PROJECT INTEGRATION
MANAGEMENT
THE KEY TO OVERALL PROJECT
SUCCESS: GOOD PROJECT INTEGRATION
MANAGEMENT
Project managers must coordinate all of the
other knowledge areas throughout a project’s
life cycle
Project integration management is not the same
thing as software integration
Information Systems Project Management 2
PROJECT INTEGRATION
MANAGEMENT PROCESSES
Process Group Integration Management Process Major
Output
Initiating Developing the project charter Project Charter
Developing the project management
Planning Project Management Plan
plan
Deliverables, work
Directing and managing project
Executing performance info, change
work
requests
Monitoring (1) Monitor/Control Project Work
(1) Change Requests
and (2) Perform Integrated Change
(2) Status updates
Controlling Control
Closing Close Project/Phase Product Transition
Information Systems Project Management 3
PROJECT INTEGRATION
MANAGEMENT SUMMARY
Information Systems Project Management 4
STRATEGIC PLANNING AND
PROJECT SELECTION
Strategic planning involves determining long-
term objectives, predicting future trends, and
projecting the need for new products and
services
Organizations often perform a SWOT analysis
Information Systems Project Management 5
INFORMATION TECHNOLOGY
PLANNING PROCESS
Information Systems Project Management 6
METHODS FOR SELECTING
PROJECTS
There are usually more projects than
available time and resources to implement
them
Methods for selecting projects
Feasibility Study – can it even be done?
Benefits Contributions
Economics Models
Scoring Models
Information Systems Project Management 7
METHOD: FOCUSING ON BROAD
ORGANIZATIONAL NEEDS
It is often difficult to provide strong
justification for many IT projects, but
everyone agrees they have a high value
One categorization is whether the project
addresses
a problem
an opportunity, or
a directive
Information Systems Project Management 8
METHODS: FINANCIAL
ANALYSIS OF PROJECTS
Three primary methods for determining the
projected financial value of projects:
Net present value (NPV) analysis
Return on investment (ROI)
Payback analysis
Information Systems Project Management 9
NET PRESENT VALUE ANALYSIS
Net present value (NPV) analysis is a method of
calculating the expected net monetary gain or loss from
a project by discounting all expected future cash
inflows and outflows to the present point in time
Information Systems Project Management 10
NPV CALCULATIONS
Determine estimated costs and benefits for the life of the
project and the products it produces
Determine the discount rate (check with your organization on
what to use)
Calculate the NPV
NPV =t A
0...n t
/ (1+r) t
= Amount of Cash Flow
t = year of the cash flow
r = discount rate
Information Systems Project Management 11
RETURN ON INVESTMENT
Return on investment (ROI) is calculated by
subtracting the project costs from the benefits
and then dividing by the costs
ROI = (total discounted benefits - total
discounted costs) / discounted costs
Information Systems Project Management 12
JWD CONSULTING NPV EXAMPLE
Discount Rate: 8%
Costs:
• Y0: $140,000
• Y1 - 3: $40,000
Benefits:
• Y0: $0
• Y1 - 3: $200,000
Year 0: discount factor = 1/(1+0.08)0 = 1
Year 1: discount factor = 1/(1+0.08)1 = 0.93
Information Systems Project Management 13
JWD CONSULTING NPV EXAMPLE
Note: See the template called business_case_financials.xls
Information Systems Project Management 14
PAYBACK ANALYSIS
The payback period is the amount of time it
will take to recoup, in the form of net cash
inflows, the total dollars invested in a project
Information Systems Project Management 15
METHOD: WEIGHTED SCORING MODEL
A weighted scoring model is a tool that provides a
systematic process for selecting projects based on
many criteria
Identify criteria important to the project selection
process
Assign weights (percentages) to each criterion so they
add up to 100%
Assign scores to each criterion for each project
Multiply the scores by the weights and get the total
weighted scores
Information Systems Project Management 16
SAMPLE WEIGHTED SCORING
MODEL CRITERIA
Criteria:
Supports key business objectives (25%)
Strong internal sponsor (15%)
Strong customer support (10%)
One year or less implementation (20%)
Positive NPV (30%)
Information Systems Project Management 17
ADDITIONAL METHODS
Balanced scorecard
Scoring
Opportunity Costs
Six Sigma
Information Systems Project Management 18
INITIATING PROCESS GROUP:
DEVELOPING A PROJECT CHARTER
A project charter is a document that formally
recognizes the existence of a project and
provides direction on the project’s objectives
and management
Key Output of Project Integration:
Signed Charter
Information Systems Project Management 19
INPUTS FOR DEVELOPING A
PROJECT CHARTER
Information Systems Project Management 20
PROJECT CHARTER (CONT.)
