Solve all three files

College of Computing and Informatics
Assignment 1
Deadline: Wednesday 4/1/2023 @ 23:59
[Total Mark for this Assignment is 8]
Student Details:
Name: ###
ID: ###
CRN: ###
Instructions:
• You must submit two separate copies (one Word file and one PDF file) using the Assignment Template on
Blackboard via the allocated folder. These files must not be in compressed format.
• It is your responsibility to check and make sure that you have uploaded both the correct files.
• Zero mark will be given if you try to bypass the SafeAssign (e.g. misspell words, remove spaces between
words, hide characters, use different character sets, convert text into image or languages other than English
or any kind of manipulation).
• Email submission will not be accepted.
• You are advised to make your work clear and well-presented. This includes filling your information on the cover
page.
• You must use this template, failing which will result in zero mark.
• You MUST show all your work, and text must not be converted into an image, unless specified otherwise by
the question.
• Late submission will result in ZERO mark.
• The work should be your own, copying from students or other resources will result in ZERO mark.
• Use Times New Roman font for all your answers.
Question One
Pg. 01
Learning
Outcome(s):
CLO1 Define the
job roles of an IT
project manager
and the key
elements of the
project
management
lifecycle.
Question One
2 Marks
Every project is often constrained by its scope, time, and cost. These three factors are
referred to as the triple constraint and must remain in balance. Explain with an example
of how you would apply the triple constraint to meet the project success criteria.
Question Two
Pg. 02
Learning
Outcome(s):
CLO2 State the
best practices in
the IT project
management
processes.
Question Two
2 Marks
You are an IT project manager at a tech company. You have been tasked to develop a
web-based application for a local hospital. This application includes features such as
storing patient files, scheduling doctor’s appointments, arranging lab work, and
monitoring patients’ health. The current requirements are not final since the hospital
may request additional features during the development phase of the application.
Propose the most appropriate Software Development Life Cycle Model (SDLC) that
might be used as a basis for the development of this application. Justify your answer
with reasons?
Question Three
Pg. 03
Learning
Outcome(s):
CLO3: Develop a
comprehensive IT
project plan for
estimation,
scheduling,
communication,
resource
management,
procurement, risk,
and quality.
Question Three
2 Marks
Consider the following cash inflows and outflows related to project 1 and project 2.
CASH INFLOWS AND OUTFLOWS FOR TWO PROJECTS
Project 1
Benefits
Costs
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
1000
1200
500
400
850
800
650
300
1500
1000
500
300
Project 2
Benefits
Costs
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
1000
765
431
104
350
350
573
388
500
100
139
300
For each project,
 Calculate the cash flow in a table.
 calculate the NPV assuming 12% discount rate, and determine which of
the two projects would you prefer? Show the detailed calculation with
the formula to justify your answer.
Question Four
Pg. 04
Learning
Outcome(s):
CLO4: Evaluate
IT project team
management, and
IT project
performance.
Question Four
2 Marks
Propose your project scenario then develop a work breakdown structure for the
project. Break down the work to Level 3 or Level 4, as appropriate. Illustrate the WBS
in list form.
College of Computing and Informatics
Assignment 1
Deadline: Sunday 01/01/2023 @ 23:59
[Total Mark for this Assignment is 8]
Student Details:
Name: ###
ID: ###
CRN: ###
Instructions:
• You must submit two separate copies (one Word file and one PDF file) using the Assignment Template on
Blackboard via the allocated folder. These files must not be in compressed format.
• It is your responsibility to check and make sure that you have uploaded both the correct files.
• Zero mark will be given if you try to bypass the SafeAssign (e.g. misspell words, remove spaces between
words, hide characters, use different character sets, convert text into image or languages other than English
or any kind of manipulation).
• Email submission will not be accepted.
• You are advised to make your work clear and well-presented. This includes filling your information on the cover
page.
• You must use this template, failing which will result in zero mark.
• You MUST show all your work, and text must not be converted into an image, unless specified otherwise by
the question.
• Late submission will result in ZERO mark.
• The work should be your own, copying from students or other resources will result in ZERO mark.
• Use Times New Roman font for all your answers.
Question One
Pg. 01
Learning
Outcome(s):
Create web pages
using HTML5 and
CSS3.
Question One
2 Marks
1. What were some of the main goals and motives for the HTML5 specification?
and List some of the key new features in HTML5?
Notes: You should write the answer in your own words.
Question Two
Pg. 02
Learning
Outcome(s):
Create web pages
using HTML5 and
CSS3.
Question Two
2 Marks
Using HTML5 code, create cart_checkout.html as shown in the below given
picture. Fill the checkout form with all necessary details and add a screenshot
to your answer.
Notes:
1. You must copy and paste the “HTML script” as your answer for this
question. DON’T take screenshots for your HTML script. It must be editable
script.
2. Take a screenshot for your filled form and paste it as a part of your answer.
The name field, email field, and address field should be matched with your
name, email, and branch.
3. The CVV should be obscured so that it cannot be read.
Question Three
Pg. 03
Learning
Outcome(s):
Create web pages
using HTML5 and
CSS3.
Question Three
What’s the difference between HTML and HTML5?
Notes:
1. You must write at least four differences for each.
2 Marks
Question Four
Pg. 04
Learning
Outcome(s):
Create web pages
using HTML5 and
CSS3.
Question Four
2 Marks
Write a CSS rule that makes all the text 3 times larger than the base font of the
system and colors the text as green and place a background image. The
background image should remain in place when the user scrolls up or down.
Notes:
1. You must copy and paste the “HTML and CSS” as your answer to this
question. DON’T take screenshots for your HTML and CSS code. It must
be editable script.
2. Take a screenshot of your output and paste it as a part of your answer.
Schwalbe
Information Technology
Project Management
Information
Technology
Project
Management
Schwalbe
9th Edition
9 th Edition
01356_cvr_hr.indd 1
7/23/18 10:37 AM
SE/Schwalbe, Information Technology Project Management, 9th Edition   ISBN -9781337101356 ©2019 Designer: Roycroft Design
Text & Cover printer: Quad Graphics   Binding: PB   Trim: 7.375 x 9.125″   CMYK
I n f o r m at I o n t e c h n o l o g y
P ro j e c t m a n ag e m e n t
Ninth Edition
Kathy Schwalbe, Ph.D., PMP
Professor Emeritus, Augsburg College
Australia • Brazil • Mexico • Singapore • United Kingdom • United States
01356_fm_hr_i-xxiv.indd 1
6/21/18 12:47 PM
Information Technology Project
Management, Ninth Edition
Kathy Schwalbe
SVP, GM Skills & Global Product
Management: Jonathan Lau
Product Team Manager: Kristin McNary
Product Manager: Jaymie Falconi
Product Assistant: Anna Goulart
© 2019, 2016 Cengage Learning, Inc.
WCN: 01-100-101
ALL RIGHTS RESERVED. No part of this work covered by the copyright
herein may be reproduced, transmitted, stored, or used in any form or by
any means—graphic, electronic, or mechanical, including but not limited
to photocopying, recording, scanning, digitizing, taping, web distribution,
information networks, or information storage and retrieval systems, except
as permitted under Section 107 or 108 of the 1976 United States Copyright
Act—without the prior written permission of the publisher.
Executive Director, Content Design:
Mara Bellegarde
For product information and technology assistance, contact
Cengage Customer & Sales Support, 1-800-354-9706.
Director, Learning Design: Leigh Hefferon
Learning Designer: Maria Garguilo
Vice President, Strategic Marketing
Services: Jennifer Ann Baker
For permission to use material from this text or product, submit all
requests online at cengage.com/permissions
Marketing Director: Sean Chamberland
Further permissions questions can be e-mailed to
permissionrequest@cengage.com
Marketing Manager: Scott Chrysler
Director, Content Delivery: Patty Stephan
Content Manager: Michele Stulga
Library of Congress Control Number: 2018944898
Development Editor: Ann Shaffer
Student Edition:
ISBN-13: 978-1-337-10135-6
Tech Editor: John Freitas
Digital Delivery Lead: Noah Vincelette
Senior Designer: Diana Graham
Production Service/Composition:
SPi Global
Cengage
20 Channel Center Street
Boston, MA 02210
USA
Cover image: rendixalextian/iStock/Getty
Images
Screenshots for this book were created using Microsoft Project, and were used with permission from Microsoft.
Microsoft and the Office logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other
countries. Cengage Learning is an independent entity from the Microsoft Corporation, and not affiliated with Microsoft in any manner.
Screenshots from MindView Business software are used with permission from MatchWare. iPhone, iPad, iPod, and MacBook are
registered trademarks of Apple Inc.
Information pertaining to Northwest Airlines was used with their express permission. No part of it may be reproduced or used in any
form without prior written permission from Cengage.
This publication is a derivative work of A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, which is
copyrighted material of and owned by Project Management Institute, Inc. (PMI), Copyright 2017. This publication has been developed
and reproduced with the permission of PMI. Unauthorized reproduction of this material is strictly prohibited. The derivative work is
the copyrighted material of and owned by Cengage, Copyright 2019.
Sections in the text marked with an asterisk and Appendix A are used with permission from Schwalbe Publishing, Minneapolis, MN.
PMI, PMI Talent Triangle, PMP®, CAPM®, PgMP, PMI-RMP, PMI-ACP, PMI-SP, OPM3®, and PMBOK® are registered marks of the Project
Management Institute, Inc.
Cengage is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in
more than 125 countries around the world. Find your local representative at www.cengage.com.
Cengage products are represented in Canada by Nelson Education, Ltd.
To learn more about Cengage platforms and services, register or access your online learning solution, or purchase materials for your
course, visit www.cengage.com.
