Information Technology Project
Management, Eighth Edition
Describe an overall framework for project
integration management as it relates to the other
project management knowledge areas and the
project life cycle
Discuss the strategic planning process and apply
different project selection methods
Explain the importance of creating a project charter
to formally initiate projects
Describe project management plan development,
understand the content of these plans, and review
approaches for creating them
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Management, Eighth Edition Copyright 2016 2
Explain project execution, its relationship to project
planning, the factors related to successful results, and
tools and techniques to assist in directing and
managing project work
Describe the process of monitoring and controlling a
project
Understand the integrated change control process,
planning for and managing changes on information
technology (IT) projects, and developing and using a
change control system
Explain the importance of developing and following
good procedures for closing projects
Describe how software can assist in project integration
management
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Management, Eighth Edition Copyright 2016 3
Project managers must coordinate all of the other
knowledge areas throughout a project’s life cycle
Many new project managers have trouble looking
at the “big picture” and want to focus on too many
details
Project integration management is not the same
thing as software integration
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Management, Eighth Edition Copyright 2016 4
1. Developing the project charter involves working
with stakeholders to create the document that
formally authorizes a project—the charter.
2. Developing the project management plan
involves coordinating all planning efforts to create a
consistent, coherent document—the project
management plan.
3. Directing and managing project work involves
carrying out the project management plan by
performing the activities included in it.
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Management, Eighth Edition Copyright 2016 5
4. Monitoring and controlling
◦ Monitoring and controlling project work involves
overseeing activities to meet the performance objectives
of the project
◦ Performing integrated change control involves identifying,
evaluating, and managing changes throughout the
project life cycle.
5. Closing the project or phase involves finalizing
all activities to formally close the project or phase.
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Management, Eighth Edition Copyright 2016 6
PM Process Initiating Process Planning Process Group Executing Process Monitoring & Controlling Closing
Groups / Group Group Process Group Process
Knowledge Area Group
Processes
Project Develop Project Develop Project Management Direct and Manage Project Monitor and Control Project Close Project
Management Charter Plan Execution Work
Integration Develop Prelim Project Integrated Change Control
Scope Statement
Project Scope Scope Planning Scope Verification
Management Scope Definition Scope Control
Create WBS
Project Time Activity Definition & Sequencing Schedule Control
Management Resource Estimating
Duration Estimating
Schedule Development
Project Cost Cost Estimating Cost Control
Management Cost Budgeting
Project Quality Quality Planning Perform Quality Assurance Perform Quality Control
Management
Project HR Human Resources Planning Acquire Project Team Manage Project Team
Management Develop Project Team
Project Communications Planning Information Distribution Performance Reporting
Communications Manage Stakeholders
Management
Project Risk Risk Management Planning Risk Monitoring and Control
Management Risk Identification
Qualitative / Quantitative Risk
Analysis
Risk Response Planning
Project Plan Purchases and Acquisitions Request Seller Responses Contract Administration Contract
Procurement Plan Contracting Select Sellers Closure
Management
Copyright 2016
Information Technology Project
Management, Eighth Edition Copyright 2016 8
The Surrey police force in UK began looking into replacing
its criminal intelligence system in 2005, but the project was
finally cancelled in 2013, and the old system was replaced
with a much less expensive one used by thirteen other
forces
The person in charge of the project would not take
responsibility for it
An audit report said the project was beyond their in-house
capabilities and experience
Organizations must make the right staffing/outsourcing
decisions
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Management, Eighth Edition Copyright 2016 9
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
◦ analyzing Strengths, Weaknesses, Opportunities, and
Threats
As part of strategic planning, organizations
◦ identify potential projects
◦ use realistic methods to select which projects to work on
◦ formalize project initiation by issuing a project charter
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Management, Eighth Edition Copyright 2016 10
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Management, Eighth Edition Copyright 2016 11
A 2013 survey identified companies most admired for
their ability to apply IT-related business capabilities for
competitive advantage
Best practices of these companies include:
◦ Customer-driven IT is essential
◦ IT can enable branding and customer recruitment
◦ Keep improving
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Management, Eighth Edition Copyright 2016 12
There are usually more projects than available
time and resources to implement them
Methods for selecting projects include:
◦ focusing on broad organizational needs
◦ categorizing information technology projects
◦ performing net present value or other financial
analyses
◦ using a weighted scoring model
◦ implementing a balanced scorecard
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Management, Eighth Edition Copyright 2016 13
It is often difficult to provide strong justification for
many IT projects, but everyone agrees they have
a high value
Three important criteria for projects:
◦ There is a need for the project
◦ There are funds available
◦ There’s a strong will to make the project succeed
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Management, Eighth Edition Copyright 2016 14
One categorization is whether the project
addresses
◦ a problem
◦ an opportunity, or
◦ a directive
Another categorization is how long it will take to do
and when it is needed
Another is the overall priority of the project
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Management, Eighth Edition Copyright 2016 15
Financial considerations are often an important
consideration in selecting projects
Three primary methods for determining the projected
financial value of projects:
◦ Net Present Value (NPV) analysis
◦ Return On Investment (ROI)
◦ Payback analysis
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Management, Eighth Edition Copyright 2016 16
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
Projects with a positive NPV should be considered if
financial value is a key criterion
The higher the NPV, the better
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Management, Eighth Edition Copyright 2016 17
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Management, Eighth Edition Copyright 2016 18
Determine estimated costs and benefits for the life
of the project and the products it produces
Determine the discount rate
Calculate the NPV
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Management, Eighth Edition Copyright 2016 19
Return on investment (ROI) is calculated by
subtracting the project costs from the benefits and
then dividing by the costs
ROI = (total benefits - total costs) / total costs
The higher the ROI, the better
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Management, Eighth Edition Copyright 2016 20
Another important financial consideration is payback
analysis
The payback period is the amount of time it will take to
recover, in the form of net cash inflows, the total dollars
invested in a project
Payback occurs when the net cumulative discounted
benefits equals the costs
Many organizations want IT projects to have a fairly
short payback period
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Management, Eighth Edition Copyright 2016 21
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Management, Eighth Edition Copyright 2016 22
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
