Term Assignment: INFO20172 Project Management for Information TechnologySpring 2022
IT Project Management using PMP INFO20172
Term Assignment Description – Spring 2022
Term Assignment – INFO20172
NO WORK IS TO SUBMITTED IN HARDCOPY.
CASE STUDY: Bathroom Renovations
Part 1: Project Integration Management
After living in their house for 30 years, the Fulcher family decided to renovate the
upstairs bathroom. It was still functional, but there were cracks in the walls, some of
the tiles had fallen off, the lights were old fashioned, and the window and screen
needed replacing. The huge bathtub was great when the children were in the house,
but now that only Mr. and Mrs. Fulcher were living there, it was never used and
wasted a lot of space.
After making the decision to renovate the bathroom, the Fulchers interviewed a few
different contractors and did their due diligence regarding the professionalism and
quality of the contractors. They decided to hire “Build-It-Bob, the Bathroom Boys” as
their contracting company. The owner of “Build-It-Bob, the Bathroom Boys”, Mr.
Bob Burton, was willing to start on July 1 and guaranteed completion by Sept 1 or
they would refund 25% of the total cost of the contract, which was for $15,000.
Fifteen thousand dollars seemed like a lot of money to the Fulchers, but they saw
examples of the work Mr. Burton et al had done, and were convinced it would be
worthwhile.
Tasks:
1. Prepare a project charter for the Bathroom Renovation Project. Assume the
project will take 2 months to complete (use any year you wish, starting July
1st with completion due September 1st) and the total budget is $15,000. This
included $8,000 in materials (flooring; drywall; paint; tiles; lights; bathtub,
toilet, sink and vanity; and pipes) and $7,000 in labour costs (Bob Burton $200/hr; Billy Burton – architect $120/hr; Bessy Burton – demolition and build
$80/hour; Brenda Burton – plumber $150/hr; Bonnie Burton – electrician
$150/hr; and Tina Temp – Student painter and mason (tile work) $50/hr). You
Term Assignment: INFO20172 Project Management for Information Technology
Spring 2022
are the child of the Fulchers, Chris, and since you are a professional project
manager your parents have asked you to oversee the project to make sure
everything goes as planned. Mr. Burton will work closely with you. Use the
project charter template and examples of project charters in Chapters 3 and 4
as guidelines. Assume that the project sponsor is Mr. Fulcher. Include the
main roles for other major stakeholders (Mrs. Fulcher, the members of the
Build-It-Bob team, assorted vendors).
Part 2: Project Scope Management
Tasks:
1. Develop a scope statement for the project. Use the example provided in
Chapter 3, Table 3-9 “Scope statement draft” as a guide. Be as specific as
possible in describing product characteristics, requirements, and deliverables.
2. Develop a work breakdown structure (WBS) for the project. Break down the
work to level 2 or level 3, as appropriate. Use the samples in Chapters 3 and 5
as guides. Save and deliver the WBS in list form as a Word file. Be sure to base
your WBS on the project charter, scope statement, and other relevant
information.
3. Use the WBS you developed in the task above to create a Gantt chart in
Project 2016 for the project. Use the outline numbering feature to display the
outline numbers (click View, Gantt Chart Tools, Format, and click on the
Outline Number box). Do not enter any durations or dependencies.
Part 3: Project Time Management
One of your duties as project manager is to lead the Burton team in developing and
following a schedule. You have only 2 months to complete the project and all of the
resources are full-time employees who have other contracts to work on at the same
time. In addition to preparing a Gantt chart, you also plan to give everyone a simple
milestone report. You make sure you black out weeks when people are working on
the other projects. Mr. Burton wants all the requirements settled by July 5, and the
design completed by July 10 so he can begin getting building permits. He would like
to have all the samples available by July 15 so the Fulchers can finalize their choices
by July 20th. Between July 1 and July 20, tearing down the existing bathroom will
occur.
Term Assignment: INFO20172 Project Management for Information Technology
Spring 2022
Tasks:
1. Identify at least eight milestones for this project. Write a short paper
describing each milestone using the SMART criteria.
