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Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 1

Product Processes


3.6 Key process areas of IT projects

Requirements design and – management5

Project definition in IT projects 4

IT Infrastructure Library (ITIL)3

Capability Maturity Model Integrated (CMMI)2

Capability Maturity Model (CMM)1

Software engineering6

Testing7

Configuration management8

Infrastructure9

IT specific processesin IT projects

OD in IT projects10


3.6.1 Capability Maturity Model

The Capability Maturity Model (CMM) is a collection of instructions an organization can follow with the purpose to gain better control over its software development process

(Source: Wikipedia)


Software became more important an complex Organizational difficulties to fulfill promised requirements in time,

budget and quality (golden triangle) Developers often did not fulfill their promises

Client did not obtain ordered software in time and/or quality. Result: Delayed benefits and/ or extra cost

Contractor had to deal with a damaged image and/or contractual penalties

Status Quoin the 1980’s

Problem

Initiation of CMM development at the Software Engineering Institute (SEI) by the US Department of Defense in 1986: High quality of complex software needed for the Strategic Defense Initiative (SDI or Star Wars Project)

Goal: To assure capability of the contractor’s organization to fulfill clients needs

Both, Contractor and client started to benefit of CMM!

Solution

Excessive demand & poor quality in software development in the 1980‘s

Development of the Capability Maturity Model (CMM)

3.6.1 CMM - Roots


3.6.1 CMM – Definition

A Capability Maturity Model (CMM) is a reference model of mature practices

in a specified discipline, used to improve and appraise a group’s

capability to perform that discipline.*

Source: http://www.sei.cmu.edu/cmmi/adoption/pdf/cmmi-overview05.pdfBack to PM-standards

‚All models are wrong, some are usefull‘(George Box)

‚In god we trust, all others bring data‘(W. Edwards Deming)


3.6.1 CMM – Maturity Levels

Organization’s support level for SW-processesOptimizing - ImprovementManaged - Measured, controlledDefined - Documented and understoodRepeatable - Repeat mastered tasksInitial - Unpredictable, poorly controlled

Softw

are

proc

ess

Mat

urity

Lev

els

Intended to help software organizations to improve the maturity of their software processes in terms of an evolutionary bottom-up path

Focus: Identifying Key Process Areas and the exemplary practices that may comprise a disciplined software process

SW Organizations

(1)

(2)

(3)

(4)

(5)

„The primary goal for most organizations is to achieve a Level 3 maturity“ (Walker Royce)


Maturity Level Management Organizational Engineering

5 - Optimizing Technology Change Mng Process Change Mng

Defect Prevention

4 - Managed Quantitative Process Mng SW Quality Mng

3 - Defined Integrated SW Mng Intergroup Coordination

Org Process Focus Org Process Definition Training Program

SW Product Engineering Peer Reviews

2 - Repeatable Requirements Mng SW Project Planning SW Project Tracking SW Subcontract Mng SW Quality Assurance SW Configuration Mng

1 - Initial AD HOC PROCESSES = No KPA’s at this time!

3.6.1 CMM – Key Process Areas

The CMM defines five levels of software process maturity, based on an organization's support for 18 Key Process Areas (KPAs)

Continuous process improvement

Quantitativemanagement

Processstandard-ization

Basicprojectmanagement

Focus


Cha

ract

eris

tics

of P

rogr

ams

by S

EI L

evel

3.6.1 CMM - Performance

1

2

3

4

5

Ref.: Mark C. Paulk, Bill Curtis, Mary Beth Chrissis, and Charles V. Weber, “Capability Maturity Model Version 1.1”, IEEE Software, Vol. 10, No. 4, July 1993, pp. 18-27.


3.6.2 CMM – Planning interval

Average time of organizations to move to next maturity level using SW-CMM

Empirical evidence indicate similar data for CMMi-Model (see few slides later)

Nearly 2 years to move to next upper level!


Talk about affiliation of each characteristic to corresponding CMM-Level

Optimizing

Managed

Defined

Repeatable

Initial

3.6.1 CMM - Exercise

Process ManagementDynamically self-

optimizing processes

Experience rating of processes

Change Management

Process and product metrics

To analyze and evaluate experiences in a quantities way

Project experiences and knowledge are used in the

whole organization

Definition of processes

Overall exchange of project based knowledge

To learn from similar projects

Requirements Management

Project Management

Quality Management

Chaos and Heroism

Low adherence to delivery dates and cost

High risk

Instable Processes,danger of backslide to lower level

Technology Management

http://www.cup.uni-muenchen.de/pc/lamb/lehre/images/study.jpg�


Students shall assign each characteristic to corresponding CMM-Level

Optimizing

Managed

Defined

Repeatable

Initial

3.6.1 CMM - Exercise

Process Management

Technology Management

Dynamically self-optimizing processes

Experience rating of processes

Change Management

Process and product metrics

To analyze and evaluate experiences in a quantities way

Project experiences and knowledge are used in the

whole organization

Definition of processes

Overall exchange of project based knowledge

To learn from similar projects

Requirements Management

Project Management

Quality Management

Chaos and Heroism

Low adherence to delivery dates and cost

High risk

Instable Processes,danger of backslide to lower level



3.6.2 From CMM to CMMi

http://www.sei.cmu.edu/cmmi/�


3.6.2 Capability Maturity Model Integration

Capability Maturity Model®Integration (CMMI) is a process improvement approach that provides organizations with the essential elements of effective processes(Source: http://www.sei.cmu.edu/cmmi/general/general.html)


3.6.2 CMMi – Representation

Two types of representations in the CMMI models:

Staged and Continuous

A representation allows an organization to pursue different improvement paths.

The organization and presentation of the data are different in each representation.

But: The content is the same!