Information Systems Project Management 21
PLANNING PROCESS GROUP:
DEVELOP PROJECT MANAGEMENT
PLAN
A project management plan is a document used to
coordinate all project planning documents and help
guide a project’s execution and control
Common Elements:
Introduction or overview of the project
Description of how the project is organized
Management and technical processes
Work to be done, schedule, and budget info
Information Systems Project Management 22
SAMPLE CONTENTS FOR A SOFTWARE
PROJECT MANAGEMENT PLAN (SPMP)
Information Systems Project Management 23
EXECUTING PROCESS GROUP:
DIRECTING AND MANAGING
PROJECT WORK
Involves managing and performing the work
described in the project management plan
Project planning and execution are intertwined
and inseparable activities
Information Systems Project Management 24
PROVIDING LEADERSHIP AND
A SUPPORTIVE CULTURE
Project managers must lead by example to
demonstrate the importance of creating and
then following good project plans
Information Systems Project Management 25
CAPITALIZING ON PRODUCT,
BUSINESS, AND APPLICATION
AREA KNOWLEDGE
It is often helpful for IT project managers
to have prior technical experience
Small vs. Large Projects
Information Systems Project Management 26
PROJECT EXECUTION TOOLS
AND TECHNIQUES
Expert judgment
Meetings
Project management information
systems
Information Systems Project Management 27
MONITORING AND
CONTROLLING PROJECT
WORK
Changes are inevitable on most projects, so it’s
important to develop and follow a process to monitor
and control changes
Monitoring project work includes collecting,
measuring, and disseminating performance
information
A baseline is the approved project management plan
plus approved changes
Information Systems Project Management 28
PERFORMING INTEGRATED
CHANGE CONTROL
Three main objectives are:
Influencing the factors that create
changes to ensure that changes are
beneficial
Determining that a change has occurred
Managing actual changes as they occur
Information Systems Project Management 29
CHANGE CONTROL ON
INFORMATION
TECHNOLOGY PROJECTS
Former view & Problems
Modern view & Solution
Information Systems Project Management 30
CHANGE CONTROL SYSTEM
A change control system is a formal,
documented process that describes when and
how official project documents and work may be
changed
Describes who is authorized to make changes
and how to make them
Information Systems Project Management 31
CHANGE CONTROL BOARD
(CCB)
A change control board is a formal group of
people responsible for approving or rejecting
changes on a project
CCBs provide guidelines for preparing change
requests, evaluate change requests, and
manage the implementation of approved
changes
Information Systems Project Management 32
CONFIGURATION
MANAGEMENT
Configuration management ensures that the
descriptions of the project’s products are
correct and complete
Involves identifying and controlling the
functional and physical design characteristics
of products and their support documentation
Information Systems Project Management 33
SUGGESTIONS FOR PERFORMING
INTEGRATED CHANGE CONTROL
Information Systems Project Management 34
CLOSING PROJECTS OR
PHASES
To close a project or phase, you must finalize
all activities and transfer the completed or
cancelled work to the appropriate people
Main outputs include
Final product, service, or result transition
Organizational process asset updates
Information Systems Project Management 35
USING SOFTWARE TO ASSIST IN
PROJECT INTEGRATION
MANAGEMENT
Several types of software can be used to assist
in project integration management
Project management software can pull
everything together and show detailed and
summarized information
Business Service Management (BSM) tools
track the execution of business process flows
Information Systems Project Management 36
SUMMARY
Project integration management involves coordinating
all of the other knowledge areas throughout a project’s
life cycle
Main processes include
Develop the project charter
Develop the project management plan
Direct and manage project execution
Monitor and control project work
Perform integrated change control
Close the project or phase
Information Systems Project Management 37