2. Review the WBS and Gantt chart you created in Part 2 above. Review the key
milestone dates Mr. Burton provided and a typical schedule for bathroom
renovation. Develop a simple schedule in the form of a milestone report. For
the milestone report, see the sample in Chapter 3.
3. Create a Gantt chart for the project, including the milestones, resources and
dependencies.
4. Estimate how many hours each person would work on each task listed in your
Gantt chart.
Part 4: Project Cost Management
Recall that your budget is $15,000 for this two-month project. Also remember that
the Build-It-Bob team have other contracts though Mr. Burton has committed to
having his team spend between 40% and 60% of their time at the Fulcher site.
Tasks:
1. Prepare and include a cost estimate for the project, similar to the one
provided in Figure 7-2 (NOT Table 7-2) in Chapter 7. Use the WBS and hours
estimates you created in Part 3. Assume that the vanity and sink you selected
cost $2,000, the tub costs $2500, the paint, flooring, and drywall cost $1400,
the toilet costs $800, the lighting cost $300, and $150 for new pipes. Include
the hours for each person, and calculate the budget for labour costs as well as
the fixed costs.
Term Assignment Details – INFO20172
What you are to do:
• Read the case study carefully.
• Complete each of the Tasks following each section, according to the
schedule.
• Prepare a Final Report consisting of all the Task deliverables.
Term Assignment: INFO20172 Project Management for Information Technology
Spring 2022
Deliverable Details
Final Report
The report is to be delivered in a professional manner, including spelling and
grammar (Ask yourself – would you be proud to hand this to an employer of an
example of your work?). The first page is to be the “Check list and Title Page”.
Complete the checklist as evidence that you have all elements in the report and in
their proper order. It is due via SLATE mailbox as per specified due date.
The Final Report is to be submitted as one Word document and one .mpp file – not
a series of documents, not as a .zip file. Marks will be deducted for this.
Check list and title page (all on one page):
•
•
•
•
•
•
•
•
•
•
•
Appropriate cover page
Completed Check list page
Project Charter (Part 1, Task 1)
Scope Statement (Part 2, Task 1)
WBS – List Form (Part 2, Task 2)
Gantt chart (Part 2, Task 3)
SMART paper (Part 3, Task 1)
Milestone Report (Part 3, Task 2)
Gantt chart (Part 3, Task 3)
Cost estimate (Part 4, Task 1)
Report elements sequenced as required.
Information Technology Project Management
rendixalextian/iStock/Getty Images
Information Technology Project Management
9th Edition
Kathy Schwalbe,Ph.D., PMP Professor Emeritus, Augsburg College
Jonathan Lau SVP, GM Skills & Global Product Management
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Copyright Statement
Information Technology Project Management
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For Dan, Anne, Bobby, and Scott
Preface
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 “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-todate 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.
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.
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.
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
Accesing MindTap
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, 5, 6, 7, 8, 9, 10, 11, 12, and 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.
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 real-world 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.
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.
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, notetaking, search and audio, as well as mobile access. Learn more at
www.cengage.com/mindtap/.
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
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
About the Author
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 graduate-level 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).
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
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):
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.*
The Project Management Institute reported that the number of project-related 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.”*
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.*
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.*
The top skills employers look for in new college graduates are all related to project
management: team work, decision making, problem-solving, and verbal
communications.*
Organizations waste $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.*
The complexity and importance of IT projects, which involve using hardware, software, 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.
What Went Wrong?
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.”* Although this study was 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.*
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.”*
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:
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:
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.”*
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!* 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.”*
Project Attributes
Projects come in all shapes and sizes. The following attributes help define a project further:
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.
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.
Figure 1-1.
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 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.”* 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.
Figure 1-2.
Project management framework
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.
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 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 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. Project scope management involves defining and managing all the work required to
complete the project successfully.
2. 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.
3. Project cost management consists of preparing and managing the budget for the project.
4. Project quality management ensures that the project will satisfy the stated or implied
needs for which it was undertaken.
5. Project resource management is concerned with making effective use of the people and
physical resources involved with the project.