Printed in the United States of America
Print Number: 01    Print Year: 2018
01356_fm_hr_i-xxiv.indd 2
6/21/18 12:47 PM
For Dan, Anne, Bobby, and Scott
01356_fm_hr_i-xxiv.indd 3
6/21/18 12:47 PM
B R I EF CONTENT S
Preface
About the Author
xv
xxiv
Chapter 1
Introduction to Project Management
1
Chapter 2
The Project Management and Information Technology Context
47
Chapter 3
The Project Management Process Groups
85
Chapter 4
Project Integration Management
151
Chapter 5
Project Scope Management
201
Chapter 6
Project Schedule Management
241
Chapter 7
Project Cost Management
285
Chapter 8
Project Quality Management
327
Chapter 9
Project Resource Management
373
Chapter 10
Project Communications Management
425
Chapter 11
Project Risk Management
463
Chapter 12
Project Procurement Management
505
Chapter 13
Project Stakeholder Management
539
Glossary
G.1
Index
I.1
01356_fm_hr_i-xxiv.indd 4
6/21/18 12:47 PM
TA B LE OF CONTENT S
Preface
About the Author
Chapter 1 Introduction to Project Management
Introduction
What Is a Project?
Examples of IT Projects
Project Attributes
Project Constraints
What Is Project Management?
Project Stakeholders
Project Management Knowledge Areas
Project Management Tools and Techniques
Project Success
Program and Project Portfolio Management
Programs
Project Portfolio Management
Organizational Project Management
The Role of the Project Manager
Project Manager Job Description
Suggested Skills for Project Managers
PMI Talent Triangle® and the Importance of Leadership Skills
Careers for IT Project Managers
The Project Management Profession
History of Project Management
The Project Management Institute
Project Management Certification
Ethics in Project Management
Project Management Software
Chapter Summary
Discussion Questions
Quick Quiz
Quick Quiz Answers
Exercises
Key Terms
Endnotes
Chapter 2 The Project Management and Information Technology Context
A Systems View of Project Management
What Is a Systems Approach?
The Three-Sphere Model for Systems Management
01356_fm_hr_i-xxiv.indd 5
xv
xxiv
1
2
4
4
6
7
9
9
11
12
15
18
18
19
21
24
24
26
28
30
30
30
34
35
36
37
40
41
41
43
43
44
45
47
49
49
50
6/21/18 12:47 PM
vi
Table of Contents
Understanding Organizations
The Four Frames of Organizations
Organizational Structures
Organizational Culture
Focusing on Stakeholder Needs
The Importance of Top Management Commitment
The Need for Organizational Commitment to Information Technology
The Need for Organizational Standards
Project and Product Life Cycles
Project Life Cycle
Product Life Cycles
The Importance of Project Phases and Management Reviews
The Context of Information Technology Projects
The Nature of IT Projects
Characteristics of IT Project Team Members
Diverse Technologies
Recent Trends Affecting Information Technology Project Management
Globalization
Outsourcing
Virtual Teams
Agile
The Manifesto for Agile Software Development
Scrum
Agile, the PMBOK® Guide, and a New Certification
Chapter Summary
Discussion Questions
Quick Quiz
Quick Quiz Answers
Exercises
Key Terms
Endnotes
Chapter 3 The Project Management Process Groups
Project Management Process Groups
Mapping the Process Groups to the Knowledge Areas
Developing an IT Project Management Methodology
Case Study 1: JWD Consulting’s Project Management Intranet Site Project
(Predictive Approach)
Project Pre-Initiation and Initiation
Pre-Initiation Tasks
Initiating
Identifying Project Stakeholders
Drafting the Project Charter
Holding a Project Kick-Off Meeting
Project Planning
Project Execution
01356_fm_hr_i-xxiv.indd 6
51
51
53
57
58
60
61
62
62
63
63
66
67
67
68
68
69
69
70
71
73
73
74
75
77
78
78
80
80
81
82
85
86
91
93
95
96
96
101
101
103
105
106
117
6/21/18 12:47 PM
Table of Contents
Project Monitoring and Controlling
Project Closing
Case Study 2: JWD Consulting’s Project Management Intranet Site Project
(Agile Approach)
Scrum Roles, Artifacts, and Ceremonies
Project Pre-Initiation and Initiation
Planning
Executing
Monitoring and Controlling
Closing
Templates by Process Group
Chapter Summary
Discussion Questions
Quick Quiz
Quick Quiz Answers
Exercises
Key Terms
Endnotes
Chapter 4 Project Integration Management
What Is Project Integration Management?
Strategic Planning and Project Selection
Strategic Planning
Identifying Potential Projects
Aligning IT with Business Strategy
Methods for Selecting Projects
Focusing on Broad Organizational Needs
Categorizing IT Projects
Performing Financial Analyses
Net Present Value Analysis
Return on Investment
Payback Analysis
Using a Weighted Scoring Model
Implementing a Balanced Scorecard
Developing a Project Charter
Developing a Project Management Plan
Project Management Plan Contents
Using Guidelines to Create Project Management Plans
Directing and Managing Project Work
Coordinating Planning and Execution
Providing Strong Leadership and a Supportive Culture
Capitalizing on Product, Business, and Application Area Knowledge
Project Execution Tools and Techniques
Managing Project Knowledge
Monitoring and Controlling Project Work
Performing Integrated Change Control
01356_fm_hr_i-xxiv.indd 7
vii
122
126
129
130
133
134
136
137
138
139
144
145
145
147
147
148
148
151
152
155
156
157
158
160
160
161
162
162
165
166
167
169
169
173
174
176
177
178
178
179
180
181
182
184
6/21/18 12:47 PM
viii
Table of Contents
Change Control on IT Projects
Change Control System
Closing Projects or Phases
Using Software to Assist in Project Integration Management
Considerations for Agile/Adaptive Environments
Chapter Summary
Discussion Questions
Quick Quiz
Quick Quiz Answers
Exercises
Running Case
Tasks
Key Terms
Endnotes
Chapter 5 Project Scope Management
What Is Project Scope Management?
Planning Scope Management
Collecting Requirements
Defining Scope
Creating the Work Breakdown Structure
Approaches to Developing Work Breakdown Structures
Using Guidelines
The Analogy Approach
The Top-Down and Bottom-Up Approaches
Mind Mapping
The WBS Dictionary
Advice for Creating a WBS and a WBS Dictionary
Validating Scope
Controlling Scope
Suggestions for Improving User Input
Suggestions for Reducing Incomplete and
Changing Requirements
Using Software to Assist in Project Scope Management
Considerations for Agile/Adaptive Environments
Chapter Summary
Discussion Questions
Quick Quiz
Quick Quiz Answers
Exercises
Running Case
Tasks
Key Terms
Endnotes
01356_fm_hr_i-xxiv.indd 8
185
185
188
189
190
192
193
193
194
195
196
197
198
199
201
202
203
206
209
213
218
219
219
220
221
223
224
224
227
228
229
230
231
233
233
234
235
236
237
238
239
239
6/21/18 12:47 PM
Table of Contents
Chapter 6 Project Schedule Management
The Importance of Project Schedules
Planning Schedule Management
Defining Activities
Sequencing Activities
Dependencies
Network Diagrams
Estimating Activity Durations
Developing the Schedule
Gantt Charts
Adding Milestones to Gantt Charts
Using Tracking Gantt Charts to Compare Planned and Actual Dates
Critical Path Method
Calculating the Critical Path
Growing Grass Can Be on the Critical Path
Using Critical Path Analysis to Make Schedule Trade-Offs
Using the Critical Path to Shorten a Project Schedule
Importance of Updating Critical Path Data
Critical Chain Scheduling
Program Evaluation and Review Technique (PERT)
Agile and Schedule Management
Controlling the Schedule
Reality Checks on Scheduling and the Need for Discipline
Using Software to Assist in Project Schedule Management
Words of Caution on Using Project Management Software
Considerations for Agile/Adaptive Environments
Chapter Summary
Discussion Questions
Quick Quiz
Quick Quiz Answers
Exercises
Running Case
Tasks
Key Terms
Endnotes
Chapter 7 Project Cost Management
The Importance of Project Cost Management
What Is Cost?
What Is Project Cost Management?
Basic Principles of Cost Management
Planning Cost Management
Estimating Costs
Types of Cost Estimates
01356_fm_hr_i-xxiv.indd 9
ix
241
242
244
246
248
248
249
253
254
255
257
258
259
259
261
261
263
265
265
268
269
270
271
272
273
274
276
277
278
279
279
282
282
282
283
285
286
287
288
288
294
294
295
6/21/18 12:47 PM
x
Table of Contents
Cost Estimation Tools and Techniques
Typical Problems with IT Cost Estimates
How to Develop a Cost Estimate and Basis of Estimates
Determining the Budget
Controlling Costs
Earned Value Management
Project Portfolio Management
Using Project Management Software to Assist in Project Cost Management
Considerations for Agile/Adaptive Environments
Chapter Summary
Discussion Questions
Quick Quiz
Quick Quiz Answers
Exercises
Running Case
Tasks
Key Terms
Endnotes
Chapter 8 Project Quality Management
The Importance of Project Quality Management
What Is Project Quality Management?
Planning Quality Management
Managing Quality
Controlling Quality
Tools and Techniques for Quality Control
Statistical Sampling
Six Sigma
How Is Six Sigma Quality Control Unique?
Six Sigma and Project Selection and Management
Six Sigma and Statistics
Testing
Modern Quality Management
Deming and His 14 Points for Management
Juran and the Importance of Top Management Commitment to Quality
Crosby and Striving for Zero Defects
Ishikawa’s Guide to Quality Control
Taguchi and Robust Design Methods
Feigenbaum and Workers’ Responsibility for Quality
Malcolm Baldrige National Quality Award
ISO Standards
Improving IT Project Quality
Leadership
The Cost of Quality
01356_fm_hr_i-xxiv.indd 10
296
298
299
305
306
307
312
314
315
317
317
318
320
320
321
321
323
323
327
328
330
331
334
335
336
342
344
345
346
346
348
351
351
352
352
353
353
354
354
354
355
356
356
6/21/18 12:47 PM
Table of Contents
The Impact of Organizational Influences, and Workplace Factors on Quality
Expectations and Cultural Differences in Quality
Maturity Models
Software Quality Function Deployment Model
Capability Maturity Model Integration
Project Management Maturity Models
Using Software to Assist in Project Quality Management
Considerations for Agile/Adaptive Environments
Chapter Summary
Discussion Questions
Quick Quiz
Quick Quiz Answers
Exercises
Running Case
Tasks
Key Terms
Endnotes
Chapter 9 Project Resource Management
The Importance of Resource Management
The Global IT Workforce
Implications for the Future of IT Human Resource
Management
What Is Project Resource Management?
