COIT Project Management Methodology

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COIT Project Management Methodology

  1. 1. Committee on Information Technology Performance Sub-Committee Project Management Methodology Guidelines Version 1.2 Monday, September 29, 2008
  2. 2. Project Management Methodology Acknowledgements In preparing this methodology, we have borrowed heavily from a number of sources, including: City and County of San Francisco Department of Technology Guidelines, Information Technology Project Standards City and County of San Francisco, Department of Telecommunications and Information Services Enterprise Projects Service Improvements Initiative Michigan State University Administrative Information Services Project Management Process Project Management Institute A Guide to the Project Management Body of Knowledge, State of Minnesota Office of Technology State of Minnesota Project Management Methodology State of Oregon, Department of Administrative Services, Information Resources Management Division, Project Management Office Methodology Document
  3. 3. Project Management Methodology Table of Contents COMMITTEE ON INFORMATION TECHNOLOGY PERFORMANCE SUB-COMMITTEE INTRODUCTION Purpose ............................................................................................5 OBJECTIVE Project Management Methodology Maintenance .....................................6 What is a Project? ..............................................................................6 What is Project Management? .............................................................7 COIT PROJECT MANAGEMENT METHODOLOGY Introduction ......................................................................................7 When Should COIT’s Project Management Methodology be Used? ............7 What are Stakeholders?......................................................................7 PROJECT ROLES AND RESPONSIBILITIES Project Sponsor .................................................................................8 Clients............................................................................................ 10 Service Manager .............................................................................. 10 Project Manager .............................................................................. 10 Project Team................................................................................... 11 Steering Committee ......................................................................... 13 PROCESS OVERVIEW INITIATE the Project ........................................................................ 15 PLAN the Project.............................................................................. 16 EXECUTE the Project ........................................................................ 16 CONTROL the Project ....................................................................... 16 CLOSE the Project............................................................................ 16 INITIATE THE PROJECT Process Flow ................................................................................... 18 Initiate Phase Critical Success Factors ................................................ 19 Initiate Phase Activities.................................................................. 20 1. Define the Business Need/Opportunity...................................... 20 Committee on Information Technology Page 1 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  4. 4. Project Management Methodology 2. Assign a Project Manager ........................................................ 21 3. Identify a Project Sponsor ....................................................... 21 4. Identify and Engage Key Stakeholders...................................... 21 5. Identify Business Objectives and Benefits ................................. 21 6. Define the Project Scope ......................................................... 22 7. Describe the Project ............................................................... 22 Risk Assessment....................................................................... 22 Constraints .............................................................................. 23 Dependency Linkages................................................................ 23 Impacts .................................................................................. 23 Measures of Project Success....................................................... 23 Assumptions ............................................................................ 23 Critical Success Factors ............................................................. 23 8. Ensure Alignment with Strategic Direction and Architecture......... 23 9. Determine Resource Requirements........................................... 24 10. Prepare Estimated Costs and an Estimated Schedule................. 24 11. Assemble the Proposal .......................................................... 25 12. Review the Proposal.............................................................. 25 Initiate Phase Deliverables ................................................................ 25 Project Proposal............................................................................ 25 PLAN THE PROJECT Process Flow ................................................................................... 27 Plan Phase Critical Success Factors .................................................... 28 Plan Phase Activities ........................................................................ 29 1. Assemble the Steering Committee............................................ 29 2. Confirm the Project Scope and Objectives ................................. 29 3. Determine the Procurement and Sourcing Strategy .................... 29 Decide What to Procure ............................................................. 29 Decide When to Procure ............................................................ 29 Decide How to Procure (Contract Types) ...................................... 30 Decide How Much to Procure ...................................................... 30 Develop a Framework for Contract Administration/Vendor Management............................................................................ 31 4. Define the Project Organization................................................ 31 Identify Required Skill Sets by Role............................................. 31 Develop Project Organization ..................................................... 31 Assign Project Team Members .................................................... 32 Backfill Roles for Assigned Team Members (Depending on Resource Requirements)............................................................ 32 5. Identify Other Resource Requirements...................................... 32 Determine Facility Needs ........................................................... 32 Determine Infrastructure, Equipment, and Material Needs .............. 32 6. Refine Project Risk Mitigation Strategies ................................... 33 7. Detail Project Administration ................................................... 33 Committee on Information Technology Page 2 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  5. 5. Project Management Methodology Change Control ........................................................................ 33 Issue Management ................................................................... 33 Communications with Stakeholders ............................................. 33 Training .................................................................................. 34 Project Metrics ......................................................................... 34 Rollout/Implementation ............................................................. 34 Post -Project Evaluation............................................................. 34 8. Prepare the Project Schedule and Budget .................................. 35 Schedule Considerations............................................................ 35 Milestone Descriptions............................................................... 35 Project Schedule....................................................................... 35 Project Budget ......................................................................... 38 9. Develop a Project Quality Assurance Plan .................................. 39 Reference to Appropriate Standards ............................................ 39 Walkthroughs and Reviews ........................................................ 39 Testing ................................................................................... 40 Configuration Management ........................................................ 40 Quality Control Metrics .............................................................. 40 10. Assemble the Plan ................................................................ 40 11. Review the Plan.................................................................... 41 Plan Phase Deliverables .................................................................... 41 Project Plan.................................................................................. 41 EXECUTE THE PROJECT Process Flow ................................................................................... 43 Execute Phase Critical Success Factors ............................................... 45 Execute Phase Activities ................................................................... 46 1. Build and Train the Project Team ............................................. 46 2. Manage the Project Team........................................................ 46 Execute the Procurement Plan .................................................... 46 Administer Contracts................................................................. 46 3. Manage Stakeholder Relationships ........................................... 47 4. Manage Risk.......................................................................... 47 5. Manage Quality...................................................................... 48 6. Manage Issues....................................................................... 48 7. Communicate Information....................................................... 49 Conduct Status Review Meetings ................................................ 49 Update the Department’s Project Portfolio .................................... 51 8. Document the Work Results .................................................... 51 Execute Phase Deliverables ............................................................... 