6. Project communications management involves generating, collecting, disseminating, and
storing project information.
7. Project risk management includes identifying, analyzing, and responding to risks related
to the project.
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 timemanagement 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.
Table 1-1.
area
Common project management tools and techniques by knowledge
Knowledge Area/Category
Tools and Techniques
Super Tools
Project selection methods
Project management software
Project management methodologies
Change requests
Stakeholder analyses
Lessons-learned reports
Integration management
Work requests
Project charters
Project management plans
Change control boards
Project review meetings
Scope management
Statements of work
Scope statements
Scope management plans
Work breakdown structures
Scope verification techniques
Requirements analyses
Scope change controls
Schedule management
Gantt charts
Project network diagrams
Critical path analysis
Crashing
Fast tracking
Schedule performance
measurements
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
Resource management
Motivation techniques
Empathic listening
Responsibility assignment matrices
Project organizational charts
Resource histograms
Team building exercises
Communications management
Communications management plans
Kick-off meetings
Conflict management
Progress reports
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
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.* 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:
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
Data representation: affinity diagrams, cause-and-effect diagrams, control charts, flow
charts, hierarchical charts, histograms, logical data models, matrix diagrams, matrixbased 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 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.
What Went Right?
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.*
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.*
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. 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 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.)
2. 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.
3. 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.
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).
A U.S. government report listed the top three reasons why federal technology projects
succeed:
1. Adequate funding
2. Staff expertise
3. 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 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.”*
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.*
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. 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.
2. 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.
3. 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 projects go through clear stages and clearly define key milestones. All project
leaders use a shared road map, focusing on key business aspects of their projects while
integrating goals across all parts of the organization.
4. Measure project health using metrics. Companies that excel in project delivery use
performance metrics to quantify progress. They focus on a handful of important
measurements and apply them to all projects. Metrics often include customer
satisfaction, return on investment, and percentage of schedule buffer consumed.*
Project managers play an important role in making projects, and therefore organizations,
successful. Project managers work with the project sponsors, the project team, and other
stakeholders to meet project goals. They also work with sponsors to define success for
particular projects. Good project managers do not assume that their definition of success is
the same as the sponsors’. They take the time to understand their sponsors’ expectations and
then track project performance based on important success criteria.
Program and Project Portfolio Management
About one-quarter of the world’s gross domestic product is spent on projects. Projects make
up a significant portion of work in most business organizations or enterprises, and managing
those projects successfully is crucial to enterprise success. Two important concepts that help
projects meet enterprise goals are the use of programs and project portfolio management.
Programs
A program is “a group of related projects, subsidiary programs, and program activities
managed in a coordinated manner to obtain benefits and control not available from managing
them individually.”* As you can imagine, it is often more economical to group projects
together to help streamline management, staffing, purchasing, and other work. Programs are
not large projects; a megaproject is a very large project that typically costs over US$1 billion,
affects over one million people, and lasts several years. For examples, the Panama Canal
Expansion Project was a megaproject that took 11 years and $5.25 billion to complete. The
following are examples of common programs in the IT field.
Infrastructure: An IT department often has a program for IT infrastructure projects. This
program could encompass several projects, such as providing more wireless Internet
access, upgrading hardware and software, enhancing computer security, and developing
and maintaining corporate standards for IT.
Applications development: This program could include several projects, such as updating
an enterprise resource planning (ERP) system, purchasing a new off-the-shelf billing
system, or developing a new capability for a customer relationship management system.
User support: In addition to the many operational tasks related to user support, many IT
departments have several projects to support users. For example, a project might
provide a better e-mail system or develop technical training for users.
A program manager provides leadership and direction for the project managers heading the
projects within a program. Program managers also coordinate the efforts of project teams,
functional groups, suppliers, and operations staff supporting the projects to ensure that
products and processes are implemented to maximize benefits. Program managers are
responsible for more than the delivery of project results; they are change agents responsible
for the success of products and processes developed by those projects. For example, the NASA
International Space Station Program is led by a program manager who oversees all U.S.
projects involved with the station and is accountable for achieving their objectives, funding,
and contribution to scientific knowledge.
