The document discusses the benefits of project management. It notes that 32% of projects are successful when using project management techniques, compared to 24% that fail without it. A case study is presented where a website project went over budget and late without a project manager to perform key tasks like requirements gathering and scope management. Reasons project management is underestimated include thinking the project is too small or that a manager is too expensive. The document advocates using data on project failures and costs to convince people of the value of project management.

1. Benefits of
Project Management
Lauro Canonica
9th July 2014

2. Table of Contents
1. Why do projects fail?
2. Project managers versus project administrators
3. A real case example
4. Why is project management underestimated?
5. How can we convince people?
6. Conclusions
7. Questions and answers
7/9/2014 Benefits of Project Management 2

3. Table of Contents
1. Why do projects fail?
2. Project managers versus project administrators
3. A real case example
4. Why is project management underestimated?
5. How can we convince people?
6. Conclusions
7. Questions and answers
7/9/2014 Benefits of Project Management 3

4. Project Success Rates
(Standish Chaos Report 2009)
Challenged:
Delivered late
or/and overbudget
44%
Successful:
Delivered on time
and on budget
32%
Failed:
Canceled prior to
completion
24%
7/9/2014 Benefits of Project Management 4

5. Why do projects fail?
Lack of User Input 12.8%
Incomplete Requirements & Specifications 12.3%
Changing Requirements & Specifications 11.8%
Lack of Executive Support 7.5%
Lack of Resources 6.4%
Unrealistic Expectations 5.9%
Unclear Objectives 5.3%
Unrealistic Time Frames 4.3%
New Technology 3.7%
Technology Incompetence 7.0%
7/9/2014 Benefits of Project Management 5

6. Project Management Issues
versus Technical Issues
Project management issues 89.3%
Technical issues 10.7%
7/9/2014 Benefits of Project Management 6

7. Table of Contents
1. Why do projects fail?
2. Project managers versus project administrators
3. A real case example
4. Why is project management underestimated?
5. How can we convince people?
6. Conclusions
7. Questions and answers
7/9/2014 Benefits of Project Management 7

8. Project Manager’s View
(PMBOK standard)
Initiation
Project
Management
Processes
Planning
Execution
Monitoring
and
Controlling
Closing
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9. Project Administrator’s View
Initiation
Project
Management
Processes
Planning
Execution
Monitoring
and
Controlling
Closing
7/9/2014 Benefits of Project Management 9

10. Which tasks are not done by a project
administrator?
• Initiation:
Analysis of the situation, goal definition, stakeholder management,
requirements gathering.
• Planning:
Scope definition, team building, resources selection, preparation of Work
Breakdown Structure (WBS).
• Executing:
Direct execution, manage team, perform quality assurance.
• Control:
measureproject variables, identify corrective actions, manage change
requests, manage customer expectations.
• Closing:
Finalize all activities, share the lessons learned.
7/9/2014 Benefits of Project Management 10

11. Table of Contents
1. Why do projects fail?
2. Project managers versus project administrators
3. A real case example
4. Why is project management underestimated?
5. How can we convince people?
6. Conclusions
7. Questions and answers
7/9/2014 Benefits of Project Management 11

12. A real case, the setup
• Creation of a new web site with a content
management system (CMS)
• Plan:
300’000 CHF, 3 months
• Team:
- Customer representative
- Team leader
- 4 developers
- No project manager (to save on costs)
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13. A real case, the result
• Partial success:
- product delivered
- over budget: 500’000 CHF (+200’000 CHF)
- late: 5 months (+2 months)
- customer and developers frustrated
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14. A real case, what happened (1)
• Missing analysis of the situation
- Technology discontinued
• Incomplete goal definition
- new goals were added during development
• Missing stakeholder management
- Unexpected team changes
- Missing information
• Missing proper requirements gathering
- Only high level documentation
- Requirements per email
- loss of information
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15. A real case, what happened (2)
• Missing scope definition
- Continuous changes
- Developer and customer frustrated
- Loss in trust
• Missing change management
- Disagreements (bug, change or planned?)
• Missing management of customer expectations
- The system is too slow
• Missing “lessons learned”
- documentation
- sharing of experiences
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16. Table of Contents
1. Why do projects fail?
2. Project managers versus project administrators
3. A real case example
4. Why is project management underestimated?
5. How can we convince people?
6. Conclusions
7. Questions and answers
7/9/2014 Benefits of Project Management 16

17. Top reasons why Project Management
is underestimated
• The project is too small and easy!
Don't check only technical complexity. The project situation and the
environment can be very complex.
• A project manager is too expensive!
A failed project is more expensive.
• Our team leader is a software guru who can take care of the
project!
Project management requires many soft skills.
• A project manager wastes everybody's time with meetings
and documentation!
A qualified and experienced project manager reduces the amount of
meetings and useless documentation.
• We want to start immediately, we have no time for
management!
Did you ever hear the joke: Sorry I'm too busy to be efficient?
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18. Table of Contents
1. Why do projects fail?
2. Project managers versus project administrators
3. A real case example
4. Why is project management underestimated?
5. How can we convince people?
6. Conclusions
7. Questions and answers
7/9/2014 Benefits of Project Management 18

19. How do we promote Project
Management?
• Present the results of the Standish Chaos
Report.
• Request that all projects are managed by
certified project managers.
• Show a quick comparison of project costs as
shown in the next slide.
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20. Project cost example
• Plan A:
1 Project manager at 50%, 4 developers 100% for 5 months
(1000 CHF per day)
Cost: 100 days*(500 + 4*1000)CHF = 450’000 CHF
• Plan B:
4 developers 100% for 5 months. (Risk of 2 months delay)
Cost: 100 days*(4*1000)CHF = 400’000 (no delay)
Cost: 140 days*(4*1000)CHF = 560’000 (2 months delay)
7/9/2014 Benefits of Project Management 20

21. Table of Contents
1. Why do projects fail?
2. Project managers versus project administrators
3. A real case example
4. Why is project management underestimated?
5. How can we convince people?
6. Conclusions
7. Questions and answers
7/9/2014 Benefits of Project Management 21

22. Conclusions
Advantages of Project Management:
• Reduces costs and risks.
• Makes sure that what is developed is what the
customer needs.
• Increases the happiness of customers,
developers and users.
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23. Table of Contents
1. Why do projects fail?
2. Project managers versus project administrators
3. A real case example
4. Why is project management underestimated?
5. How can we convince people?
6. Conclusions
7. Questions and answers
7/9/2014 Benefits of Project Management 23

24. Questions and Answers
7/9/2014 Benefits of Project Management 24