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Hawassa University
Course: Information Systems

Project Management
Instructor: Belilign Teferi
Information Technology Project

Management, Eighth Edition Copyright 2016 1
Chapter 1:
Introduction to
Project Management
Information Technology
Project Management,
Eighth 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

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, the
role of professional organizations like the Project
Management Institute (PMI), the importance of
certification and ethics, and the advancement of
project management software

Introduction
 Many organizations today have a new or renewed
interest in project management
 Worldwide IT spending was $3.8 trillion in 2014, a
3.2 percent increase from 2013 spending
 The Project Management Institute estimates
demand for 15.7 million project management
jobs from 2010 to 2020, with 6.2 million of those
jobs in the United States

Project Management Statistics
 In 2013 (the most recent year of PMI’s salary survey), the
average salary in U.S. dollars for someone in the
project management profession was $108,000 per year
in the United States; $134,658 in Australia, (the highest-
paid country); and $24,201 in Egypt (the lowest-paid
country)
 The top skills employers look for in new college graduates
are all related to project management: team-work,
decision-making, problem-solving, and verbal
communications
 Organizations waste $109 million for every $1 billion spent
on projects, according to PMI’s Pulse of the Profession®
report
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.

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

Distinguishing Projects from
Operations
 An organization executes a multitude of activities
as part of the work to achieve objectives.
 Some of these activities are to support projects,
and others are to support what are called

operations.
 An operation is a set of tasks that does not
qualify to be a project.
 In other words, an operation is a function that
performs ongoing tasks.

Operation vs. Project
 An operation does not not produce a unique (new)
product, and it does not have a preplanned
beginning and end.
◦ For example, to put together a data center is a project,
but after you put it together, keeping it up and running is
an operation.

 It is important to understand that projects and
operations share some characteristics, such as
the following:
◦ Both require resources, including human resources, i.e.,
people.
◦ Both are constrained to limited, as opposed to unlimited,
resources.
◦ Both are managed—that is, planned, executed, and
controlled.
◦ Both have objectives and contribute to meeting the
company’s strategic objectives.
◦ Both can have and share stakeholders
 The distinctions between projects and operations
can be made by sticking to the definition of a
project, that it is temporary and unique.
 Operations are generally ongoing and repetitive.
 Although both projects and operations have
objectives, a project ends when its objectives are

met, whereas an operation continues contributing
to objectives, and possibly to a new set of
objectives in the event of a change in the
organization’s strategy

Exercise
 Identify each of the following items as a project or
an operation.
A. A librarian performing her daily job responsibilities
B. A bookseller processing customer orders
C. A network administrator ensuring that the network stays
up and running 24/7
D. Taking a course in molecular biology

Top Strategic Technologies for 2012
(Gartner)
 Computing everywhere
◦ Mobile computing
 The Internet of things
 3D printing
 Advanced, pervasive, and invisible analytics

Media Snapshot: Unproductive Apps
 Gartner predicted that by 2014, there would be more
than 70 billion mobile application downloads every
year, but it was almost double
 Facebook is by far the most downloaded app, and
the most popular category of all apps continues to be

games
 The challenge is to develop useful apps and get
workers to focus on them instead of the many

distracting options available

1.2b Project Attributes
 A project
◦ has a unique purpose
◦ is temporary
progressive
◦ is developed using
elaboration (PMBOK)
◦ 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

Understanding progressive
elaboration
 As the saying goes, Rome was not built in a day.
Rest aside, the product of a project—even the
project plan—is not built in a day either.
 Usually there is a concept first and a broad vision
for the end product—that is, the outcome of the

project.
 The clearer the vision you have of the unique
product that you want from the project, the more

accurate the project plan will be.

Understanding…
 So, you move toward the project plan in
incremental steps as the ideas about the final
product are refined and as you get more and more
information about the requirements in a
progressive fashion.
 This procedure of defining (or planning) a project
is called progressive elaboration.

Project Hierarchy
VISION
MEASURABLE GOALS
DELIVERABLES WITH SPECIFIC DUE DATES
TASKS, ACTIVITIES

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, 2013)
 Program managers oversee programs; often act
as bosses for project managers

1.2c Figure 1-1 The Triple Constraint
of Project Management

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,
2013)
 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

PM Knowledge Areas
Project Integration Management
Core Knowledge Areas Facilitating Knowledge Areas
Project Project
Scope Management Human Resource Management
Project Project
Time Management Communications Management
Project Project
Cost Management Risk Management
Project Project
Quality Management Procurement Management
Project
Stakeholder Management
Copyright 2016
Understanding Project Management
Knowledge Areas
 To manage projects, you use project management
knowledge, which is categorized into multiple
aspects; each category is called a project
management knowledge area.
◦ For example, each project has a scope that needs to be
managed, and the knowledge required to manage scope
is in the knowledge area called project scope
management.
◦ To perform the project work within the project scope, you
need resources, which need to be managed; the
knowledge area used to manage human resources is
called resource management.

