifying that all deliverables and open items are complete.

2. Verifying the project sponsor or customer’s formal acceptance of the project.

3. Organizing and archiving all project deliverables and documentation.

4. Planning for the release of all project resources (i.e., project team members, technology, equipment, facilities, etc.).

5. Planning for the evaluations and reviews of the project team members and the project itself.

6. Closing of all project accounts.

7. Planning a celebration to mark the end of a (successful) project.

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18. What is the purpose of the project manager conducting a performance review with each member of the project team?

The purpose of conducting a review or evaluation with each project team member is to provide constructive feedback for individuals. The meeting can serve to help prepare the individual to move on and accept the psychological fact that the project will end. And, in most cases, the project manager could use this meeting to discuss the project team member’s next assignment.

19. What is the purpose of conducting a postmortem review?

A postmortem review should be conducted so that the project manager and team can identify what they did right and what they could have done better. These lessons learned should be documented so that they can be shared with others in the organization. Moreover, best practices should be identified and become part of the organization’s IT project methodology. The postmortem reviews provide an important view of the internal workings of the project.

20. What is the purpose of a project audit?

To provide a more objective view of the project, an audit or review by an outside party may be beneficial for uncovering problems, issues, or opportunities for improvement. Similar to the postmortem review, the auditor or audit team should focus on how well the project was managed and executed. This may include the project plans and Project Management Body of Knowledge areas described in the previous section, as well as the underlying project management and systems development processes outlined in the organization’s IT project methodology. In addition, the auditor or audit team should assess whether the project manager and team acted in a professional and ethical manner.

21. What criteria should be used to choose a project auditor or auditing team?

The third party auditor or audit team should: • Have no direct involvement or interest in project.

• Be respected and viewed as impartial and fair.

• Be willing to listen.

• Present no fear of recrimination from special interests.

• Act in the organization’s best interest.

• Have broad base of project and/or industry experience.

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22. What is the purpose of evaluating the project’s MOV? Different project stakeholders and players may have different views as to whether the project was a success, it is important to assess the value that the project provides the organization. In the beginning it was agreed that achieving the project’s MOV was the ultimate gage of success – this fact requires an evaluation to ultimately determine if the efforts and resources committed to the project were efficacious and whether the project was successful or not.

23. Why would it be difficult to evaluate whether or not a project achieved its MOV shortly after the information system is implemented?

Often, the MOV cannot be readily determined at the close of the project. Many of the benefits envisioned by the implemented system may require weeks or even months before they are realized.

24. Why should any lessons learned from project evaluations be documented?

Any lessons learned should be documented so that they can be shared with others in the organization.

Moreover, best practices should be identified and become part of the organization’s IT project methodology.

25. Why would evaluating whether a project achieved its MOV make many project managers and teams anxious? Why should it still be done?

The evaluation of the project’s MOV may be intimidating—it can be the moment of truth as to whether the project was really a success. However, a successful IT project that brings measurable value to an organization provides a foundation for organizational success.