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Chapter 4:

Project IntegrationManagement

Information TechnologyProject Management,

Seventh Edition

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Copyright 2014

Project managers must coordinate all of the other

knowledge areas throughout a project’s life cycle

Many new project managers have troule lookingat the !ig picture" and want to focus on too many

details #$ee opening case for a real e%ample&

Project integration management is not the samething as software integration

'nformation (echnology Project

Management) $eventh *dition 2

The Key to Overall Project Success:

Good Project Integration Management

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Copyright 2014'nformation (echnology Project

Management) $eventh *dition +

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Copyright 2014

1, Developing the project charter involvesworking with stakeholders to create the document

that formally authori-es a project.the charter,

2, Developing the project management plan

involves coordinating all planning efforts to create a

consistent) coherent document.the project

management plan,

+, Directing and managing project wor involvescarrying out the project management plan y

performing the activities included in it,



Si! Project Integration Management Processes

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4, Monitoring and controlling project worinvolves overseeing activities to meet the

performance ojectives of the project

/, Per"orming integrated change controlinvolves identifying) evaluating) and managing

changes throughout the project life cycle,

, #losing the project or phase involvesfinali-ing all activities to formally close the project

or phase,


Management) $eventh *dition /

Si! Project Integration Management Processes $cont%d&

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Management) $eventh *dition

'ach o" the processes has some inputs( tools )

techni*ues( and outputs+ Tools and techni*ues are

used to tae the inputs and assist in producing theoutputs+ '!ample "or Project Plan Development+

Prolem efinition

ocument $tandardManagement $tyle

Project Charter Project Plan

Project Planevelopment

(ools (echni3ues

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http://slidepdf.com/reader/full/chapter-04-pm 7/48Copyright 2014'nformation (echnology Project

Management) $eventh *dition

Project Integration Management Processes ) Outputs

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Strategic planning involves determining long5termojectives) predicting future trends) and projecting

the need for new products and services 6rgani-ations often perform a S,OT analysis

◦ analy-ing Strengths) ,eaknesses) Opportunities) and

Threats

7s part of strategic planning) organi-ations

◦ identify potential projects

◦ use realistic methods to select which projects to work on

◦ formali-e project initiation y issuing a project charter



-e"ore Starting a Project: Strategic Planning and

Project Selection

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Mind Map o" a S,OT .nalysis to /elp Identi"y

Potential Projects

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In"ormation Technology Planning Process

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(here are usually more projects than availaletime and resources to implement them

Methods for selecting projects include:◦

focusing on road organi-ational needs◦ categori-ing information technology projects

◦ performing net present value or other financialanalyses

◦ using a weighted scoring model

◦ implementing a alanced scorecard



Methods "or Selecting Projects

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't is often difficult to provide strong justification formany '( projects) ut everyone agrees they havea high value

!'t is etter to measure gold roughly than to countpennies precisely"

(hree important criteria for projects:◦ (here is a need for the project◦ (here are funds availale

◦ (here’s a strong will to make the project succeed



0ocusing on -road Organi1ational 2eeds

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6ne categori-ation is whether the project

addresses

◦ a prolem

◦ an opportunity) or

◦ a directive

7nother categori-ation is how long it will take to

do and when it is needed

7nother is the overall priority of the project


Management) $eventh *dition 1+

#ategori1ing IT Projects

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;inancial considerations are often an importantconsideration in selecting projects

(hree primary methods for determining the projected

financial value of projects:

◦ <et present value #<P=& analysis

◦ >eturn on investment #>6'&

◦ Payack analysis



0inancial .nalysis o" Projects

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2et present value #<P=& analysis is a method ofcalculating the e%pected net monetary gain or loss

from a project y discounting all e%pected future

cash inflows and outflows to the present point in

time

Projects with a positive <P= should e considered if

financial value is a key criterion

(he higher the <P=) the etter


Management) $eventh *dition 1/

2et Present 3alue .nalysis

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2et Present 3alue '!ample

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4,D #onsulting 2P3 '!ample

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etermine estimated costs and enefits for the lifeof the project and the products it produces

etermine the discount rate #check with yourorgani-ation on what to use&

Calculate the <P= #see te%t for details& <otes: $ome organi-ations consider the

investment year as year 0) while others start in year1, $ome people entered costs as negative

numers) while others do not, Check with yourorgani-ation for their preferences



2P3 #alculations

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5eturn on investment #>6'& is calculated y sutractingthe project costs from the enefits and then dividing ythe costs