Project integration management
 The project is initiated, planned, and executed in pieces
using different knowledge areas, and all those pieces
are related to each other and need to come together.
That is where integration management comes in.
◦ For example, coordinating efforts to develop and
integrate different subsidiary plans into the project
management plan needs to be managed. In general,
the integration management knowledge area offers
processes to define, identify, coordinate, and integrate
various activities and processes within each project
management process group.

Project scope management
 The primary purpose of project scope management is to
ensure that all the required work, and only the required
work, is performed to complete the project.
 Scoping a project is like drawing boundaries around it
between what is included and what is not.
 During scope management, you develop the scope
baseline, one of the three very important project
baselines, the other two being the schedule baseline and
cost baseline
 The work included in the project scope needs to be
scheduled.

Project schedule management.
 The primary purpose of project schedule management is
to develop and manage the project schedule so as to
complete the project in time as planned. It contains
processes to generate information needed to develop
the schedule, a process to develop the schedule, and a
process to control the schedule. During schedule
management, you develop the schedule baseline, one of
the three very important project baselines, the other two
being the scope baseline and the cost baseline.
Resources are needed to complete the project activities
in the project schedule.

Project resource management
 The primary purpose of project resource management is
to identify, obtain, and manage the resources needed to
complete the project. The term resources refers to both
human resources, e.g., project team, and physical
resources, e.g., material, equipment, facilities, and
infrastructure. This includes the processes to obtain,
develop, and manage the project team that will perform
the project work.
 All the project resources cost money.

Project cost management.
 The primary tasks of project cost management are
to estimate and control the project costs, and the
primary goal is to complete the project within the
approved budget. During cost management, you
develop the cost baseline, one of the three very
important project baselines, the other two being
the scope baseline and the schedule baseline.
 We do all these and other project management
tasks for the project stakeholders.

Project stakeholder management.
 The primary purpose of project stakeholder
management is to identify project stakeholders
and manage and monitor their engagement in the
project. This involves analyzing their potential
impact on and expectations from the project and
accordingly developing a strategy to appropriately
get them engaged in the project.
 Not only in project stakeholder management, but
also in managing all aspects of the project, you

need to communicate

Project communication management
 It is absolutely imperative for the success of the
project that project information is generated and
distributed, i.e., communicated, in a timely
fashion. Some would say that communication is
the most important aspect of a project and the
most important skill for a project manager to have.
Without a doubt, it is a critically important
component of project management and a common
thread that runs through the project lifecycle.

 This process group offers three processes: plan
communication to determine communication approach;
manage communication to make it happen; and monitor
communication to ensure it happened. The key to a
project and the mantra of effective communication is the
distribution of the right information to the right
stakeholders at the right time by using the right
communication methods to create the desired impact. To
make that happen, you need be able to create, store,
and retrieve information.
 Any project is complete only to the degree to which its
objectives and requirements are met; this refers to the
project quality, which needs to be managed, too.

Project quality management
 This process group offers three processes to manage
quality: plan quality to determine the quality
requirements and standards that are relevant to the
project at hand; manage quality to ensure that the
planned quality requirements and standards are applied;
and control quality to verify that the project and its
deliverables meet the quality requirements and conform
to the quality standards.
 We make assumptions and estimates and face
constraints. These other sources of uncertainty can give
rise to risks, which must be managed.

Project risk management.
 A project risk is an event that, if it occurs, has a positive or
negative effect on meeting the project objectives. The primary
purpose of project risk management is to identify risks and
respond to them should they occur.
 To make that happen, this project group offers processes to
identify, analyze, plan and implement responses to, and monitor
risks.
 It also contains a process used to plan risk management. There
will be situations in which your organization does not have the
expertise to perform certain schedule activities in house.
 For this or other reasons, you might want to acquire some items
or services from an outside vendor. This kind of acquisition is
called procurement, and it also needs to be managed.

Project procurement management.
 The primary purpose of procurement management
is to manage the acquisition of products (that is,
products, services, or results) from outside the
project team in order to complete the project. The
external vendor who offers the service is called
the seller. Procurement management includes the
processes to plan, conduct, and control
procurements.

1.3 Figure 1-2 Project Management
Framework (PMBOK)

Exercise: Match the knowledge areas listed with the area actions
given
Knowledge Area Action
A. Message 1. While developing the schedule, Lora realized that there was risk involved in the project. So,
she put her thoughts into a note that she wrote on her computer
. B. Scope 2. Manage interdependencies among different processes belonging to different knowledge

areas.
C. Cost 3. Ensure the project includes the work required to complete the project successfully and no
extra work.
D. Schedule 4. Plan the schedule and complete the project within the planned schedule.
E. Quality 5. Plan the budget, track what you are spending, and complete the project within budget.
F. Risk 6. Ensure that you develop the right product that will satisfy the needs for which the project
was undertaken.
G. Procurement 7. Obtain the team to do the project work, and lead and motivate the team to keep working in
the right direction in an efficient and effective way
H. Resources 8. Generate and distribute the required project information to the right stakeholders at the right
time by using the right method
I. Communication 9. Plan for uncertain events that could happen and deal with them when they do happen in
such a way that the possible benefit is maximized and damage is minimized.
. J. Integration 10. Identify the project work that needs to be contracted out of the performing organization and
contract it out.

