INFS 724 Project and Change Management


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INFS 724 Project and Change Management

  1. 1. INFS 724 Project and Change Management Amit Deokar, Ph.D.
  2. 2. Chapter 4 Project Integration Management
  3. 3. Outline <ul><li>Strategic planning and project selection </li></ul><ul><li>What is project integration management? </li></ul><ul><li>Preliminary scope statements </li></ul><ul><li>Project management plans </li></ul><ul><li>Project Execution </li></ul><ul><li>Monitoring and controlling project work </li></ul><ul><li>Integrated project control </li></ul><ul><li>Closing projects </li></ul>
  4. 4. Strategic Planning and Project Selection
  5. 5. Strategic Planning and Project Selection <ul><li>The first step in initiating projects is to look at the big picture or strategic plan of an organization </li></ul><ul><li>Strategic planning involves determining long-term objectives, predicting future trends, and projecting the need for new products and services. </li></ul><ul><li>Organizations often perform a SWOT analysis: </li></ul><ul><ul><li>Strengths, Weaknesses, Opportunities, and Threats </li></ul></ul><ul><li>As part of strategic planning, organizations should: </li></ul><ul><ul><li>Identify potential projects. </li></ul></ul><ul><ul><li>Select which projects to work on. </li></ul></ul><ul><ul><li>Formalize project initiation by issuing a project charter. </li></ul></ul>
  6. 6. Identifying Potential Projects <ul><li>Many organizations follow a planning process for selecting IT projects. </li></ul><ul><li>It’s crucial to align IT projects with business strategy . </li></ul><ul><li>Research shows that: </li></ul><ul><ul><li>Supporting explicit business objectives is the number one reason cited for investing in IT projects. </li></ul></ul><ul><ul><li>The consistent use of IT standards lowers application development costs by 41 percent per user. </li></ul></ul>
  7. 7. Why Firms Invest in Information Technology
  8. 8. Information Technology Planning Process
  9. 9. Business case – An example <ul><li>Please refer to the JWD Consulting business case, p. 82 </li></ul>
  10. 10. Methods for Selecting Projects <ul><li>There are usually more projects than available time and resources to implement them </li></ul><ul><li>It is important to follow a logical process for selecting IT projects to work on </li></ul><ul><li>Methods include: </li></ul><ul><ul><li>focusing on broad needs </li></ul></ul><ul><ul><li>categorizing projects </li></ul></ul><ul><ul><li>performing financial analyses </li></ul></ul><ul><ul><li>using a weighted scoring model (multiple criteria) </li></ul></ul>
  11. 11. Focusing on Broad Organizational Needs <ul><li>It is often difficult to provide strong justification for many IT projects, but everyone agrees they have a high value </li></ul><ul><li>Three important criteria for projects: </li></ul><ul><ul><li>There is a need for the project </li></ul></ul><ul><ul><li>There are funds available </li></ul></ul><ul><ul><li>There’s a strong will to make the project succeed </li></ul></ul>
  12. 12. Categorizing IT Projects <ul><li>One categorization is whether the project addresses </li></ul><ul><ul><li>a problem </li></ul></ul><ul><ul><li>an opportunity </li></ul></ul><ul><ul><li>a directive </li></ul></ul><ul><li>Another categorization is how long it will take ( time ) to do and when it is needed </li></ul><ul><li>Another is the overall priority of the project </li></ul>
  13. 13. Financial Analysis of Projects <ul><li>Financial considerations are often an important consideration in selecting projects </li></ul><ul><li>Three primary methods for determining the projected financial value of projects: </li></ul><ul><ul><li>Net present value (NPV) analysis </li></ul></ul><ul><ul><li>Return on investment (ROI) </li></ul></ul><ul><ul><li>Payback analysis </li></ul></ul>
  14. 14. Net Present Value Analysis <ul><li>Net present value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time </li></ul><ul><li>Projects with a positive NPV should be considered if financial value is a key criterion </li></ul><ul><li>The higher the NPV, the better </li></ul><ul><li>Internal rate of return (IRR) can by calculated by setting the NPV to zero </li></ul>
  15. 15. NPV Calculations <ul><li>Determine estimated costs and benefits for the life of the project and the products it produces </li></ul><ul><li>Determine the discount rate (check with your organization on what to use) </li></ul><ul><li>Calculate the NPV </li></ul><ul><li>Notes: Some organizations consider the investment year as year 0, while others start in year 1. </li></ul>
  16. 16. Net Present Value Example ‘ Resources ’ page – Templates – Financial Analysis
  17. 17. Return on Investment (ROI) <ul><li>ROI = (total discounted benefits - total discounted costs) / discounted costs </li></ul><ul><li>The higher the ROI, the better </li></ul><ul><li>Many organizations have a required rate of return or minimum acceptable rate of return on an investment </li></ul>
