Itpm 01

Chapter 1:
Introduction to
Project Management
Information Technology
Project Management,
Seventh Edition
Note: See the text itself for full citations.
Learning Objectives
Understand the growing need for better project

management, especially for information technology (IT)
projects
Explain what a project is, provide examples of IT projects,
list various attributes of projects, and describe the triple
constraint of project management
Describe project management and discuss key elements of
the project management framework, including project
stakeholders, the project management knowledge areas,
common tools and techniques, and project success
Information Technology Project

Management, Seventh Edition
Copyright 2014
Learning Objectives
Discuss the relationship between project, program, and

portfolio management and the contributions each
makes to enterprise success
Understand the role of project managers by describing
what they do, what skills they need, and career
opportunities for IT project managers
Describe the project management profession, including
its history, the role of professional organizations like the
Project Management Institute (PMI), the importance of
certification and ethics, and the advancement of project
management software

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Introduction
Many organizations today have a new or renewed

interest in project management
Computer hardware, software, networks, and the

use of interdisciplinary and global work teams have
radically changed the work environment
The world as a whole spends nearly $10 trillion of
its $40.7 trillion gross product on projects of all
kinds
More than 16 million people regard project
management as their profession

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Project Management Statistics
The overall information and communications technology

market grew by 6 percent to almost $3 trillion in 2010
In the U.S. the size of the IT workforce topped 4 million
workers in 2008, and the unemployment rate for IT
professionals is half the rate for the overall labor market
In 2011 the total compensation for the average senior
project manager in U.S. dollars was $105,000 per year in
the United States and $160,409 in the Switzerland.
The number of people earning their Project Management
Professional (PMP) certification continues to increase. 44
percent of employers listed project management as a skill
they looked for in new college grads, behind only
communication and technical skills

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Motivation for Studying Information

Technology (IT) Project Management
IT Projects have a terrible track record, as described in the

What Went Wrong?
A 1995 Standish Group study (CHAOS) found that only

16.2% of IT projects were successful in meeting scope,
time, and cost goals; over 31% of IT projects were
canceled before completion
A PricewaterhouseCoopers study found that overall half of
all projects fail and only 2.5% of corporations consistently
meet their targets for scope, time, and cost goals for all
types of project.

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Advantages of Using Formal

Project Management
Better control of financial, physical, and human
resources
Improved customer relations
Shorter development times
Lower costs
Higher quality and increased reliability
Higher profit margins
Improved productivity
Better internal coordination
Higher worker morale

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What Is a Project?
A project is a temporary endeavor undertaken

to create a unique product, service, or result
(PMBOK Guide, Fifth Edition, 2012)
Operations is work done to sustain the business
Projects end when their objectives have been

reached or the project has been terminated
Projects can be large or small and take a short

or long time to complete

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Examples of IT Projects
A team of students creates a smartphone
application and sells it online
A company develops a driverless car
A small software development team adds a new
feature to an internal software application for the
finance department
A college upgrades its technology infrastructure to
provide wireless Internet access across the whole
campus

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Top Strategic Technologies for 2012

(Gartner)
Media tablets and beyond
Mobile-centric applications and interfaces
Contextual and social user experience
Internet of things
Cloud computing

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10
Media Snapshot: Unproductive Apps

Gartner predicts that by 2014, there will be more than
70 billion mobile application downloads every year
All of the top iPhone apps in early 2012 (Temple Run,
Angry Gran, Zombie Farm, Words With Friends,
Angry Birds, etc.) and most of the top iPad2 apps can
be considered unproductive in most work
environments
The challenge is to develop useful apps and get
workers to focus on them instead of the many
distracting options available

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Project Attributes
A project
has a unique purpose

is temporary
is developed using progressive elaboration
requires resources, often from various areas
should have a primary customer or sponsor
The project sponsor usually provides the direction and
funding for the project
involves uncertainty

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12
Project and Program Managers
Project managers work with project sponsors,

project team, and other people involved in a
project to meet project goals
Program: group of related projects managed in a

coordinated way to obtain benefits and control not
available from managing them individually
(PMBOK Guide, Fifth Edition, 2012)
Program managers oversee programs; often act

as bosses for project managers

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Figure 1-1 The Triple Constraint of

Project Management

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What is Project Management?

Project management is the application of
knowledge, skills, tools and techniques to project
activities to meet project requirements
(PMBOK Guide, Fourth Edition, 2012)
Project managers strive to meet the triple
constraint (project scope, time, and cost goals)
and also facilitate the entire process to meet the
needs and expectations of project stakeholders

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Figure 1-2 Project Management

Framework

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Project Stakeholders
Stakeholders are the people involved in or
affected by project activities
Stakeholders include
the project sponsor

the project manager
the project team
support staff
customers
users
suppliers
opponents to the project

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10 Project Management Knowledge

Areas
Knowledge areas describe the key competencies
that project managers must develop
Project managers must have knowledge and skills
in all 10 knowledge areas (project integration,
scope, time, cost, quality, human resource,
communications, risk, procurement, and
stakeholder management)
This text includes an entire chapter on each
knowledge area

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Project Management Tools and

