The document discusses the evolution and challenges of IT project management, highlighting its importance in maximizing organizational value from IT investments. It reviews why many IT projects fail, presents success factors identified by the Standish Group, and compares traditional project management approaches with newer methodologies such as extreme project management (XPM). Additionally, it outlines the phases of project life cycles and emphasizes the need for effective methodologies, proper planning, and stakeholder engagement to improve project outcomes.

1. Project Management
Nawanan Theera-Ampornpunt, M.D., Ph.D.
For Ramathibodi M.S. & Ph.D. Programs in Data
Science for Health Care
October 19, 2017

2. Image Source: Paragon Innovations, Inc. (2005)

3. IT Project Management
Marchewka (2006) Marchewka (2009)

4. • Information Technology (IT) projects are organizational
investments that require
–Time
–Money
–Other resources such as people, technology, facilities, etc.
• Organizations expect some type of value in return of this
investment
• IT Project Management is a relatively new discipline that
combines traditional Project Management with Software
Engineering/Management Information Systems to make IT
projects more successful.
Introduction

5. • Organizational resources are limited, so
organizations must choose among competing
interests to fund specific projects.
• This decision should be based on the value a
competing project will provide to an organization.
An ITPM Approach

6. • Successfully building and implementing a system
that provides little or no value to the
organization.
Or…
• Failing to implement an information system that
could have provided value to the organization,
but was poorly developed or poorly managed.
Which Situation Is Worse?

7. • The CHAOS study published in 1995 by The Standish
Group found that although the U.S. spent over $250
billion on IT projects, approximately…
–31% were cancelled before completion
–53% were completed but over budget, over
schedule, and did not meet original specifications.
•For mid-size companies, average cost overruns
were 182%, while average schedule overruns
were 202%!
The Software Crisis

9. • Larger projects have the lowest success rate and
appear to be more risky than medium and smaller
projects
–Technology, business models and markets change
so rapidly that a project that takes more than a
year can be obsolete before they are completed.
• The Chaos study also provides some insight as to the
factors that influence project success.
Why Do IT Projects Fail?

11. • The Standish Group has continued to study IT
projects over the years.
• In general, IT Projects are showing higher success
rates due to
–Better project management tools & processes
–Smaller projects
–Improved communication among stakeholders
–More skillful IT project managers
• But there is still ample opportunity for improvement!
Has the Current State of IT Projects
Changed Since 1995?

12. Rank Success Factor
1 User Involvement
2 Executive Support
3 Clear Business Objectives
4 Emotional Maturity
5 Optimizing Scope
6 Agile Process
7 Project Management Expertise
8 Skilled Resources
9 Execution
10 Tools and Infrastructure
Source: The Standish Group. CHAOS (West Yarmouth, MA: 1995, 2010) and http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS.
(cited in Marchewka JT. Information technology project management. 4th ed. Singapore: John Wiley & Sons;2013.
New Top Ten Factors for IT Project Success

13. 0% 20% 40% 60% 80% 100%
2008
2006
2004
2002
2000
1998
1996
1994
32%
35%
29%
34%
28%
26%
27%
16%
44%
46%
53%
51%
49%
46%
33%
53%
24%
19%
18%
15%
23%
28%
40%
31%
Successful
Challenged
Failed
Figure 1.1 Sources: www.standishgroup.com
Summary of CHAOS Studies from 1994 to 2008

14. • Socio-technical Approach
• Project Management Approach
–processes and infrastructure (Methodology)
–resources
–expectations
–competition
–efficiency and effectiveness
• Knowledge Management Approach
–lessons learned, best practices and shared knowledge
Improving the Likelihood of Success

15. IT Project Management
• A project: “a temporary endeavor undertaken to
accomplish a unique purpose”
• Project management: “the application of
knowledge, skills, tools, and techniques to
project activities in order to meet or exceed
project requirements”
Marchewka (2006)

16. • Time Frame
• Purpose (to provide value!)
• Ownership
• Resources (the triple constraint)
• Roles
– Project Manager
– Project Sponsor
– Subject Matter Experts
– Technical Experts
• Risk & Assumptions
• Interdependent Tasks
• Planned Organizational Change
• Operate in Environments Larger than the Project Itself
The Context of Project Management - Project Attributes

17. Class Exercise
The Importance of Project Management
Group discussion: Without proper Project
Management, what can go wrong with the IT
projects?