Keys to Managing and Leading People
Motivation Theories
Maslow’s Hierarchy of Needs
Herzberg’s Motivation-Hygiene Theory
McClelland’s Acquired-Needs Theory
McGregor’s Theory X and Theory Y
Influence and Power
Covey and Improving Effectiveness
Emotional Intelligence
Leadership
Developing the Resource Management Plan and Team Charter
Project Organizational Charts
Responsibility Assignment Matrices
Staffing Management Plans and Resource Histograms
Team Charters
Estimating Activity Resources
Acquiring Resources
Resource Assignment
Resource Loading
Resource Leveling
01356_fm_hr_i-xxiv.indd 11
xi
358
359
359
360
360
361
362
363
365
365
366
368
368
369
369
370
371
373
374
374
375
377
378
378
380
381
383
383
384
386
389
390
391
392
394
395
395
396
397
398
399
401
6/21/18 12:47 PM
xii
Table of Contents
Developing the Project Team
Training
Team-Building Activities
The Myers-Briggs Type Indicator
The Social Styles Profile
DISC Profile
Reward and Recognition Systems
Managing the Project Team
Tools and Techniques for Managing Project Teams
General Advice on Managing Teams
Controlling Resources
Using Software to Assist in Resource Management
Considerations for Agile/Adaptive Environments
Chapter Summary
Discussion Questions
Quick Quiz
Quick Quiz Answers
Exercises
Running Case
Key Terms
Endnotes
403
403
404
405
406
407
408
409
409
411
412
412
413
415
416
417
418
419
420
421
421
Chapter 10 Project Communications Management
425
The Importance of Project Communications Management
Keys to Good Communications
Focusing on Group and Individual Communication Needs
Formal and Informal Methods for Communicating
Distributing Important Information in an Effective and Timely Manner
Setting the Stage for Communicating Bad News
Determining the Number of Communication Channels
Planning Communications Management
Managing Communications
Using Technology to Enhance Information Creation and Distribution
Selecting the Appropriate Communication Methods and Media
Reporting Performance
Monitoring Communications
Suggestions for Improving Project Communications
Developing Better Communication Skills
Running Effective Meetings
Using E-Mail, Instant Messaging, Texting, Kanban Boards,
and Collaborative Tools Effectively
Using Templates for Project Communications
Using Software to Assist in Project Communications
Considerations for Agile/Adaptive Environments
Chapter Summary
Discussion Questions
01356_fm_hr_i-xxiv.indd 12
426
428
428
430
431
431
432
434
436
436
437
440
441
442
442
443
445
448
452
454
456
456
6/21/18 12:47 PM
Table of Contents
Quick Quiz
Quick Quiz Answers
Exercises
Running Case
Key Terms
Endnotes
Chapter 11 Project Risk Management
The Importance of Project Risk Management
Planning Risk Management
Common Sources of Risk on IT Projects
Identifying Risks
Suggestions for Identifying Risks
The Risk Register
The Risk Report
Performing Qualitative Risk Analysis
Using Probability/Impact Matrixes to Calculate Risk Factors
Top Ten Risk Item Tracking
Performing Quantitative Risk Analysis
Decision Trees and Expected Monetary Value
Simulation
Sensitivity Analysis
Planning Risk Responses
Implementing Risk Responses
Monitoring Risks
Using Software to Assist in Project Risk Management
Considerations for Agile/Adaptive Environments
Chapter Summary
Discussion Questions
Quick Quiz
Quick Quiz Answers
Exercises
Running Case
Key Terms
Endnotes
Chapter 12 Project Procurement Management
The Importance of Project Procurement Management
Planning Procurement Management
Types of Contracts
Tools and Techniques for Planning Procurement Management
Make-or-Buy Analysis
Expert Judgment
Market Research
Procurement Management Plan
Statement of Work
01356_fm_hr_i-xxiv.indd 13
xiii
457
459
459
460
461
461
463
464
472
474
477
477
478
480
481
481
483
485
485
487
489
490
493
493
494
494
496
497
498
499
499
501
501
502
505
506
512
512
516
516
517
518
518
518
6/21/18 12:47 PM
xiv
Table of Contents
Procurement or Bid Documents
Examples from a Real RFP
Source Selection Criteria
Conducting Procurements
Controlling Procurements
Using Software to Assist in Project Procurement Management
Considerations for Agile/Adaptive Environments
Chapter Summary
Discussion Questions
Quick Quiz
Quick Quiz Answers
Exercises
Running Case
Key Terms
Endnotes
Chapter 13 Project Stakeholder Management
The Importance of Project Stakeholder Management
Identifying Stakeholders
Planning Stakeholder Engagement
Managing Stakeholder Engagement
Monitoring Stakeholder Engagement
Using Software to Assist in Project Stakeholder Management
Considerations for Agile/Adaptive Environments
Chapter Summary
Discussion Questions
Quick Quiz
Quick Quiz Answers
Exercises
Running Case
Key Terms
Endnotes
Glossary
Index
01356_fm_hr_i-xxiv.indd 14
519
521
524
525
527
529
531
533
534
534
536
536
537
537
538
539
540
542
546
548
550
553
554
556
556
557
558
558
559
560
560
G.1
I.1
6/21/18 12:47 PM
P r e fac e
The future of many organizations depends on their ability to harness the power of
information technology, and good project managers continue to be in high demand.
Colleges have responded to this need by establishing courses in project management
and making them part of the information technology, management, engineering, and
other curricula. Corporations are investing in continuing education to help develop and
deepen the effectiveness of project managers and project teams. This text provides a
much-needed framework for teaching courses in project management, especially those
that emphasize managing information technology projects. The first eight editions of
this text were extremely well received by people in academia and the workplace. The
Ninth Edition builds on the strengths of the previous editions and adds new, important
information and features.
It’s impossible to read a newspaper, magazine, or web page without hearing about the
impact of information technology on our society. Information is traveling faster and being
shared by more people than ever before. You can buy just about anything online, surf
the web on a mobile phone, or use a wireless Internet connection just about anywhere.
Companies have linked their systems together to help them fill orders on time and better
serve their customers. Software companies are continually developing new products to
help streamline our work and get better results. When technology works well, it is almost
invisible. But did it ever occur to you to ask, “Who makes these complex technologies and
systems happen?”
Because you’re reading this text, you must have an interest in the “behind-the-scenes”
aspects of technology. If I’ve done my job well, you’ll begin to see the many innovations
society is currently enjoying as the result of thousands of successful information
technology projects. In this text, you’ll read about IT projects in organizations around the
world that went well, including the National University Hospital in Singapore, which used
critical chain scheduling to decrease patient admission times by more than 50 percent;
retailer Zulily, one of a growing number of organizations developing software in-house to
meet their need for speed and innovation; Dell’s green computing project that saves energy
and millions of dollars; Google’s driverless car project, striving to reduce traffic accidents
and save lives; and many more.
Of course, not all projects are successful. Factors such as time, money, and unrealistic expectations, among many others, can sabotage a promising effort if it is not properly
managed. In this text, you’ll also learn from the mistakes made on many projects that
were not successful.
I have written this book in an effort to educate you, tomorrow’s project managers,
about what will help make a project succeed—and what can make it fail. You’ll also see
how projects are used in everyday media, such as television and film, and how companies
use best practices in project management. Many readers tell me how much they enjoy
reading these real-world examples in the What Went Right?, What Went Wrong?, Media
Snapshot, Global Issues, and Best Practice features. As practitioners know, there is no
01356_fm_hr_i-xxiv.indd 15
6/21/18 12:47 PM
xvi
Preface
“one size fits all” solution to managing projects. By seeing how different organizations in
different industries successfully implement project management, you can help your organization do the same.
Although project management has been an established field for many years, managing
information technology projects requires ideas and information that go beyond standard
practices. For example, many information technology projects fail because of a lack of
executive support, poor user involvement, and unclear business objectives. This book
includes many suggestions for dealing with these issues. New technologies can also aid
in managing information technology projects, and examples of using software to assist in
project management are included throughout the book.
Information Technology Project Management, Ninth Edition, is the only textbook
to apply all ten project management knowledge areas and all five process groups to
information technology projects. As you will learn, the project management knowledge
areas are project integration, scope, time, cost, quality, human resource, communications,
risk, procurement, and stakeholder management. The five process groups are initiating,
planning, executing, monitoring and controlling, and closing.
This text builds on the PMBOK® Guide – Sixth Edition, an American National Standard, to provide a solid framework and context for managing information technology
projects.
In addition to the physical text, several resources are available online. Appendix A,
Guide to Using Microsoft Project 2016, is provided online. When a new version of the
software is released, a new appendix will be available. Additional case studies, including
the one from the Seventh Edition, Manage Your Health, are available, as well as over fifty
template files that students can use to create their own project management documents.
The author’s personal website (www.kathyschwalbe.com or www.pmtexts.com) also provides additional, up-to-date resources and links related to the field of project management,
including topics like Agile, PMP® and CAPM® certification, simulation software, leadership,
mind mapping, sample student projects, and more.
Information Technology Project Management, Ninth Edition, provides practical lessons in project management for students and practitioners alike. By weaving together
theory and practice, this text presents an understandable, integrated view of the many
concepts, skills, tools, and techniques of information technology project management. The
comprehensive design of the text provides a strong foundation for students and practitioners in project management.
New to the Ninth Edition
Building on the success of previous editions, Information Technology Project Management,
Ninth Edition introduces a uniquely effective combination of features. The main changes in
the Ninth Edition include the following:
Many updates based on the PMBOK® Guide – Sixth Edition.
•
•
•
01356_fm_hr_i-xxiv.indd 16
A new section in chapters 4-13 called “Considerations for Agile/Adaptive
Environments.”
A new feature called “Advice for Young Professionals.”
Updated and additional exercises to enhance student learning and give
instructors more options for in-class or out-of-class work.
6/21/18 12:47 PM
Preface
•
•
•
•
xvii
Additional content on important topics like leadership and agile.
