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Portfolio and
Project Management Collection
Timothy Kloppenborg, Editor
Information
Systems
Project
Management
David Olson
Information Systems
Project Management
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Information Systems
Project Management
David L. Olson
University of Nebraska—Lincoln
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Information Systems Project Management
Copyright © Business Expert Press, LLC, 2015.
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Table of Contents
Chapter 1 Introduction to Project Management...........................1
PART I The Human Element..................................................... 15
Chapter 2 Human Factors in Information
Systems Project Management...........................................17
Chapter 3 Project Organization........................................................31
PART II Project Adoption and Planning..................................... 41
Chapter 4 Project Selection and Approval.........................................43
Chapter 5 System Development.......................................................65
PART III Tools............................................................................. 91
Chapter 6 Estimation.......................................................................93
Chapter 7 Quantitative Project Scheduling Methods......................117
PART IV Project Completion................................................... 149
Chapter 8 Project Control and Assessment.....................................151
Chapter 9 Project Implementation..................................................169
References............................................................................................179
Index..................................................................................................181
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Preface
This book addresses project management in the context of information
systems. It deals with general project management principles, with focus
on the special characteristics of information systems. It is based on an
earlier text,1 but shortened to focus on essential project management
elements.
An introductory chapter discusses project features in general. The systems
perspective provides a useful framework for project analysis. The systems view
is a concept useful for better understanding project purposes. Systems theory
is important in project management because of the unintended c onsequences
often encountered in projects due to complex interrelationships of system
components. By viewing projects as systems, some of these unintended con-
sequences may be anticipated, and prepared for.
Part I of the book focuses attention on the important human element
in information systems projects. Chapter 2 is new, concerning human
factors in information systems projects. Getting people to work toward
the same ends is key to the success of any group activity. Even though
information systems projects involve many technical matters, the human
element continues to be critical. Chapter 3 discusses project organiza-
tional structure. Alternative forms of organization are discussed, focusing
on those that have been successfully applied to project management. The
abilities of various alternative organizational forms to deal with project
uncertainty are discussed.
Part II discusses two processes involved in the initial project definition
stage. Chapter 4 discusses issues concerning the adoption of proposed
projects. A number of quantitative methods are demonstrated, includ-
ing multiple objective analysis. Chapter 5 discusses systems development
options.
Part III involves planning. The planning stage involves specific identi-
fication of how projects are going to be accomplished. Chapter 6 reviews
project estimation practice. Some of the quantitative methods used are
demonstrated. Chapter 7 presents and demonstrates deterministic critical
path methods, and discusses resource leveling and constraining.
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viii PREFACE
References
1 D.L. Olson. 2004. Introduction to Information Systems Project Management
(Englewood Cliffs, NJ: McGraw-Hill/Irwin).
2 Project Management Institute. 2013. Guide to the Project Management Body of
Knowledge (PMBOK Guide) (Newtown Square, PA: PMI).
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CHAPTER 1
Introduction to Project
Management
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2 INFORMATION SYSTEMS PROJECT MANAGEMENT
What Is a Project?
A project involves getting a new, complex activity accomplished. Many
activities qualify as projects. Building the Golden Gate Bridge, transport-
ing the Statue of Liberty across the Atlantic, and the attempt to elect Mitt
Romney President were all major projects. So were the development of
the atomic bomb and sending men to the moon.
Each political campaign is a marketing project, just like other market-
ing projects to sell new products. You have each written a paper, which
was assigned as a “project.” These projects involved researching some
topic, and organizing ideas into a cohesive, rational whole. In football,
developing a promising young quarterback prospect is often a multiyear
project, including intensive coaching to learn the team’s offense, to learn
the style of teammates, development of leadership skills, passing tech-
nique, and building endurance and strength. What television viewers
might view as natural talent may have involved the closely planned and
coordinated activities of quite a large number of people.
Projects:
• Constructing something
• a road, a dam, a building, an information system
• Organizing something
• a meeting, an election campaign, a symphony, a movie
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INTRODUCTION TO PROJECT MANAGEMENT 3
Project Characteristics
Because projects involve new activities, they typically involve high levels
of uncertainty and risk. One of the reasons assembly line operations are
efficient is that everyone does the same thing over and over, hour after
hour, day after day, year after year. This repetitiveness allows high degrees
of specialization, which in turn enables greater productivity. The activities
of many different people and machines can be balanced for maximum
efficiency in an assembly line operation. Projects involve lower degrees
of efficiency than are obtained in assembly line operations.
Because of this higher degree of uncertainty, it is much more difficult
to estimate the level of resources required to accomplish a project than
it is for other forms of productive organizations. It is also more diffi-
cult to estimate the time required (which amounts to another resource).
Many projects are late, but not all projects take longer than estimated.
The Russian atomic bomb project was completed ahead of schedule, and
about the same time, the U.S. U-2 airplane project was finished in about
one-tenth of the estimated time. Yet, projects finished ahead of schedule
are still rare. Projects are collections of activities. If one activity is late,
other activities often have to wait for it to finish. If an activity is ahead
of schedule, those doing the work tend to be more careful, or slow down
for other reasons. Following activities often cannot start early anyway,
as the people and materials for following activities may not be available
until the originally scheduled starting time. For these and other reasons,
it is far more common for projects to be late than to be finished early.
