The Project Management and Information

Technology Context

Week 02
Mr. Godson
 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
• Understand the concept of a project phase and the project life cycle
• Discuss the unique attributes and diverse nature of IT projects
• Describe recent trends affecting IT project management

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 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
• Senior managers must make sure projects continue to support current business needs

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 A Systems View of Project Management

• 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
– Systems analysis: problem-solving approach
– Systems management: address business, technological, and organizational issues before
making changes to systems

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 Three Sphere Model for Systems Management

• This model shows the need to recognize the effects of any project on the interests
and needs of the entire system or organization
• Many IT professionals become captivated with the technology and day-to-day
problem solving involved in working with information systems but tend to become
frustrated with many of the “people problems” or politics involved
• Using a more holistic approach helps project managers integrate business and
organizational issues into their planning and look at projects as a series of interrelated
phases

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 Three Sphere Model for Systems Management

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 Understanding Organizations

• The systems approach requires that project managers always view their projects in
the context of the larger organization
• Organizational issues are often the most difficult part of working on and managing
projects
• To improve the success rate of IT projects, it is important for project managers to
develop a better understanding of people as well as organizations
• Organizations can be viewed as having four different frames: structural, human
resources, political, and symbolic

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 Perspectives on Organizations

Structural frame: Deals with how the Human resource frame: Focuses on
organization is structured, roles and providing harmony between needs of
responsibilities of different groups, the organization and needs of people.
focusing on coordination and control.
Organizational charts help describe this
frame.
Political frame: Addresses Symbolic frame: Focuses on symbols
organizational and personal politics. and meanings related to events.
Coalitions composed of varied Culture, language, traditions, and image
individuals and interest groups. Conflict are all part of this frame.
and power are key issues.

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 Organizational Structures

• There are three basic organization structures

– Functional: the hierarchy most people think of when picturing an organizational chart, in
which functional managers report to the CEO. Their staffs have specialized skills in their
respective disciplines
– Project: is also hierarchical, but instead of functional managers or vice presidents reporting
to the CEO, program managers report to the CEO. Their staffs have a variety of skills needed
to complete the projects within their programs
– Matrix: middle ground between functional and project structures; personnel often report
to a functional manager and one or more project managers; structure can be weak,
balanced, or strong matrix

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 Functional Organizational Structures

CEO

VP
VP Engineering VP IT VP HR
Manufacturing

Staff Staff Staff Staff

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 Project Organizational Structures

CEO

Program Program Program Program

Manager A Manager B Manager C Manager D

Staff Staff Staff Staff

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 Matrix Organizational Structures

CEO

Program VP
VP Engineering VP IT VP HR
Managers Manufacturing

Staff Staff Staff Staff Staff

Program 1
2 engineering 3.5 IT 0.5 HR
Manager A manufacturing

Program 3
5 engineering 10 IT 1 HR
Manager B manufacturing

Program 0
1 engineering 4 IT 0.1 HR
Manager C manufacturing

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 Organizational Culture

• Organizational culture is a set of shared assumptions, values, and behaviors that

characterize the functioning of an organization
• Project work is most successful in an organizational culture where employees identify
more with the organization, where work activities emphasize groups, and where
there is strong unit integration, high risk tolerance, performance-based rewards, high
conflict tolerance, an open-systems focus, and a balanced focus on people, control,
and means orientation.

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 Characteristics of Organizational Culture

• Member identity – The degree to which employees identify with the organization as a
whole rather than with their type of job or profession
• Group emphasis – The degree to which work activities are organized around groups
or teams, rather than individuals
• People focus – The degree to which management’s decisions take into account the
effect of outcomes on people within the organization
• Unit integration – The degree to which units or departments within an organization
are encouraged to coordinate with each other

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 Characteristics of Organizational Culture (cont.)

• Control – The degree to which rules, policies, and direct supervision are used to
oversee and control employee behaviour
• Risk tolerance – The degree to which employees are encouraged to be aggressive,
innovative, and risk seeking
• Reward criteria – The degree to which rewards, such as promotions and salary
increases, are allocated according to employee performance rather than seniority,
favouritism, or other non-performance factors

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 Characteristics of Organizational Culture (cont.)

• Conflict tolerance – The degree to which employees are encouraged to air conflicts
and criticism openly
• Means-ends orientation – The degree to which management focuses on outcomes
rather than on techniques and processes used to achieve results
• Open-systems focus – The degree to which the organization monitors and responds
to changes in the external environment

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 Stakeholder Management

• Project managers must take time to identify, understand, and manage relationships
with all project stakeholders
• Using the four frames of organizations can help meet stakeholder needs and
expectations
• Senior executives/top management are very important stakeholders

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 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.
• Some projects have a senior manager called a champion who acts as a key proponent
for a project.