Staged

ML 1

ML2ML3

ML4

ML5

. . .for an established set of process areas across anorganization

Continuous

. . .for a single process areaor a set of process areas

PA PA

Proc

ess

Area

C

apab

ility

PA

3.6.2 CMMi – Comparing Model Representations (I)

The difference between them is that process area capability deals with a set of processes relating to a single process area or specific practice, while organizational maturity pertains to a set of process areas across an organization


3.6.2 CMMi – Comparing Model Representations (II)

Continuous Flexible in its application so the organization can choose

which areas to emphasize according to business goals and objectives

Provides equivalent staging to compare to staged representation

Staged Structured for implementation based on proven grouping

and ordering of processes

Familiar structure for those transitioning from the SW-CMM


3.6.2 CMMi – Staged Representation (I)

Very similar to SW-CMM

Easy migration from the SW-CMM to CMMI staged representation

Provides a proven sequence of improvements, each serving as a foundation for the next

Provides a single rating that summarizes appraisal results and permits comparisons across and among organizations

Allows an organization to select a specific process area and improve relative to it

Higher maturity level processes may be performed by organizations at lower maturity levels, with risk of not being consistently applied in a crisis.

Maturity Levels


3.6.2 CMMi – Staged Representation (II)

A maturity level is a well-defined evolutionary plateau of process improvement.

There are five maturity levels.

Each level is a layer in the foundation for continuous process improvement using a proven sequence of improvements, beginning with basic management practices and progressing through a predefined and proven path of successive levels.

Discussion:

Technically maturity levels can be skipped. Do you think it would be wise to skip levels? - Keep in mind: Organizations have kind of a life, think about a scenario of disaster


3.6.2 CMMI – Continuous Representation (I)

Standardized process areas Assessment of PA Comparison of PA among

different organizations/ units using CMMI or ISO 15504 (SPICE)

Allows to focus on companies most important processes

Obtain a differentiated overview of the organization’s actual status quo by representing each process area by a bar (see next slide)

...

Process Areas (PA) Category

Each process area has goals and activities to guide the improvement


3.6.2 CMMI – Continuous Representation (II)

A capability level is a well-defined evolutionary plateau describing the organization’s capability relative to a particular process area

Six CMMI capability levels:

Each level is a layer in the foundation for continuous process improvement.

Process Areas identify “what you do” Capability Levels: “how well you do it”

Process areas are assessed and assigned to a corresponding Capability Level4 5 2 2 3 1 0 4 1 1 4 5 3

Org

aniz

. Pro

cess

Foc

us

Org

aniz

. Pro

cess

Def

initi

on

Org

aniz

. Tra

inin

g

... Pro

ject

Pla

nnin

g

Pro

ject

Mon

itori

ng a

nd C

ontr

ol

Sup

plie

r A

gree

men

t Mgm

t

... Req

uire

men

ts M

gmt

Req

uire

men

ts D

evel

omen

t

Tech

nica

l Sol

utio

n

... Con

figur

atio

n M

gmt

Pro

cess

& P

rodu

ct Q

ualit

y A

ssur

ance

Mea

sure

men

t & A

nalis

ys

...

1 2 3 4 5 6 7 8 9 10 11 12

Process Mgmt Project Mgmt Engineering Support

0

1

2

3

4

5

Capability Level

1 2 3 4 5 6 7 8 9 10 11 12

Process Area Nr.

CMMI Model: Continuous Representation

Example!

The CMMI Continuous representation is flexible –we may decide to achieve level 3 in one process area and level 5 in another


3.6.2 CMMI – Continuous Representation (III)

CL0Incomplete Not performed, incomplete

CL1Performed Perform the work

CL2Managed

Adhere to policy, follow documented plans and processes,apply adequate resources, assign responsibility andauthority, train people, apply CM, monitor, control, andevaluate process, identify and involve stakeholders,review with management

CL3Defined

Project’s process is tailored from organization’sstandard processes, understand process qualitatively,process contributes to the organizations assets

CL4Quantitatively

Managed

Measure process performance,stabilize process, control charts, deal with causes of special variations

CL5Optimizing

Defect prevention, proactive improvement,innovative technology insertion and deployment

Capability Levels: Improving a Process Area

Capability levels are

cumulative


3.6.2 CMMi – Comparison


3.6.2. CMM(i) - Benefits

Reduction in systems integration and test time

Greater probability of success Cause integration of, and interaction

among, the various engineering functions

Extend SW-CMM benefits to the total project & organization

Employ systems engineering principles in SD

Increase & improve SE content in programs

Leverage previous process improvement investments

Business benefits

Increased focus and consistency in … requirements development and

mgmt systems design and development systems integration risk management measurement & analysis other engineering-related

activities

Technical benefits

In today’s fast-paced, competitive business environment, approaches used in the past such as “manufacturing in quality” and present, “engineering in

quality” are not enough. The future is innovation!


CMMi

Today still developed Integration of various

standards to a new one Includes more areas of

processes, emphasizes on important practices

Better useable as an implementation guideline

Involvement of all relevant stakeholders through refocusing requirements

Staged and continuous representation model

Compliance of CMMI with ISO 15504 (SPICE)

Process areas extendible

CMM

Differences

Will not be upgraded by SEI from Dec 2001

Today‘s standard in many companies

Focus on Software engineering

One staged representation model with five maturity levels

Process areas fix

3.6.2 Differences CMM/ CMMi


3.6.3 ITIL

The Information Technology Infrastructure Library (ITIL) is a customizable framework of best practices that promote quality computing services in the IT sector.(Source: Wikipedia)


3.6.3 ITIL - General

is a set of guidance and consists of a series of publications

is still developed by the United Kingdom’s Office Of Government Commerce (OGC)

was conceived in the late 1980s

Giving guidance on the best practices for provision of quality IT services

Providing documented, process based approach to deliver well managed IT services

Back to PM-standards


3.6.3 ITIL – Framework

ITIL is comprehensive because of its definition as a collection of books

Individual subjects of each book is referred to as sets. The sets are further divided into disciplines, each of which is focused on a specific subject.