18. The Project Management Dilemma
Project
Deliverables
Good Fast
Cheap

19. The Triple Constraint
Marchewka (2006)

20. • Project Life Cycle (PLC)
–A collection of logical stages or phases that maps the life
of a project from its beginning to its end in order to define,
build and deliver the product of the project – i.e., the
information system
• Projects are divided into phases to increase
manageability and reduce risk
–Phase exits, stage gates, or kill points are decision points
at the end of each phase to evaluate performance, correct
problems or cancel the project
–Fast tracking is the overlapping of phases to reduce the
project’s schedule
• Can be risky!
The Project Life Cycle & IT Development

21. Project Life Cycle
Marchewka JT (2006)

22. • Represents the sequential phases or stages an information
system follows throughout its useful life
• Useful for understanding the development of the project’s
largest work product – the application system
• Phases/Stages
–Planning
–Analysis
–Design
–Implementation
–Maintenance and Support
Software Development Life Cycle (SDLC)

23. Software Development Life Cycle
Marchewka JT (2006)

24. • The systems development life cycle (SDLC)
becomes part of the project life cycle (PLC).
–The PLC focuses on the project management
phases, processes, tools and techniques for
effectively managing the project.
–The SDLC focuses on the software engineering
phases, processes, tools and techniques for building
and/or implementing the IT solution.
Relationship Between PLC & SDLC

25. PLC & SDLC
Marchewka JT (2006)

26. IT Project Management Methodology
Marchewka JT (2006)

27. • Structured Approach to Systems
Development
–Waterfall Method
• Rapid Applications Development (RAD)
–Prototyping
–Spiral Development
–Extreme Programming
Putting the SDLC into Practice

28. Structured Approaches:
Waterfall Method

29. • A new approach and philosophy to project management that
is becoming increasingly popular.
• Characterizes many of today’s projects that exemplify speed,
uncertainty, changing requirements and high risks.
• Traditional project management often takes an orderly
approach while XPM embraces the fact that projects are often
chaotic and unpredictable.
• XPM focuses on flexibility, adaptability and innovation
• Traditional and new approaches together can provide us with
a better understanding of how to improve the likelihood of
project success.
Extreme Project Management (XPM)

30. • The Guide to the Project Management Body of Knowledge (PMBOK®
Guide) documents 9 project management knowledge areas.
• The PMBOK® Guide is published and maintained by the Project
Management Institute (PMI).
– http://www.pmi.org
• PMI provides a certification in project management called the Project
Management Professional (PMP) that many people today believe will
be as relevant as a CPA certification.
• PMP certification requires that you pass a PMP certification exam to
demonstrate a level of understanding about project management, as
well as satisfy education and experience requirements, and agree to a
professional code of conduct.
The Project Management
Body of Knowledge (PMBOK®)

31. The Project Management
Body of Knowledge (PMBOK®)
Marchewka (2006)
1. Project Integration Management
2. Project Scope Management
3. Project Time Management
4. Project Cost Management
5. Project Quality Management
6. Project Human Resources Management
7. Project Communications Management
8. Project Risk Management
9. Project Procurement Management

32. Project Management Body of Knowledge Areas
Marchewka (2006)

33. Developing The Business Case
Marchewka (2006)

34. Measurable Organizational Value (MOV)
Marchewka (2006)
• The project’s goal
• Measure of success
• Must be measurable
• Provides value to the organization
• Must be agreed upon
• Must be verifiable at the end of the project
• Guides the project throughout its life cycle
• Should align with the organization’s strategy and goals

35. The IT Value Chain
Marchewka (2006)

36. A Good Project Goal
Marchewka (2006)
“Our goal is to land a man on the
moon and return him safely
to the earth by the end of the decade.”
John F. Kennedy (1961)