1.3a 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

1.3b 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 and is patterned after PMBOK in

that regard.

1.3c 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)
◦ Meetings, review boards, baselines
◦ See Table 1-1 for many more

1.3c 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
◦ History Database
 Tools already extensively used that have been found to
improve project importance include:
◦ Progress reports
◦ Kick-off meetings
◦ Gantt charts
◦ Change requests
What Went Right? Improved
Project Performance
The Standish Group’s 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 39 percent in 2012
 The number of failed projects decreased from 31
percent in 1994 to 18 percent in 2012
 Success rates were much higher for small projects
than large ones – 76 percent versus 10 percent

1.3d 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

1.3 Table 1-2: What Helps Projects Succeed?*
1. Executive (top management) support/commitment
2. User involvement
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 Manifesto 2013: Think Big,
Act Small” (2013).
1.3 What the Winners Do…
 Recent research findings show that companies that
excel in project delivery capability:
1. Use an integrated project management toolbox
(use standard/advanced PM tools, lots of
templates)
2. Grow project leaders, emphasizing business and
soft skills
3. Develop a streamlined project delivery process
4. Measure project health using metrics, like
customer satisfaction or return on investment

1.4 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, 2013)
 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
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 enterprise’s success
 Portfolio managers help their organizations make
wise investment decisions by helping to select and

analyze projects from a strategic perspective

Figure 1-3. Project Management Compared
to Project Portfolio Management

Triangular Relationship: Project, Program, and
Portfolio
 Program. A program may be defined as a set of
interrelated projects all working toward the same set of
objectives. These projects are put into a program to reap
the benefits of managing them in a coordinated way that
would not be available by managing them individually.
◦ For example, a publication company may put several science
book development projects into one program, and a set of web-
development projects related to marketing, sales, and learning
into another program.
 Just as a project is managed by a project manager, a program is
managed by a program manager, who oversees program
components and manages project-level aspects

 A program manager’s responsibilities include:
1. Making sure that the program scope flows appropriately
into program components and managing
interdependencies among the program components to
best meet program objectives, and accordingly allotting
the budget to the program components. •
2. Resolving resource conflict and constraints that affect the
program components and managing change requests
about the shared governance framework.
3. Resolving program-level issues between component
projects and also resolving constraints and conflicts that
affect projects within the program. •
4. Managing program risks that may impact program
components.

 Portfolio. A portfolio is a higher-level structure
that may contain projects, programs, sub
portfolios, and operations and is managed by a
portfolio manager.
 These components are put together in a portfolio
to facilitate effective management in order to

implement the strategic business plan of the
organization.

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.

Figure 1-4. Sample Project Portfolio
Approach

Figure 1-5. Microsoft project portfolio
management capabilities

1.5 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 (motivating, mentoring,
coaching, collaborating, communicating,
connecting—all with positive charisma)
 Project managers are organized, passionate and
goal-oriented. They build POSITIVE professional
relationships with stakeholders.

1.5b Suggested Skills for Project
Managers
 The Project Management Body of Knowledge,
PMBOK
 Application area knowledge, standards, and
regulations
 Project environment knowledge
 General management knowledge, skills and
acumen
 Soft skills or human relations skills—how to
motivate people

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

Different Skills Needed in Different
Situations
 Large projects: Leadership, relevant prior experience,
planning, people skills, verbal communication, and team-
building 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

Importance of Leadership Skills
 Effective project managers provide leadership by
example
 A leader focuses on long-term goals and big-
picture objectives (a visionary) while inspiring
people to reach those goals
 A manager deals with the day-to-day details of
meeting specific goals—a people-person and a
paper-pusher
 Project managers often take on the role of both
leader and manager
Careers for IT Project Managers
 In a 2014 survey, IT executives listed the “ten
hottest skills” they planned to hire for in 2015
 Project management was second only to
programming and application development

 Even if you choose to stay in a technical role,
you still need project management knowledge

and skills to help your team and organization

Table 1-4. Ten Hottest IT Skills

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

Figure 1-6. Sample Gantt Chart
Created with Project 2013

Figure 1-7. Sample Network Diagram
Created with Project 2013

1.6a 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
◦ They train, mentor and reward project management
expertise
◦ They use incubators and simulators to build strong PM
competencies into their best people

Figure 1-8. Growth in the Number of
Project Management Offices

1.6a 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

1.6b 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 449,000 members worldwide by late
2014
 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)

1.6c 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

Figure 1-9 Growth in PMP
Certification, 1993-2015

1.6d 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 PMI’s Code of Ethics and Professional
Conduct
 Several questions on the PMP exam are related to
professional responsibility, including ethics
1.6e 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 2013 most popular
◦ High-end tools: Also called enterprise project management
software, often licensed on a per-user basis
 Several free or open-source tools are also available

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

Chapter 2:
The Project Management
and Information Technology
Context
Information Technology
Project Management,
Eighth Edition
Note: See the text itself for full citations.