52 CONTROL THE PROJECT Process Flow ................................................................................... 52 Control Phase Critical Success Factors ................................................ 54 Committee on Information Technology Page 3 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  6. 6. Project Management Methodology Control Phase Activities .................................................................... 54 1. Collect Information on Project Status........................................ 55 2. Assess Project Status and Performance..................................... 55 Milestones ............................................................................... 55 Final Acceptance....................................................................... 55 3. Control Project Scope ............................................................. 56 4. Control Project Costs .............................................................. 57 5. Control Project Schedule ......................................................... 58 6. Modify/Update Project Plan and Status ..................................... 59 Control Phase Deliverables................................................................ 59 Project Status Reports ................................................................... 59 Updated Planning Documents ......................................................... 60 Final Acceptance Document............................................................ 60 CLOSE THE PROJECT Process Flow ................................................................................... 61 Close Phase Critical Success Factors................................................... 62 Close Phase Activities ....................................................................... 62 1. Conduct the Final Knowledge Transfer ...................................... 62 2. Conduct a Final Contract Review .............................................. 62 3. Conduct the Post-Project Review.............................................. 63 4. Document “Lessons Learned” .................................................. 63 5. Report Completed Status and Metrics ....................................... 64 6. Dispose of Project Inventory.................................................... 64 7. Archive Project Records .......................................................... 64 8. Disband or Redeploy Project Team Members ............................. 64 Close Phase Deliverables .................................................................. 65 Post Project Evaluation .................................................................. 65 Final Status Report........................................................................ 65 SCALING THE METHODOLOGY Project Portfolio Reporting ................................................................ 66 Project Approval .............................................................................. 66 Program Management ...................................................................... 66 “Bare bones projects”....................................................................... 66 Project Characteristics Matrix ......................................................... 66 Instructions/Guidance for Evaluating Characteristics...................... 67 “Bare Bones Project” Deliverables ................................................... 68 Committee on Information Technology Page 4 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  7. 7. Project Management Methodology Introduction Purpose This document describes a framework for initiating, planning, executing, controlling, and closing projects. It describes the methodology we will be using and references other documents that support the methodology. This project management methodology provides a common reference point for talking and writing about the practice of project management for projects managed by City Departments. Our goal in providing this common basis is to increase the awareness and professionalism of those of you who are charged with the responsibilities defined in this methodology. COIT has adopted this standard project management methodology as a framework to guide City Project Managers in providing quality deliverables to clients in a timely and efficient manner. By utilizing a standard methodology, project managers will have a common method for managing scope, schedule, and budget. Departments who already have Project Methodology Standards in place may use those standards. Regardless of the project management methodology utilized, the following minimum project management elements are required: • Project Proposal/Charter • Project Plan (including Scope, Resource, Cost, Schedule) • Project Execution/Control • Project Acceptance Depending on the scale of the project, additional project management deliverables may be required. Should the department not agree with the COIT Performance Committee’s determination, the department may ask that the methodology be referred to COIT for final resolution. Those departments who do not currently have a methodology in place may adopt the standards in this document or implement some other industry accepted methodology. Objective The objectives for the methodology are that it must: o Accommodate all types of City projects o Standardize communication related to projects o Establish common deliverables for project management Committee on Information Technology Page 5 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  8. 8. Project Management Methodology o Facilitate adjustments in scale for projects of different sizes To help you understand the proposed methodology, we will introduce and define the key terms used in the project management process. This introduction will address these questions: o What is a project? o What is project management? o When should COIT’s project management methodology be used? o What are stakeholders? Project Management Methodology Maintenance The COIT Performance Subcommittee is responsible for implementing and maintaining this methodology. The COIT Performance Subcommittee will also develop, implement, and maintain templates and other tools in support of the methodology. The COIT Performance Subcommittee will continuously monitor project management best practices. It will also elicit feedback from the City’s working project managers to ascertain which areas of the methodology or tools need enhancement or change. The COIT Performance Subcommittee will issue a new version of the methodology whenever changes are made. The most current version of this methodology, along with all supporting templates and tools, is located on the COIT website. What is a Project? According to the Project Management Institute (PMI), “a project is a temporary endeavor undertaken to create a unique product or service. Temporary means that every project has a definite beginning and a definite end. Unique means that the product or service is different in some distinguishing ways from all other products or services.” Examples of projects include: o Developing a new product or service o Developing or acquiring a new computer application o Constructing a building or facility Projects that meet the following criteria may be subject to COIT review: o Projects that require multi-year contracts o Projects that require collaboration between Multiple departments o Projects of approximately $1M in scope o Projects with a professional services ratio of approximately 50% Committee on Information Technology Page 6 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  9. 9. Project Management Methodology What is Project Management? PMI’s A Guide to the Project Management Body of Knowledge, 2000 Edition, defines project management as “the application of knowledge, skills, tools and techniques to project activities to meet project requirements... It is important to note that many of the processes within project management are iterative in nature. ” Project management involves balancing competing demands, such as: o Scope, time, cost and quality o Stakeholders with differing needs and expectations o Identified requirements (needs) and unidentified requirements (expectations) COIT Project Management Methodology Introduction The project management process is different from a product/service- oriented process, such as a software development lifecycle process. Product/service-oriented processes specify how to create a product or service; they generally define what technical work should be done in each phase and who should be involved in each phase. By contrast, the project management process defines the activities to be undertaken to manage the project itself. When Should COIT’s Project Management Methodology be Used? You must apply the methodology for all projects that meet one of the following minimum criteria: o The work requires more than one month of effort to accomplish; or o The requestor has asked that you manage the work as a project. In addition, if the work does not meet the above criteria but has a beginning and an end, you should evaluate the following two items to determine if you should manage it as a project anyway: o Impact to the customer organization o Number of organizations/groups involved in performing the work. What are Stakeholders? PMI’s A Guide to the Project Management Body of Knowledge, 2000 Edition, defines stakeholders as: Individuals and organizations who are actively involved in the project, or whose interest may be positively or negatively affected as a result of project execution or successful project completion. The project management team must identify the stakeholders, determine their needs and expectations, and then manage and influence those expectations to ensure a successful project. Committee on Information Technology Page 7 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  10. 