IT Project Management

IT Project ManagementSEEM 5730 IT Management

Prof. K.F. WONG

AgendaIntroduction to Project Management

Lessons Learnt on Managing IT Projects

Prof. K.F. WONG2Introduction to Project ManagementProf. K.F. WONGProf. K.F. WONG3

What is the current business environment?Market situationPerfect informationHyper-competitive in nature Focus on time-to-market Breakdown of barriers of product/ service offeringsCompanies challengesResource/ cost managementMake wise decision to focus the resources (i.e. betting the trend)Maintain knowledge within the performing organizationQuick response to the market and its competitorsProf. K.F. WONG4

Ways to sustain the businessChoosing the right projects a new kind of strategic planningKeeping the best people within the organizationPermanently linking strategies to projectsManaging the project portfolio correctlyContinuously improve knowledge within the organizationDevelop ways to measure success and failure of projectsUnbiased resource allocation and utilizationProf. K.F. WONG5

Project Failure StatisticsRoughly 40 % of all IT projects fail to meet business requirements. (TechRepublic Inc./ Gartner Group) 74 % of all projects fail, come in over budget or run past the original deadline... 28% of projects fail altogether. Every year, $75 billion is spent on failed projects in the U.S.(The Standish Group, 1998) 31.1 % of projects will be canceled before they ever get completed. (The Standish Group, June 1999)The percentage of IT projects that fail to meet objectives hovers near 50 percent. (Gartner Group, Project Management: A New Look for a New Economy, December 2000)Prof. K.F. WONG6Pressure faced by senior management

Is our project portfolio aligned with the business needs?Are we meeting our commitments?What will be the impact if we miss our next milestone?What program do we do first?Are we at risk of not achieving our fiscal year strategic initiatives?Can we take on this project? How long will it take? What will it cost?Is there an opportunity to finish early? Does the business unit know this?What is the #1 project in the department?What if Richard moves to another project?If only we had more budget & resources to do the work?The Project/ Program Management ChallengeProf. K.F. WONG7A Project is :-A project is a temporary endeavour undertaken to create a unique product, service, or result.Finite. i.e. there is a definite end. Complex.involves a mixture of series and parallel activities with a significant interplay of human skills as well as resources of materials and facilities.Non-repetitive. a unique one time effort only.Prof. K.F. WONG8Project ManagementEvery detail from inception to completion needs to be managed. There are three main phases :-Management decision determines what the project is to be, its scope and limits.Project planning done in advance and during the project determines how the project is to be run.Project control performed while the project is running organises and guides activities towards the conclusion.Prof. K.F. WONG9Project Management ProcessesProcesses (IPECC) Initiating Planning Executing Controlling ClosingKnowledge areas:Project integrationScope managementTime managementCost managementQuality managementHuman resources managementCommunications managementRisk managementProf. K.F. WONG10The Triple Constraint of Project Management

Source: Kathy Schwalbe Information Technology Project Management Thomson, 2004Prof. K.F. WONG11Project Managersneed to be able to :control the projects development.be aware of the problems that can occur

need to be responsible for: documentationstandards the people

Ensure the system is consistent with its requirements.Prof. K.F. WONG12Scope StatementProject Title:Date:Prepared by: Project Justification: Product Characteristics/Requirements:Summary of Project Deliverables:Project management-related deliverables: business case, Charterteam contract, Work Breakdown Structure WBS schedule, cost baseline, Product-related deliverables:Project Success Criteria Prof. K.F. WONG13Functional SpecificationIntroductionPurpose of the documentScopeOverviewBusiness ContextGeneral DescriptionProduct FunctionsSystem InformationUser CharacteristicsProblem statementObjectivesConstraintsFunctional RequirementsDescriptionCriticalityCost and scheduleRisksDependenciesInterface RequirementUser InterfacesHardware InterfacesNetwork InterfacesSoftware InterfacesPerformance RequirementsSpeedMemorynon-functional attributesSecurityCompatibilityPortabilityReusabilityExtensibilityServiceabilityMaintainabilityProf. K.F. WONG14When it comes to decisionForce Field AnalysisProf. K.F. WONG1515Force field analysisA method used to get a whole view of all the forces for or against a plan so that a decision can be made which takes into account all interests. a specialized method of weighing pros and cons. allows you to look at all the forces for or against the plan. helps you plan or reduce the impact of the opposing forces, and strengthen and reinforce the supporting forces. Prof. K.F. WONG1616

