Introduction: Why Project

Management?
Chapter 1

© 2007 Pearson Education 1-1

 Introduction
• Examples of projects
– Split the atom
– Chunnel between England and France
– Introduce Windows XP

“Projects, rather than repetitive tasks, are now the

basis for most value-added in business”
-Tom Peters

1-2
 What is a Project?
Project Process
• Take place outside the • Ongoing, day-to-day
process world activities
• Unique and separate • Use existing systems,
from normal properties, and
organization work capabilities

A project is a unique venture with a beginning

and an end, conducted by people to meet
established goals within parameters of cost,
schedule and quality.

1-3
 Elements of Projects
• Complex, one-time processes

• Limited by budget, schedule, and resources

• Developed to resolve a clear goal or set of

goals

• Customer-focused

1-4
 General Project Characteristics (1/2)
• Ad-hoc endeavors with a clear life cycle

• Building blocks in the design and execution of

organizational strategies

• Responsible for the newest and most improved

products, services, and organizational processes

• Provide a philosophy and strategy for the management

of change

1-5
 General Project Characteristics (2/2)
• Entail crossing functional and organization boundaries

• Traditional management functions of planning,

organizing, motivating, directing, and controlling apply

• Principal outcomes are the satisfaction of customer

requirements within technical, cost, and schedule
constraints

• Terminated upon successful completion

1-6
 Process & Project Management (Table 1.1)

Process Project
1. Repeat process or product 1. New process or product
2. Several objectives 2. One objective
3. On-going 3. One shot – limited life
4. People are homogeneous 4. More heterogeneous
5. Systems in place 5. Systems must be created
6. Performance, cost, & time known 6. Performance, cost & time less
certain
7. Part of the line organization 7. Outside of line organization
8. Bastions of established practice 8. Violates established practice
9. Supports status quo 9. Upsets status quo

1-7
 Information Technology Project “Success”

• Software & hardware projects fail at a 65% rate

• Over half of all IT projects become runaways

• Up to 75% of all software projects are cancelled

• Average cost overrun is 45%; schedule overrun is 63%;

with only 67% of originally contracted features

• 47% of IT projects delivered but not used, 29% paid for

but not delivered; 19% abandoned

1-8
 Why are Projects Important?
1. Shortened product life cycles
2. Narrow product launch windows
3. Increasingly complex and technical products
4. Emergence of global markets
5. Economic period marked by low inflation

1-9
 Project Life Cycles
Man Hours

Conceptualization Planning Execution Termination

1-10
 Project Life Cycles and Their Effects
Client Interest

Project Stake

Resources

Creativity

Uncertainty

Conceptualization Planning Execution Termination

1-11
Determinants of Project Success

Client
Budget Acceptance

Success

Schedule Performance

1-12
 Six Criteria for IT Project Success

• System quality
• Information quality
• Use
• User satisfaction
• Individual Impact
• Organizational impact

1-13
Four Dimensions of Project Success
Importance

4
Preparing for
The Future
3
Business
2 Success
1 Impact on
Project Customer
Efficiency

Project Time
Completion

1-14
 Developing Project Management Maturity

Project management maturity models

– Center for business practices
– Kerzner’s project management maturity model
– ESI International’s project framework
– SEI’s capability maturity model integration

1-15
 Spider Web Diagram
Project Scheduling
3
Personnel Development for 2.5 Structural Support for
Projects 2 Project Management
1.5
1
0.5
Networking Between
0 Portfolio Management
Projects

Project Stakeholder Coaching, Auditing and

Management Evaluating Proejcts

Control Practices

1-16
Project Management Maturity
Generic Model

High
Maturity
Institutionalized,
seeks continuous
improvement

Moderate Maturity
Defined practices, training programs,
organizational support

Low Maturity
Ad hoc process, no common language, little support
1-17
Project Elements and
Text Organization

1-18