Currently eight sets available:


3.6.3 The ITIL sets – Main aspects

How to start the changeover to ITIL

Identification of benefits

Planning to implement Service Management

Which services must be provided

Adequate support to the business

- IT Financial Mgmt

- Capacity Management

- Availability Mgmt

- IT Continuity Mgmt

- Service Level Mgmt

Service Delivery

Ensure customer’s access to appropr. services that supp-ort business funct.

- Service Desk

- Change Management

- Release Management

- Problem Management

- Incident Management (!)

- Configuration Mgmt

Service Support

How to realize defined security services

Availability, confidentiality & Integrity need to be guaranteed

Security Management

How business’ framework affect IT

Development, delivery and support of IT Services

Bridging the gap of customers req. & organization’s working

Business Perspective

Helps redesign business require-ment according to business changes

How to manage the SW development lifecycle

Also the testing of IT services

Application Management

Financial investment

Control, manage, protect SW in the organization through lifecycle

Software Asset Management

Requirement of tools, organization, processes

Stable IT & Communication

- Network service Mgmt

- Operations Management

- Mgmt of local processors

- Computer installation

- Systems Management

ICT Infrastructure Management


3.6.3 ITIL – Service Management

Service

Desk

4

3 2

1

“One face to the

customer”


3.6.3 ITIL – Four selected processes

43

21


3.6.3 ITIL – Benefits/ Disadvantages

Systematic, professional approach to the management of IT service provision

Risk of not meeting business requirements

Staff turnover Costs of training Cost per incident Costs when developing new

procedures and practices in an organization

ITIL reduces… Customer satisfaction with

IT services Communication and

information flows between IT staff and customers

Morale of service delivery A quality approach to IT

services Standards and guidance for

IT staff Greater productivity and

better use of skills and experience

Availability systems/apps Asset utilization

ITIL improves… Excessively bureaucratic –

everything done by the book

It requires senior management buy-in

Cost of implementation Cost of management Deal with cultural changes

ITIL’s Disadvantages

Adopting ITIL’s guidance can provide benefits, but some say there are disadvantages, too


3.6.3 CMMi & ITIL – To cover all of IT


3.6.3 CMMi & ITIL: Example

Development & maintenance ofIT products and services

Management of IT infrastructure

CMMi

ITIL

Requirements Management.

Requirements Development

Technical Solution, Product Integration, Validation and Verification

Config. Mgmt

Change Request

CMMi Availability

Management Security

Management

ITIL processes

Config. Mgmt

Service Desk

ITIL Collection and management

of requirements Functional and technical analysis

Development

Configuration

Maintenance

“New IT-System needed”

Source: Adopted of http://www.kneuper.de/English/Cmmi/itil-cmmi.html

“In spite of their different structure, these two models support each other by

covering different aspects of the IT lifecycle” R.Kneuper


3.6.3 CMMi & ITIL: Business impact


3.6.4 Project definition

Now go through contract book example


3.6.4 Project definition: Exercise

Senior managers require from you to implement by July X (assuming it‘s December X-1 now)

You know that previous implementations needed 24 month, 60 man years effort and 12 Mio $. The documentation of this team is accessible for you.

You know you can probably get 10 month, 15 man years and 2 Mio $ approved. You have no team available yet. You have not got all the details available (effort estimates, cycle time estimates,

cost estimates, H/W sizing, exact scope etc.) You know that the project will take 50% h/c of department A, 30% of department C

out of business, but they have to deliver most of the project. You have senior managers that have no clue about IT project management

You have been appointed to be a project manager of a software imple-mentation which is a standard package – But you don‘t know the package

Tasks for the exercise:

A.) Describe how you proceed to get the project defined (process flow or list of steps)

B.) What key elements do you need figure out to get the project approved?

C.) Describe how you get these elements defined

D.) Describe your strategy to make the project a success after approval



3.6.5 Requirements design and management

A fool with a tool is still a fool…



Requirements design & management: Key area and the hardest part of an IT project!

Customers often don‘t know what they want! (see W.S. Humphrey)

Don‘t miss it in the beginning! (see evaluation phase)

Progressive elaboration! (e.g. layer concept)

Business process orientation vs. tools or screens orientation

Cut the number of prototypes and iterations by encouraging initial thinking

A fool with a tool is still a fool…



Use

r Acc

epta

nce

Expa

nsib

ility

Requirements

Selection and Assessment5 very important4 relative important (relative to what)3 important2 unimportant1 totally unimportant

Completeness of FunctionsAll functions are realized

Serviceability

EfficiencyPerformance of functions in acceptable time

Correctnessof execution

ReliabilityError free execution of functions

RobustnessHandling of unexpected and invalid Inputs;

Recognition and handling about system errors

Safety

FlexibilityAdoption to new requirements

Bug fixingRecognition and easy Bug fixing

AdaptilityConnectivity with other Software Systems

Reusability

TimeMemory

Easy to UseEasy to LearnEasy to Understand

SecurityImproper use of access



Simple and handmade draft:

Not style or program important,but the fact that s.o did it!