Program managers often have review meetings with all their project managers to share
important information and coordinate important aspects of each project. Many program
managers worked as project managers earlier in their careers, and they enjoy sharing their
wisdom and expertise with their project managers. Effective program managers recognize
that managing a program is much more complex than managing a single project. They
recognize that technical and project management skills are not enough—program managers
must also possess strong business knowledge, leadership capabilities, and communication
skills.
Project Portfolio Management
In many organizations, project managers also support an emerging business strategy of
project portfolio management or portfolio management , as called in this text, in which
organizations group and manage projects and programs as a portfolio of investments that
contribute to the entire enterprise’s success. Portfolio managers help their organizations
make wise investment decisions by helping to select and analyze projects from a strategic
perspective. Portfolio managers may or may not have previous experience as project or
program managers. It is most important that they have strong financial and analytical skills
and understand how projects and programs can contribute to meeting strategic goals.
Figure 1-3 illustrates the differences between project management and project portfolio
management. Notice that the main distinction is a focus on meeting tactical or strategic goals.
Tactical goals are generally more specific and short term than strategic goals, which
emphasize long-term goals for an organization. Individual projects often address tactical
goals, whereas portfolio management addresses strategic goals. Project management
addresses questions like “Are we carrying out projects well?”, “Are projects on time and on
budget?”, and “Do project stakeholders know what they should be doing?”
Figure 1-3.
Project management compared to project portfolio management
Portfolio management addresses questions like “Are we working on the right projects?”, “Are
we investing in the right areas?”, and “Do we have the right resources to be competitive?” PMI
defines a portfolio as “projects, programs, subsidiary portfolios, and operations managed as
a group to achieve strategic objectives.”*
Many organizations use a more disciplined approach to portfolio management by developing
guidelines and software tools to assist in it. The Project Management Institute (described
later in this chapter) first published the Organizational Project Management Maturity Model
(OPM3®) Knowledge Foundation in 2003.* OPM3® describes the importance of not only
managing individual projects or programs well but also following organizational project
management to align projects, programs, and portfolios with strategic goals. OPM3® is a
standard that organizations can use to measure their organizational project management
maturity against a comprehensive set of best practices.
Best Practice
A best practice is “an optimal way recognized by industry to achieve a stated goal or
objective.”* Rosabeth Moss Kanter, a professor at Harvard Business School and wellknown author and consultant, says that visionary leaders know “the best practice secret:
Stretching to learn from the best of the best in any sector can make a big vision more
likely to succeed.”* Kanter also emphasizes the need to have measurable standards for
best practices. An organization can measure performance against its own past, against
peers, and, even better, against potential. Kanter suggests that organizations need to
continue to reach for higher standards. She suggests the following exercise regimen for
business leaders who want to adapt best practices in an intelligent way to help their own
organizations:
Reach high. Stretch. Raise standards and aspirations. Find the best of the best and
then use it as inspiration for reaching full potential.
Help everyone in your organization become a professional. Empower people to
manage themselves through benchmarks and standards based on best practice
exchange.
Look everywhere. Go far afield. Think of the whole world as your laboratory for
learning.
Robert Butrick, author of The Project Workout, wrote an article on best practices in
project management for the Ultimate Business Library’s Best Practice book. He suggests
that organizations need to follow basic principles of project management, including
these two mentioned earlier in this chapter:
Make sure your projects are driven by your strategy. Be able to demonstrate how
each project you undertake fits your business strategy, and screen out unwanted
projects as soon as possible.
Engage your stakeholders. Ignoring stakeholders often leads to project failure. Be
sure to engage stakeholders at all stages of a project, and encourage teamwork and
commitment at all times.*
Table 1-3 provides a comparative overview of project, program, and portfolio management.
Organizational project management is a “framework in which portfolio, program, and
project management are integrated with organizational enablers in order to achieve strategic
objectives.”*
Table 1-3.