10. Project Management Methodology Please see Section 2, Project Roles and Responsibilities, for a detailed discussion of the various project stakeholders. Project Roles and Responsibilities A successful project requires participation by the entire project community, including both client interests and the departmental staff responsible for the project. Client interests include the project sponsor, who serves as the executive level proponent of the project, and the clients, who will be the staff level users of the project deliverables. Typically, departmental staff includes the project manager and project team directly responsible for executing the project as well as service managers and senior management responsible for supporting the project. The steering committee is the formal instrument for ensuring cooperation among all stakeholders. Participation by the various parties requires that all members of the project community understand their respective roles and responsibilities. This section will discuss the roles and responsibilities of each of the key constituents of the project community. These are the: o Project sponsor o Clients o Service managers o Project manager o Project team o Steering committee o Professional service providers Project Sponsor The sponsor is the executive of a client department responsible for the strategic direction of a project. A project sponsor should have the authority to define project objectives, secure resources, and resolve organizational and priority conflicts. Multiple studies indicate a direct correlation between the lack of project sponsorship and project failure. Well-meaning but costly mistakes include substituting a steering committee for a sponsor and assuming that a big-budget and highly visible project does not need a formal sponsor. The project sponsor is usually a member of the client department’s management team, which will ultimately be the recipient of the project’s end result. The sponsor is an important stakeholder, usually head of a program area and not normally a day-to-day staff person. This is the person who makes the business argument for the project to exist and usually controls the overall funding of the project. The Committee on Information Technology Page 8 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  11. 11. Project Management Methodology project sponsor is also responsible for ensuring that client department staff (aka clients) are fully informed and encouraged to contribute to the project. The project sponsor’s general functions are to: o Articulate requirements o Ensure that requirements are met o Provide necessary funding and resources o Champion the project to provide exposure and buy-in from City government and officials o Communicate the sponsor’s views on project progress and success factors to the project team and other stakeholders Project Phase The Project Sponsor’s Responsibilities INITIATE the Provide strategic plans and guidance to correctly identify Project Phase the relevance and value of the project both today and in the future. Define the sponsor’s needs. Obtain funding for the project. Assign sponsorship personnel as points of contact. Review and approve the project proposal. PLAN the Project Participate in planning sessions. Phase Approve funding along with steering committee. Review and approve the project plan. EXECUTE the Attend requirement reviews. Project and Help resolve requirements problems. CONTROL the Provide written agreement to requirements and Project Phases qualifying criteria. Help resolve issues, as appropriate. Attend and participate as needed at project status reviews and steering committee meetings. Attend the final acceptance meeting. CLOSE the Provide representatives to attend the post project Project Phase review. Sign off on project completion. Clients are the staff in a client department who will use the product or service being provided by the project. Clients are responsible for being actively involved in the project to help ensure its success. Committee on Information Technology Page 9 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  12. 12. Project Management Methodology Clients Clients are the staff in a client department who will use the product or service being provided by the project. Clients are responsible for being actively involved in the project to help ensure its success. Service Manager The service manager is the individual within COIT responsible for providing a particular service. Some examples of service managers include: o LAN Services Manager. o Wireless Services Manager. o Citizen Services Manager. o Client Technology Services Manager. The service manager is responsible for assigning a project manager to the project. In addition, the service manager should be a member of the project steering committee. Project Manager The project manager has total responsibility for the overall project and its successful completion. To succeed in this responsibility, the project manager must work closely with the sponsor to ensure that adequate resources are applied. The project manager is also responsible for planning and ensuring that the project is successfully completed on time, within budget, and at an acceptable level of quality. The project manager’s general functions are to: o Implement project policies and procedures o Acquire resources required to perform work o Identify and procure tools to be used on the project o Maintain staff technical proficiency and productivity and provide training where required o Establish and maintain quality in the project Project Phase The Project Manager’s Responsibilities INITIATE the Ensure that key stakeholders are identified and Project Phase engaged. Develop the project proposal. Committee on Information Technology Page 10 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  13. 13. Project Management Methodology Project Phase The Project Manager’s Responsibilities PLAN the Project Develop a detailed project plan with the assistance of Phase the project team, tailoring the methodology to reflect the project needs. Ensure that all stakeholders agree to project commitments. Ensure that the project plan is approved and baselined. EXECUTE the Manage day-to-day tasks and provide direction to team Project Phase members performing work on the project. Manage relationships among all the project stakeholders. Review project risks and establish mitigation procedures. Review the results of quality assurance reviews. Manage issues that arise. Before the CLOSE the Project phase, develop an action plan for any open issues. Report project related information to the various stakeholders. Record the actual resource utilization. CONTROL the Review project status regularly, comparing budget to Project Phase actual costs. Review project networks regularly, comparing baseline schedules to actual work completed. Participate in the change control process to approve product/project changes. Make changes to budgets and schedules and make recommendations as needed. Ensure that the project plan is updated as needed. Obtain steering committee approval of the completed project once the project objectives have been met. CLOSE the Conduct a post-project review. Project Phase Create a “lessons learned” document. Assist contract administrator(s) in contract closeout. Close out any financial accounts or charge codes. Report completed status and project metrics. Archive all project records. Dispose of project inventory, if appropriate. Project Team A successful project requires the project team to participate (at some level) in the planning process, buy into the project plan, and be responsible for completion of assignments. It is important to have a defined formal structure for the project and for the project staff. This provides each individual with a clear understanding of the authority given and responsibility necessary for the successful accomplishment Committee on Information Technology Page 11 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  14. 14. Project Management Methodology of project activities. Project team members must be accountable for the effective performance of their assignments. Project organizations come in many forms. On a large project, individual role assignments may require full-time attention to the function. On smaller projects, role assignments may be performed part-time, with staff sharing in the execution of multiple functions. The project team members are responsible for performing the work to accomplish the project objectives. The team members may be drawn from any and all departmental organizational units, from client resources, from other City departments, and from outside vendors. Team membership may vary over the duration of the project or, more typically, the level of team member involvement and project contributions may change during the project. The project team’s general functions are to: o Identify technical solution alternatives o Implement the solution within budgeted cost and schedule o Coordinate with the Quality Assurance Manager. o Support project planning and tracking. Project Phase The Project Team’s Responsibilities INITIATE the Provide estimates for developing products. Project Phase Ensure that business objectives are feasible and appropriate for available resources. Analyze business objectives for completeness, consistency and clarity. PLAN the Develop the technical approach. Project Phase Assist in the development of the work breakdown structure, work effort estimates, and schedules. Assist in the development of the quality assurance plan. Identify tools needed for the project. Identify staff training needs. EXECUTE the Create deliverables. Project Phase Execute assigned project tasks. Identify problems and schedule fixes. Coordinate with the COIT Quality Assurance Manager, review quality assurance results, and correct any deviations. Identify and react to risks as they are found. Participate in change reviews. Committee on Information Technology Page 12 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  15. 15. Project Management Methodology Project Phase The Project Team’s Responsibilities CONTROL the Performance against plan Project Phase Whether corrective action is needed Risk analysis and management Status reporting Providing forecasts Monitoring approved changes CLOSE the Participate in post-project review. Project Phase Turn over all project-related documentation to the project manager for archiving. Steering Committee The project steering committee consists of individuals who represent the project sponsor, the final users of the system being implemented, and the Technology Project and/or department. The steering committee acts as the principal decision-making authority on the strategic direction of the entire project. The steering committee also provides executive project oversight and conducts regular decision- making on critical project issues as they pertain to project scope, schedule, budget, methodology, and resources. The steering committee’s general functions are to: o Monitor project status o Help resolve issues o Ensure resources are available Project Phase The Steering Committee’s Responsibilities INITIATE the Review and approve the project Charter. Project Phase Ensure project staff availability Review and approve project scope PLAN the Project Review and approve the project plan. Phase Ensure project staff availability. Ensure that funding is available. Committee on Information Technology Page 13 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  16. 