Learning Objectives
 Describe the systems view of project management
and how it applies to information technology (IT)
projects
 Understand organizations, including the four frames,
organizational structures, and organizational culture

 Explain why stakeholder management and top
management commitment are critical for a project’s

success

Learning Objectives
 Understand the concept of a project phase and
the project life cycle, and distinguish between
project development and product development
 Discuss the unique attributes and diverse nature
of IT projects
 Describe recent trends affecting IT project
management, including globalization, outsourcing,

virtual teams, and agile project management

Projects Cannot Be Run In Isolation
 Projects must operate in a broad organizational
environment
 Project managers need to use systems thinking:
◦ taking a holistic view of carrying out projects within the

context of the organization--all stakeholders, perspectives,
frames, viewpoints
 Senior managers must make sure projects
continue to support current business needs

A Systems View of Project Management
 Even though projects are temporary and intended to provide
unique products and services organizations can not run
projects in isolation.
 projects must operate in a broad organizational
environment, and project managers need to consider
projects within the greater organizational context.
 A systems approach emerged in the 1950s to describe a
more analytical approach to management and problem
solving
 Three parts include:
◦ Systems philosophy: an overall model for thinking about
things as systems, which are interacting components that
work within an environment to fulfill some purpose
◦ Systems analysis: problem-solving approach
◦ Systems management: address business, technological, and
organizational issues before making changes to systems
Case example
 Suppose you are assigned to study a project for a certain private college which
wants to have its adult education students leases laptops.
 Some of the business, organizational, and technological issues that you need to
consider in the project would be the following.
 Business:
• What will the laptop project cost the college?
• What will it cost students?
• What will support costs be?
What will the impact be in enrolment
Organizational:
• Will the laptop project affect all students, or only certain majors?
• How will the project affect students who already have PCs or laptops?
• Who will train students, faculty, and staff?
• Who will administer and support training?
Technological:
• What operating systems should the laptops use?
• What applications software will be loaded?
• What will the hardware specifications be?
• How will the hardware impact LAN and Internet access?

Figure 2-1. Three Sphere Model for
Systems Management

Figure 2-2. Perspectives on Organizations-
frames of organizations

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 Power can be defined as the ability to influence
the behavior of others and resist unwanted
influence in return.
 Politics is power in action
 Leaders use power as a means of attaining group
goals- leadership

What Went Wrong ?
 Many enterprise resource planning (ERP) projects fail due to
organizational issues, not technical issues. For example, Sobey’s
Canadian grocery store chain abandoned its two-year, $90 million
ERP system due to organizational problems.
 As Dalhousie University Associate Professor Sunny Marche states,
“The problem of building an integrated system that can
accommodate different people is a very serious challenge. You can’t
divorce technology from the sociocultural issues. They have an
equal role.” Sobey’s ERP system shut down for five days, and
employees were scrambling to stock potentially empty shelves in
several stores for weeks. The system failure cost Sobey’s more
than $90 million and caused shareholders to take an 82-cent after-
tax hit per share.*

What Went Wrong?
• In a paper titled “A Study in Project Failure,” two researchers
examined the success and failure of 214 IT projects over an
eight-year period in several European countries.
• The researchers found that only one in eight (12.5 percent) were
considered successful in terms of meeting scope, time, and cost
goals.
• The authors said that the culture within many organizations is
often to blame
• Among other things, people often do not discuss important
leadership, stakeholder, and risk management issues

Organizational Structures
 From the perspective of a project, organizational structures
can be divided into three groups: project friendly, not project
friendly, and a spectrum of types in between.
 Project-friendly organizations are project-oriented
organizations, and those with PMOs have high project
resource availability and employ fulltime project managers
with almost full authority.
 On the other hand, non– project friendly organizations, such
as functional—also called centralized— organizations have
little to no project resource availability, and they only hire part-
time project managers with little to no authority

Organizational Structures
 Three basic organization structures

◦ Functional: is the hierarchy most people think of when
picturing an organizational char.
◦ In this structure functional managers report to the
CEO(Staffs have specialized skills in their respective
disciplines)
◦ Example: Universities and Colleges
◦ Project: program managers report to the CEO instead of
functional managers or Vise presidents reporting to CEO
◦ Staffs have a varieties of skills needed to complete the
project within their programs.
◦ Matrix: middle ground between functional and project
structures; personnel often report to two or more bosses;
structure can be weak, balanced, or strong matrix
Functional Organization
 A functional organization has a traditional
organizational structure in which each functional
department, such as engineering, marketing, and
sales, is a separate entity. A typical functional
structure is shown in Figure 2-3, where each
member of each department (staff ) reports to the
functional manager of that department, and the
functional manager in turn reports to an executive,
such as the chief executive officer (CEO).