Source: Somewhere in the internet


HLD

DLD

ELD

Req/Designs

ProgramCodes

Main Business Process

1 : 1

m

1

1

1

1

n

x

z

Func

tiona

lD

evel

opm

ent

Customization,Data conversion

Standard ERP

3.6.5. Requirements design and management

Decomposition of requirements


4. Integration Test

1. Execution Level Design

Gap List

Defect List

List existingCustomizations *

Inventory existingCustomizations MCS / Oracle 10.7

Data MigrationProgramm

External Systems /Interfaces

Migration Programm

5. Cut Over Test

MigrationCustomizations

7. Live System

* Contain: BRIO, Forms,Reports, Trigger, Interfaces

Compass List

GlobalCustomizations

2. Unit TestTest Forms, Reports, Scripts,Packages, ...

Test System, Processes, Data,Interfaces, Customizations

Process Doc ELD

Process Testplan

Unit Testplan

Setup Plan

CommonalityCheck

Inventory

top down / bottom up

Process Description

HLD DLDProcessList

3. Box TestTest Part Processes overmore than one Unit

Mass Data Test

Stress Test

Development TeamFunctional Team

6. Cut Over

3.6.5. Requirements design and management

The functional design drives the project and links the development work


3.6.5 Requirements design and managementSuppliers

Receive Payment

Send Statements

F10

F12, F13

POI

PO Receipts

GeneralLedger

GeneralLedger

Close Order

S11, F15

S9, S10

F14

F1, F14

D2

Make and SourceDeliverFinanceExternal

W. M. S.

S6, S7, S8, S9

AP

OracleInventory

Run MRP

OracleWIP

Send PO to Supplier

ATO WIP JOB

Sale

s O

rder

Dem

and

WIP

JOB

S

Com

plet

ions

Issues

OVP PO Requisitions

OVP PO Receipts

Pick confirmations

Ship Confirmation

Load Forecast Run MDS Release PO

RequisitionsApprove

Requisition Manual

Requisition

Create PO

ApprovePO

MiscellaneousAdjustments

ManufacturingAccounting

Cus

tom

ers

(End

Cus

tom

ers

or D

.C.)

Enter/ReceiveOrder

Order ProcessingSend Order

Acknowledgement

Pick Order Pack Order Ship Order Ship Confirm

Send Shipping Documents

Create ARTransaction

Send Customer Invoice Collection

ActivitiesSend Dunning

Letters

Adjust AR Transactions

Close AR Transactions

Schedule Sharing

Production Scheduling

S1, S2, S3

S2, S5

S7, S14, S17

S6,S8S4 S3, S7, S9S4S4

S3, S6, S7, S8, S9

M4, M5,M6

M10, M11

F2, F3, F4, F14

M1, M2, M7,M8,M9M3

D1, D2

D2

D2, D3, D5, D6, D8

D7

F7

F10

F5, F6, F7, F8, F9 F10 F11

F10, F11, F12

D4 D4 D4, D5, D7 D4

Shop Floor Control

Data Warehouse

MOL

End of Product Life

Excess & Obsol. Mgmt

S12

S13

Item & BOM Mgmt

M1,M2

Transportation PlanningD7

Project Accounting

F17

Commercial Invoice


3.6.5 Basics of ERP architecture

ERP

DWH CAM

WMS / PPS

ContractManufacturing

Frei

ght

Forw

arde

rsCorporate wide

master data

Vend

orE-

busi

ness

Vendor MasterVendorsPOAP

Customer MasterCustomersSOAR

Item Master

Internal OperationsMRPWIPPPSINVNPI

Supply chain transaction shadowed by finance

R & D Tools

Freight Forw

arders

Custom

er E-business


3.6.6 S/W engineering

Requirements = Work release process

Documentation and coding standards

Version control and tools (e.g. Clearcase, Sourcesafe)

Reusability vs. hard coded

Architecture (modular etc.)

Clarity

Used technology

Used platforms (OS, DB, H/W)

Release strategy and process

Defects, errors and patching

SQA, peer reviews


3.6.6 S/W engineering – Example

20 Mio mobile devices sold p.a. in Germany, 2-3 Mio sent back for repairs, ≈ 1/3 because of SW defects!*

SW development often is pressured for time! Despite of intensive testing by producers and operators not all bugs are detected.

Consequences: Customer dissatisfaction, slump in sales and reduction in profits, also damage of corporate prestige!

The more functions a device is able to handle the more complex the software gets with an increasing probability of SW errors

*Source: Tagesspiegel, 28th Aug 2005

Software


3.6.7 Testing

Practical Expertise: Test strategy is the key to success! Avoidance of go live errors -> Cost

per phase increase! Substantial training effect for key

users! Tests corresponding to design

levels! Test -> Log issue -> Resolve issue ->

Test -> UAT Use test results to understand

progress in project Test all areas! No assumptions (dummy data to

production data)


Main Business Process

Process Verification HWTest

Mass Data Test

Cutover Test + Maint. Prep

IT 1 + IT 2 + [ IT 3 = UAT ]

System Test

Go Live Test

Prerequisite Test to Cutover

Ready to Go Live Test

3.6.7 Testing: Verification Levels

Gap Analysis

HLD DLD ELD Req/Des [Codes]

Box Test (IT0) Unit Testfunctional / technical

Not all processes

withprod data

All processes +

All satellites


3.6.8 Configuration Management

Configuration

IdentificationConfiguration

Control

Configuration

Audit

Configuration

Status accounting

ISO 10007

Ongoing

In projects



Simple and handmade draft:

Not style or program important,but the fact that s.o did it!

Source: Somewhere in the internet

Software Config. Mgmt: Goals View


BL0

DV

SB

IT‘PatchesSetups

Develop-ments

BL1

IT

Freshinstall

Baseline0 Baseline1t

Backup Backup Backup

CV

PT

Fresh Install

0

1

2

3

3

4

6

57

8

9


Baseline 1 iteration


BLn PR

DV

SB

PatchesSetups

Develop-ments

ITIT‘

PR‘

potential downtime

Baselinen Go Live 1st Operationt

Backup Backup

CV

PT

PatchesSetups

Develop-ments

Production Iteration‘

TR

TR

Backup

User Training

14

15

16 17

18

18

19

20

21

22

23

24


Go Live 1st OP & Prod iterations


All Operations are LiveGo Live other Operations

PR

DV

TR

PT

CV

Backup

t

DV‘

TR‘

SB

PR

Backup

25

26

26

26

27

27


Go Live other Ops & All Ops Live


3.6.9 Infrastructure

Practical Expertise: H/W sizing is kind of a science!