New examples that highlight IT project management at work in real,
newsworthy companies. These timely, relevant examples help illustrate the
realworld applications and impact of key project management concepts. They
also serve as mini-case stories, suitable for class discussion.
Many recent studies of IT project management and related topics. Summaries
of classic, updated, and the most current research throughout the text build a
rich context for essential IT project management concepts.
User feedback is incorporated. Based on feedback from reviewers, students,
instructors, practitioners, and translators, you’ll see a variety of changes that
help clarify information.
Many people have been practicing some form of project management with little or
no formal study in this area. New books and articles are written each year as we discover
more about the field and as project management software continues to advance. Because
the project management field and the technology industry change rapidly, you cannot
assume that what worked even a few years ago is still the best approach today. This text
provides up-to-date information on how good project management and effective use
of software can help you manage projects, especially information technology projects.
Distinct features of this text include its relationship to the Project Management Body of
Knowledge, its value in preparing for certification, its detailed guide for using Microsoft
Project 2016, its inclusion of running case studies and online templates, its emphasis on
IT projects, its coverage of several software tools that assist with project management, and
its Companion website.
Based on PMBOK® Guide – Sixth Edition and Preparing for Certification
The Project Management Institute (PMI) created the Guide to the Project Management
Body of Knowledge (the PMBOK® Guide) as a framework and starting point for
understanding project management. It includes an introduction to project management,
brief descriptions of all 10 project management knowledge areas, and a glossary of terms.
The PMBOK® Guide is, however, just that—a guide. This text uses the PMBOK® Guide –
Sixth Edition (2017) as a foundation, but goes beyond it by providing more details,
discussing the how and why of the knowledge areas, highlighting additional topics, and
providing a real-world context for IT project management. This text is an excellent
resource for preparing for PMI certifications, such as the Project Management Professional
(PMP®) and Certified Associate in Project Management (CAPM®).
Detailed Guide to Microsoft Project 2016
Software has become a critical tool for helping project managers and their teams
effectively manage information technology projects. Information Technology Project
Management, Ninth Edition, includes a detailed guide in Appendix A (available on the
Companion website for this text) for using the leading project management software on
the market—Microsoft Project 2016. Examples that use Project 2016 and other software
tools are integrated throughout the text. Appendix A, Guide to Using Microsoft Project
2016, teaches you in a systematic way to use this powerful software to help in project
scope, schedule, cost, resource, and communications management.
01356_fm_hr_i-xxiv.indd 17
6/21/18 12:47 PM
xviii
Preface
Emphasis on IT Projects and Use of Software Tools
Most of the examples of projects in this text are based on IT projects. Research studies and
advice are specific to managing IT projects, and include expanded information on agile. Each
of the knowledge area chapters includes examples as well as a separate section describing
how software can be used to assist in managing that knowledge area. For example, Chapter 5,
Project Scope Management, includes examples of using mind maps created with MindView
software to create a work breakdown structure. Chapter 11, Project Risk Management, shows
an example of using Monte Carlo simulation software to help quantify project risk.
Exercises, Running Cases, Templates, and Sample Documents
Based on feedback from readers, the Ninth Edition continues to provide challenging exercises and running cases to help students apply concepts in each chapter. The text includes
more than 50 templates and examples of real project documents that students can use to
help them apply their skills to their own projects.
Students can access all of these materials for free through
A c c e si n g Mi n dT a p
To access the IT Project Management MindTap, open a browser and go to www.cengage
.com. Click Sign In to navigate to the login page. Click Create an Account to begin the
registration process. You will need the course link, access code, or course key to register
your product.
Organization and Content
Information Technology Project Management, Ninth Edition, is organized into three main
sections, which provide a framework for project management, a detailed description of each
project management knowledge area, and an appendix of practical information for applying
project management. The first three chapters form the first section, which introduces
the project management framework and sets the stage for the remaining chapters.
Chapters 4 through 13 form the second section, which describes each of the project
management knowledge areas—project integration, scope, schedule, cost, quality,
resource, communications, risk, procurement, and stakeholder management—in the
context of information technology projects. An entire chapter is dedicated to each
knowledge area. Each of these chapters includes sections that map to their major
processes as described in the PMBOK® Guide – Sixth Edition. For example, the chapter
on project quality management includes sections on planning quality management,
managing quality, and controlling quality. Additional sections highlight other important
concepts related to each knowledge area, such as Six Sigma, testing, maturity models,
and using software to assist in project quality management. Each chapter also includes
detailed examples of key project management tools and techniques as applied to
information technology projects. For example, the chapter on project integration
management includes samples of various project-selection techniques, such as net present
value analyses, ROI calculations, payback analyses, and weighted scoring models. The
project scope management chapter includes a sample project charter, a project scope
statement, and several work breakdown structures for information technology projects.
01356_fm_hr_i-xxiv.indd 18
6/21/18 12:47 PM
Preface
xix
Appendix A, provided online to keep it up-to-date, forms the third section of the
text, which provides practical information to help you learn how to use the most popular
project management software available today. By following the detailed, step-by-step guide
in Appendix A, which includes more than 60 screen illustrations, you will learn how to use
Project 2016. You can download a free trial from the Microsoft website, use your school or
company license, or purchase this powerful software.
Pedagogical Features
Several pedagogical features are included in this text to enhance presentation of
the materials so that you can more easily understand the concepts and apply them.
Throughout the text, emphasis is placed on applying concepts to current, real-world
information technology project management.
Opening Case and Case Wrap-Up
To set the stage, each chapter begins with an opening case related to the material
presented in that chapter. These real-life case scenarios, most of which are based on the
author’s experiences, spark student interest and introduce important concepts in a realworld context. As project management concepts and techniques are discussed, they are
applied to the opening case and other similar scenarios. Each chapter then closes with a
case wrap-up—with some ending successfully and some failing—to further illustrate the
real world of project management.
What Went Right? and What Went Wrong?
Failures, as much as successes, can be valuable learning experiences. Each chapter of
the text includes one or more examples of real information technology projects that went
right, as well as examples of projects that went wrong. These examples further illustrate
the importance of mastering key concepts in each chapter.
Media Snapshot
The world is full of projects. Television shows, movies, newspapers, websites, and other
media highlight project results that are good and bad. Relating project management
concepts to the types of projects highlighted in the media helps you understand
the importance of this growing field. Why not get excited about studying project
management by seeing its concepts at work in popular television shows, movies, or
other media?
Best Practice
Every chapter includes an example of a best practice related to topics in that chapter.
For example, Chapter 1 describes best practices written by Robert Butrick, author of
The Project Workout, from the Ultimate Business Library’s Best Practice book. He
instructs organizations to ensure that their projects are driven by their strategy and to
engage project stakeholders.
01356_fm_hr_i-xxiv.indd 19
6/21/18 12:47 PM
xx
Preface
Global Issues
Every chapter includes an example of global issues of importance today. For example,
Chapter 2 describes some of the problems with outsourcing, such as rioting in Beijing
when customers could not buy the latest iPhones. Chapter 12 describes the recent
development of urban onshoring, one response to problems with offshoring.
Advice for Young Professionals
A new feature in each chapter provides practical advice as you begin your career in
IT and/or project management. For example, Chapter 1 provides insight to help you
determine if you should pursue a career as a project manager.
Key Terms
The fields of information technology and project management include many unique terms
that are vital to creating a workable language when the two fields are combined. Key terms
are displayed in boldface and are defined the first time they appear. A list of key terms is
provided in alphabetical order at the end of each chapter and a glossary is provided on the
Companion web site for text.
Application Software
Learning becomes much more dynamic with hands-on practice using the top project
management software tool in the industry, Microsoft Project 2016, as well as other tools,
such as spreadsheet software and the Internet. Each chapter offers many opportunities to get
hands-on experience and build new software skills. This text is written from the point of view
that reading about something only gets you so far—to really understand project management,
you have to do it for yourself. In addition to the exercises and running cases at the end of
each chapter, several challenging exercises are provided at the end of Appendix A, Guide to
Using Microsoft Project 2016.
Student and Instructor Resources
Student and Instructor Companion Websites
The free Student Companion Website accessed through www.cengage.com provides
the template files mentioned in the text, Project 2016 files, a case study describing
initiating through closing the ResNet project for Northwest Airlines (now part of Delta),
and additional running cases that instructors can assign to students to practice their
skills. There is also a link to the author’s website, which provides up-to-date resources on
important topics like agile, certifications, and more.
The Instructor Companion Website, also accessed with a single sign-on (SSO) account
through www.cengage.com, contains even more resources only for instructors:
•
•
01356_fm_hr_i-xxiv.indd 20
Instructor’s Manual The Instructor’s Manual that accompanies this textbook
includes additional instructional material to assist in class preparation, such
as suggestions for lecture topics and additional discussion questions.
Solution Files Solutions to end-of-chapter questions are available on the
Instructor Companion Website.
6/21/18 12:47 PM
Preface
•
•
xxi
PowerPoint Presentations This text comes with Microsoft PowerPoint slides
for each chapter. These slides are included as a teaching aid for classroom
presentation, to make available to students on the network for chapter
review, or to print for classroom distribution. Instructors can add their own
slides for additional topics they introduce to the class.
Test Banks In addition to the Test Bank available online through Cognero
(see below), the Test Bank is also available in a number of file formats on the
Instructor Companion Website. Each chapter’s bank of questions includes
dozens of True/False, Multiple Choice, and Essay questions. Instructors can
retrieve the appropriate file formats to administer tests through their schools’
learning management systems (Blackboard, Canvas, Moodle, Desire2Learn,
etc.), or they can opt for Word documents.
Test Banks in Cognero
The Test Bank for Information Technology Project Management, Ninth Edition, is available online in the Cognero system. Cengage Learning Testing Powered by Cognero is a
flexible, online system that allows instructors to:
•
•
•
•
Author, edit, and manage test bank content.
Use searchable metadata to ensure tests are complete and compliant.
Create multiple test versions in an instant.
Deliver tests from your learning management system (LMS), classroom, or
wherever you want.
Cengage Learning Testing Powered by Cognero works on any operating system or browser
with no special installs or downloads needed. With its intuitive tools and familiar desktop
drop-down menus, Cognero enables instructors to easily create and edit tests from school
or home—anywhere with Internet access.