Prof. K.F. WONG1717Project Plan1.INTRODUCTION1.1Purpose1.2Objective1.3Scope1.4References1.5Definitions, acronyms and abbreviations2.PROJECT ORGANIZATION2.1Project team2.2Project Responsibilities2.3Organization boundaries and interfaces3.WORK BREAKDOWN, RESOURCE AND SCHEDULE3.1Work breakdown Structure and Workload estimates3.2Other Facilities and Resources3.3Milestones and deliverables3.4Task Dependencies3.5Schedule3.6Methods, tools and techniques3.7Project support functions4.PROJECT MANAGEMENT4.1Assumptions, dependencies and constraints4.2Risk management4.3Quality assurance4.4Progress reportingProf. K.F. WONG1818Conflict Intensity Over the Life of a Project

Prof. K.F. WONG1919Gantt ChartsGantt charts provide a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar formatSymbols include:A black diamond: milestones or significant events on a project with zero durationThick black bars: summary tasksLighter horizontal bars: tasksArrows: dependencies between tasksProf. K.F. WONG2020Gantt Chart for Launching a Software Project

Prof. K.F. WONG2121Techniques for Shortening a Project ScheduleShortening durations of critical tasks for adding more resources or changing their scopeCrashing tasks by obtaining the greatest amount of schedule compression for the least incremental costFast tracking tasks by doing them in parallel or overlapping them

Prof. K.F. WONG2222Shortening Project SchedulesOverlappedTasks or fasttrackingShortenedduration thrucrashingOriginal schedule

Prof. K.F. WONG2323Program Evaluation and Review Technique (PERT)PERT is a network analysis technique used to estimate project duration when there is a high degree of uncertainty about the individual activity duration estimatesPERT uses probabilistic time estimates based on using optimistic, most likely, and pessimistic estimates of activity durationsPERT weighted average formula:

Optimistic Estimate + (4 times Most Likely Estimate) + Pessimistic Estimatedivided by 6Prof. K.F. WONG2424ExampleIf you were installing a new web portal infrastructure, you might have a task to make sure that portal is secure from hackers. Your problem is estimating the duration tocomplete the task called "conduct security testing and resolve any findings on a ten-server Solaris cluster". You or your system architect determine:At best, you need 24 man-hoursMost likely you need36 man-hoursAnd if everything goes wrong, you need 51 man-hours

Your PERT estimating equation for that task would be:(24 + 4(36) + 51)/6 = 36.5Your weighted average is 36.5 hours to complete that task activity. Of course, you still need to figure out what sort of skills you need to perform each of those man-hours on this task activity, but that's a resource management issue rather than an estimating concern.Source: http://www.bluejeansplace.com/PERT-EstimatingFormula.htmlProf. K.F. WONG2525Controlling Changes to the Project SchedulePerform reality checks on schedulesAllow for contingenciesDont plan for everyone to work at 100% capacity all the timeHold progress meetings with stakeholders and be clear and honest in communicating schedule issuesProf. K.F. WONG2626Standard Metrics for Project Progress/ ReportingCPISPI> 1Under-budgetAhead< 1Over-budgetDelayProf. K.F. WONG2727Sample of identified risksProf. K.F. WONG28

28Project Management Failure Warning SignalsWARNING SIGN: No PERT estimate completed prior to giving the price quotation to the customer WARNING SIGN: Heavy discounting by sales or executives to get the project with no outside (read no PM) validation WARNING SIGN: Sales representative gives you a blank look, argues, walks awayor outright refuses when you ask for his calculations which support his priceWARNING SIGN: "Just do it" or "Just getit done" is heard on a frequent occasion WARNING SIGN: Someone's cell phone bill goes higher each month as the project progresses WARNING SIGN: Overemphasis on producing or updating Gantt charts and other illustrations; but little emphasis on other PMBOK tools like risk assessments WARNING SIGN: Version after version after version of briefings are created to communicate project information rather than just presenting a straight-forward business problem and solution.Prof. K.F. WONG2929Lessons Learnt on Managing IT ProjectsProf. K.F. WONGProf. K.F. WONG3030The Two CasesCase 1Case 2CompanyA mainland China provincial SOE power company that has branches in 18 citiesA global financial institution that has presence in 10 countries across the regionProject ObjectiveA provincial BRP and ERP implementationRegional rollout of ERP implementationOriginal duration22 months18 monthsOriginal budgetUSD 10 millions USD 3 millionsTwo cases on regional ERP (Enterprise Resources Planning) implementation