>6' ? #total discounted enefits 5 total discounted costs& @

discounted costs

(he higher the >6') the etter Many organi-ations have a re*uired rate o" return or

minimum acceptale rate of return on investment forprojects

Internal rate o" return #'>>& can y calculated y findingthe discount rate that makes the <P= e3ual to -ero



5eturn on Investment

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7nother important financial consideration ispayack analysis

(he pay6ac period is the amount of time it will

take to recoup) in the form of net cash inflows)the total dollars invested in a project Payack occurs when the net cumulative

discounted enefits e3uals the costs

Many organi-ations want '( projects to have afairly short payack period



Pay6ac .nalysis

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#harting the Pay6ac Period

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7 weighted scoring model is a tool that provides asystematic process for selecting projects ased onmany criteria

'dentify criteria important to the project selection process 7ssign weights #percentages& to each criterion so they add

up to 100A 7ssign scores to each criterion for each project Multiply the scores y the weights and get the total

weighted scores

(he higher the weighted score) the etter



,eighted Scoring Model

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Management) $eventh *dition 2+

Sample ,eighted Scoring Model "or Project Selection

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Copyright 2014

rs, >oert Baplan and avid <orton developedthis approach to help select and manage projectsthat align with usiness strategy

7 6alanced scorecard◦ is a methodology that converts an organi-ation’s value

drivers) such as customer service) innovation) operationalefficiency) and financial performance) to a series of definedmetrics

$ee www,alancedscorecard,org for moreinformation



Implementing a -alanced Scorecard

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Management) $eventh *dition 2/

-alanced Scorecard '!ample

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Copyright 2014

7fter deciding what project to work on) it isimportant to let the rest of the organi-ation know

7 project charter is a document that formallyrecogni-es the e%istence of a project and

provides direction on the project’s ojectives andmanagement

Bey project stakeholders should sign a project

charter to acknowledge agreement on the needand intent of the project a signed charter is a keyoutput of project integration management



7+ Developing a Project #harter

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Copyright 2014

7 project statement of work 7 usiness case 7greements

*nterprise environmental factors Organi1ational process assets) which include

formal and informal plans) policies) procedures)

guidelines) information systems) financial

systems) management systems) lessons learned)and historical information



Inputs "or Developing a Project #harter

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Sample Project #harter "or the D2.8Se*uencing Instrument

#ompletion Project

S l P j t #h t $ t &

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Sample Project #harter $cont+&

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Copyright 2014

7 project management plan is a document used

to coordinate all project planning documents and

help guide a project’s e%ecution and control

Plans created in the other knowledge areas are

susidiary parts of the overall project

management plan


Management) $eventh *dition +0

9+ Developing a Project Management

Plan

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'ntroduction or overview of the project escription of how the project is organi-ed Management and technical processes used on

the project Dork to e done) schedule) and udget

information



#ommon 'lements o" a Project

Management Plan

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Sample #ontents "or a So"tware Project

Management Plan $SPMP&

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Copyright 2014

'nvolves managing and performing the workdescried in the project management plan

(he majority of time and money is usually spent

on e%ecution

(he application area of the project directly affects

project e%ecution ecause the products of theproject are produced during e%ecution


Management) $eventh *dition ++

+ Directing and Managing Project ,or

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Project planning and e%ecution are intertwinedand inseparale activities

(hose who will do the work should help to plan thework

Project managers must solicit input from the team

to develop realistic plans



#oordinating Planning and '!ecution

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Project managers must lead y e%ample todemonstrate the importance of creating and thenfollowing good project plans

6rgani-ational culture can help project e%ecution y◦ providing guidelines and templates

◦ tracking performance ased on plans

Project managers may still need to reak the rulesto meet project goals) and senior managers mustsupport those actions