IT Project Management MindTap
MindTap for Information Technology Project Management, Ninth Edition is a personalized, fully online, digital learning platform of content, assignments, and services that
­engages students and encourages them to think critically, while allowing instructors to
easily set their course through simple customization options.
MindTap is designed to help students master the skills they need in today’s workforce.
Research shows employers need critical thinkers, troubleshooters, and creative problem
solvers to stay relevant in our fast paced, technology-driven world. MindTap helps you
achieve this with assignments and activities that provide hands-on practice, real-life relevance, and certification test prep. Students are guided through assignments that help
them master basic knowledge and understanding before moving on to more challenging
problems.
MindTap is designed around learning objectives and provides the analytics and reporting
to easily see where the class stands in terms of progress, engagement, and completion rates.
Students can access eBook content in the MindTap Reader, which offers highlighting,
note-taking, search and audio, as well as mobile access. Learn more at www.cengage.com/
mindtap/.
01356_fm_hr_i-xxiv.indd 21
6/21/18 12:47 PM
xxii
Preface
Acknowledgments
I never would have taken on the project of writing this book, including all the prior editions,
without the help of many people. I thank the staff at Cengage, including Jaymie Falconi,
Michele Stulga, Maria Garguilo, Amber Hill, and Kathy Kucharek, for their dedication and hard
work in helping me produce this book and in doing such an excellent job of marketing it.
I thank my many colleagues and experts in the field who contributed information to
this book. Joseph W. Kestel, PMP®, provided outstanding feedback on the agile information in this text based on his personal experience in leading agile projects. David Jones,
Rachel Hollstadt, Cliff Sprague, Michael Branch, Barb Most, Jodi Curtis, Rita Mulcahy, Karen
Boucher, Bill Munroe, Tess Galati, Joan Knutson, Neal Whitten, Brenda Taylor, Quentin
Fleming, Jesse Freese, Nick Matteucci, Nick Erndt, Dragan Milosevic, Bob Borlink, Arvid
Lee, Kathy Christenson, Peeter Kivestu, and many other people provided excellent materials included in this book. I enjoy the network of project managers, authors, and consultants in this field who are passionate about improving the theory and practice of project
management.
I also thank my students and colleagues at Augsburg College and the University of
Minnesota for providing feedback on the earlier editions of this book. I received many
valuable comments from them on ways to improve the text and structure of my courses.
I learn something new about project management and teaching all the time by interacting
with students, faculty, and staff.
I also thank the faculty reviewers for providing excellent feedback for me in writing
this book over the years. I thank the many instructors and readers who have contacted me
directly with praise as well as suggestions for improving this text. I appreciate the feedback
and do my best to incorporate as much as I can. In particular, I’d like to thank the following:
Jody Allen, Mid-America Christian University
William Baker, Southern New Hampshire University
Tonya Barrier, Missouri State University
Kevin Daimi, University of Detroit Mercy
Antonio Drommi, University of Detroit Mercy
Roger Engle, Franklin University
Lisa Foster, Walsh College of Business & Accountancy
Esther Frankel, Santa Barbara City College
Guy Garrett, Gulf Coast State College
James Gibbs, Mount St. Joseph University
Christa Glassman, Buffalo State College
Thomas Haigh, University of Wisconsin, Milwaukee
Scott Hilberg, Towson University
Kay Hammond, Lindenwood University
Sam Hijazi, Saint Leo University
Henry Jackson, Schreiner University
Karen Johnson, Indiana University Northwest
Donna Karch, The College of St. Scholastica
Carol Kaszynski, Inver Hills Community College
Cyril Keiffer, Owens Community College
Thomas King, Pennsylvania State University
01356_fm_hr_i-xxiv.indd 22
6/21/18 12:47 PM
Preface
xxiii
Jeff Landry, University of South Alabama
Sang Joon Lee, Mississippi State University
Sunita Lodwig, University of South Florida
Max McQuighan, Anne Arundel Community College
Barbara Miller, Zane State College
Kimberly Mitchell, Illinois State University
Tim Moriarty, Waubonsee Community College
Brandon Olson, The College of St. Scholastica
Olga Petkova, Central Connecticut State University
April Reed, East Carolina University
Jason Riley, Sam Houston State University
Paula Ruby, Arkansas State University
Carl Scott, University of Houston
Ferris Sticksel, Webster University
David Syverson, Embry-Riddle Aeronautical University
Arthur Thomas, Syracuse University
Angela Trego, Utah Valley University
Barbara Warner, Wake Technical Community College
Steven White, Anne Arundel Community College
Dr. David Williamson, Colorado State University
Most of all, I am grateful to my family. Without their support, I never could have written this book. My wonderful husband, Dan, has always supported me in my career, and he
helps me keep up-to-date with software development because he is a lead architect for Milner Technologies, Inc. (formerly ComSquared Systems, Inc.). Our three children, Anne,
Bobby, and Scott, think it’s cool that their mom writes books and speaks at conferences.
They also see me managing projects all the time. Anne, now 34, a research analyst for The
New Teacher Project, teases me for being the only quilter she knows who treats each quilt
as a project. (Maybe that’s why I get so many done!) After her colleagues at The Minnesota Evaluation Studies Institute at the University of Minnesota heard about my work and
books, they hired me to teach a workshop on project management to evaluators, which
was sold out. Our two sons are working as software developers and may become IT project
managers soon. Our children understand the main reason I write—I have a passion for
educating future leaders of the world, including them.
As always, I am eager to receive your feedback on this book. Please send comments to
me at schwalbe@augsburg.edu.
Kathy Schwalbe, Ph.D., PMP
Professor Emeritus, Department of Business Administration
Augsburg College
01356_fm_hr_i-xxiv.indd 23
6/21/18 12:47 PM
Ab o u t t h e Au t h o r
Kathy Schwalbe, Professor Emeritus in the Department
of Business Administration at Augsburg College in
Minneapolis, taught courses in project management,
problem solving for business, systems analysis and
design, information systems projects, and electronic
commerce until her retirement in May 2015. She retired
from teaching to focus on writing, traveling, and enjoying
life. Kathy was also an adjunct faculty member at the
University of Minnesota, where she taught a graduatelevel course in project management in the engineering
department. She also provides training and consulting services to several organizations
and speaks at numerous conferences. Kathy’s first job out of college was as a project
manager in the Air Force. She worked for 10 years in industry before entering academia in
1991. She was an Air Force officer, project manager, systems analyst, senior engineer, and
information technology consultant. Kathy is an active member of PMI, having served as
the Student Chapter Liaison for the Minnesota chapter, VP of Education for the Minnesota
chapter, Editor of the ISSIG Review, Director of Communications for PMI’s Information
Systems Specific Interest Group, member of PMI’s test-writing team, and writer for
the community posts. Kathy earned her Ph.D. in Higher Education at the University of
Minnesota, her MBA at Northeastern University’s High Technology MBA program, and her
B.S. in mathematics at the University of Notre Dame. She was named Educator of the Year
in 2011 by the Association of Information Technology Professionals (AITP) Education
Special Interest Group (EDSIG). Kathy lives in Minnesota with her husband. Visit her
personal website at www.kathyschwalbe.com or www.pmtexts.com.
Other books by Kathy Schwalbe:
An Introduction to Project Management, Sixth Edition (Minneapolis: Schwalbe
Publishing, 2017).
Healthcare Project Management, Second Edition, co-authored with Dan Furlong
(Minneapolis: Schwalbe Publishing, 2017).
01356_fm_hr_i-xxiv.indd 24
6/21/18 12:47 PM
Chapter
1
Introduction to
Project Management
Learning Objectives
After reading this chapter, you will be able to:
•
Articulate 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 constraints of project management
•
Define 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
•
Discuss the relationship between project, program, and portfolio
management and the contributions each makes to enterprise success
•
Summarize the role of project managers by describing what they do,
what skills they need, the talent triangle, and career opportunities for IT
project managers
•
Recall key aspects of the project management profession, including
important components of its history, the role of professional organizations
like the Project Management Institute (PMI), the importance of certification
and ethics, and the advancement of project management software
01356_ch01_hr_001-046.indd 1
5/15/18 10:30 AM
2
Chapter 1
Opening Case
Anne Roberts, the director of the Project Management Office for Information Technology
at a large retail chain, stood in front of 500 people in the large corporate auditorium to
explain the company’s new strategies during a monthly all-hands meeting. She was also
streaming live video to thousands of other employees at other locations, suppliers, and
stockholders throughout the world. The company had come a long way in implementing
new information systems to improve inventory control, sell products online, streamline
the sales and distribution processes, and improve customer service. However, a recent
security breach had alarmed investors and the stock price plummeted. People were
anxious to hear about the company’s new strategies.
Anne began to address the audience, “Good morning. As you know, competition
is fierce in our industry. We have made a lot of progress the last few years to become
a more agile organization, especially in valuing people over process and responding to
change over following a plan. We all have to work together to overcome recent problems.
Our two most important goals include providing the best computer security possible
and improving online collaboration tools for our employees, suppliers, and customers.
Our challenge is to work even smarter to deliver solutions that provide the most benefit
for the company by leveraging the power of information technology. If we succeed, we’ll
continue to be a world-class corporation.”
“And if we fail?” someone asked from the audience.
“Let’s just say that failure is not an option,” Anne replied.
Introduction
Many people and organizations today have a new—or renewed—interest in project
­management. Until the 1980s, project management primarily focused on providing
schedule and resource data to top management in the military, computer, and
construction industries. Today’s project management involves much more, and people
in every industry and every country manage projects. Project management is a distinct
profession with degree programs, certifications, and excellent career opportunities.