16. Project Management Methodology Project Phase The Steering Committee’s Responsibilities EXECUTE the Participate regularly in steering committee meetings. Project and Review and approve changes in project scope. CONTROL the Approve changes to the project plan. Project Phases Review risk mitigation plans and act on project manager’s recommendations. Review and approve changes in contract commitments. Review and approve project deliverables. Approve milestone completion. Ensure customer and sponsor acceptance CLOSE the [No responsibility in this phase for this group.] Project Phase Process Overview The Process Overview identifies the phases of project management and the key activities associated with each phase. Committee on Information Technology Page 14 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  17. 17. Project Management Methodology Process Overview Initiate Plan Control Execute Close INITIATE the Project The INITIATE the Project phase marks the beginning of the project. It includes the following activities: o Preparation of a request for service or a problem/opportunity statement o Identification of the project sponsor and the project manager o Identification of key stakeholders o Development of the project proposal o Inclusion of the project in the Project Portfolio o Review of the project proposal o Decision about whether to proceed with the project. Committee on Information Technology Page 15 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  18. 18. Project Management Methodology PLAN the Project The PLAN the Project phase involves creating a workable plan to accomplish the project ’s objectives. This phase includes the following activities: o Development of the project organization o Definition of processes related to project administration o Preparation of a project schedule and budget o Development of a project quality assurance plan o Review of the project plan o Decision about whether to proceed with the project EXECUTE the Project The EXECUTE the Project phase is the actual performance of the project plan, in order to accomplish the project objectives. From a project management perspective, it includes the following activities: o Building and training (if necessary) of the project team o Execution of the project plan o Recording of actual resource utilization During this phase, the project manager manages the project team, manages stakeholder relationships, manages risk, manages quality, manages issues, and reports project-related information. CONTROL the Project The CONTROL the Project phase runs concurrently with the EXECUTE the Project phase. Its purpose is to ensure that the project proceeds according to plan and that it achieves the stated goals. It includes the following activities: o Collection of information about project status o Assessment of project status and performance o Controlling the project scope, costs, and schedule o Modification to and update of the project plan and status reports CLOSE the Project The CLOSE the Project phase of the project involves bringing the project to an end. This phase includes the following activities: o Conducting final knowledge transfer o Conducting final contract review(s) o Conducting the post-project review o Documentation of “lessons learned” o Reporting of completed status and project metrics o Disposing of project inventory o Archiving of project records o Disbanding the project team Committee on Information Technology Page 16 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  19. 19. Project Management Methodology Please see Sections 4 through 7 for a detailed discussion of each project phase. Each of these sections of the document is organized into: o Project phase critical success factors o Project phase activities o Project phase deliverables Committee on Information Technology Page 17 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  20. 20. Project Management Methodology Initiate the Project Process Flow Define business need / opportunity Assign project Identify project Identify key manager sponsor stakeholders Ensure alignment Identify business Define project with strategic objectives and Describe project scope direction & benefits architecture Determine Prepare Assemble project resource estimated costs & proposal requirements schedule Review proposal Proceed Modify proposal Redefine Yes project? No with project Yes Initiate PLAN as necessary as defined? No Update proposal to indicate cancel / hold status Every project starts with an idea. That idea may be the result of a unique concept or design; it may be a response to a regulatory mandate; it may answer a call for operational maintenance; or it may be as simple as providing scheduled upgrades to hardware or software. Committee on Information Technology Page 18 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  21. 21. Project Management Methodology Projects are generated for many different reasons. Each warrants special consideration for uniqueness, importance, cost, priority, and duration of effort. Accordingly, potential projects need to be subjected to an assessment process that will allow the sponsor, stakeholders, project team, and other interested parties to validate the project benefits and timing. This project assessment occurs during the INITIATE the Project phase. During this phase, the project manager conceptualizes and justifies the project and then seeks authorization and funding by the appropriate governing bodies. The purpose of the INITIATE the Project phase and the resulting deliverable, the project proposal, is to facilitate the success of projects by encouraging the project manager to evaluate and articulate key aspects of the proposed project. The process of creating the project proposal provides a basis for communication, understanding, and agreement among the project community regarding proposed projects. The proposal documents the business case and other key facts and evaluates a proposed solution to a business problem or opportunity to help ensure that the solution is: o Realistic o A good investment o Likely to improve operations o Consistent with departmental and City strategies While projects vary in terms of complexity, all projects should have a project proposal. You will scale your proposal according to the size and complexity of your project, among other factors. (See Section 9, Scaling the Methodology, for details.) For some projects, you may only need to spend a few hours or days to complete the proposal; for others, it could take months. In all cases, the project proposal is critical for obtaining buy-in on your project. Strive to develop a project proposal that is robust, informative, and realistic, because your decision makers will use it to determine whether or not to proceed. If they accept your proposal, the next step is to initiate the project and carry it into the PLAN the Project phase. Initiate Phase Critical Success Factors o The sponsor’s formal acceptance of responsibility for the project, including agreement to do all he/she can to achieve the benefits and costs described in the project proposal o The sponsor’s acceptance of the project proposal o Identification and engagement of key stakeholders o Alignment of the project with business/IT strategic plans/directions and architecture Committee on Information Technology Page 19 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  22. 22. Project Management Methodology Initiate Phase Activities The key activities you’ll follow to successfully initiate a project are: 1.Define the business need/opportunity 2.Identify a project sponsor 3.Assign a project manager 4.Identify and engage key stakeholders 5.Identify business objectives and benefits 6.Define the project scope 7.Describe the project 8.Ensure alignment with strategic direction and architecture 9.Determine resource requirements 10.Prepare estimated costs and an estimated schedule 11.Assemble the proposal 12.Review the proposal These activities are detailed below. 1. Define the Business Need/Opportunity The need/opportunity statement should provide a general discussion of the needs or opportunities that are to be addressed. Typically, a need or opportunity would be one of the following: o Provide necessary services more efficiently or effectively o Provide new services o Provide services mandated by law o Obtain needed information that is not currently available o Reduce the costs of operations o Generate more revenue o Avoid unnecessary increases in a department’s budget For example, a client might inform you: “Our department is required to disburse benefit checks by the fifth working day of each month. With our current system, we are able to meet that deadline only 70 percent of the time.” State your discussion of the need/opportunity in business terms and provide an understanding of: o What created the need or how the opportunity was recognized o The magnitude of the need/opportunity o Contributing factors, such as workload increases or staff reductions, and fiscal constraints o An understanding of the extent to which the need/opportunity would be addressed if an appropriate alternative was implemented o The consequences for the department and its customers if the need or opportunity is not addressed Committee on Information Technology Page 20 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  23. 23. Project Management Methodology By helping your client(s) understand the magnitude of the need or opportunity, you enable them to accurately estimate the resources they’ll need to respond to it as well as the extent to which a response will resolve the underlying problem. 2. Assign a Project Manager As soon as the business problem/opportunity has been defined or a request for service has been received, the appropriate service manager assigns a project manager. During this phase, the project manager defines the project purpose, establishes the critical success factors, gathers strategic and background information, determines high-level planning data, and develops estimated budgets and schedules for the life of the project. The project manager will coordinate resources and activities to develop the project proposal. 