Techniques
Project management tools and techniques assist
project managers and their teams in various
aspects of project management
Some specific ones include
Project charter, scope statement, and WBS (scope)

Gantt charts, network diagrams, critical path analysis,
critical chain scheduling (time)
Cost estimates and earned value management (cost)
See Table 1-1 for many more

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Super Tools
Super tools are those tools that have high use and
high potential for improving project success, such as:
Software for task scheduling (such as project management
software)
Scope statements
Requirements analyses
Lessons-learned reports
Tools already extensively used that have been found to

improve project importance include:
Progress reports
Kick-off meetings
Gantt charts
Change requests

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What Went Right? Improved

Project Performance
The Standish Groups CHAOS studies show
improvements in IT projects in the past decade:
The number of successful IT projects has more than

doubled, from 16 percent in 1994 to 37 percent in 2010
The number of failed projects decreased from 31
percent in 1994 to 21 percent in 2010
Success rates were the highest ever in the most recent
CHAOS study

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Why the Improvements?

"The reasons for the increase in successful projects
vary. First, the average cost of a project has been
more than cut in half. Better tools have been
created to monitor and control progress and better
skilled project managers with better
management processes are being used. The fact
that there are processes is significant in itself.*
*Standish Group, "CHAOS 2001: A Recipe for Success" (2001).

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Project Success
There are several ways to define project success:

The project met scope, time, and cost goals
The project satisfied the customer/sponsor
The results of the project met its main objective, such as
making or saving a certain amount of money, providing a
good return on investment, or simply making the
sponsors happy

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Table 1-2: What Helps Projects Succeed?*

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
*The Standish Group, CHAOS Activity News (August 2011).
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Top Three Reasons Why Federal

Technology Project Succeed
Adequate funding
Staff expertise
Engagement from all stakeholders

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What the Winners Do
Recent research findings show that companies that

excel in project delivery capability:
Use an integrated project management toolbox
(use standard/advanced PM tools, lots of
templates)
Grow project leaders, emphasizing business and
soft skills
Develop a streamlined project delivery process
Measure project health using metrics, like customer
satisfaction or return on investment

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Program and Project Portfolio

Management
A program is a group of related projects managed in a

coordinated way to obtain benefits and control not
available from managing them individually (PMBOK
Guide, Fifth Edition, 2012)
A program manager provides leadership and direction

for the project managers heading the projects within
the program
Examples of common programs in the IT field include

infrastructure, applications development, and user
support

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Project Portfolio Management

As part of project portfolio management,
organizations group and manage projects and
programs as a portfolio of investments that
contribute to the entire enterprises success
Portfolio managers help their organizations make
wise investment decisions by helping to select and
analyze projects from a strategic perspective

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Figure 1-3. Project Management Compared

to Project Portfolio Management

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Best Practice
A best practice is an optimal way recognized by

industry to achieve a stated goal or objective*
Robert Butrick suggests that organizations need to
follow basic principles of project management, including
these two mentioned earlier in this chapter:
Make sure your projects are driven by your strategy. Be able to
demonstrate how each project you undertake fits your business
strategy, and screen out unwanted projects as soon as possible
Engage your stakeholders. Ignoring stakeholders often leads to
project failure. Be sure to engage stakeholders at all stages of a
project, and encourage teamwork and commitment at all times
*Project Management Institute, Organizational Project Management Maturity Model

(OPM3) Knowledge Foundation (2003), p. 13.
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Figure 1-4. Sample Project Portfolio

Approach

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Figure 1-5. Sample Project Portfolio Management

Screen Showing Portfolio Optimization

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The Role of the Project Manager
Job descriptions vary, but most include

responsibilities like planning, scheduling,
coordinating, and working with people to achieve
project goals
Remember that 97% of successful projects were

led by experienced project managers, who can
often help influence success factors

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Suggested Skills for Project Managers

The Project Management Body of Knowledge
Application area knowledge, standards, and
regulations
Project environment knowledge
General management knowledge and skills
Soft skills or human relations skills

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Table 1-3 Ten Most Important Skills and

Competencies for Project Managers
1. People skills
2. Leadership
3. Listening
4. Integrity, ethical behavior, consistent
5. Strong at building trust
6. Verbal communication
7. Strong at building teams
8. Conflict resolution, conflict management
9. Critical thinking, problem solving
10. Understands, balances priorities

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Different Skills Needed in Different

Situations
Large projects: Leadership, relevant prior experience,

planning, people skills, verbal communication, and teambuilding skills were most important
High uncertainty projects: Risk management,
expectation management, leadership, people skills, and
planning skills were most important
Very novel projects: Leadership, people skills, having
vision and goals, self confidence, expectations
management, and listening skills were most important

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Importance of Leadership Skills
Effective project managers provide leadership by

example
A leader focuses on long-term goals and bigpicture objectives while inspiring people to reach
those goals
A manager deals with the day-to-day details of

meeting specific goals
Project managers often take on the role of both

leader and manager

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Careers for IT Project Managers

In a 2011 survey, IT executives listed the nine
hottest skills they planned to hire for in 2012
Project management was second only to
programming and application development

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Table 1-4. Nine Hottest Skills*