Instance plan and cloning Stress test Performance tuning DRP and test, restore Recovery time Downtime management Computing, storage, computing

infrastructure (e.g. backups) Transaction volumes, data amounts, users, S/W licensing models BIA vs. SLA vs. cost, 5/9 and systems availability Application oriented or capacity oriented? Homologation of platforms across projects Provision of test systems and timely refreshes and backups are

key


3.6.10 Organizational Development in IT Projects

Practical Expertise: IT projects require special OD efforts!

Usually IT projects drive change in the business

Especially in bigger projects OD becomes important

Initial evaluation of change to come and impact analysis

Start organization, intermediate snapshots, final stage

Otherwise: Passive and active resistance, friction in team,which can lead to total failure of the project.

Give people a clear view on their future!

Plan for rewards

Identify key positions and explain/ offer

Create a win–win situation for team and company!


Table of Contents

Introduction

IT Projects

International IT project management

Case Study: ERP implementation

Summary

Basics of IT Project Management

Appendix & Back up slides

1.

2.

4.

5.

6.

3.

7.


International


Table of Contents

4.1 Requirements

4.2 Time zone differences

4.3 Span of control (SOC) vs. Line of sight (LOS)

4.4 Local interests

4.5 Cultural differences

4.6 Language and communication

4.7 Impact on Project or Program organization

4.8 Impact on Project processes

International IT project management4.


4. 0 Teaser*

* Turn on your sound device!

By courtesy of Berlitz

Get used to daily challenges of international collaboration!


4.1 International IT projects: Requirements

Agreed decision making structures on process and solutions design Cooperation processes, tools and media defined in detail from the beginning. Routines to detect and fix defects / errors in the concept. Standardization must be done at a defined level of granularity but must respect

varying levels of resource and funding availability. An agreed architecture is needed early in the process.

Architectural decisions must consciously be made in time to enable budget planning

Common funding: Template to be reused + clear pricing and sizing Has to be part of IT LRP + LRPs have to be in sync.

Higher degree of discipline A reasonable approach on ‚global‘ and regional degrees of freedom and control

levels + a clear agreement and communication what these exactly are. Buy in & communication of the major principles to all involved business teams Consideration of individual starting positions A common project life cycle and view on the resource pool Deliverables of each group defined and understood in detail. Defined interfaces between the main playing groups An agreed strategy and approach that is communicated to all levels of the team. An international project organization requirements capturing process that is

sensitive to regional requirements

PM-Culture Cooperation

Social aspects

Procedure Architecture

Business aspects


4.2 Time zone differences

Site

Time

ASIA 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24EMEA 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17USA 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10

ASIA USAEMEA ASIA EMEA

Day 1 Day 2 Day 3


4.2 Time zone differences – Follow the sun

European Center

9 am – 5 pm

5 pm – 1 am

1 am – 9 pm

North American Center

1 am – 9 pm

9 am – 5 pm

5 pm – 1 am Asia Pacific Center

5 pm – 1 am

1 am – 9 pm

9 am – 5 pm

Work – Leisure – SleepHelpdesk

usually needed during work

time

Exploiting time zones to provide global service and support 24/ 7

Shift personnel and/or data center to a daylight location

But: Communication obstacles and cultural differences between user and support

But: Cost-efficiency of high service level. Security and administrative access policies


4.3 Span of control vs. Line of sight

What is the final goal of a project?

Encouraging strategic behaviors?

Where is the optimal aggregation level?

Central vs. local: What is central, what is local?

The myth of flexibility vs. cost optimization?

In optics, photography, or even hunting, the line of sight is the straight line between the observer and the target

Range of effective interaction between individuals

Necessity of local cooperation or possibility of worldwide delegation

Line of sight The number of people a manager

can effectively manage Is said to be wide if a superior

has many subordinates and narrow if there are few

Inverse relationship to the number of layers of hierarchy

Span of control


4.4 Local interests

General tendency is to keep direct control But especially business critical success factors that influence

business results or execution of speed Remote decisions are not always good for the local business Local decisions are not always good for the business in total

Fair play and balance of interests vs. encouraging political behaviors and hiding by using wrong mechanisms

Need to provide the ‚right‘ mechanisms to show advantages as well as disadvantages of decisions locally as well as globally: Share the burden!

Never under estimate the power of passive resistance and in transparency!


4.5 Cultural differences

Various studies have been made to explain cultural differences, e.g. the IBM study by Geert Hofstede or studies for Shell by Fons Trompenaars

„Think globally act locally!“

„Cultural differences exist and have to be dealt with“

„Within one company cultural differences get reduced over time if the company has a strong culture itself“

" Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster."Prof. Geert Hofstede, Emeritus Professor, Maastricht University.


People orientation

Friendliness

Intercultural interest

Patience

Ability to compromise

IntegritySensitivity

CompetenceSkills

Reliability

Honesty

Modesty

General values are important to achieve complex goals in culturally diverse environments

4.5 Cultural differences – General values


4.5 Cultural differences – Profile US vs. Ger (I)

Contact: Official & serious Form of address: Often last name Once in a while need to talk turkey

(‘talk tacheles’) Professional criticism s.t understood

as personal criticism, thus criticism might cause negative motivation

Small talk is small talk, big talk is big talk! Positive effects of small talk often underestimated

Contact: Informal & humorous Form of address: first name Talk: Confrontation avoided or

attenuated, paper over the cracks with jokes

Necessity for harmony: Give lots of compliments! Harsh words often are understood as a direct offence!

Small talk is big talk! Use small talk to get to know each other

Smattering greeting used as a door opener: “how is it going” or “how are you?”