Definition
Comparative Overview of Portfolios, Programs, and Projects
Projects
Programs
Portfolios
A project is a temporary
endeavor undertaken to
create a unique product,
A program is a group of
related projects, subsidiary
programs, and program
A portfolio is a collection of
projects, programs,
subsidiary portfolios, and
service, or result.
activities that are managed
in a coordinated way to
obtain benefits not available
from managing them
individually.
operations managed as a
group to achieve strategic
objectives.
Management
Project managers manage
Programs are managed by
the project team to meet the program managers who
project objectives.
ensure that program
benefits are delivered as
expected, by coordinating
the activities of a program’s
components.
Portfolio managers may
manage or coordinate
portfolio management staff,
or program and project staff
that may have reporting
responsibilities into the
aggregate portfolio.
Monitoring
Project managers monitor
and control the work of
producing the products,
services, or results that the
project was undertaken to
produce.
Program managers monitor
the progress of program
components to ensure that
the overall goals, schedules,
budget, and benefits of the
program are met.
Portfolio managers monitor
strategic changes and
aggregate resource
allocation, performance
results, and risk of the
portfolio.
Success
Success is measured by
product and project quality,
timeliness, budget
compliance, and degree of
customer satisfaction.
A program’s success is
measured by the program’s
ability to deliver its intended
benefits to an organization,
and by the program’
efficiency and effectiveness
in delivering those benefits.
Success is measured in
terms of the aggregate
investment performance
and benefit realization of the
portfolio.
Source: Project Management Institute, Inc., A Guide to the Project Management Body of
Knowledge (PMBOK ® Guide) – Sixth Edition (2017).
Organizational Project Management
Organizations group projects into portfolios to help them make better investment decisions,
such as increasing, decreasing, discontinuing, or changing specific projects or programs
based on their financial performance, risks, resource utilization, and similar factors that affect
business value. If a construction firm has much higher profit margins on apartment buildings
than single-family homes, for example, it might choose to pursue more apartment building
projects. The firm might also create a new project to investigate ways to increase profits for
single-family home projects. On the other hand, if the company has too many projects focused
on financial performance and not enough focused on improving its work force, the portfolio
manager might suggest initiating more projects to support that strategic goal. Just like a
personal financial portfolio, a business’s portfolio should be diversified to account for risk.
By grouping projects into portfolios, organizations can better tie their projects to meeting
strategic goals. Portfolio management can also help organizations do a better job of managing
its human resources by hiring, training, and retaining workers to support the projects in the
organization’s portfolio. For example, if the construction firm needs more people with
experience in building apartment buildings, they can make necessary adjustments by hiring
or training current workers in the necessary skills.
As you can imagine, project portfolio management is not an easy task. Figure 1-4 illustrates
one approach for project portfolio management in which one large portfolio exists for the
entire organization. This allows top management to view and manage all projects at an
enterprise level. Sections of the portfolio are then broken down to improve the management
of projects in each sector. For example, a company might have the main portfolio categories
shown in the left part of Figure 1-4—marketing, materials, IT, and human resources (HR)—
and divide each of those categories further to address its unique concerns. The right part of
this figure shows how the IT projects could be categorized in more detail to assist in their
management. In this example, there are three basic IT project portfolio categories:
Venture: Projects in this category help transform the business. For example, the large
retail chain described in the opening case might have an IT project to provide kiosks in
stores and similar functionality on the Internet where customers and suppliers could
quickly provide feedback on products or services. This project could help transform the
business by developing closer partnerships with customers and suppliers.
Growth: Projects in this category would help the company increase its revenues. For
example, a company might have an IT project to provide information on its corporate
website in a new language, such as Chinese or Japanese. This capability could help the
company grow its business in those countries.
Core: Projects in this category must be accomplished to run the business. For example, an
IT project to provide computers for new employees would fall under this category.
Figure 1-4.