  18. 18. Payback Analysis <ul><li>The payback period is the amount of time it will take to recoup, in the form of net cash inflows, the net dollars invested in a project </li></ul><ul><li>Payback occurs when the cumulative discounted net benefits are greater than zero </li></ul><ul><li>Many organizations want IT projects to have a fairly short payback period </li></ul>
  19. 19. Charting the Payback Period
  20. 20. Weighted Scoring Model <ul><li>A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria </li></ul><ul><ul><li>First identify criteria important to the project selection process </li></ul></ul><ul><ul><li>Then assign weights (percentages) to each criterion so they add up to 100% </li></ul></ul><ul><ul><li>Then assign scores to each criterion for each project </li></ul></ul><ul><ul><li>Multiply the scores by the weights and get the total weighted scores </li></ul></ul><ul><li>The higher the weighted score, the better </li></ul>
  21. 21. Sample Weighted Scoring Model for Project Selection ‘ Resources ’ page – Templates – Weighted Decision Matrix
  22. 22. Example of Management Criteria Probability of achieving Response to competition Implicit business objectives Legal/government requirements Support decision making Explicit business objectives Criteria
  23. 23. Example of Development Criteria Probability of completion Intro./learning technology Tech/system requirements Criteria
  24. 24. Screening <ul><li>Identify those factors that are important </li></ul><ul><li>Establish a minimum level of importance </li></ul><ul><li>Eliminate those projects that fail on any one of the minimum standards </li></ul>
  25. 25. Screening Example <ul><li>Expected ROI </li></ul><ul><li>Qualified project team leadership </li></ul><ul><li>Company has expertise in area </li></ul><ul><li>Project completion time </li></ul><ul><li>At least 30% </li></ul><ul><li>Available </li></ul><ul><li>Company is either experienced or desires to gain experience </li></ul><ul><li>Within 12 months </li></ul>
  26. 26. What is project integration?
  27. 27. Project integration is about… <ul><li>Coordinating all of the other knowledge areas throughout a project’s life cycle </li></ul><ul><li>Coordinating people, plans, and work required to complete the project. </li></ul><ul><li>Steering the project team towards successful completion </li></ul>
  28. 28. Project Integration Management Processes <ul><li>Develop the project charter : Work with stakeholders to create the document that formally authorizes a project—the charter. </li></ul><ul><li>Develop the preliminary project scope statement : Work with stakeholders, especially users of the project’s products, services, or results, to develop the high-level scope requirements and create a preliminary project scope statement. </li></ul><ul><li>Develop the project management plan : Coordinate all planning efforts to create a consistent, coherent document—the project management plan. </li></ul>
  29. 29. Project Integration Management Processes (cont’d) <ul><li>Direct and manage project execution : Carry out the project management plan by performing the activities included in it. </li></ul><ul><li>Monitor and control the project work : Oversee project work to meet the performance objectives of the project. </li></ul><ul><li>Perform integrated change control : Coordinate changes that affect the project’s deliverables and organizational process assets. </li></ul><ul><li>Close the project : Finalize all project activities to formally close the project. </li></ul>
  30. 30. Project Integration Management Overview
  31. 31. Project charter
  32. 32. Project Charters <ul><li>A project charter is a document that formally: </li></ul><ul><ul><li>Recognizes the existence of a project </li></ul></ul><ul><ul><li>Authorizes the project </li></ul></ul><ul><ul><li>Provides direction on the project’s objectives and management </li></ul></ul><ul><li>It is a roadmap that defines key questions or issues to be addressed by the project as well as the high level project deliverables </li></ul><ul><li>Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project </li></ul>
  33. 33. Project charter guidelines <ul><li>There is no hard and fast rules. </li></ul><ul><li>Brevity and clarity are highly valued. </li></ul><ul><li>Suggested items include: </li></ul><ul><ul><li>Project name </li></ul></ul><ul><ul><li>Project sponsor (s) </li></ul></ul><ul><ul><li>Project manager </li></ul></ul><ul><ul><li>Statement of purpose (e.g., overarching goals, including the need for the project in business terms) -WHY? </li></ul></ul><ul><ul><li>Scope (high level product characteristics and requirements) - WHAT? </li></ul></ul><ul><ul><li>Approach – How? </li></ul></ul><ul><ul><ul><li>Authorized project resources (people, budget) </li></ul></ul></ul><ul><ul><ul><li>Roles and responsibilities </li></ul></ul></ul><ul><ul><ul><li>Basic project timeline </li></ul></ul></ul><ul><ul><ul><li>Project control </li></ul></ul></ul><ul><ul><ul><li>Risk management </li></ul></ul></ul>