Friendliness is very important, accommodation usual

Personal relationship less important than achievement of results

Political correctness: Avoid any aspect of discrimination against race, color, religion, sex, …

“How are you?” Often understood as a serious inquiry on existential orientation

Germans ought to act polite and friendly, because other nationalities might be offended by direct or harsh words, even if it wasn’t meant

Germans s.t. act reserved & short-spoken, accommodation understood as invitation to develop friendship

Communication

Friendliness

US Germany

Source: I. Nitzsche “Business-Spielregeln rund um den Globus”


4.5 Cultural differences – Profile US vs. Ger (II)

Performance is important, also academic titles (like Dr. Ing.)

Often complex & bureaucratic hierarchy, use of official channels

Teamwork: “What’s the big picture?” A team is to support one another to achieve the great & common goal.

Thoughtful project start: “at first we concern, discuss & plan, then we might start”. This might be considered as a stumbling block

Rather down-to-earth, might cause underestimation of competence

Document the effective results!

Performance is important, academic titles not. (A “Dr.” is a medic!)

Often flat hierarchy. Easy to talk to higher ranked personnel if necessary

Teamwork: “What’s in it for me?” A team is a bunch of people to profit one another. Profit shall be revealed!

Pragmatic project start: “first we start, then we’ll see.” Might result in chaos & ineffectiveness

Rather enthusiastic: Everything is great or outstanding

Document the progress!

Good entertainment supported by state of the art technology in a relaxed & humorous manner

KISS: Keep It Short and Simple, the problem definition

Very important: Catalog of measures

Often present an extensive analysis to proof the status of an expert

Aspects of service (e.g. after sales concept) shall not be forgotten!

US Germany

Project behavior

Presentation



4.5 Cultural differences – Profile US vs. Ger (III)

Business lunch: Often need to put it on a personal level. Might result in “Gemütlichkeit”

Visiting program: Germans like to get all the details (e.g. Empire State Building in 1,5 h) or discover the ‘bizarre’ stuff

Business clothing: A bit more casual than in the US

Business lunch: On time and targeted, ends after dessert.

Visiting program: Americans like to see effectively plenty in less time, details not important (e.g. dome of cologne in 15 min)

Business clothing: more conservative than in Germany,Woman wearing skirt must wear panty hose & must have shaved legs Men have to pay attention to spruce ness & attend to sweat, body odor.

Legacy of the pioneers also key business driver: Independence and personal responsibility

Flexibility in job and residence Ideology: “Let’s get it on!”, less

psychological burden in case of failure

The job is your mission, often of a lifetime perspective

Less flexibility in changing residence Ideology: “If you do something, do it

the right way” Failure often causes psychological

burden

US Germany

Soft factors

Mentality



4.5. Cultural differences – Iceberg analogy

Orientation to:

• Environment

• Competitiveness

• Individualism

• Power

• Space

• Communication

• Action

• Time

• Thinking• Structure

• Music

• Art

• Food & Drink• Greeting

• Manners• Rituals

• Outward behavior

Source: Adopted from: http://www.trinity.edu/rjensen/cultures/culture.htm

“The most powerful elements of culture

are those that lie beneath the surface

of everyday interaction“

W.B Carper

Like an iceberg, most of culture is out of conscious awareness. This ‘hidden’ part of

culture has been termed “deep

culture”


4.5 Cultural differences: Geert Hofstede

Geert HofstedeCultures, organizations and intercultural cooperation

Differences and influences by national culture

Assumes that national character has some influence on workplace orientations, even in very diverse countries like the U.S.

The individual comes first!

Avoid generalization or stereotypes!

The findings are ‘averages’, will vary between individuals!

Groundbreaking work in cultural differences across countries in workplace orientations

A scientific approach to cultural differences!

Conducted a poll among 100.000 of IBM’s staff members in 1967-73

Findings BUT:

See also: http://www.uigarden.net/english/national_culture_differences ; http://www.geert-hofstede.com/index.shtml

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The extent to which a society accepts the fact that power in institutions and organizations is distributed unequally

Accessibility of superiors

All people should have equal rights

„ Power distance“ The extent to which a society

feels threatened by uncertain & ambiguous situations, AND tries to avoid them with formalization, rules, and absolutism

„Uncertainty avoidance“

Definition of cultural dimension 1 and 2

PD UA



The degree to which people in a society prefer to act as individuals, rather than as members of a group.

High individualism = low collectivism

„Individualism-Collectivism “

Long-term orientation looks to the future, and values thrift & persistence.

Short-term orientation looks to the past & present, and values tradition & fulfilling social obligations

„Long term orientation“

Definition of cultural dimension 3 and 4

IDV LTO



The extent to which the dominant values in society are “masculine:”

Assertive

Acquisitive

Not caring for others

Not caring for quality of life

Men should dominate

„Masculinity“

The extent to which the soft values in society are “feminine:”

Equality between the sexes

Sympathy is important

Work in order to live, not the other way around

People are important

Interdependence is ideal

“Femininity”

Definition of cultural dimension 5

MA


4.5 Cultural differences: Geert Hofsteede

PD UA IDV LTO MAUnited States 40L 46L 91H 29L 62HGermany 35L 65M 67H 31m 66HJapan 54M 92H 46M 80H 95HFrance 68H 86H 71H 30*l 43MNetherlands 38l 53M 80h 44M 14lHong Kong 68H 29L 25L 96H 57HIndonesia 78H 48L 14L 25*L 46MWest Africa 77H 54M 20L 16L 46MRussia 95*H 90*L 50*M 10*L 40*LChina 80*L 60*L 20*L 118H 50*L

PD = Power distanceIDV = Individualism vs. CollectivismMA = Masculinity vs. feminismUA = Uncertainty avoidanceLTO = Long term vs. short term orientation

Source: Internet, complete tables see better Hofsteede directly, -> 7.5

Results of study: Differences expressed in values of 5 differentiated dimensions of cultural differences:

L = LowM = MidH = High

0

10

20

30

40

50

60

70

80

90

100

PD

UA

IDVLTO

MA

Japan Germany United States Indonesia


4.5 Cultural differences: Geert Hofsteede

NOTE: In this version, LTO data have been removed since accurate values are only available for a subset of the countries covered by this tool.