 Depending on the size of the organization, there could
be a hierarchy within the functional managers—for
example, directors of engineering, QA, and IT operations
reporting to the vice president (VP) of engineering, who
in turn reports to the CEO.
 The scope of a project in a functional organization is
usually limited to the boundaries of the functional
department.
 Therefore, each department runs its projects largely
independent of other departments. When communication
needs to occur between two departments, it is carried
out through the hierarchy of functional managers

 A project manager in a functional organization has
the following attributes:
◦ The project manager’s role and the project team are
part-time
◦ There is little or no authority over anything: resource
assignments, team members, and the like.
◦ The project manager reports directly to a functional
manager.
◦ There is little or no administrative staff to help the project
manager with the project.
◦ Little or no project resources are available.

Functional Organization of Projects
 Disadvantages
Advantages
1.
1. Lack
No Structural
of Focus Change
2.
2. Poor
Flexibility
Integration
3.
3. Slow
In-Depth Expertise
4.
4. Lack
Easyof
Post-Project
Ownership Transition
3–
96
A project-oriented Structure
 Organization’s structure is largely organized around
projects. Most of the organization’s resources are devoted
to projects. An ideal simple structure example for a project-
oriented organization is shown in Figure 2-3, where project
team members report directly to the project manager, who
has a great deal of independence and authority.
 Along with responsibility comes a high level of autonomy
over the projects. The project managers are happy
campers in a projectized organization.
 Functional organizations and project oriented
organizations are on opposite ends of the spectrum as far
as a project manager’s authority and project resource
availability.

Project Management Structures
(cont’d)
 Organizing Projects: Dedicated Teams
◦ Teams operate as separate units under the leadership of a full-
time project manager.
◦ In a projectized organization where projects are the dominant
form of business, functional departments are responsible for
providing support for its teams.
 A project manager in a projectized organization has the
following attributes:
◦ The project manager is fulltime.
◦ The project manager has full authority over the project team.
◦ There is fulltime administrative staff to help with the project
Copyright 2016 3–98

Project Organization: Dedicated Team
 Advantages  Disadvantages
1. Simple 1. Expensive
2. Fast 2. Internal Strife
3. Cohesive 3. Limited Technological
Expertise
4. Cross-Functional
Integration 4. Difficult Post-Project
Transition
Matrix organization
 A matrix organization is organized into functional
departments, but a project is run by a team that
may have members coming from different
functional departments.
 As shown in a simple example in Figure 2-3, the
project would be managed by a project manager

belonging to the functional department of project
management. Of course, project team members
would come from other departments

Matrix..
 On the spectrum of a project manager’s authority,
full- or part-time employment, and project
resource availability, matrix organizations come in
next to project-oriented organizations and PMOs.
 Matrix organizations are generally categorized into
◦ a strong matrix, which is closer to a project oriented

structure;
◦ a weak matrix, which is closer to a functional structure;
and
◦ a balanced matrix, which is in between strong and weak.

Project Management Structures
(cont’d)
 Organizing Projects: Matrix Structure
◦ Hybrid organizational structure (matrix) is overlaid on the
normal functional structure.
 Two chains of command (functional and project)
 Project participants report simultaneously to both functional
and project managers.
◦ Matrix structure optimizes the use of resources.
 Allows for participation on multiple projects while performing
normal functional duties.
 Achieves a greater integration of expertise and project
requirements.
3–
Copyright 2016 102
Figure 2-3. Functional, Project, and
Matrix Organizational Structures

Table 2-1. Organizational Structure
Influences on Projects

Functional Organizations
Dedicated Project Team
3–
10
6
Projectized Organizational Structure
3–
10
7
Matrix Organization Structure
Division of Project Manager and Functional
Manager Responsibilities in a Matrix Structure
Project Manager Negotiated Issues Functional Manager
What has to be done? Who will do the task? How will it be done?
When should the task be done? Where will the task be done?
How much money is available Why will the task be done? How will the project involvement
to do the task? impact normal functional activities?
How well has the total project Is the task satisfactorily How well has the functional
been done? completed? input been integrated?
3–
10
9
2.2c Organizational Culture
 Organizational culture is a set of shared assumptions,
values, and behaviors that characterize the functioning
of an organization
 Organizational culture refers to a system of shared
meaning held by members that distinguishes the
organization from other organizations
 Many experts believe the underlying causes of many
companies’ problems are not the structure or staff, but
the culture
 Challenge the CONVENTIONAL WISDOM when it
comes to organizational culture.