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 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

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 Need for Organizational Commitment to 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
• Assigning non-IT people to IT projects also encourage more commitment

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 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

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 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
• A deliverable is a product or service produced or provided as part of a project

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 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

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 Phases of the Traditional Project Life Cycle

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 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

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 Waterfall Life Cycle Model

• It has well-defined, linear stages of systems analysis, design, construction, testing,

and support
• It assumes that requirements will remain stable after they are defined
• It is used when risk must be tightly controlled and when changes must be restricted
after the requirements are defined
• It is used in many large-scale systems projects where complexity and cost are so high
that the more rigid steps of the approach help to ensure careful completion of all
deliverables

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 Spiral Life Cycle Model

• It was developed based on refinements of the waterfall model as applied to large

government software projects
• It recognizes the fact that most software is developed using an iterative or spiral
approach rather than a linear approach
• The project team is open to changes and revisions later in the project life cycle, and
returns to the requirements phase to more carefully clarify and design the revisions
• This approach is suitable for projects in which changes can be incorporated with
reasonable cost increases or with acceptable time delays

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 Waterfall and Spiral Life Cycle Models

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 Incremental Build Life Cycle Model

• It provides for progressive development of operational software, with each release

providing added capabilities
• This type of approach is often used by organizations like Microsoft, which issues a
specific release of a software package while working on future revisions that will be
distributed later in another release with a higher “build” or version number
• This approach helps to stage the priorities of the package’s features and functions
with user priorities or the costs, time, and scope of the system revisions.

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 Prototyping Life Cycle Model

• It is used for developing software prototypes to clarify user requirements for

operational software
• It requires heavy user involvement, and developers use a model to generate
functional requirements and physical design specifications simultaneously
• Developers can throw away or keep prototypes, depending on the project
• This approach is often used in systems that involve a great deal of user interface
design, such as Web site projects or mobile applications.

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 RAD Life Cycle Model

• It uses an approach in which developers work with an evolving prototype and also
requiring heavy user involvement to help produce systems quickly without sacrificing
quality
• RAD tools such as CASE, joint requirements planning, and joint application design, are
used to facilitate rapid prototyping and code generation
• Tools are used in reporting systems in which programmers enter parameters to
generate reports for user approval and generate of the final production system
without further modification by the programmer

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 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

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 Nature of IT Project Management

• Unlike projects in many other industries, IT projects can be very diverse

• Some involve a small number of people installing off-the-shelf hardware and
associated software. Others involve hundreds of people analysing several
organizations’ business processes and then developing new software in a
collaborative effort with users to meet business needs
• IT projects also support every possible industry and business function

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 Recent Trends Affecting IT Project Management

• Globalization
• 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
• Agile project management

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 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

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 Outsourcing

• Outsourcing is an organization’s acquisition of goods and services from an outside

source
• The term offshoring is sometimes used to describe outsourcing from another country,
which is the natural growth of globalization
• IT projects continue to rely more and more on outsourcing, both within and outside
their country boundaries

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 Virtual Teams

• A virtual team is a group of people who work together despite time and space
boundaries using communication technologies
• Team members might all work for the same company in the same country, or they
might include employees as well as independent consultants, suppliers, or even
volunteers providing their expertise from around the globe

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 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.

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 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

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 Agile Project Management

• Early software development projects often used a waterfall approach, as defined

earlier. 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.

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 Manifesto for Agile Software Development

• In February 2001, a group of 17 people that called itself 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”

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 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.

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 Scrum Framework

• A product owner creates a prioritized wish list called a product backlog

• During sprint planning, the team pulls a small chunk from the top of that wish list, a
sprint backlog, and decides how to implement those pieces
• The team has a certain amount of time, a sprint, to complete its work – usually two to
four weeks – but meets each day to assess its progress (daily Scrum)
• Along the way, the ScrumMaster keeps the team focused on its goal

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 Scrum Framework (cont.)

• At the end of the sprint, the work should be potentially shippable, as in ready to hand
to a customer, put on a store shelf, or show to a stakeholder
• The sprint ends with a sprint review and retrospective
• As the next sprint begins, the team chooses another chunk of the product backlog
and begins working again
• The cycle repeats until enough items in the product backlog have been completed,
the budget is depleted, or a deadline arrives

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 Scrum Framework (cont.)

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 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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 Discussion Questions

• What does it mean to take a systems view of a project? How does taking this view
apply to project management?
• Explain the four frames of organizations. How can they help project managers
understand the organizational context for their projects?
• Briefly explain the differences between functional, matrix, and project organizations.
Describe how each structure affects the management of the project.

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 Discussion Questions

• Describe how organizational culture is related to project management. What type of

culture promotes a strong project environment?
• What are the phases in a traditional project life cycle? How does a project life cycle
differ from a product life cycle? Why does a project manager need to understand
both?
• Define globalization, outsourcing, virtual teams, and agile project management, and
describe how these trends are changing IT project management.

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