The smaller the difference in scores between countries, the greater the cultural similarities

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4.5 Cultural differences: International analysis

USA, GB, AUL (Australia) NZ and Canada are all English

speaking nations with similar cultural characteristics. They are

nations of individuals whose cultural upbringing leads them to

cope well with change and uncertainty.

Collectivist societies such as China, Korea and Japan tend to be more likely to avoid change until a collective decision has

been made and the element of uncertainty has been minimized.

Individualism/Collectivism vs. Uncertainty avoidance

Source: http://ausweb.scu.edu.au/aw03/papers/edwards2/paper.html


4.5 Cultural differences: Job effects (I)

Low Flat hierarchy The ideal boss is a resourceful

democrat who considers himself as pragmatic, systematic and feels the need of support

Managers trust rely on personal experience and subordinates

Subordinates expect to be asked Privileges and status symbols

displease

High Multilayer hierarchy The ideal boss is an autocrat

ruler with good intentions like a good father who considers himself as a helpful decision maker

Managers rely on formal rules Subordinates expect orders Privileges and status symbols for

managers are popular

High High degree of loyalty towards

employer, long period of employment

Focus on task Few patents/trademarks Naturally high level of precision

and punctuality

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Low Low degree of loyalty

towards employer, short period of employment

Focus on relationship Lots of new patents/trademarks Precision and punctuality must

be learned and controlled


4.5 Cultural differences: Job effects (II)

High degree It’s a disadvantage to be a relative

of the employer/employees

Bad job performance result in dismissal

Job and company take priority over personal relationship

High level of control on job, work condition and work time

Low degree Relatives of employer and

employees are favored for hire

Bad job performance result in other job assignment

Personal relationship take priority over job and company

Low level of control on job, work condition and work time

High Stable, binding and cross-

generational structures Differentiation between older and

younger brothers and sisters Same interests are no pre-

condition for marriage

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Low Traditions are of low value,

often considered nostalgically Social changes are happening

easily New relations are often unstable

and uncertain


4.6 Language and communication (I)

Practical expertise: „Challenges of internationality“

Employees from many nations can get involved in projects in multi national corporations

Conference calls, remote meetings, no face to face dialog possible

Different email communication styles, e.g. exact wording, simplification of message, misunderstanding

People are not prepared to communicate well on netmeetings and conference calls

Common language is English

Native speakers usually are not aware and they also don‘t mind

Acoustics usually bad

Deal with accents and learn to understand


4.6 Language and communication (II)

Practical expertise: “Possible activities”

More travel is/ should be done to establish personal relationship -> Affect project cost

Webcams Take pictures of people and distribute to entire team Investment in Telecom and sound equipment (e.g. microphones) Test telecom facilities and look at quality results Change telecom conference providers if the results are not satisfactory Avoid to much email usage, in doubt call

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4.7 Impact on Project/ Program organization

Practical expertise: “Recommendations”

Up front buy-in of all involved/ impacted parties Equal representation but balanced by capacities Continuous involvement of key players Strong sponsorship Establish direct contact with key stakeholders

Prepare the ground Establish consensus building processes Bottom up and top down decision making

mechanisms are required Escalation mechanisms and filter criteria: What is

important to be globally looked at, what is not important?

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4.8 Impact on project processes

Establish common understanding of how processes will work

Thorough full preparation and verification of project processes

Leadership needs to sing from one song sheet

Establish tracking mechanisms to assess process quality and discipline of usage Local process training required

Documentation and Pre-approval of processes before they get published

Practical expertise: “Recommendations”

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4.

Loop untilIssues Solved

Task

1. Identify Subprocessesout of the DLD

2. Create generic UserManual

Generic Testplan(Box Testplan) Ww Process Team

Deliverables Who

Generic User Manual(Box Manual) Ww Process Team

3. Create ExecutableTest plan

Executable Test Plan(Box Testplan) SME

Execute ExecutableTest plan Issues or Process ok SME

Enter Issues inClearQuest Issues in ClearQuest SME

Assign Issues inClearQuest

Solve Issue solved Issue IT and/or SME

5. IT1Local Team presents process

to the global team SME

Regional SME / IT

IT

IT

IT

SME

Assign Issues

Defect

Data

Setup

Functional gap

Global

Regional

4.8 Impact on project processes


Table of Contents

Introduction

IT Projects



Summary



1.

2.

4.

5.

6.

3.

7.


Summary

1) Introduction

Why IT Projects fail? Errors to avoid? How to do that? Standards of Project Management, S/W Engineering CMM, CMMI, ISO 10006, 10007, PMBOK

2) IT Projects

Criteria of project assessment Context: How IT projects are weaved into the corporation? Breakdown phases, S/W development life cycles Different type of projects: Consequences for proceeding? Project life cycle: What are the project phases? Beside project execution, what else do you have to bear in mind? Project Cost: -> What cost types? How do you retain control on the expenses?


Summary3) IT Project Management Basics

Importance of resource, effort, cycle time estimation Determination of project processes and project media Selection of personnel PM/ PMO Project monitoring and controlling of cost Which cost types exist, procedure Selection of approver, team members, steering committees, sponsors What kind of steering mechanisms could a PM use to correct plan variation?

4) International IT Projects

Intercultural differences (work manners, way of thinking, language, socio-cultural imprinting) Different perception and interest (everything depends on the point of view) Obstacles in communication, problems on leadership Line of Sight vs. Span of Control

5) ERP case study

How do you run an ERP implementation? What do you have to consider in which phase? Differences in process design: Package or self made? Instance plan


7.