Management) $eventh *dition +/

Providing ;eadership and a Supportive #ulture

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'!pert judgment: *%perts can help project managers and

their teams make many decisions related to projecte%ecution

Meetings: Meetings allow people to develop relationships)

pick up on important ody language or tone of voice) and

have a dialogue to help resolve prolems,

Project management in"ormation systems: (here arehundreds of project management software productsavailale on the market today) and many organi-ations are

moving toward powerful enterprise project managementsystems that are accessile via the 'nternet


Management) $eventh *dition +

Project '!ecution Tools and Techni*ues

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Changes are inevitale on most projects) so it’simportant to develop and follow a process to

monitor and control changes

Monitoring project work includes collecting)measuring) and disseminating performance

information

7 6aseline is the approved project management

plan plus approved changes

'nformation (echnology ProjectManagement) $eventh *dition +

<+ Monitoring and #ontrolling Project ,or

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(hree main ojectives are:◦ 'nfluencing the factors that create changes

to ensure that changes are eneficial

◦

etermining that a change has occurred◦ Managing actual changes as they occur

'nformation (echnology ProjectManagement) $eventh *dition +8

=+ Per"orming Integrated #hange #ontrol

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0ormer view: (he project team should strive to do e%actly

what was planned on time and within udget

Pro6lem: $takeholders rarely agreed up5front on the

project scope) and time and cost estimates were

inaccurate

Modern view: Project management is a process of

constant communication and negotiation

Solution: Changes are often eneficial) and the project

team should plan for them

'nformation (echnology ProjectManagement) $eventh *dition +9

#hange #ontrol on In"ormation Technology Projects

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7 change control system is a formal) documentedprocess that descries when and how official

project documents and work may e changed

escries who is authori-ed to make changes and

how to make them

'nformation (echnology ProjectManagement) $eventh *dition 40

#hange #ontrol System

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7 change control 6oard is a formal group ofpeople responsile for approving or rejecting

changes on a project

CCEs provide guidelines for preparing change

re3uests) evaluate change re3uests) and manage

the implementation of approved changes

'ncludes stakeholders from the entire organi-ation


#hange #ontrol -oard $##-&

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$ome CCEs only meet occasionally) so it maytake too long for changes to occur

$ome organi-ations have policies in place for

time5sensitive changes

◦ !485hour policy" allows project team memers to make

decisions) then they have 48 hours to reverse the

decision pending senior management approval

◦ elegate changes to the lowest level possile) ut keep

everyone informed of changes


Maing Timely #hanges

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#on"iguration management ensures that the

descriptions of the project’s products are correctand complete

'nvolves identifying and controlling the functionaland physical design characteristics of products

and their support documentation Configuration management specialists identify

and document configuration re3uirements) controlchanges) record and report changes) and audit

the products to verify conformance tore3uirements

$ee www,icmh3,com for more information

'nformation (echnology ProjectManagement) $eventh *dition 4+

#on"iguration Management

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Copyright 2014'nformation (echnology ProjectManagement) $eventh *dition 44

Suggestions "or Per"orming Integrated #hange #ontrol

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(o close a project or phase) you must finali-e allactivities and transfer the completed or cancelled

work to the appropriate people

Main outputs include

◦ ;inal product) service) or result transition

◦ 6rgani-ational process asset updates

'nformation (echnology ProjectManagement) $eventh *dition 4/

>+ #losing Projects or Phases

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Copyright 2014

$everal types of software can e used to assist inproject integration management◦ ocuments can e created with word processing software

◦ Presentations are created with presentation software

◦ (racking can e done with spreadsheets or dataases◦ Communication software like e5mail and De authoring

tools facilitate communications

◦ Project management software can pull everything togetherand show detailed and summari-ed information

◦ -usiness Service Management #E$M& tools track thee%ecution of usiness process flows


?sing So"tware to .ssist in Project Integration

Management

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Copyright 2014'nformation (echnology ProjectManagement) $eventh *dition 4

Sample Port"olio Management

So"tware Screen

$ource: www,projectmanager,com

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Project integration management involvescoordinating all of the other knowledge areas

throughout a project’s life cycle

Main processes includeF evelop the project charter

F evelop the project management plan

F irect and manage project e%ecution

F Monitor and control project workF Perform integrated change control

F Close the project or phase

#hapter Summary

chapter 04 pm

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