3. Identify a Project Sponsor As discussed in Roles and Responsibilities (Section 2), the sponsor is an executive responsible for the strategic direction of a project. During the INITIATE the Project phase, the sponsor’s primary role is to: o Champion the project o Participate in the development and selling of the project business case o Present an overall vision and priorities for the project o Assist in determining final funding and project direction o Serve as executive liaison to key stakeholders o Serve as a member of the project steering committee 4. Identify and Engage Key Stakeholders Stakeholders are individuals and organizations that have a vested interest in the success of the project. The identification and input of stakeholders helps to define, clarify, drive, change, and contribute to the scope and, ultimately, the success of the project. To ensure project success, the project manager and project sponsor must identify stakeholders early in the project, determine their needs and expectations, and manage and influence those expectations over the course of the project. This group of stakeholders may form the basis of the steering committee during subsequent phases after it has been approved. 5. Identify Business Objectives and Benefits Business objectives define the results that must be achieved for a proposed solution to effectively respond to the need/opportunity. Objectives are the “success factors” against which the department can measure how well the proposed solution addresses the business need or opportunity. Each objective should: o Relate to the problem/opportunity statement Committee on Information Technology Page 21 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  24. 24. Project Management Methodology o Be stated in business and observable/measurable terms o Be realistically achievable In establishing objectives, decide whether the proposed solution will impact costs, department operations, or both. Determine whether costs will be reduced or avoided and if timeliness or service quality will increase. If possible, the department should translate operational improvements into reduced costs. For example, a business objective could be to “reduce the average amount of overtime worked by 100 hours per month, thereby improving productivity by X% per year.” Objectives should also identify: o Cost savings and quality of service improvements o Business process improvement opportunities 6. Define the Project Scope Provide a concise, measurable statement of what the project will accomplish and, if appropriate, what it will not attempt to accomplish. Discuss the proposed solution and the business processes you will use and describe their characteristics. Be careful to avoid scope creep—adding work without corresponding updates to cost, schedule, and quality—because it may render your original plans unachievable. Early and precise clarification of scope, and adherence to it throughout the project, are of the utmost importance. Identify the project deliverables. Deliverables are tangible products or items that the project will produce. In other words, they describe what the clients will get when the project is completed. 7. Describe the Project The project description should include the following elements: Risk Assessment Identify, quantify, and establish mitigation strategies for key risk events that could alter or disrupt the outcome of the project. A risk is any factor that may potentially interfere with successful completion of the project. A risk is not a problem since a problem has already occurred. Instead, a risk is the recognition that a problem might occur. By recognizing potential problems, the project manager can take action to avoid or minimize them. Assess the probability of risks occurring and the potential impact of risks. Establish mitigation strategies for all identified risks. Committee on Information Technology Page 22 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  25. 25. Project Management Methodology Constraints Define all project constraints. Projects have resource limits in terms of people, money, time, and equipment. While these may be adjusted up or down, they are considered fixed resources by the project manager. These constraints form the basis for managing the project. Dependency Linkages Identify any areas where the project may depend on another project’s deliverables or on information from outside sources. In addition to identifying the linkage, show how progress will be monitored. Impacts Identify impacts of the project on stakeholders. For example, you may need to retrain staff or reduce operating budgets. Measures of Project Success Describe the metrics that the project team will use to determine the success of the project. Assumptions Define any assumptions being made. Critical Success Factors Describe those factors that will ensure the success or failure of the project. 8. Ensure Alignment with Strategic Direction and Architecture Occasionally, projects may be proposed that are inconsistent with the City’s strategic direction or architecture. To avoid this, you should compare project proposals to the organization’s business strategy and strategic objectives. This could save time and effort later. Review the alignment of the proposed project with supporting documents such as: o Strategic plan o Telecommunications plan o IT strategic plan o Enterprise IT architecture o Organizational IT architecture o Applications portfolio o Current business and technical environment o Legal and political mandates Committee on Information Technology Page 23 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  26. 26. Project Management Methodology 9. Determine Resource Requirements Identify both personnel and other resources required to complete the project. 10. Prepare Estimated Costs and an Estimated Schedule Estimate the one -time development and acquisition costs and the ongoing maintenance and operations costs that you expect to be associated with the project. Articulate the anticipated benefits of the project, including tangible and intangible operational benefits, cost savings, cost avoidance, and other benefits. Explain how the proposed alternative is to be funded by fiscal year. If the project will be funded from multiple sources, indicate the percentage from each source and whether funds have been budgeted for this purpose. If you submit a request for budget augmentation, identify the fiscal year. Identify the high-level tasks for the project. Provide a schedule that includes the duration of critical tasks, major management decision points, and milestones. Milestones should be products or major events that may be readily identified as completed or not completed on a specified due date. When you plan for phased project implementation, make sure specific phases produce an independent and substantial benefit, even if no additional components are acquired. Describe the phases planned for this project and what each phase will deliver or explain why phasing is not appropriate. Many late or over-budget projects deemed “failures” are actually only estimating failures. We recommend that you re-estimate prior to starting each major project phase. Unless your estimates are relatively accurate, time and cost tracking is only useful for historical purposes. When an estimate is expected to be 35 percent off, variances from it seem a minor concern. Estimating from flawed requirements increases the risk of scope creep or delivery of an ill- fitting system needing major rework. Even with accurate requirements, though, estimating duration without a reasonable knowledge of the team’s productivity is a known risk. Finally, even on projects that mainly incur labor expenses, you should include the costs of any additional servers, middleware, tools, and temporary staff. Committee on Information Technology Page 24 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  27. 27. Project Management Methodology 11. Assemble the Proposal Assemble the deliverables from all the activities in the INITIATE the Plan phase, using the COIT project proposal template. Be sure to update the project to the Project Portfolio . 12. Review the Proposal The project proposal is a point-in-time document that provides the sponsor with adequate information to determine if the proposed project has enough merit to continue to the next stage. If the proposed project lacks sufficient merit to continue, the sponsor does not approve the project proposal. If the sponsor approves the project proposal, the project advances to the PLAN the Project phase. Once the proposal review has occurred, update the COIT Project Portfolio to indicate that the proposal has been accepted and to provide the approved budget, work effort, and schedule information. If the proposal has been modified, replace the version in the portfolio with the revised proposal. Depending upon the size and nature of the project, approvals beyond that of the project sponsor may be required. Please see Section 9, Instructions for Scaling the Methodology, for more details. Initiate Phase Deliverables Project Proposal The project proposal is a high-level business evaluation of the planned project. Since projects of different levels of complexity and risk require different levels of evaluation, you should prepare the project proposal at a level of detail appropriate for the scope and complexity of the proposed technical solution. A template (and instructions, along with samples) for the project proposal is on the COIT Performance Subcommittee website http://www.sfgov.org/site/coit_page.asp?id=63217 The project proposal includes the following elements: o Business need or opportunity o Business objectives o Project scope—scope and deliverables o Risk assessment o Constraints o Dependencies o Impacts o Measures of project success o Assumptions o Critical success factors Committee on Information Technology Page 25 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  28. 28. Project Management Methodology o Project stakeholders o Resource requirements o Cost/benefit analysis—costs and benefits o Estimated schedule Committee on Information Technology Page 26 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  29. 29. Project Management Methodology Plan the Project Process Flow Identify key stakeholders Describe project Define business need / opportunity Identify business Ensure alignment objectives and with strategic benefits direction & architecture Identify project sponsor Determine resource requirements Define project Assemble plan scope Prepare estimated costs & schedule Review plan Proceed Modify project Baseline plan and Yes Modify plan? No with plan as Yes plan as necessary presented? initiate EXECUTE No Update proposal to indicate cancel / hold status Committee on Information Technology Page 27 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  30. 