Table of Contents

Introduction

IT Projects



Summary



1.

2.

4.

5.

6.

3.


Table of Contents

7.1 Change history

7.2 Terms and definition

7.3 Additional sources

7.4 Recommended literature: English

7.5 Recommended literature: German

7.6 Back up slides

Appendix & Back up slides7.


7.1 Change history

Release Date Changes made Author1.3 1st Mar 2004 First published release CS1.4 23rd Aug 2004 Added change history CS

Added additional sources, ISO17799, computer worldAdded ISO10006 material references Updated IT trendsAdded participants feedback and summaryAdded Motorola descriptionAdded more details on CMMiAdded excercise to clarify basics for project costingAdded contract book example as part of project definitionAdded project definition exercise for studentsAdded explanations about effort estimatesAdded Geert Hofstede‘s investigations on cultural differencesAdded explanation about program management

1.5 6th Mar 2005 Added details about estimation, estimation methods CSAdded estimation processAdded ERP architectureAdded feedback from Release 1.4 studentsAdded exercise about estimation methodsUpdated Portfolio / program management slide

1.6 20th Sept 2005 Graphical upgrade DS

1.7 1st Mar 2006 Added ITIL CS/ DSAdded EVMAdded CMMI Added estimation methods Added PM organization

1.8 xx.xx. 2006 Update to PMBOK, 3rd Edition, 2004 CS/ DS


7.2 Terms and definitions AACEAssociation for the Advancement of Cost Engineering http://www.aacei.org/ AMR Advanced Manufacturing Research AIM Application Implementation Method BIA Business Impact Analysis CMM (i) Capability Maturity Model (integrated) CPM / PERT Critical Path Method, Program Evaluation and Review Technique CobiTControl objectives for Information and related Technology

http://www.isaca.org DIN 69901 Project Management DRP Disaster Recovery Plan EVM Earned Value Management http://evm.nasa.gov FTE Fulltime equivalent GPMO Global program management office HLD/ DLD/ ELD High Level Design / Detailed Level Design / Executable Level Design ISO 10006 Project Management (here: Link of PMBOK comparison to ISO)

http://www.welchco.com/sd/08/00101/02/95/07/21/134937.HTMhttp://www.aipm.com/globalstandards/List of Standardshttp://www.vwi.org

ISO 10007 Configuration Management ISO/IEC TR 15504 International Standard for Software Process Assessment

http://www.softwareresearch.net/site/teaching/SS2003/PDFdocs.SE2/SPICE.I.pdfhttp://isospice.com/standard/tr15504.htm

ISO/IEC TR 12207 Software life cycle process http://www.acm.org/tsc/lifecycle.html ; http://www.software.org/quagmire/descriptions/iso-iec12207.asp ITIL IT Infrastructure library, http://www.ogc.gov.uk/index.asp?id=2261 KPA Key process area LPR Long Range Plan PM Project manager, project management PMI Project management institute, http://www.pmi.org/info/PP_StandardsExcerpts.asp

PMO Program management office PMBOK Project Management Body of Knowledge http://egweb.mines.edu/eggn491/Information%20and%20Resources/pmbok.pdf

Download of 2000 issue http://www.pmi.org/prod/groups/public/documents/info/pp_pmbok2000licenseagr.asp RUP Rational unified process SEI Software engineering institute http://www.sei.cmu.edu/cmmi/ SCOR Supply Chain Operations Reference Model SLA Service Level Agreement SME Subject Matter Expert SPICE Software Process Improvement and Capability determination, http://www.isospice.com/ UAT User Acceptance Test

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7.3 Additional sources

Computer world: Project failure http://www.computerworld.com/managementtopics/management/project/story/0,10801,95196,00.html?nas=PM-95196 ERP Enterprise resource planning IEC International Electrotechnical Comission

http://www.iec.ch/ http://www.cs.tcd.ie/15445/15445.HTML (HTML, see foreword for cooperation ISO + IEC) IPPD Integrated product and process development (s. CMMI) ISO17799+ ISO norm for IT security MD Man Day MW Man Week MY Man Year TR Technical report (A standard is published as a Technical Report Type 2, when the subject is still under technical development, or

where for another reason there is the future possibility of an agreement on an International Standard. Source: http://www.isospice.com )

USDP Unified Software Development Process WBS Work Breakdown Structure IFPUG International Function Point User Group http://www.ifpug.org/ SME Subject Matter Expert DRP Disaster Recovery Plan LRP Long Range Plan COTS Commercial-of-the-shelf software OH Overhead PM Project Management HR Human Resource DP Data processing SOW

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7.4 Recommended Literature: English

1. “A guide to the Project Management Body of Knowledge”PMBOK guide, 2000 Edition, Published by Project Management Institute, Inc., Pennsylvania, USAISBN 1-880410-23-0

2. W.S. Humphrey: “Winning with Software” ISBN 0-201-77639-1

3. CMMI -> s. terms and definitions

4. Tom DeMarco: “The Deadline”, 1997ISBN 0932633390

5. Geert Hofstede: “Cultures and organizations, software of the mind, Intercultural cooperation and its importance for survival”, 1991 ISBN 0-07-029307-4


7.5 Recommended Literature: German

1. A.-W. Scheer: „Wirtschaftsinformatik“

2. Walter: „Systementwicklung“

3. Ernest Waldmüller: „Software-Qualitätsmanagement in der Praxis“

4. Krallmann et al.: „Systemanalyse im Unternehmen“

5. Hering et al.: „Informatik für Ingenieure“

6. Integriertes Qualitätsmanagement, 3. Auflage, Hanser

7. PMBOK 4th Edition

8. I. Nitzsche “Business-Spielregeln rund um den Globus” ISBN 3-8214-7650-8


7.6 Backup slides

Additional information for further self-study see

following (hidden) slides


Case Study