Because of their temporary nature, projects inevitably involve gather-
ing together a diverse group of specialists to accomplish a variety of tasks.
Project team members often will not know each other very well, at least in
the beginning of the project. They will tend to be quite different people,
with different skill sets and interests. The primary feature of a project is that
it is a set of temporary activities conducted by ad hoc organizations.
Information systems projects have many similarities to generic projects.
They consist of activities, each with durations, predecessor relationships,
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INTRODUCTION TO PROJECT MANAGEMENT 5
Dimensions of Complexity
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6 INFORMATION SYSTEMS PROJECT MANAGEMENT
making initial estimates intentionally low to get work. This bias improves
the probability of getting work, which is often negotiated on a cost-plus
basis. This practice is not at all recommended, as it leads to a bad rep-
utation when initial promises are not kept. Furthermore, it has ethical
ramifications with respect to truth in advertising. An additional factor in
project lateness is that large government projects are the most commonly
reported. These projects tend to be very complex, and often run over in
time and budget. How many times have you read about a government
project of significant magnitude taking less time than estimated? Since
there is a strong correlation between time and money, late projects almost
always cost more than expected. When was the last time you heard of a
government project having a cost underrun?
General project management is a field that has developed primarily
since World War II. With more complex undertakings, many project
management principles have developed. They typically involve a cost/
time/quality tradeoff, found in almost any project. Specifically in the
information systems field, this tradeoff can be stated as follows:
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INTRODUCTION TO PROJECT MANAGEMENT 7
In the field of information systems, there is an old adage that you can
have any two of three things in a project. You can get it done on time,
you can get it done within budgeted cost, or you can get it done well.
If you are willing to wait, you can get the job done right within cost.
If you are willing to spend the money, you can get a good job done
quickly. Or, you can get the job done on time and within budget, with
the only reservation being that it will not perform as specified.
Modern Business
Business has grown much more complex, with interrelated currencies and
stock markets. The pace of business is at the speed of light, as stock trading
is conducted electronically, oftentimes by artificial intelligence systems.
Information technology markets are less predictable. The outputs of many
companies are tied together through just-in-time systems with dedicated
suppliers. At the output end of production, producers and retailers are
often connected through electronic data interchange. The international
aspect of business is typified by new arrangements such as GATT, NAFTA,
and the European Economic Community. The rapid pace of change has
resulted in the disappearance of many companies, age-old organizations
like the Southwest Conference, and entire countries like the Soviet Union.
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INTRODUCTION TO PROJECT MANAGEMENT 9
Project Entities
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INTRODUCTION TO PROJECT MANAGEMENT 11
Client involvement
Top management support
Clear statement of project objectives
Summary
Project management has many features different from those of repetitive
operations. These include:
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12 INFORMATION SYSTEMS PROJECT MANAGEMENT
to do. Systems designers need to be involved to make sure that new systems
fit in with the overall organizational information system. Programmers
need to be involved to ensure realistic production rates. End users need
to be involved to ensure the quality of systems by making sure that they
are usable and useful. After planning is completed, there need to be many
meetings to coordinate the project through completion and acceptance.
This book is based on an earlier text,2 but shortened to focus on e ssential
project management elements. This chapter has presented various statistics
indicating endemic problems in completing information system projects on
time, within budget, at designed functionality. While successful completion
of an information systems project is a challenge, there are some things that
can be done to improve the probability of project success. This book reviews
a number of project management tools. These include developing organiza-
tional ability to work on projects, discussed in Chapters 2 and 3. Sponsor
expectations can be based upon better information if a good job of project
selection is conducted, discussed in Chapter 4. Better systems analysis and
design (Chapter 5) and project estimation (covered in Chapter 6) can assure
that the proper skills are acquired to develop the project. Project management
tools (Chapter 7) can assist project managers in coordinating the project ef-
fort, as can project management software such as Microsoft Project. Chapter 8
will return to the importance of critical success factors in the context of project
implementation. Chapter 9 will discuss project control and termination.
Glossary
Control subsystem: Means by which project management directs project
activities.
Project: A unique, one-time activity to develop something new.
Project board: Management group causing the project to be undertaken
(synonyms: sponsor, stakeholders).
Project champion: One who sponsors a project and performs the role of
maintaining organizational support for it.
Project failure: Failure of the project to be completed on time, within
budget, and with designed functionality. In a stricter sense, failure of the
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INTRODUCTION TO PROJECT MANAGEMENT 13
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14 INFORMATION SYSTEMS PROJECT MANAGEMENT
References
1 P. Simon. 2010. Why New Systems Fail: An Insider’s Guide to Successful IT
Projects (Independence, KY: Cengage Learning).
2 D.L. Olson. 2004. Introduction to Information Systems Project Management
(Englewood Cliffs, NJ: McGraw-Hill/Irwin).
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PART I
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