2.2c Ten Characteristics of
Organizational Culture
 Member identity*  Risk tolerance*
 Group emphasis*  Reward criteria*
 People focus  Conflict tolerance*
 Unit integration*  Means-ends
 Control orientation
 Open-systems focus*
*Project work is most successful in an organizational

culture where these items in red are strong/high and
other items are balanced.

2.3 Stakeholder Management
 Project stakeholders are the people involved in
or affected by project activities.
 Since the purpose of project management is to meet
project requirements and satisfy stakeholders, it

is critical that project managers take adequate
time to identify, understand, and manage
relationships with all project stakeholders.
 Senior executives/top management are very
important stakeholders
 The expectations of all project stakeholders is most
accurately met using the four frames of

 organizations.

Media Snapshot
 The media have often reported on mismanaged IT
projects, including the disastrous launch of the
website healthcare.gov in October 2013—they
spent > $300M on a website that did not work
 Forbes ran an article on called “Healthcare.gov:
Diagnosis: The Government Broke Every Rule of

Project Management”
 President Obama formed the “Obama Trauma
Team” of star performers from several

organizations to help fix the site

2.3a The Importance of Top
Management Commitment
 People in top management positions are key
stakeholders in projects
 A very important factor in helping project managers
successfully lead projects is the level of commitment

and support they receive from top management
 Without top management commitment, many
projects will fail—without top management

commitment, PM’s will not get the resources they
need.
 Some projects have a senior manager called a
champion who acts as a key proponent for a project.

2.3a How Top Management Can Help
Project Managers
 Providing adequate resources
 Approving unique project needs in a timely
manner
 Getting cooperation from other parts of the
organization
 Mentoring and coaching on leadership issues and
learn how to be a good leader

2.3a Best Practice
 IT governance addresses the authority and
control for key IT activities in organizations,
including IT infrastructure, IT use, and project
management
 A lack of IT governance can be dangerous, as
evidenced by three well-publicized IT project

failures in Australia (Sydney Water’s customer
relationship management system, the Royal
Melbourne Institute of Technology’s academic
management system, and One.Tel’s billing
system)
2.3a Need for Organizational Commitment
to Information Technology (IT)
 If the organization has a negative attitude toward
IT, it will be difficult for an IT project to succeed
 Having a Chief Information Officer (CIO) at a high
level in the organization helps IT projects

◦ Must be a visionary—lead through vision and example
◦ Must not be a command-and-control person
 Assigning non-IT people to IT projects also
encourages more commitment

2.3c The Need for Organizational
Standards
 Standards and guidelines help project managers
be more effective
 Senior management can encourage
◦ the use of standard forms and software for project

management
◦ the development and use of guidelines for writing project
plans or providing status information
◦ the creation of a project management office or center of
excellence

2.4 Project Phases and the Project Life Cycle
 A project life cycle is a collection of project phases
that defines
◦ what work will be performed in each phase
◦ what deliverables will be produced and when
◦ who is involved in each phase, and
◦ how management will control and approve work produced in each phase
 Project phases vary by project or industry, but some general phases
include concept, development, implementation, and closeout.
◦ The first two phases (concept and development) focus on planning and
are often referred to as project feasibility.
◦ The last two phases (implementation and closeout) focus on
delivering the actual work and are often referred to as project
acquisition.
◦ A project must successfully complete each phase before moving
on to the next.
 A deliverable is a product or service produced or provided
as part of a project
Project Life Cycle
 Figure 2.2 provides a summary framework for the general phases of the
project life cycle.
 In the concept phase of a project, managers usually describe the project.
In this phase:
• A very high level or summary plan for the project, which describes the
need for the project and basic underlying concepts, is developed.
• A preliminary or rough cost estimate of the project is developed.
• An overview of the work involved (work breakdown structure (WBS)) is
created.
 After the concept phase is completed, the development phase of the
project begins. In the development phase, the project team creates:
• a more detailed project plan,
• a more accurate cost estimate, and
• a more thorough WBS.

Phases of the Traditional Project Life
Cycle
121 Copyright 2016

Project phases described
 The third phase of the project life cycle is implementation. In this
phase, the project team delivers:
• the required work,
• definitive or very accurate cost estimate, and
• performance reports.
 The last phase of the project life cycle is closeout. In the closeout
phase:
• All of the work is completed.
• Consumer acceptance of the entire project is issued.
• The project team documents their experiences on the project in
a lessons learned report.

Project Phases….
 In the early phases of a project life cycle:
 resource needs are lowest,
the level of uncertainty (risk) highest and
project stakeholders have the greatest opportunity
to influence the project.