New technologies have become a significant factor in many businesses. Computer
hardware, software, networks, and the use of interdisciplinary and global work teams
have radically changed the work environment. The following statistics demonstrate the
­significance of project management in today’s society, especially for projects involving
information technology (IT):
•
•
01356_ch01_hr_001-046.indd 2
Worldwide IT spending was $3.5 trillion in 2017, a 2.4 percent increase from
2016 spending. Communications services accounted for 40 percent of the
spending.1
The Project Management Institute reported that the number of projectrelated jobs reached almost 66 million in 2017, and demand continues to
increase. “By 2027, employers will need 87.7 million individuals working in
project management–oriented roles.”2
5/15/18 10:30 AM
Introduction to Project Management
•
•
•
•
3
The unemployment rate for IT professionals is generally half the rate of the
overall labor market in the United States. The U.S. Bureau of Labor Statistics
estimates the rate to be only 2 percent, and project management is one of the
ten hottest tech skills.3
In 2017, the average annual salary (without bonuses) for someone in the
project management profession was $112,00 per year in the United States
and $130,866 in Switzerland, the highest-paid country. Salaries of survey
­respondents across 37 counties were 23 percent higher for those with the
Project Management Professional (PMP®) credential than those without it.4
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.5
Organizations waste $97 million for every $1 billion spent on projects,
according to PMI’s Pulse of the Profession® report. Excelling at project
­management definitely affects the bottom line.6
The complexity and importance of IT projects, which involve using hardware,
s­ oftware, and networks to create a product, service, or result, have evolved dramatically.
Today’s companies, governments, and nonprofit organizations are recognizing that to be
successful, they need to use modern project management techniques, especially for IT
projects. Individuals are realizing that to remain competitive in the workplace, they must
develop skills to become good project team members and project managers. They also
realize that many of the concepts of project management will help them in their everyday
lives as they work with people and technology on a day-to-day basis.
W h at W e n t W r o n g ?
In 1995, the Standish Group published an often-quoted study titled “The CHAOS
Report.” This consulting firm surveyed 365 IT executive managers in the United States
who managed more than 8,380 IT application projects. As the title of the study suggests,
the projects were in a state of chaos. U.S. companies spent more than $250 billion each
year in the early 1990s on approximately 175,000 IT application development projects.
Examples of these projects included creating a new database for a state department
of motor vehicles, developing a new system for car rental and hotel reservations, and
implementing a client-server architecture for the banking industry. The study reported
that the overall success rate of IT projects was only 16.2 percent. The surveyors defined
success as meeting project goals on time and on budget. The study also found that more
than 31 percent of IT projects were canceled before completion, costing U.S. companies and government agencies more than $81 billion. The study authors were adamant
about the need for better project management in the IT industry. They explained,
“Software development projects are in chaos, and we can no longer imitate the three
monkeys—hear no failures, see no failures, speak no failures.”7 Although this study was
(continued)
01356_ch01_hr_001-046.indd 3
5/15/18 10:30 AM
4
Chapter 1
done 20 years ago, it was significant in making senior executives pay attention to the
­importance of IT project management.
In another large study, PricewaterhouseCoopers surveyed 200 companies from 30
different countries about their project management maturity and found that over half of
all projects fail. The study also found that only 2.5 percent of corporations consistently
meet their targets for scope, time, and cost goals for all types of projects.8
Although several researchers question the methodology of such studies, the results
have prompted managers throughout the world to examine ways to improve their
­practices in managing projects. Many organizations assert that using project management
techniques provides advantages, such as the following:
•
•
•
•
•
•
•
•
•
Better control of financial, physical, and human resources
Improved customer relations
Shorter development times
Lower costs and improved productivity
Higher quality and increased reliability
Higher profit margins
Better internal coordination
Positive impact on meeting strategic goals
Higher worker morale
This chapter introduces projects and project management, explains how projects fit
into programs and portfolio management, discusses the role of the project manager, and
provides important background information on this growing profession. Although project
management applies to many different industries and types of projects, this text focuses
on applying project management to IT projects.
What is A Project?
To discuss project management, it is important to understand the concept of a project.
A project is “a temporary endeavor undertaken to create a unique product, service, or
result.”9 Operations, on the other hand, is work done in organizations to sustain the
business. It focuses on the ongoing production of goods and services. Projects are different
from operations in that they end when their objectives have been reached or the project
has been terminated. It is important to note that people focusing on operations and
projects must work together for a smooth transition. For example, in software development,
DevOps is a fairly new term used to describe a culture of collaboration between software
development and operations teams to build, test, and release reliable software more quickly.
Examples of IT Projects
Projects can be large or small and involve one person or thousands of people. They can be
done in one day or take years to complete. As described earlier, IT projects involve using
hardware, software, and networks to create a product, service, or result. Examples of IT
projects include the following:
01356_ch01_hr_001-046.indd 4
5/15/18 10:30 AM
Introduction to Project Management
•
•
•
•
•
•
•
•
•
•
•
5
A large network of healthcare providers updates its information systems and
procedures to reduce hospital acquired diseases.
A team of students creates a smartphone application and sells it
online.
A company develops a driverless car.
A college upgrades its technology infrastructure to provide wireless Internet
access across the whole campus as well as online access to all academic and
student service information.
A company implements a new system to increase sales force productivity
and customer relationship management that will work on various laptops,
­smartphones, and tablets.
A television network implements a system to allow viewers to vote for
­contestants and provide other feedback on programs via social
media sites.
A government group develops a system to track child immunizations.
A large group of volunteers from organizations throughout the world develops
standards for environmentally friendly or green IT.
A global bank acquires other financial institutions and needs to consolidate
systems and procedures.
Government regulations require monitoring of pollutants in air and
water.
A multinational firm decides to consolidate its information systems into an
integrated enterprise resource management approach.
Gartner, Inc., a prestigious consulting firm, identified the top 10 strategic technologies
for 2018. A few of these technologies include the following:
•
•
•
•
01356_ch01_hr_001-046.indd 5
Artificial Intelligence (AI) Foundation: Creating systems that learn, adapt,
and potentially act autonomously can enhance decision making and improve
the customer experience.
Intelligent Things: AI is driving advances for new intelligent things, including
autonomous vehicles, robots, and drones as well as Internet of Things like
thermostats, lights, and home appliances.
Cloud to the Edge: Edge computing pushes data handling to the edge
of the network, closer to the source of the data. Instead of sending data to
the cloud server or central data center for processing, the device connects
through a local gateway device, allowing faster analytics and reduced
network pressure.
Immersive Experience: Virtual, augmented, and mixed reality are changing
the way that people perceive and interact with the digital world. “The virtual
reality (VR) and augmented reality (AR) market is currently adolescent and
fragmented. Interest is high, resulting in many novelty VR applications that
deliver little real business value outside of advanced entertainment, such as
video games and 360-degree spherical videos. To drive real tangible business
benefit, enterprises must examine specific real-life scenarios where VR and AR
can be applied to make employees more productive and enhance the design,
training and visualization processes.”10
5/15/18 10:30 AM
6
Chapter 1
As you can see, a wide variety of projects use information technologies, and
organizations rely on them for success.
Media Snapshot
One of Gartner’s top 10 strategic technologies for 2012 included application stores and
marketplaces for smartphones and tablets. Gartner predicted that by 2014 there would
be more than 70 billion mobile application downloads every year, but the actual number
was almost double!11 Facebook is by far the most downloaded app, and the most popular
category of all apps continues to be games.
As of March 2017, Android users could download 2.8 million different apps, and
Apple users could download 2.2 million.“In 2016, the global mobile internet user
­penetration has exceeded half the world’s population, while the average daily time
spent accessing online content from a mobile device, such as a smartphone, a tablet
computer or wearable, has reached 185 minutes daily among Millennials, 110 minutes
for ­Generation X and 43 daily minutes for Boomers.”12
Project Attributes
Projects come in all shapes and sizes. The following attributes help define a project further:
•
•
•
•
01356_ch01_hr_001-046.indd 6
A project has a unique purpose. Every project should have a well-defined
objective. For example, Anne Roberts, the director of the Project
Management Office in the chapter’s opening case, might sponsor an IT
collaboration project to develop a list and initial analysis of potential IT
projects that might improve operations for the company. The unique purpose
of this project would be to create a collaborative report with ideas from
people throughout the company. The results would provide the basis for
further discussions and selecting projects to implement. As you can see from
this example, projects result in a unique product, service, or result.
A project is temporary. A project has a definite beginning and end. In the IT
collaboration project, Anne might form a team of people to work immediately
on the project, and then expect a report and an executive presentation of the
results in one month.
A project drives change and enables value creation. A project is initiated
to bring about a change in order to meet a need or desire. Its purpose is to
achieve a specific objective which changes the context (a living situation, in
this house project example) from a current state to a more desired or valued
future state.
A project is developed using progressive elaboration. Projects are often
defined broadly when they begin, and as time passes, the specific details
of the project become clearer. Therefore, projects should be developed in
increments. A project team should develop initial plans and then update
them with more detail based on new information.
5/15/18 10:30 AM
Introduction to Project Management
•
•
•
7
A project requires resources, often from various areas. Resources
include people, hardware, software, and other assets. Many projects cross
departmental or other boundaries to achieve their unique purposes. For the
IT ­collaboration project, people from IT, marketing, sales, distribution, and
other areas of the company would need to work together to develop ideas.
A project should have a primary customer or sponsor. Most projects
have many interested parties or stakeholders, but for a project to succeed
someone must take the primary role of sponsorship. The project sponsor
usually provides the direction and funding for the project. Executive support
is crucial to project success, as described in later chapters. Anne Roberts
would be the sponsor for the IT collaboration project.
A project involves uncertainty. Because every project is unique, it is sometimes
difficult to define its objectives clearly, estimate how long it will take to
complete, or determine how much it will cost. External factors also cause
uncertainty, such as a supplier going out of business or a project team member
needing unplanned time off. This uncertainty is one of the main reasons project
management is so challenging, especially on projects involving new technologies.
An effective project manager is crucial to a project’s success. Project managers work
with the project sponsors, team, and the other people involved to achieve project goals.
Project Constraints
Every project is constrained in different ways, often by its scope, time, and cost goals.
These limitations are sometimes referred to in project management as the triple
constraint. To create a successful project, a project manager must consider scope, time,
and cost and balance these three often-competing goals:
•
•
•
Scope: What work will be done as part of the project? What unique product,
service, or result does the customer or sponsor expect from the project? How
will the scope be verified?
Time: How long should it take to complete the project? What is the project’s
schedule? How will the team track actual schedule performance? Who can
approve changes to the schedule?