Sample project portfolio approach
In Figure 1-4, the costs of Core IT projects are nondiscretionary, which means that the
company has no choice in whether to fund them. Core IT Projects must be funded for the
company to stay in business. Projects in the Venture or Growth category are discretionary
costs because the company can use its own discretion or judgment in deciding whether to
fund them; these projects are not critical to the company fulfilling its mission. The arrow in
the center of Figure 1-4 indicates that the risks and value of projects normally increase as you
move from Core to Growth to Venture projects. In addition, timeliness becomes increasingly
important; growth and venture projects, more than core projects, must be done within a
certain time frame to be effective. However, some core projects can also be high risk, have
high value, and require good timing. As you can see, many factors are involved in portfolio
management.
The Role of the Project Manager
You have already read that project managers must work closely with the other stakeholders
on a project, especially the sponsor and project team. They are also more effective if they are
familiar with the 10 project management knowledge areas and the various tools and
techniques related to project management. Experienced project managers help projects
succeed. But what do project managers do, exactly? What skills do they really need to do a
good job? What is PMI’s talent triangle? The next section provides brief answers to these
questions, and the rest of this book gives more insight into the role of the project manager.
Even if you never become a project manager, you will probably be part of a project team, and
it is important for team members to help their project managers.
Project Manager Job Description
A project manager can have many different job descriptions, which can vary tremendously
based on the organization and the project. In fact, PMI includes a page on their website to
answer the question, “Who are project managers?” In addition to saying that project
managers are organized, passionate, and goal-oriented individuals who drive business results
by leading projects, PMI emphasizes that they are also change agents who work well under
pressure and enjoy challenging work environments.
Project management jobs can be found in every country and every industry. Sites like
indeed.com listed hundreds of thousands of job openings in 2018. Monster.com has a job
category for project management, and their site says that project managers “smoothly link
management, clients and staff to keep projects rolling. To be successful in a project
management job, you’ll need people skills, business acumen and technical competence.”*
Here are a few edited postings:
Project manager for a consulting firm: Plans, schedules, and controls activities to fulfill
identified objectives applying technical, theoretical, and managerial skills to satisfy
project requirements. Coordinates and integrates team and individual efforts and builds
positive professional relationships with clients and associates.
Project manager for a computer systems firm: Works independently within established
practices to assist in the development and implementation process of projects involving
departmental, vendor relationships, and/or cross-functional teams. Coordinates with
internal/external clients to gather business requirements and coordinate project plans.
Monitor projects from initiation through delivery ensuring completion of the project on
schedule.
IT project manager for a nonprofit consulting firm: Responsibilities include business
analysis, requirements gathering, project planning, budget estimating, development,
testing, and implementation. Responsible for working with various resource providers to
ensure that development is completed in a timely, high-quality, and cost-effective
manner.
The job description for a project manager can vary by industry and by organization, but most
project managers perform similar tasks regardless of these differences. In fact, project
management is a skill needed in every major IT field, from database administrator to network
specialist to technical writer. Because demand for project managers is high, some
organizations have hired new college graduates to fill positions normally held by experienced
professionals. For example, Boom Lab, a consulting company named by the Star Tribune as a
top workplace in 2017, is growing quickly by finding, training, and placing talented people as
project coordinators. As new project coordinators gain experience and credentials, they often
continue their careers by managing larger projects, becoming program managers, or
transitioning into other management positions.
Advice for Young Professionals
How do you know if you would be a good project manager? Being a project manager is a
demanding yet rewarding profession, for the right person. Below are a few questions to
ask yourself:
Do you get frustrated by bad bosses? Do you think you could do a better job?
Are you interested in understanding the big picture of how organizations work and
how your individual work or your project fits in?
Have you had other leadership roles, such as being a team captain, president of a
club, or entrepreneur of a small business? Did you enjoy it? Did others think you did
a good job?
Are you good at mentoring others? Do people ask you for help in developing their
skills or your advice on what to do?
If you answered “yes” to most of these questions, you should consider being a project
manager. If you prefer just focusing on your own work and want to remain in a technical
position, there’s absolutely nothing wrong with that. Just remember that it will help you
in the long run if you at least understand what project managers do and assist them as
needed doing things like creating estimates, identifying risks, etc.
What if you try it but no longer want to stay in a project management career path? You
can often go back to your former, more technical rol…