Knowledge areas: Integration Management- Scope management Time management- Cost management Quality management- Human resources management Communications management- Risk managementProf. K.F. WONG3131Case 1 Project DetailsPhase 1Business Process Re-engineering (BPR)4 monthsPhase 2AERP Analysis and Design4 monthsPhase 2BERP Pilot Implementation in Head Office5 monthsPhase 3ERP Provincial rollout to 18 cities9 monthsCompanyA mainland China provincial SOE power company that has branches in 18 citiesObjectiveThe company thinks that it need a new ERP solution ScopeRedesign and Automation - HR, Finance and Supply ChainDurationComplete the implementation within 2 yearsProf. K.F. WONG3232Case 1 Project DetailsProject Team and Implementation Partners The project team mainly from internal IT department - has no ERP experience and no in-depth project management knowledgeTwo contractors were engaged Prime and SubPrime contractor Local vendor with solid experience in process design for power companies but has no ERP implementation experience. This vendor had other engagement with the company beforeSub contractor An international well-known ERP implementer A PM from the prime contractor was appointed as the program manager for the project & PM from the subcontractor acted as deputy program managerSubcontractor was responsible for analysis and designPrime contractor was to assist in the customization and configuration workProf. K.F. WONG3333Case 1 How did the project go?BPR phase (4 months)Prime and sub contractors shared difference views on how the future processes should be. Finally, the prime contractor proposed processes were used

Analysis and Design phase (4 months)Subcontractor identified many customizations has to be made during the analysis phasePrime contractor convinced the Steering Committee that they are capable of taking up all the customizations development and the rest of the implementation After the detailed design was done, the subcontractor was being kicked out and prime contractor took up the whole implementationProf. K.F. WONG3434Case 1 How did the project go?Pilot implementation (5 months) Lost control of the implementation Took 12 months instead of 5 monthsNegative feedback from users after pilot go-live

Full Rollout (9 months)Prime contractor was finally kicked out & another implementer was engaged It took the new implementer another 6 months to revamp the system. The provincial rollout which took another 12 months (instead of 9 months) was another failure.The total project is USD 6 millions more than the original USD 10 millions budgetAfter the system full rollout for 2 years, the company has started to look for another ERP system to replace this oneProf. K.F. WONG3535Case 1 Lesson LearntKnowledge AreaScope Management No formal and specific project objectives, scope and planLack of change control and approval processes for scope changeTime Management Project schedule is based on senior management communicated timelineCost Management No cost control mechanism in place on undefined scopeQuality Management Lack of quality control on customization development Human Resource Management Incompetent implementation partnerCommunications Management Lack of regular monitoring and control No regular status update to stakeholdersRisk Management No risk identification and management senseLack of skills and proven approach to risk management.Integration Management Conflict of interest created integration issuesProf. K.F. WONG3636Case 2 Project DetailsPhase 1Planning and Common Process Design 3 monthsPhase 2AERP Analysis and Design3 monthsPhase 2BERP Pilot Implementation4 monthsPhase 2CReview and fine-tuning system processes2 monthsPhase 3ERP Regional rollout to all other 10 countries6 monthsCompany A global financial institution that has presence in 10 countries across the Asia/Pacific regionObjectiveThe companys regional office has committed that one of the top IT priorities for the next 18 24 months was to consolidate the HR systems across the Asia Pacific regionScopeDevelop a common set of processes that can be used across region and a new ERP system needed to be implemented to support this new set of processesDurationComplete the implementation within 18 24 monthsProf. K.F. WONG3737Case 2 Project DetailsManagement SupportThe project team got the buy-in from regional and business units senior management and HR team on the implementation.