30. Project Management Methodology In the PLAN the Project phase, you create and maintain a workable scheme to accomplish your project objectives. This is the most important phase in project management. Project planning is not a single activity or task, but a process that takes time and attention. Many high-profile, important projects fail because of inadequate and incomplete project planning. In project planning, you define your project activities and describe how you will accomplish them. The time you spend identifying the proper requirements and structure for organizing and managing your project will save you hours of confusion and revisions in the EXECUTE the Project and CONTROL the Project phases of your project. Without planning, it will be difficult, if not impossible, for your project to succeed. Risks include the possibility that team members won’t understand project expectations and that project activities and/or resource requirements may be too vague. Even if you finish the project, the criteria for success may not have been defined. Project planning helps you determine project needs by identifying and documenting scope, deliverables, tasks, schedules, risk, quality, and staffing needs. Typically, you’ll need to perform several iterations of the planning process before a plan is actually completed. The deliverable of the PLAN the Project phase is the project plan; the phase concludes when the plan has been reviewed and approved. If the plan is approved, it is baselined and the project proceeds to the EXECUTE the Project phase. According to PMI’s A Guide to the Project Management Body of Knowledge, 2000 Edition, baseline means “the original approved plan (for a project, a work package, or an activity), plus or minus approved scope changes. Usually used with a modifier (e.g., cost baseline, schedule baseline, performance measurement baseline).” The purpose of baselining the plan is to provide a basis for monitoring the project. Plan Phase Critical Success Factors o Establishment of a project steering committee o Availability of key resources, as required by the project plan o Arrival of major functional deliverables in six-month to twelve- month intervals o Establishment of milestones o Acceptance of the project plan by the project sponsor and project steering committee Committee on Information Technology Page 28 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  31. 31. Project Management Methodology Plan Phase Activities Development of a project plan requires several activities, each with its own deliverables. Together these deliverables constitute the project plan. The major activities in developing the plan are: 1. Assemble the steering committee 2. Confirm the project scope and objectives 3. Determine the procurement and sourcing strategy 4. Define the project organization 5. Identify other resource requirements 6. Refine project risk mitigation strategies 7. Detail project administration 8. Prepare the project schedule and budget 9. Develop a project quality assurance plan 10. Assemble the plan 11. Review the plan These activities are detailed below. 1. Assemble the Steering Committee The steering committee should include the project manager, the project sponsor, department management, and any other stakeholders who will make strategic decisions and provide oversight for the project. 2. Confirm the Project Scope and Objectives Confirm the project scope and objectives that were developed in the INITIATE the Plan phase and documented in the project proposal. 3. Determine the Procurement and Sourcing Strategy Identify project needs that can only be met by purchasing products and/or services from outside the department/City. In this stage you decide what, when, how, and how much to procure and then develop a framework for contract administration/vendor management. Decide What to Procure o How does this product serve the needs of the project and the department as a whole? o Does the product or something similar already exist somewhere else within the department? o Is there a service provider available in the marketplace for this product? o Does the department have the means (staff, money, contract, etc.) to produce or to acquire the product? Decide When to Procure NOTE: DISCUSSION – Borrow option Committee on Information Technology Page 29 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  32. 32. Project Management Methodology • Build or Buy Analysis: You can use this method to determine the cost-effectiveness of creating a product in-house compared to the cost of buying the product or having it produced outside the department. Consider all costs, both direct and indirect, when performing a build or buy analysis. Compare the costs with each other and consider any compelling argument on either side by the project team. Also consider whether it’s best to lease or purchase. This could save money for the department if cost is applied correctly against the useful life of the product or service supplied. Many decisions will be based on how long you will need the item or service as well as the overall cost. • Expert Judgment: In this process, you use the assistance of experts to determine what steps should be taken. These individuals can come from within the department and/or from the outside. They review project needs and costs and deliver their opinion for consideration in the procurement decision. Decide How to Procure (Contract Types) Discussion Point – Fixed price, T&M, cost-plus (‘not to exceed’) • Fixed-Price/Lump-Sum Contract: With this type of contract, you pay a fixed, agreed-upon price for a well-defined product or service. Give special consideration to these contracts to ensure that the product is well defined in order to reduce risk to both the project and the contractor. • Cost Reimbursement Contract: This contract is a reimbursement to the contractor for the actual cost of producing the product or service. Within the contract, costs are classified as direct (e.g., salaries of contractor staff) and indirect (e.g., salaries of corporate executives for the contractor). Indirect costs are normally based on a percentage of direct costs. • Unit Price Contract: With this type of contract, you pay the contractor a preset amount for each unit (e.g., $10 per widget produced) or unit of service (e.g., $50 per hour of service) produced. The contract equals the total value of all the units produced. Decide How Much to Procure Factors that you should consider include: o Will we continue to need this product after the immediate project has been completed? Committee on Information Technology Page 30 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  33. 33. Project Management Methodology o How much of the budget have we allocated for this product? o Does the department know exactly how much of the product will be needed? Develop a Framework for Contract Administration/Vendor Management Once a contract has been negotiated and executed, the project manager will need to administer it. To facilitate your success in this endeavor, the contract must establish appropriate mechanisms to manage the vendor(s) and ensure satisfactory performance. 4. Define the Project Organization Identify project team “players” as early as possible, to obtain their expertise and input to the plan and to ensure that necessary resources are in place to execute the plan. Your deliverables from this activity should include two items: a project organization chart and documentation of team member responsibilities. Every agency has a limited number of resources. A project manager’s primary role is to find a way to successfully execute a project within these resource constraints. Resource planning consists of establishing a team possessing the skills required to perform the work (labor resources) as well as scheduling the tools, equipment, and processes (non-labor resources) that enable completion of the project. Identify Required Skill Sets by Role It is helpful in the planning process to develop a list of skills required for execution of the project. Use this list to determine the type of personnel you’ll need for each task. Develop Project Organization Project organization is how you organize team members in order to coordinate the activity of the team and define the roles and responsibilities of team members. Every project needs a project organization. The project manager must always be identified. The optimal size of the project team is driven by the number of tasks to be performed, the effort needed to perform the tasks, and the timeframe for the project’s completion. The larger the project, the more critical the organization becomes. A single team member might be responsible for several tasks on a small project; whereas, on a large project, each task might require full-time attention. The largest projects may even require a deputy project manager. On the other hand, one project manager may manage a number of small projects at a time. Committee on Information Technology Page 31 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  34. 34. Project Management Methodology Assign Project Team Members As the project manager you must establish a pool of available resources. The resource pool typically specifies the type, level (e.g., skill and experience), and time period that the resource is available. The project manager’s duty is to realistically assess the project team, taking into account actual skill levels. Where staff with the necessary skills is largely unavailable for the project, the project manager may hire the necessary talent or contract services to perform the work. Backfill Roles for Assigned Team Members (Depending on Resource Requirements) If necessary, backfill staff assigned full-time to the project or reassign their workloads to existing staff. It is unrealistic to expect full-time team members to continue to perform their existing functions. If you assign them full-time to the project, you must relieve them of their former responsibilities. 5. Identify Other Resource Requirements All project teams require tools to successfully perform the tasks assigned. When scheduling resources, the project manager must ensure that both people and the equipment necessary to support those people are available simultaneously. The project manager will: Determine Facility Needs The need for adequate workspace is often overlooked when planning a project. If, for example, you assemble a 15-member project team, you must find a facility to house them. Ideally, you should situate the team in contiguous space (co-located) to facilitate interaction and communication. Having everyone close together will enhance team spirit and synergy and increase your chances for project success. While this may not always be feasible, you should strive towards this goal. Determine Infrastructure, Equipment, and Material Needs In addition to workspace, you should include equipment for the team in the resource plan. Ensuring the availability of essential equipment at critical points in the project is vital in planning a successful project. If equipment needed to perform a task is unavailable, you can expect efficiency and morale to be negatively affected. When considering equipment, remember to give each team member the correct tools they need to do the job (computer software, for example). Also, be sure to provide information exchange and communications tools for project team members and project stakeholders. Committee on Information Technology Page 32 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  35. 