Cost: What should it cost to complete the project? What is the project’s
budget? How will costs be tracked? Who can authorize changes to the budget?
Figure 1-1 illustrates the three dimensions of the triple constraint. Each area—
scope, time, and cost—has a target at the beginning of the project. For example, the IT
collaboration project might have an initial scope of producing a 40- to 50-page report and
a one-hour presentation on about 30 potential IT projects. The project manager might
further define project scope to include providing a description of each potential project,
an investigation of what other companies have implemented for similar projects, a rough
time and cost estimate, and assessments of the risk and potential payoff as high, medium,
or low. The initial time estimate for this project might be one month, and the cost
estimate might be $45,000–$50,000. These expectations provide targets for the scope,
time, and cost dimensions of the project.
01356_ch01_hr_001-046.indd 7
5/15/18 10:30 AM
8
Chapter 1
Successful project
management means
meeting all three
goals (scope, time,
and cost)—and
satisfying the project’s
sponsor!
Figure 1-1
Target
Project constraints
Note that the scope and cost goals in this example include ranges—the report can
be 40 to 50 pages long and the project can cost between $45,000 and $50,000. Because
projects involve uncertainty and limited resources, projects rarely finish according to their
original scope, time, and cost goals. Instead of discrete target goals, it is often more realistic
to set a range for goals, such as spending between $45,000 and $50,000 and having a 40- to
50-page report. These goals might require hitting the target, but not the bull’s eye.
Managing the triple constraint involves making trade-offs between scope, time, and
cost goals for a project. For example, you might need to increase the budget for a project
to meet scope and time goals. Alternatively, you might have to reduce the scope of a
project to meet time and cost goals. Experienced project managers know that you must
decide which aspect of the triple constraint is most important. If time is most important,
you must often change the initial scope and cost goals to meet the schedule. If scope goals
are most important, you may need to adjust time and cost goals.
To generate project ideas for the IT collaboration project, suppose that the project
manager sent an e-mail survey to all employees, as planned. The initial time and cost
estimate may have been one week and $5,000 to collect ideas using this e-mail survey. Now,
suppose that the e-mail survey generated only a few good project ideas, but the scope goal
was to collect at least 30 good ideas. Should the project team use a different method like
01356_ch01_hr_001-046.indd 8
5/15/18 10:30 AM
Introduction to Project Management
9
focus groups or interviews to collect ideas? Even though it was not in the initial scope, time,
or cost estimates, it would really help the project. Because good ideas are crucial to project
success, it would make sense to inform the project sponsor that adjustments are needed.
Although the triple constraint describes how the basic elements of a project
interrelate, other elements can also play significant roles. Quality is often a key factor
in projects, as is customer or sponsor satisfaction. Some people, in fact, refer to the
quadruple constraint of project management, which includes quality as well as scope,
time, and cost. A project team may meet scope, time, and cost goals but might fail
to meet quality standards and satisfy the sponsor. For example, Anne Roberts may
receive a 50-page report describing 30 potential IT projects and hear a presentation that
summarizes the report. The project team may have completed the work on time and
within the cost constraint, but the quality may have been unacceptable.
Other factors might also be crucial to a particular project. On some projects,
resources are the main concern. For example, the entertainment industry often needs
particular actors for movies or television shows. Project goals must be adjusted based
on when particular people are available. Risk can also affect major project decisions.
A company might wait to start a project until the risks are at an acceptable level. The
project manager should be communicating with the sponsor throughout the project to
make sure it is meeting expectations. Chapter 10, Project Communications Management,
and Chapter 13, Project Stakeholder Management, address communicating with
stakeholders and understanding their expectations in greater detail.
How can you avoid the problems that occur when you meet scope, time, and cost
goals, but lose sight of customer satisfaction? The answer is good project management,
which includes more than managing project constraints.
What is Project Management?
Project management is “the application of knowledge, skills, tools, and techniques to
project activities to meet project requirements.”13 Project managers must not only strive
to meet specific scope, time, cost, and quality goals of projects, but also facilitate the
entire process to meet the needs and expectations of people involved in project activities
or affected by them.
Figure 1-2 illustrates a framework to help you understand project management.
Key elements of this framework include the project stakeholders, project management
knowledge areas, project management tools and techniques, and the contribution of
successful projects to the enterprise.
Project Stakeholders
Stakeholders are the people involved in or affected by project activities, and include
the project sponsor, project team, support staff, customers, users, suppliers, and even
opponents of the project. These stakeholders often have very different needs and
expectations. A familiar example of a project is building a new house. There are several
stakeholders in a home construction project.
•
01356_ch01_hr_001-046.indd 9
The project sponsors would be the potential new homeowners who would
be paying for the house. They could be on a very tight budget, so would
expect the contractor to provide a realistic idea of what type of home they
5/15/18 10:30 AM
10
Chapter 1
Project portfolio
Tools and
techniques
10 Knowledge areas
Scope
management
Stakeholders’
needs and
expectations
Figure 1-2
•
•
•
•
01356_ch01_hr_001-046.indd 10
Schedule
management
Cost
management
Quality
management
Project integration management
Resource
management
Communications
management
Risk
management
Procurement
management
Project 1
Project 2
Project 3
Project 4
Enterprise
success
Project
success
Stakeholder
management
Project management framework
could afford given their budget constraints. They would also need a realistic
idea of when they could move in. Regardless of budget, they would expect
the contractor to provide accurate estimates for the building costs. The new
homeowners would have to make important decisions to keep the costs of
the house within their budget. Can they afford to finish the basement right
away? If they can afford to finish the basement, will it affect the projected
move-in date? In this example, the project sponsors are also the customers
and users of the product, which is the house.
The house may require financing by a bank or other financial institution
like a credit union, which will secure a legal interest (lien) in the property
and the finished home. This institution is an example of a legal stakeholder
who must be informed of any changes to the plans or schedule because the
project is part of a legal contract.
The project manager in this example would normally be the general
contractor responsible for building the house. The project manager needs to
work with all the project stakeholders to meet their needs and expectations.
The project team for building the house would include several construction
workers, electricians, and carpenters. These stakeholders would need
to know exactly what work they must do and when they need to do it.
They would need to know if the required materials and equipment will be
at the construction site or if they are expected to provide the materials
and equipment. Their work would need to be coordinated because many
interrelated factors are involved. For example, the carpenter cannot put in
kitchen cabinets until the walls are completed.
Support staff might include the buyers’ employers, the general contractor’s
administrative assistant, and people who support other stakeholders. The
buyers’ employers might expect their employees to complete their work
but allow some flexibility so they can visit the building site or take phone
5/15/18 10:30 AM
Introduction to Project Management
•
•
11
calls related to building the house. The contractor’s administrative assistant
would support the project by coordinating meetings between the buyers, the
contractor, suppliers, and other parties.
Building a house requires many suppliers. The suppliers would provide the
wood, windows, flooring, appliances, and other materials. Suppliers would
expect exact details on the items they need to provide, and where and when
to deliver those items.
A project might have opponents. In this example, a neighbor might oppose
the project because the workers make so much noise that she cannot
concentrate on her work at home, or the noise might wake her sleeping
children. She might interrupt the workers to voice her complaints or even
file a formal complaint. Or, the neighborhood might have association rules
concerning new home design and construction. If the homeowners do not
follow these rules, they might have to halt construction due to legal issues.
Even without such complaints, the home must comply with certain building
codes and other restrictions; these considerations may also result in changes
to the project’s requirements, making the local government a stakeholder in
the project.
As you can see from this example, projects have many different stakeholders, and
they often have different interests. Stakeholders’ needs and expectations are important in
the beginning and throughout the life of a project. Successful project managers develop
good relationships with project stakeholders to understand and meet their needs and
expectations.
Project Management Knowledge Areas
Project management knowledge areas describe the key competencies that project
managers must develop. The center of Figure 1-2 shows the 10 knowledge areas of project
management.
1.
2.
3.
4.
5.
6.
7.
01356_ch01_hr_001-046.indd 11
Project scope management involves defining and managing all the work
required to complete the project successfully.
Project schedule management (formerly called project time management)
includes estimating how long it will take to complete the work, developing an
acceptable project schedule, and ensuring timely completion of the project.
Project cost management consists of preparing and managing the budget for
the project.
Project quality management ensures that the project will satisfy the stated or
implied needs for which it was undertaken.
Project resource management is concerned with making effective use of the
people and physical resources involved with the project.
Project communications management involves generating, collecting,
disseminating, and storing project information.
Project risk management includes identifying, analyzing, and responding to
risks related to the project.
5/15/18 10:30 AM
12
Chapter 1
8.
Project procurement management involves acquiring or procuring goods and
services for a project from outside the performing organization.
9. Project stakeholder management includes identifying and analyzing
stakeholder needs while managing and controlling their engagement
throughout the life of the project.
10. Project integration management is an overarching function that affects and is
affected by all of the other knowledge areas.
Project managers must have knowledge and skills in all 10 of these areas. This text
includes an entire chapter on each of these knowledge areas because all of them are
crucial to project success.
Project Management Tools and Techniques
Thomas Carlyle, a famous historian and author, stated, “Man is a tool-using animal. Without
tools he is nothing, with tools he is all.” As the world continues to become more complex,
it is even more important for people to develop and use tools, especially for managing
important projects. Project management tools and techniques assist project managers and
their teams in carrying out work in all 10 knowledge areas. For example, some popular
time-management tools and techniques include Gantt charts, project network diagrams,
and critical path analysis. Table 1-1 lists some commonly used tools and techniques by
knowledge area. You will learn more about these and other tools and techniques throughout
this text.
A survey of 753 project and program managers was conducted to rate several project
management tools. Respondents rated tools on a scale of 1–5 (low to high) based on
the extent of their use and the potential of the tools to help improve project success.
“Super tools” were defined as those that had high use and high potential for improving
project success. These super tools included software for task scheduling (such as project
management software), scope statements, requirement analyses, and lessons-learned
reports. Tools that are already used extensively and have been found to improve project
performance include progress reports, kick-off meetings, Gantt charts, and change
requests.
These super tools appear in column 3 of Table 1-1.14 Note that project stakeholder
management was not a separate knowledge area at the time of this survey.