 In the middle phases of a project life cycle:
 the certainty of completing a project increases
and more resources are needed.

And in the final phase of a project life cycle:
 the focus is on ensuring that project
requirements were met and the sponsor approves

completion of the project

2.4 More on Project Phases
 In early phases of a project life cycle
◦ resource needs are usually lowest
◦ the level of uncertainty (risk) is highest
◦ project stakeholders have the greatest opportunity to
influence the project
 In middle phases of a project life cycle
◦ the certainty of completing a project improves
◦ more resources are needed
 The final phase of a project life cycle focuses on
◦ ensuring that project requirements were met
◦ the sponsor approves completion of the project

2.4a Product Life Cycles PMBOK
 Products also have life cycles
 The Systems Development Life Cycle (SDLC) is
a framework for describing the phases involved in

developing and maintaining information systems
 Systems development projects can follow:
◦Predictive life cycle: the scope of the project

can be clearly articulated and the schedule and cost can
be predicted
◦Adaptive Software Development (ASD)
life cycle: requirements cannot be clearly expressed,
projects are mission driven and component based, using
time-based cycles to meet target dates

2.4a Predictive Life Cycle Models
 Waterfall model: has well-defined, linear stages
of systems development and support
 Spiral model: shows that software is developed
using an iterative or spiral approach rather than a
linear approach
 Incremental build model: provides for
progressive development of operational software
 Prototyping model: used for developing
prototypes to clarify user requirements
 Rapid Application Development (RAD) model:
used to produce systems quickly without
sacrificing quality using time-boxes

Figure 2-5. Waterfall and Spiral Life
Cycle Models

2.4a Agile Software Development
 Is an Adaptive Lifecycle approach
 Is a time-boxed approach, usually
 Agile software development has become popular
to describe new approaches that focus on close

collaboration between programming teams and
business experts
 Includes Scrum, Extreme programming and RUP

Distinguishing Project Life Cycles
and Product Life Cycles
 The project life cycle applies to all projects,
regardless of the products being produced
 Product life cycle models vary considerably based
on the nature of the product

 Most large IT systems are developed as a series
of projects
 Project management is done in all of the product
life cycle phases
Copyright 2016 129

The Importance of Project Phases and
Management Reviews
 A project should successfully pass through each
of the project phases in order to continue on to the
next
 Management reviews, also called phase exits or
kill points, should occur after each phase to

evaluate the project’s progress, likely success,
and continued compatibility with organizational
goals

What Went Right?
"The real improvement that I saw was in our ability toin the words of Thomas
Edisonknow when to stop beating a dead horse.…Edison's key to success was that
he failed fairly often; but as he said, he could recognize a dead horse before it started
to smell...In information technology we ride dead horsesfailing projectsa long
time before we give up. But what we are seeing now is that we are able to get off
them; able to reduce cost overrun and time overrun. That's where the major impact
came on the success rate.”*
Many organizations, like Huntington Bancshares, Inc., use an executive steering

committee to help keep projects on track.
Some projects still go on a long time before being killed, like Blizzard’s Titan game
project.
*Cabanis, Jeannette, "'A Major Impact': The Standish Group's Jim Johnson On Project
Management and IT Project Success," PM Network, PMI, Sep.1998, p. 7

2.5 The Context of IT Projects
 IT projects can be very diverse in terms of size,
complexity, products produced, application area,
and resource requirements
 IT project team members often have diverse
backgrounds and skill sets—not all are actually IT

types.
 IT projects use diverse technologies that change
rapidly. Even within one technology area, people

must be highly specialized

2.6 Recent Trends Affecting IT
Project Management
 Globalization: lower trade and political barriers
and the digital revolution have made it possible to
interact almost instantaneously with billions of
other people across the planet
 Outsourcing: outsourcing is when an organization
acquires goods and/or sources from an outside
source; offshoring is sometimes used to describe
outsourcing from another country
 Virtual teams: a virtual team is a group of
individuals who work across time and space using
communication technologies
133 Copyright 2016

2.6a Important Issues and
Suggestions Related to Globalization
 Issues
◦ Communications
◦ Trust
◦ Common work practices
◦ Tools
 Suggestions
◦ Employ greater project discipline
◦ Think global but act local
◦ Keep project momentum going
◦ Use newer tools and technology

2.6b Outsourcing
 Organizations remain competitive by using
outsourcing to their advantage, such as finding
ways to reduce costs
 Their next challenge is to make strategic IT
investments with outsourcing by improving their

enterprise architecture to ensure that IT
infrastructure and business processes are
integrated and standardized (See Suggested
Readings)
 Project managers should become more familiar with
negotiating contracts and other outsourcing issues

2.6b Global Issues
 Outsourcing also has disadvantages. For example,
Apple benefits from manufacturing products in China,
using FoxConn—FoxConn had significant human rights
violations—people working 32 hrs at a time without sleep
and then committing suicide