35. Project Management Methodology 6. Refine Project Risk Mitigation Strategies During the PLAN the Project phase, you should develop and refine the risk mitigation strategies identified in the INITIATE the Project phase. Define the approach, tools, and data sources that you will use to perform risk management on the project. Different types of assessments may be appropriate, depending on the project stage and the amount of information available. In addition to key risks identified during the INITIATE the Project phase, the project team should identify any other potential risks that may have surfaced in the planning stage. For each identified risk, the team should: o Assess the impact and probability of the risk occurring. o Determine a risk response approach, including any contingency plans. 7. Detail Project Administration Project administration deals with administrative details related to managing the project and performing the work. It should include the following: Change Control Project scope management can be just as important to scope planning as the scope statement itself. This effort describes how the project scope will be managed and how scope changes will be integrated into the project. The change control process will: o Define the process for identifying and documenting potential changes to scope. o Define the process for review and approval of scope change. o Describe which planning documents need to be revised due to scope change. Issue Management The purpose of the issue management process is to provide a mechanism for organizing, maintaining, and tracking the resolution of issues that cannot be resolved by individual team members. The approach consists of issue control mechanisms and a well-defined process that the project team can use to identify, address, and prioritize problems and issues. Communications with Stakeholders Communications planning involves defining the information needs of project stakeholders: identifying which people need what information, when they will need it, and how they will get it. Communication is the cornerstone of getting work done among all parties working on the Committee on Information Technology Page 33 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  36. 36. Project Management Methodology project. Communications planning overlays all other aspects of project planning, as well as the other project management phases. It addresses the way in which we transfer/share information about what needs to be done, how it will be done, when it needs to be done, who will do it, status reporting, issues management, problem resolution, etc. Training Projects frequently require a training component—both team member training and /or user training. Planning for this training involves identifying what training will be needed, which individuals will need it, and how it will be provided. Project Metrics Determine which metrics you will collect and report for the project. This may be based upon department mandates or on the needs of the project management team. In addition, determine how you will collect those metrics and when you will report them. Some examples of metrics that might be appropriate or required are: o Estimating variances such as budget variance, schedule variance, and work effort variance. o Quality metrics such as defect density. o Productivity metrics such as function point delivery rate. Rollout/Implementation Identify how implementation will occur, i.e., will there be a pilot followed by a staged rollout or will the product be provided to all users at once (“big bang”). Discuss the pros and cons of each approach you consider and provide a reason for the implementation method you have selected. Post -Project Evaluation All projects should include a post-project evaluation, typically performed 30 days after implementation. Usually all members of the project team participate. The purpose of the evaluation is to assess project policies, procedures, and standards to determine how to improve performance in the future. After the review the project manager prepares a “lessons learned” document, intended to be shared with other project managers. You may want to include other areas of concern, depending upon the nature of the Committee on Information Technology Page 34 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  37. 37. Project Management Methodology project. For example, for an applications development project, it would be appropriate to discuss the application development methodology that was used. 8. Prepare the Project Schedule and Budget Schedule Considerations It’s important that you identify and discuss all items that affect project scheduling. Milestone Descriptions Identify all milestones and build them into the schedule. Milestones are points in the project at which some clearly defined work will have been completed. You use them as checkpoints to ensure that the project is both on schedule and on track to achieve project objectives. At major milestones, you review the project, deciding whether to proceed with the project as planned, revise the project, or cancel the project. Project Schedule Prepare a project schedule using project scheduling software. Your schedule should be as detailed as possible. For lengthy projects, it is recognized that early stages will be defined in detail, with later stages being defined at a higher-level of detail initially. Steps you must follow to develop a schedule are: determine project phasing, develop a work breakdown structure (WBS), determine task dependencies, estimate work effort and resource requirements, and assign resources to the tasks. Determine project phasing In general, if you cannot complete the entire project within one year you should divide it into phases. When planning such phased project implementation, make sure specific phases have independent and substantial benefits, even if no additional components are acquired. Describe the phases planned for this project and what each phase will deliver or explain why phasing is not appropriate. Develop a Work Breakdown Structure (WBS) Work breakdown structure is a tool for scope definition. It is defined by PMI’s A Guide to the Project Management Body of Knowledge, 2000 Edition, as “a deliverable -oriented grouping of project elements that organizes and defines the total work scope of the project; work not in the WBS is outside the scope of the Committee on Information Technology Page 35 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  38. 38. Project Management Methodology project. Each descending level represents an increasingly detailed definition of the project work.” In other words, a WBS is a hierarchical representation of the tasks required to deliver products and services on a project. The WBS is a visual expression of the scope of your project, and is a valuable planning tool that can help ensure project success. Developing the WBS forces you to break the scope into manageable activities and assign responsibility (to deliver products and services within the project scope). Elements of scope are decomposed to a level that provides a clear understanding of what is to be delivered for purposes of planning, controlling, and managing project scope. In its entirety, a WBS represents the total scope of a project. A WBS is neither a schedule, nor the way your project is organized. Instead, it is a definition of what is to be delivered. Once the scope is clearly understood, the project manager must determine who will deliver it and how it will be delivered. The WBS reflects activities associated with overall project management, requirements, design, construction, testing, training, installation, transition management, and maintenance. The project manager is responsible for defining all top- level activities associated with a project and then further decomposing them as planning continues. You develop a WBS by determining what activities need to be completed to accomplish the project objective. As levels of the WBS become lower, the scope, complexity, and cost of each task become smaller and more accurate. The lowest level tasks, or work packages, are independent, manageable units that are planned, budgeted, scheduled, and controlled individually. Defining the activities that will be undertaken as part of the project is one of the most important aspects of the project planning process. Activity sequencing involves dividing the project into smaller, more manageable components (activities) and then specifying the order of completion. Much of this has already been done within the process of creating the WBS. No matter how the WBS has been broken down, by the time the project manager gets to the task level, the tasks should represent the same level of effort or duration. There is no simple formula to define how detailed a work breakdown needs to be. There are, however, some helpful guidelines: Committee on Information Technology Page 36 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  39. 39. Project Management Methodology o Break down the work until accurate estimates of cost and resources needed to perform the task can be provided. o Ensure that clearly defined starting and ending events are identified for the task. These may be the production of a deliverable or the occurrence of an event. o Verify that the lowest level tasks can be performed within a reasonable period of time. Each project will have a different definition of “reasonable.” If the time period to complete a task is too long, you may not be able to obtain an accurate project status in the EXECUTE the Plan and CONTROL the Plan phases. An industry-standard rule of thumb is to make work packages that can be completed within two -week timeframes (80 hours of effort). This may be too long if the project is of a short duration. In those cases, it may be more appropriate to try and develop work packages that can be completed within one week. Determine task dependencies Once you have identified all tasks, determine the dependencies between them. There are four different types of dependencies: o Start-to-start: The first task must start before the second can start. o Finish-to-finish: The first task must finish before the second can finish. o Finish-to-start: The first task must finish before the second can start. o Start-to-finish: The first task must start before the second can finish. The WBS denotes a hierarchy of task relationships: Task completion eventually rolls up into activity completion, which ultimately results in project completion. There can also be relationships between tasks that are not within the outlined hierarchy (perhaps from other projects). Note these relationships. If you don’t organize the tasks efficiently, you may find it difficult to schedule and allocate resources to the tasks. Estimate work effort and resource requirements The project manager obtains work effort estimates from the individuals responsible for managing specific tasks. These individuals supply the expertise required to make the estimate Committee on Information Technology Page 37 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  40. 