The PMBOK® Guide – Sixth Edition now lists tools and techniques based on their
purpose, as follows:
•
•
01356_ch01_hr_001-046.indd 12
Data gathering: benchmarking, brainstorming, check sheets, checklists,
focus groups, interviews, market research, questionnaires and surveys, and
statistical sampling
Data analysis: alternatives analysis, assessment of other risk parameters,
assumption and constraint analysis, cost of quality, cost-benefit analysis,
decision tree analysis, document analysis, earned value analysis, and several
other tools fit in this category
5/15/18 10:30 AM
Introduction to Project Management
13
Table 1-1 Common project management tools and techniques by knowledge area
Knowledge
Area/Category
Tools and Techniques
Super Tools
Integration
management
Project selection methods
Project management methodologies
Stakeholder analyses
Work requests
Project charters
Project management plans
Change control boards
Project review meetings
Project management
software
Change requests
Lessons-learned
reports
Scope management
Statements of work
Scope management plans
Scope verification techniques
Scope change controls
Scope statements
Work breakdown
structures
Requirements
analyses
Schedule management
Project network diagrams
Critical path analysis
Crashing
Fast tracking
Schedule performance
measurements
Gantt charts
Cost management
Project budgets
Net present value
Return on investment
Payback analysis
Earned value management
Project portfolio management
Cost estimates
Cost management plans
Cost baselines
Quality management
Quality metrics
Checklists
Quality control charts
Pareto diagrams
Fishbone diagrams
Maturity models
Statistical methods
Test plans
(continued)
01356_ch01_hr_001-046.indd 13
5/15/18 10:30 AM
14
Chapter 1
Table 1-1 Common project management tools and techniques by knowledge
area (continued )
Knowledge
Area/Category
Tools and Techniques
Resource management
Motivation techniques
Empathic listening
Responsibility assignment matrices
Project organizational charts
Resource histograms
Team building exercises
Communications
management
Communications management plans
Conflict management
Communications media selection
Status reports
Virtual communications
Templates
Project websites
Risk management
Risk management plans
Risk registers
Probability/impact matrices
Risk rankings
Procurement
management
Make-or-buy analyses
Contracts
Requests for proposals or quotes
Source selections
Supplier evaluation matrices
•
•
•
•
•
Super Tools
Kick-off meetings
Progress reports
Data representation: affinity diagrams, cause-and-effect diagrams, control
charts, flow charts, hierarchical charts, histograms, logical data models,
matrix diagrams, matrix-based charts, mind mapping, probability and
impact matrix, scatter diagrams, stakeholder engagement assessment matrix,
stakeholder mapping/representation, and text-oriented formats
Decision making: multi-criteria decision analysis and voting
Communication: feedback and presentations
Interpersonal and team skills: active listening, communication styles
assessment, conflict management, cultural awareness, decision making,
emotional intelligence, facilitation, influencing, leadership, meeting
management, motivation, negotiation, networking, nominal group,
observation/conversation, political awareness, team building
Ungrouped: several other tools fit in this category
These long lists of tools and techniques can be overwhelming. This text will focus on
those used most often and with the most potential, providing the context and detailed
examples for using them. It is crucial for project managers and their team members to
01356_ch01_hr_001-046.indd 14
5/15/18 10:30 AM
Introduction to Project Management
15
determine which tools will be most useful for their particular projects. Selecting the
appropriate tools and techniques (as well the processes, inputs, outputs, and life cycle
phases, discussed later in this book) is part of project tailoring. Project management
should be tailored to meet the unique needs of projects, organizations, and most
importantly, people. After all, projects are done by, and for, people.
Despite its advantages, project management is not a silver bullet that guarantees
success on all projects. Some projects, such as those involving new technologies, have a
higher degree of uncertainty, so it is more difficult to meet their scope, schedule, and cost
goals. Project management is a very broad, often complex discipline. What works on one
project may not work on another, so it is essential for project managers to continue to
develop their knowledge and skills in managing projects. It is also important to learn from
the mistakes and successes of past projects.
W h at W e n t R i g h t ?
Follow-up studies by the Standish Group (see the previously quoted “CHAOS” study in
the What Went Wrong? passage) showed improvement in the statistics for IT projects:
•
•
•
The number of successful projects (those completed on time, on budget with a
satisfactory result) was 29 percent in 2015 based on a sample of over 50,000 software development projects worldwide. The number of failed projects (those canceled or not used after implementation) was 19 percent. That leaves 52 percent
of projects as challenged (over budget, late, and/or poorly implemented). These
numbers include projects of all sizes and methodologies.
The 2015 CHAOS study also summarized the success rates of projects by size,
showing that 62 percent of small projects were successful from 2011 to 2015
compared to only 2 percent of grand, 6 percent of large, 9 percent of medium,
and 21 percent of moderate size projects. Small projects are obviously easier to
complete successfully.
Agile approaches were also measured across all project sizes from 2011 to 2015,
showing that 39 percent of all agile projects were successful compared to 11 percent of waterfall projects. For small projects, 58 percent of agile projects were successful compared to 44 percent of waterfall projects. About 10,000 projects were
included for these statistics.15
According to the PMI research, across all industries, the average percentage of
projects that are deemed failures is 14 percent; the average for IT projects deemed
failures in 2016 also is 14 percent.16
Project Success
How do you define the success or failure of a project? The list that follows outlines a few
common criteria for measuring the success of a project, illustrating each with an example
of upgrading 500 desktop computers within three months for $300,000:
1.
01356_ch01_hr_001-046.indd 15
The project met scope, time, and cost goals. If all 500 computers were
upgraded and met other scope requirements, the work was completed in
three months or less, and the cost was $300,000 or less, you could consider
5/15/18 10:30 AM
16
Chapter 1
2.
3.
the project successful. The Standish Group studies used this definition of
success, but several people question this simple definition of project success
and the methods used for collecting the data. (Search for articles by Robert
L. Glass to read more about this debate.)
The project satisfied the customer/sponsor. Even if the project met initial
scope, time, and cost goals, the users of the computers or their managers
might not be satisfied. Perhaps the project manager or team members never
returned calls or were rude. Perhaps users had their daily work disrupted
during the upgrades or had to work extra hours due to the upgrades. If the
customers were not happy with important aspects of the project, it would be
deemed a failure. Conversely, a project might not meet initial scope, time,
and cost goals, but the customer could still be very satisfied. Perhaps the
project team took longer and spent more money than planned, but they were
very polite and helped the users and managers solve several work-related
problems. Many organizations implement a customer satisfaction rating
system to measure project success instead of tracking only scope, time, and
cost performance.
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. Even if the project cost more than
estimated, it took longer to complete, and the project team was hard to work
with, the project would be successful if users were happy with the upgraded
computers, based on this criterion. As another example, suppose that the
sponsor approved the upgrade project to provide a good return on investment
by speeding up work and therefore generating more profits. If those goals
were met, the sponsor would deem the project a success, regardless of other
factors involved.
Why do some IT projects succeed and others fail? Table 1-2 summarizes the results of
the 2015 CHAOS study. The factors that contribute most to the success of IT projects are
listed in order of importance. Executive sponsorship is the most important factor, followed
by emotional maturity of the organization. A few of the top success factors relate to good
scope management, such as having clear business objectives and optimization. Project
management expertise continues to be a key success factor. In fact, experienced project
managers, who can often help influence all of these factors to improve the probability of
project success, led 97 percent of successful projects, based on an earlier CHAOS study.
A U.S. government report listed the top three reasons why federal technology projects
succeed:
1.
2.
3.
Adequate funding
Staff expertise
Engagement from all stakeholders
Notice that the CHAOS study list does not include adequate funding. Most
nongovernment companies must either find adequate funds for important projects or
01356_ch01_hr_001-046.indd 16
5/15/18 10:30 AM
Introduction to Project Management
17
Table 1-2 What helps projects succeed?
Factors of Success
Points
Executive sponsorship
15
Emotional maturity
15
User involvement
15
Optimization
15
Skilled resources
10
Agile process
7
Modest execution
6
Project management expertise
5
Clear business objectives
4
Source: The Standish Group, “CHAOS Manifesto 2015” (2015).
cancel projects if they cannot be funded or get an adequate return. Government projects
often require that funds be allocated a year or more before they even start, and estimates
often fall short. “The government has struggled when acquiring technology thanks to
the convoluted nature of the federal contracting process and the shortage of qualified
contracting officers and technical personnel. Critics argue that federal agencies get little
return for the $80 billion the government spends annually on IT. . . . ‘History has shown
that government IT projects frequently face challenges of meeting cost, schedule or
performance goals,’ said Sen. Susan Collins (R-Maine) in a statement.”17
It is interesting to compare success factors for IT projects in the United States with
those in other countries. A survey of 247 information systems project practitioners
in mainland found that relationship management is viewed as a top success factor for
information systems in China, while it is not mentioned in U.S. studies. The study also
suggested that having competent team members is less important in China than in the
United States. The Chinese, like the Americans, included top management support, user
involvement, and a competent project manager as vital to project success.18
It is also important to look beyond individual project success rates and focus on
how organizations as a whole can improve project performance. Research comparing
companies that excel in project delivery—the “winners”—with those that do not found
four significant best practices:
1.
01356_ch01_hr_001-046.indd 17
Use an integrated toolbox. Companies that consistently succeed in managing
projects clearly define what needs to be done in a project, by whom, when,
and how. They use an integrated toolbox, including project management
tools, methods, and techniques. They carefully select tools, align them with
project and business goals, link them to metrics, and provide them to project
managers to deliver positive results.
5/15/18 10:30 AM
18
Chapter 1
2.
3.
4.
Grow project leaders. The winners know that strong project managers—
referred to as project leaders—are crucial to project success. They also
know that a good project leader needs to be a business leader as well, with
strong interpersonal and intrapersonal skills. Companies that excel in project
management often grow or develop their project leaders internally, providing
them with career opportunities, training, and mentoring.
Develop a streamlined project delivery process. Winning companies have
examined every step in the project delivery process, analyzed fluctuations in
workloads, searched for ways to reduce variation, and eliminated bottlenecks
to create a repeatable delivery process. All pr…