2.6c Virtual Teams Advantages
 Increasing competiveness and responsiveness
by having a team of workers available 24/7
 Lowering costs because many virtual workers
do not require office space or support beyond

their home offices.
 Providing more expertise and flexibility by
having team members from across the globe

working any time of day or night
 Increasing the work/life balance for team
members by eliminating fixed office hours and

the need to travel to work.
2.6c Virtual Team
Disadvantages
 Isolating team members
 Increasing the potential for communications
problems
 Reducing the ability for team members to network
and transfer information informally

 Increasing the dependence on technology to
accomplish work
 See text for a list of factors that help virtual teams
succeed, including team processes,

trust/relationships, leadership style, and team
member selection
2.6d Agile Project Management
 Agile means being able to move quickly and easily, but some
people feel that project management, as they have seen it
used, does not allow people to work quickly or easily.
 Early software development projects often used a waterfall
approach, as defined earlier in this chapter. As technology
and businesses became more complex, the approach was
often difficult to use because requirements were unknown or
continuously changing.
 Agile today means using a method based on iterative and
incremental development, in which requirements and
solutions evolve through collaboration.
 See the Resources tab from www.pmtexts.com for more info

2.6d Agile Makes Sense for Some
Projects, But Not All
 Many seasoned experts in project management warn
people not to fall for the hype associated with Agile.
 For example, J. Leroy Ward, Executive Vice President
at ESI International, said that “Agile will be seen for

what it is … and isn’t….Project management
organizations embracing Agile software and product
development approaches will continue to grow while
being faced with the challenge of demonstrating ROI
through Agile adoption.”*
*J. Leroy Ward, “The Top Ten Project Management Trends for 2011,” projecttimes.com
(January 24, 2011).

2.6e Manifesto for Agile Software
Development
 In February 2001, a group of 17 people that called
themselves the Agile Alliance developed and agreed
on the Manifesto for Agile Software Development, as
follows:
 “We are uncovering better ways of developing
software by doing it and helping others do it. Through

this work we have come to value:
 Individuals and interactions over processes and tools
 Working software over comprehensive documentation
 Customer collaboration over contract negotiation
 Responding to change over following a plan”*
*Agile Manifesto, www.agilemanifesto.org.
2.6f Scrum
 According to the Scrum Alliance, Scrum is the
leading agile development method for
completing projects with a complex, innovative
scope of work.
 The term was coined in 1986 in a Harvard
Business Review study that compared high-

performing, cross-functional teams to the scrum
formation used by rugby teams.

Figure 2-6. Scrum Framework

2.6f Kanban
 Technique that can be used in conjunction with
scrum
 Developed in Japan by Toyota Motor Corporation
 Uses visual cues to guide workflow
 Kanban cards show new work, work in progress,
and work completed

 Allows the customer to PULL projects from the
Scrum list through the development process.

2.6g Agile, the PMBOK® Guide, and a
New Certification
 The PMBOK® Guide describes best practices for what
should be done to manage projects.
 Agile is a methodology that describes how to manage
projects.
 The Project Management Institute (PMI) recognized
the increased interest in Agile, and introduced a new
certification in 2011 called Agile Certified
Practitioner (ACP).
 Seasoned project managers understand that they have
always had the option of customizing how they run
projects, but that project management is not easy, even
when using Agile.
Chapter Summary
 Project managers need to take a systems approach
when working on projects
 Organizations have four different frames: structural,
human resources, political, and symbolic
 The structure and culture of an organization have
strong implications for project managers
 Projects should successfully pass through each phase
of the project life cycle
 Project managers need to consider several factors due
to the unique context of information technology
projects
 Recent trends affecting IT project management include
globalization, outsourcing, virtual teams, and Agile


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Hawassa University

Course: Information Systems

Instructor: Belilign Teferi

Information Technology Project

Note: See the text itself for full citations.

Information Technology Project

Information Technology Project

Information Technology Project

Information Technology Project

Information Technology Project

and others are to support what are called

performs ongoing tasks.

Information Technology Project

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objectives, a project ends when its objectives are

Information Technology Project

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Information Technology Project

the most popular category of all apps continues to be

workers to focus on them instead of the many

Information Technology Project

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for the end product—that is, the outcome of the

product that you want from the project, the more

Information Technology Project

is called progressive elaboration.

Information Technology Project

DELIVERABLES WITH SPECIFIC DUE DATES

Information Technology Project

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constraint (project scope, time, and cost goals)

Information Technology Project

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tasks for the project stakeholders.

Information Technology Project

also in managing all aspects of the project, you

Information Technology Project

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. B. Scope 2. Manage interdependencies among different processes belonging to different knowledge

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Information Technology Project

in all 10 knowledge areas (project integration,

knowledge area and is patterned after PMBOK in

Information Technology Project

◦ Project charter, scope statement, and WBS (scope)

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