40. Project Management Methodology and provide buy-in and accountability during the actual performance of the task. They also identify people or labor categories required to perform the work and estimate how much effort will be required to perform each task. Assign resources to the tasks Assign resources to complete the project tasks. Ensure that each task is assigned to a responsible individual and that he/she will have all the necessary resources to do the job. Develop the project schedule After you have defined the project tasks, create a project schedule by associating each task with estimated time required. When preparing the schedule be sure to factor in vacation time, sick leave, breaks, meetings, and other day-to-day activities. Excluding any of these factors can jeopardize the schedule. You should also factor some float and its associated lag and lead times into the schedule. This float, also known as contingency, is critical if the project is to be completed on schedule. The longer and/or more complex the project, the more float you should add. The project schedule provides a graphical representation of predicted tasks, milestones, dependencies, resource requirements, task duration, and deadlines. The project schedule links all tasks on a common time scale. It should be detailed enough to show each WBS task to be performed, the name of the person responsible for completing the task, the start and end dates of each task, and the expected work effort of each task. Project Budget Prepare a project budget that includes all costs, including projected maintenance after implementation. Budget planning parallels development of the project schedule. Performed at the initial stages of project planning, budgeting is defined as the determination of costs associated with the defined activities. The steps associated with budgeting are highly dependent on both the estimated lengths of tasks and the resources assigned to the project. Initial budgetary estimates are often based on the availability of funds or dictated by legislation. These parameters may or may not coincide with the actual funds needed to perform the project. For this reason, budget estimates are refined in the PLAN the Project phase until they are baselined. Committee on Information Technology Page 38 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  41. 41. Project Management Methodology Budgeting serves as a control mechanism that you can use to compare and measure actual costs against the budget. The budget is often a firmly set parameter in the execution of the project. To develop the budget, identify the applicable cost factors associated with project tasks. The development of costs for each task should be simple and direct and consist of labor, material, and other direct costs. The cost of performing a task is directly related to the personnel assigned to the task, the duration of the task, and the cost of any non-labor items required by the task. Determining the effort required to complete a task is the single most difficult aspect of deriving a cost estimate. Non-labor charges include such items as material costs, reproduction, travel, cost of capital (if leasing equipment), computer center charges, and equipment costs. 9. Develop a Project Quality Assurance Plan The project quality assurance plan outlines project policies and procedures related to assuring quality of the project deliverables. It should include the following items: o Reference to appropriate standards. o Walkthroughs and reviews. o Testing. o Configuration management. o Quality control metrics. Reference to Appropriate Standards The quality assurance plan should identify standards that project team members will follow in performing their work. These may be departmental standards or industry standards. Walkthroughs and Reviews Walkthroughs and reviews are both early forms of testing; they should be used as appropriate during the design and development of deliverables. Walkthroughs are typically held before a deliverable is completed and usually deal with how to create the deliverable. The purpose of the walkthrough is to test ideas; the participants “walk through” the proposed solution, trying to pinpoint flaws. Reviews, on the other hand, are typically held after a deliverable is completed. The purpose of a review is to ensure that the deliverable is acceptable. Milestones are typically associated with reviews and sign- off, either formal or informal, is obtained. The quality assurance plan must document when walkthroughs will be used and which deliverables will be reviewed. Committee on Information Technology Page 39 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  42. 42. Project Management Methodology Testing The quality assurance plan documents the types of testing that will be performed (such as unit testing, different types of system testing, and acceptance testing) and who will be responsible for the testing. This does not take the place of a test plan or other testing deliverables developed during the EXECUTE the Project phase of the project. Configuration Management Configuration management (sometimes called version control) processes are use to keep track of multiple copies of objects, both project deliverables and project planning documents. You should implement configuration management processes on all projects. It’s especially critical on large or complex ones. In short, configuration management is a necessity. The complexity or size of the configuration system is less important than its functionality and intent. Configuration management functions include: o Defining who will be responsible for and have authority over configuration management. o Setting standards, procedures, and guidelines for the full project team to follow. o Defining tools, resources, and facilities to be used for configuration management. The configuration management document could range from a few pages to hundreds of pages for very large software development activities with extensive procedures and control items. The size depends on the complexity of the project and the need for detailed control. Quality Control Metrics Document which quality control metrics, if any, the project will collect and report. 10. Assemble the Plan Discussion point: File copies on network drive? Assemble the deliverables from all the activities in the PLAN the Project phase, using the COIT project plan template. [At this time, you must upload the project plan to the Project Portfolio located at the COIT Performance Subcommittee website. http://www.sfgov.org/site/coit_page.asp?id=63217] Committee on Information Technology Page 40 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  43. 43. Project Management Methodology 11. Review the Plan As a general rule, the steering committee reviews and approves the project plan. However, other approvals may be necessary. Please see Section 9, Instructions for Scaling the Methodology, for more detailed information about approvals required for various projects. The review process will result in one of three outcomes for the project plan: approval, cancellation, or modification, as described below. o The plan is approved, in which case the project manager is given the authority to baseline the plan and initiate the EXECUTE the Plan phase. o The plan is canceled or put on hold. In this event, you should update the plan to reflect this decision. o The project manager is instructed to modify the project plan and resubmit it for review. After the plan review, update the Department’s Project Portfolio with the results of the review, and, if applicable, update approved budget, work effort, and schedule information. If you have changed the project plan, replace the version in the project portfolio with the new version. Plan Phase Deliverables Project Plan The project plan is a formal, approved document that will be used to manage and control project execution. It consists of both text and stand -alone deliverables created during the INITIATE the Project and PLAN the Project phases. The level of detail should be appropriate for the scope, complexity, and risk of the project. The following is a list of key components usually included in a project plan: o Project description. o Project background. o Project scope—scope and deliverables. o Project objectives—business and technical. o Resource plan. o Project procurement and sourcing strategy. o Project organization—organization chart and roles and responsibilities. o Project risk management. o Approach. o Change control. o Issue management. o Communications with stakeholders. o Training. o Measurement and metrics. o Rollout/implementation. o Post project evaluation. Committee on Information Technology Page 41 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  44. 44. Project Management Methodology o Schedule considerations. o Milestone descriptions. o Budget. o Project schedule. o Quality assurance plan. A template for a project plan, along with instructions and samples, is located on the COIT Performance Subcommittee website on the City’s intranet. Committee on Information Technology Page 42 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  45. 45. Project Management Methodology Execute the Project Process Flow Manage project team Build and train project team Manage stakeholder relationships Manage risk Execute project plan Manage quality Document work Manage issues results Communicate information CONTROL (see next page) Committee on Information Technology Page 43 COIT_PM_Methodology Performance Subcommittee 4/01/2008
  46. 46. Project Management Methodology Committee on Information Technology Page 44 COIT_PM_Methodology Performance Subcommittee 4/01/2008

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