  34. 34. Sample Project Charter (p. 86)
  35. 35. Preliminary scope statements
  36. 36. Preliminary scope statements <ul><li>A scope statement is a document used to develop and confirm a common understanding of the project scope. </li></ul><ul><li>It is an important tool for preventing scope creep : </li></ul><ul><ul><li>The tendency for project scope to keep getting bigger. </li></ul></ul><ul><li>A good practice is to develop a preliminary or initial scope statement during project initiation and a more detailed scope statement as the project progresses. </li></ul>
  37. 37. Contents of a Preliminary Scope Statement <ul><li>Project objectives </li></ul><ul><li>Product or service requirements and characteristics </li></ul><ul><li>Project boundaries </li></ul><ul><li>Deliverables </li></ul><ul><li>Product acceptance criteria </li></ul><ul><li>Project assumptions and constraints </li></ul><ul><li>Organizational structure for the project </li></ul><ul><li>Initial list of defined risks </li></ul><ul><li>Summary of schedule milestones </li></ul><ul><li>Rough order of magnitude cost estimate </li></ul><ul><li>Configuration management requirements </li></ul><ul><li>Description of approval requirements </li></ul>
  38. 38. Project management plans
  39. 39. Project Plan Development <ul><li>A project plan is a document used to coordinate all project planning documents </li></ul><ul><li>Its main purpose is to guide project execution </li></ul><ul><li>Project plans assist the project manager in leading the project team and assessing project status </li></ul><ul><li>Project performance should be measured against a baseline plan </li></ul>
  40. 40. Attributes of Project Plans <ul><li>Just as projects are unique , so are project plans </li></ul><ul><li>Plans should be dynamic and flexible </li></ul><ul><li>Plans should be updated as changes occur </li></ul><ul><li>Plans should first and foremost guide project execution </li></ul>
  41. 41. Common Elements of a Project Plan <ul><li>Introduction or overview of the project </li></ul><ul><ul><li>Project name, brief description and sponsor </li></ul></ul><ul><ul><li>Key team members </li></ul></ul><ul><ul><li>Deliverables </li></ul></ul><ul><ul><li>Key reference material </li></ul></ul><ul><ul><li>Glossary </li></ul></ul><ul><li>Description of how the project is organized ( HR and communication ) </li></ul><ul><ul><li>Organizational charts </li></ul></ul><ul><ul><li>Project responsibilities </li></ul></ul><ul><li>Management and technical processes </li></ul><ul><ul><li>Management objectives </li></ul></ul><ul><ul><li>Project controls </li></ul></ul><ul><ul><li>Risk management ( Risk ) </li></ul></ul><ul><ul><li>Project staffing (HR) </li></ul></ul><ul><ul><li>Technical processes including quality assurance </li></ul></ul><ul><li>Work to be done, schedule, and budget information ( Scope , Time , and Cost ) </li></ul>
  42. 42. Sample Outline for a Software Project Management Plan (SPMP)
  43. 43. Stakeholder Analysis <ul><li>A stakeholder analysis documents important (often sensitive) information about stakeholders such as </li></ul><ul><ul><li>stakeholders’ names and organizations </li></ul></ul><ul><ul><li>roles on the project </li></ul></ul><ul><ul><li>unique facts about stakeholders </li></ul></ul><ul><ul><li>level of influence and interest in the project </li></ul></ul><ul><ul><li>suggestions for managing relationships </li></ul></ul>
  44. 44. Sample Stakeholder Analysis (p. 144)
  45. 45. Project execution
  46. 46. Project Plan Execution <ul><li>Project plan execution involves managing and performing the work described in the project plan </li></ul><ul><li>The majority of time and money is usually spent on execution (performing the work) </li></ul><ul><li>The application area of the project directly affects project execution because the products of the project are produced during execution </li></ul>
  47. 47. What Went Wrong? <ul><li>Many people have a poor view of plans based on past experiences. Senior managers often require a plan, but then no one follows up on whether the plan was followed. </li></ul><ul><li>For example, one project manager said he would meet with each project team leader within two months to review their plans. The project manager created a detailed schedule for these reviews. He cancelled the first meeting due to another business commitment. He rescheduled the next meeting for unexplained personal reasons. Two months later, the project manager had still not met with over half of the project team leaders. </li></ul><ul><li>Why should project members feel obligated to follow their own plans when the project manager obviously did not follow his? </li></ul>