Project Team and Implementation Partners A well known ERP vendor was engaged during the Planning and common process design stageThe project team who have extensive experienced in the ERP implementation were responsible for the implementation Project manager has experience in both successful and unsuccessful ERP implementation

Project Management MethodologyThe company has its own Project Management Methodology (adapted from PRINCE2 and PMP)The in-house project team members are familiar with all phases, tasks, templates and tools of the PM methodology

Prof. K.F. WONG3838Case 2 How did the project go?Planning (3 months)The project team spent considerable amount of time in planning and developing the common process design. User representatives from all business units were heavily involved through the whole processThe companys PM methodology was communicated to users in great detailsRisk Assessment was done during the planning phase

Analysis and Design (3 months)All business units fully understand that its a regional system that they have to contribute as much as possible and also adopt the final processes It was agreed that customization should be kept to a minimalProf. K.F. WONG3939Case 2 How did the project go?Pilot Implementation (4 months)India was selected as the pilot site for the implementation and local implementation partners was engaged to reduce the overall costThe pilot implementation was completed in 3 months (instead of 4 months)

Review and fine-tuning process (2 months)Walkthrough sessions were organized for user representatives. They were very involved in the review process and provided very positive feedback.

Full Regional Rollout (6 months)Regional rollout to all other 10 countries within the following 5 monthsThe project cost is USD 0.5 millions less than what was original budgeted (USD 3 millions)Prof. K.F. WONG4040Case 2 Lesson LearntKnowledge AreaScope Management Clearly defined project objectives, scope and planProven change control and approval processes for scope changeTime Management Project schedule and tasks are based on past similar project experience. Cost Management Proven cost control mechanism in place on defined scopeQuality Management Review sessions were organized to ensure the processes developed were up to standard and met users requirementsHuman Resource Management Competent project team and implementation partner

Communications Management Regular monitoring and control and status update to stakeholders Risk Management Risk assessment was done prior to the implementation. All potential risk areas were monitored closely to avoid risk occurrence.Integration Management Strong management supportProf. K.F. WONG4141SummaryCase 1Case 2CompanyA mainland China provincial SOE power company that have branches in 18 citiesA global financial institution that has presence in 10 countries across the regionProject ObjectiveA provincial BRP and ERP implementationRegional rollout of ERP implementationOriginal duration22 months => 38 months18 months => 16 monthsOriginal budgetUSD 10 millions => More than USD 16 millionsUSD 3 millions => USD 2.5 millionsCritical Success Factors for ERP ImplementationStrong management supportManage your stakeholders expectationCommunicate and apply a project management methodologyBuild a competent in-house team Engage vendor who really have expertise and experience

42Q & AProf. K.F. WONG4343AcknowledgementThe content of this set of PowerPoint slides is provided by International Association of Project & Program Management (IAPP) Thanks are due to Sally Ng and Kim LeongProf. K.F. WONG44Chart20.230.270.210.180.260.20.150.30.350.240.260.270.130.190.370.240.250.320.150.150.150.30.150.160.120.080.130.16

AverageTotal ConflictSchedulesPrioritiesManpowerTechnical opinionsProceduresCostPersonality conflictsConflict Intensity

Sheet1Project FormationEarly PhasesMiddle PhasesEnd PhasesSchedules0.230.30.370.3Priorities0.270.350.240.15Manpower0.210.240.250.16Technical opinions0.180.260.320.12Procedures0.260.270.150.08Cost0.20.130.150.13Personality conflicts0.150.190.150.16

Sheet10000000000000000000000000000

AverageTotal ConflictSchedulesPrioritiesManpowerTechnical opinionsProceduresCostPersonality conflictsConflict Intensity

Sheet2

Sheet3

Risk typePossible risks

TechnologyThe database used in the system cannot process as many transactions per second as expected.

Software components that should be reused contain defects that limit their functionality.

PeopleIt is impossible to recruit staff with the skills required.

Key staff are ill and unavailable at critical times.

Required training for staff is not available.

OrganisationalThe organisation is restructured so that different management are responsible for the project.

Organisational financial problems force reductions in the project budget.

ToolsThe code generated by CASE tools is inefficient.

CASE tools cannot be integrated.

RequirementsChanges to requirements that require major design rework are proposed.

Customers fail to understand the impact of requirements changes.

EstimationThe time required to develop the software is underestimated.

The rate of defect repair is underestimated.

The size of the software is underestimated.