Skill
Percentage of
Respondents
Programming and application development
60%
Project management
44%
Help desk/technical support
35%
Networking
35%
Business intelligence
23%
Data center
18%
Web 2.0
18%
Security
17%
Telecommunications
9%
*Source: Rick Saia, 9 Hot IT Skills for 2012,

Computerworld, September 26, 2011.
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The Project Management Profession

The profession of project management is growing
at a very rapid pace
It is helpful to understand the history of the field,
the role of professional societies like the Project
Management Institute, and the growth in project
management software

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History of Project Management
Some people argue that building the Egyptian

pyramids was a project, as was building the Great
Wall of China
Most people consider the Manhattan Project to

be the first project to use modern project
management
This three-year, $2 billion (in 1946 dollars) project

had a separate project manager and a technical
manager

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Figure 1-6. Sample Gantt Chart

Created with Project 2010

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Figure 1-7. Sample Network Diagram

Created with Project 2010

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Project Management Offices

In the 100s, many companies began creating
PMOs to help them handle the increasing number
and complexity of projects
A Project Management Office (PMO) is an
organizational group responsible for coordinating
the project management function throughout an
organization

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Figure 1-8. Growth in the Number of

Project Management Offices

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Global Issues
Several global dynamics are forcing organizations to

rethink their practices:
Talent development for project and program managers is a
top concern
Good project portfolio management is crucial in tight
economic conditions
Basic project management techniques are core
competencies
Organizations want to use more agile approaches to
project management
Benefits realization of projects is a key metric

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The Project Management Institute
The Project Management Institute (PMI) is an international

professional society for project managers founded in 1969
PMI has continued to attract and retain members,
reporting more than 380,000 members worldwide by 2012
There are communities of practices in many areas, like
information systems, financial services, and health care
Project management research and certification programs
continue to grow
Students can join PMI at a reduced fee and earn the
Certified Associate in Project Management (CAPM)
certification(see www.pmi.org for details)

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Project Management Certification

PMI provides certification as a Project
Management Professional (PMP)
A PMP has documented sufficient project
experience, agreed to follow a code of ethics, and
passed the PMP exam
The number of people earning PMP certification is
increasing quickly
PMI and other organizations offer additional
certification programs (see Appendix B)

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Figure 1-9 Growth in PMP

Certification, 1993-2011

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Ethics in Project Management
Ethics, loosely defined, is a set of principles that guide

our decision making based on personal values of what
is right and wrong
Project managers often face ethical dilemmas
In order to earn PMP certification, applicants must

agree to PMIs Code of Ethics and Professional
Conduct
Several questions on the PMP exam are related to

professional responsibility, including ethics

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Project Management Software
There are hundreds of different products to assist in

performing project management
Three main categories of tools:
Low-end tools: Handle single or smaller projects well, cost
under $200 per user
Midrange tools: Handle multiple projects and users, cost
$200-$1,000 per user, Project 2010 most popular
High-end tools: Also called enterprise project management
software, often licensed on a per-user basis, like Microsoft
Enterprise Project Management solution

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Chapter Summary
A project is a temporary endeavor undertaken to create a

unique product, service, or result
Project management is the application of knowledge, skills,
tools, and techniques to project activities to meet project
requirements
A program is a group of related projects managed in a
coordinated way
Project portfolio management involves organizing and
managing projects and programs as a portfolio of investments
Project managers play a key role in helping projects and
organizations succeed
The project management profession continues to grow and
mature

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52

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Chapter 1:

Understand the growing need for better project

Information Technology Project

Discuss the relationship between project, program, and

Information Technology Project

Many organizations today have a new or renewed

Computer hardware, software, networks, and the

Information Technology Project

Project Management Statistics

The overall information and communications technology

Information Technology Project

Motivation for Studying Information

IT Projects have a terrible track record, as described in the

A 1995 Standish Group study (CHAOS) found that only

Information Technology Project

Advantages of Using Formal

Information Technology Project

A project is a temporary endeavor undertaken

Operations is work done to sustain the business

Projects end when their objectives have been

Projects can be large or small and take a short

Information Technology Project

Information Technology Project

Top Strategic Technologies for 2012

Information Technology Project

Media Snapshot: Unproductive Apps

Information Technology Project

has a unique purpose

Information Technology Project

Project and Program Managers

Project managers work with project sponsors,

Program: group of related projects managed in a

Program managers oversee programs; often act

Information Technology Project

Figure 1-1 The Triple Constraint of

Information Technology Project

What is Project Management?

Information Technology Project

Figure 1-2 Project Management

Information Technology Project

the project sponsor

Information Technology Project

10 Project Management Knowledge

Information Technology Project

Project Management Tools and

Project charter, scope statement, and WBS (scope)

Information Technology Project

Tools already extensively used that have been found to

Information Technology Project

What Went Right? Improved

The number of successful IT projects has more than

Information Technology Project

Why the Improvements?

*Standish Group, "CHAOS 2001: A Recipe for Success" (2001).

There are several ways to define project success:

Information Technology Project

Table 1-2: What Helps Projects Succeed?*

Top Three Reasons Why Federal

Information Technology Project