  48. 48. Important Skills for Project Execution <ul><li>General management skills like leadership , communication , and political skills </li></ul><ul><li>Product skills and knowledge (see example of “What Went Right?” on p. 149) </li></ul><ul><li>Application area/product vs. technical skills – What do you think? </li></ul>
  49. 49. Project Execution Tools and Techniques <ul><li>Project management methodology : Many experienced project managers believe the most effective way to improve project management is to follow a methodology that describes not only what to do in managing a project, but how to do it. </li></ul><ul><li>Project management information systems : Hundreds of project management software products are available on the market today, and many organizations are moving toward powerful enterprise project management systems that are accessible via the Internet. </li></ul>
  50. 50. Monitoring and Controlling Project Work
  51. 51. Monitoring and Controlling Project Work <ul><li>Monitoring project work includes collecting , measuring , and disseminating performance information. </li></ul><ul><li>Important outputs of monitoring and controlling project work include: </li></ul><ul><ul><li>Recommended corrective </li></ul></ul><ul><ul><li>Recommended preventive actions </li></ul></ul><ul><ul><li>Recommended defect repair </li></ul></ul>
  52. 52. Monitoring and Controlling Project Work (cont.) <ul><li>According to PMBOK (2004), monitoring and controlling is concerned with: </li></ul><ul><ul><li>Comparing actual project performance against the project management plan </li></ul></ul><ul><ul><li>Assessing performance to determine whether any corrective/preventive measure is needed </li></ul></ul><ul><ul><li>Analyze, track, and monitor project risks </li></ul></ul><ul><ul><li>Maintain an accurate and timely information base regarding project’s product (s) </li></ul></ul><ul><ul><li>Provide information to support status reporting </li></ul></ul><ul><ul><li>Monitor implementation of approved changes </li></ul></ul>
  53. 53. Integrated change control
  54. 54. Integrated Change Control <ul><li>Integrated change control involves identifying, evaluating, and managing changes throughout the project life cycle </li></ul><ul><li>Three main objectives of change control: </li></ul><ul><ul><li>Influence the factors that create changes to ensure they are beneficial </li></ul></ul><ul><ul><li>Determine that a change has occurred </li></ul></ul><ul><ul><li>Manage actual changes when and as they occur </li></ul></ul>
  55. 55. Change Control System <ul><li>A formal , documented process that describes when and how official project documents and work may be changed </li></ul><ul><li>Describes who is authorized to make changes and how to make them </li></ul><ul><li>Often includes a change control board (CCB) , configuration management, and a process for communicating changes </li></ul>
  56. 56. Change Control Boards (CCBs) <ul><li>A formal group of people responsible for approving or rejecting changes on a project </li></ul><ul><li>CCBs provide guidelines for preparing change requests, evaluate change requests, and manage the implementation of approved changes </li></ul><ul><li>Includes stakeholders from the entire organization </li></ul>
  57. 57. Making Timely Changes <ul><li>Some CCBs only meet occasionally, so it may take too long for changes to occur </li></ul><ul><li>Some organizations have policies in place for time-sensitive changes </li></ul><ul><ul><li>“48-hour policy” allows project team members to make decisions, then they have 48 hours to reverse the decision pending senior management approval </li></ul></ul><ul><ul><li>Delegate changes to the lowest level possible, but keep everyone informed of changes </li></ul></ul>
  58. 58. Configuration Management <ul><li>Ensures that the products and their descriptions are correct and complete </li></ul><ul><li>Concentrates on the management of technology by identifying and controlling the functional and physical design characteristics of products </li></ul><ul><li>Configuration management specialists identify and document configuration requirements, control changes, record and report changes, and audit the products to verify conformance to requirements </li></ul>
  59. 59. Suggestions for Managing Integrated Change Control <ul><ul><li>View project management as a process of constant communications and negotiations </li></ul></ul><ul><ul><li>Plan for change </li></ul></ul><ul><ul><li>Establish a formal change control system, including a Change Control Board (CCB) </li></ul></ul><ul><ul><li>Use good configuration management </li></ul></ul><ul><ul><li>Define procedures for making timely decisions on smaller changes </li></ul></ul><ul><ul><li>Use written and oral performance reports to help identify and manage change </li></ul></ul><ul><ul><li>Use project management and other software to help manage and communicate changes </li></ul></ul>