37. Metrics: Financial
Marchewka (2006)
• Payback Period = Initial Investment
Net Cash Flow
• Breakeven Point = Initial Investment
Net Profit Margin
• Project ROI = (Total Expected Benefits - Total Expected Costs)
Total Expected Costs

38. Metrics: Scoring Method
Marchewka
(2006)
Criterion Weight Alternative A Alternative B Alternative C
Financial
ROI 15% 2 4 10
Payback 10% 3 5 10
Net Present Value (NPV) 15% 2 4 10
Organizational
Alignment with strategic
objectives 10% 3 5 8
Likelihood of achieving
project’s MOV 10% 2 6 9
Project
Availability of skilled
team members 5% 5 5 4
Maintainability 5% 4 6 7
Time to develop 5% 5 7 6
Risk 5% 3 5 5
External
Customer satisfaction 10% 2 4 9
Increased market share 10% 2 5 8
Total Score 100% 2.65 4.85 8.50
Notes: Risk scores have a reverse scale – i.e., higher scores for risk imply lower levels of risk

39. Balanced Scorecard
Marchewka (2006)

40. MOV & Scorecard
Marchewka (2006)

41. IT Project Management Methodology
Marchewka (2006)

42. Project Charter Template
Marchewka (2006)

43. Formulating Project Plan
Marchewka (2006)

44. Project Scope
In-Scope Out-of-Scope

45. Project Planning Framework
Marchewka (2006)

46. Gantt Chart
Marchewka (2006)

47. PERT Chart
http://en.wikipedia.org/wiki/Program_Evaluation_and_Review_Technique

48. Activity On The Node (AON)
Network Diagram
Marchewka (2006)

49. Project Scheduling
Marchewka (2006)
• Critical Path Method (CPM)
• Precedence Diagramming Method (PDM)
• Lead Time & Lag Time

50. Work Breakdown Structure
Marchewka (2006)

51. Project Schedule Estimation Techniques
Marchewka (2006)
• Guesstimating
• Delphi Technique
• Time Boxing
• Top-Down
• Bottom Up
• Analogous Estimates (Past experiences)
• Parametric Modeling (Statistical)

52. Project Budget
• Direct/up-front costs
– Materials
– Services
– Labor
• Ongoing costs
• Indirect costs
– Facilities, utilities
– Administration
– Taxes
– Benefits
• (Opportunity & productivity costs)
• (Sunk costs)
• Learning curve
• Reserves
• Total Cost of Ownership (TCO)

53. Project Human Resource Management
Marchewka (2006)
• Project team members, roles & responsibilities
• Organizational structure
– Functional
– Project-based
– Matrix
• Stakeholder analysis

54. Project Risk Management
Risk Strategies
• Accept/ignore
• Avoid completely
• Reduce risk
likelihood or impact
• Transfer risk to
someone else (e.g.
insurance)
Marchewka (2006)
Risk = f(likelihood x impact)

55. CHANGE MANAGEMENT

56. Gartner Hype Cycle
Image source: Jeremy Kemp via http://en.wikipedia.org/wiki/Hype_cycle
http://www.gartner.com/technology/research/methodologies/hype-cycle.jsp

57. Rogers’ Diffusion of Innovations: Adoption Curve
Rogers (2003)

58. Unified Theory of Acceptance and Use
of Technology (UTAUT)
Venkatesh et al. (2003)
Performance
Expectancy
Effort
Expectancy
Use
Behavior
Social
Influence
Facilitating
Conditions
Behavioral
Intention
Gender Age Experience
Voluntariness
of Use
Usefulness
Ease of Use
Social Norm
& Opinions
IT Support

59. Adoption Strategies:
“The Tipping Point” Version
The Three Rules of Epidemics
• The Law of the Few
– Connectors
– Mavens
– Salesmen
• The Stickiness Factor
• The Power of Context
Gladwell (2000)
Ease of Use
Social Norm
& Opinions
IT Support
Change Agents
Opinion Leaders
Super-Users
Champions