The higher the weighted score, the better
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Management, Eighth Edition Copyright 2016 23
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Management, Eighth Edition Copyright 2016 24
After deciding what project to work on, it is
important to let the rest of the organization know
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 project stakeholders should sign a project
charter to acknowledge agreement on the need
and intent of the project; a signed charter is a key
output of project integration management
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Management, Eighth Edition Copyright 2016 25
A project statement of work
A business case
Agreements
Enterprise environmental factors
Organizational process assets, which include
formal and informal plans, policies, procedures,
guidelines, information systems, financial systems,
management systems, lessons learned, and
historical information
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Management, Eighth Edition Copyright 2016 26
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Management, Eighth Edition Copyright 2016 27
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Management, Eighth Edition Copyright 2016 28
A project management plan is a document used
to coordinate all project planning documents and
help guide a project’s execution and control
Plans created in the other knowledge areas are
subsidiary parts of the overall project
management plan
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Management, Eighth Edition Copyright 2016 29
Introduction or overview of the project
Description of how the project is organized
Management and technical processes used on
the project
Work to be done, schedule, and budget
information
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Management, Eighth Edition Copyright 2016 30
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Management, Eighth Edition Copyright 2016 31
Involves managing and performing the work
described in the project management plan
The majority of time and money is usually spent
on execution
The application area of the project directly affects
project execution because the products of the
project are produced during execution
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Management, Eighth Edition Copyright 2016 32
Project planning and execution are intertwined
and inseparable activities
Those who will do the work should help to plan the
work
Project managers must solicit input from the team
to develop realistic plans
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Management, Eighth Edition Copyright 2016 33
Project managers must lead by example to
demonstrate the importance of creating and then
following good project plans
Organizational culture can help project execution by
◦ providing guidelines and templates
◦ tracking performance based on plans
Project managers may still need to break the rules
to meet project goals, and senior managers must
support those actions
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Management, Eighth Edition Copyright 2016 34
2015 PMI report found that only 12 percent of
organizations were considered to be high
performers
Percentage remained unchanged in past few
years
Organizations must make major cultural changes
to improve
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Management, Eighth Edition Copyright 2016 35
It is often helpful for IT project managers to have
prior technical experience
On small projects, the project manager may be
required to perform some of the technical work or
mentor team members to complete the projects
On large projects, the project manager must
understand the business and application area of
the project
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Management, Eighth Edition Copyright 2016 36
Expert judgment: Experts can help project managers and
their teams make many decisions related to project
execution
Meetings: Meetings allow people to develop relationships,
pick up on important body language or tone of voice, and
have a dialogue to help resolve problems.
Project management information systems: There are
hundreds of project management software products
available on the market today, and many organizations are
moving toward powerful enterprise project management
systems that are accessible via the Internet
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Management, Eighth Edition Copyright 2016 37
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
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Management, Eighth Edition Copyright 2016 38
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
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Management, Eighth Edition Copyright 2016 39
Former view: The project team should strive to do
exactly what was planned on time and within
budget
Problem: Stakeholders rarely agreed up-front on
the project scope, and time and cost estimates
were inaccurate
Modern view: Project management is a process of
constant communication and negotiation
Solution: Changes are often beneficial, and the
project team should plan for them
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Management, Eighth Edition Copyright 2016 40
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
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Management, Eighth Edition Copyright 2016 41
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
Includes stakeholders from the entire organization
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Management, Eighth Edition Copyright 2016 42
Some CCBs only meet occasionally, so it may
take too long for changes to occur
Some organizations have policies in place for
time-sensitive changes
◦ “48-hour policy” allows project team members to make
decisions, then they have 48 hours to reverse the
decision pending senior management approval
◦ Delegate changes to the lowest level possible, but keep
everyone informed of changes
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Management, Eighth Edition Copyright 2016 43
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Management, Eighth Edition Copyright 2016 44
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
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Management, Eighth Edition Copyright 2016 45
Several types of software can be used to assist in
project integration management
◦ Documents can be created with word processing software
◦ Presentations are created with presentation software
◦ Tracking can be done with spreadsheets or databases
◦ Communication software can facilitate communications
◦ Project management software can pull everything together
and show detailed and summarized information
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Management, Eighth Edition Copyright 2016 46
Source: www.projectmanager.com
Information Technology Project
Management, Eighth Edition Copyright 2016 47
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
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Management, Eighth Edition Copyright 2016 48
Question - 1
You are a project manager of a company and you have been assigned
to take over managing a project that should have been 60 percent
complete according to the schedule. After evaluation, you discover
that the project is running far behind schedule, and that the project
will probably take double the time originally estimated by the previous
project manager. However, the sponsor has been told that the project
is on schedule. What is the BEST course of action you will take?
1.Add new resource to the project and complete the project on schedule.
2.Show your evaluation to sponsor.
3.Ask your senior manager to deal with this.
4.Turn the project back to the previous project manager.
2 is the correct answer.
You can't turn the project back to the previous project manager
because he or she may be busy with other project. The best option is
to show your evaluation to sponsor.
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Management, Eighth Edition Copyright 2016 49
Question - 2
You are a project manager of a company and you are assigned to a
project that has already been decided to out source. As a project
manager, you need to organize a formal bid process and select the
vendor for this project. Your senior management is asking you to
select a vendor which has good relation with your senior
management. What is the BEST course of action for you?
1.Follow the formal bid process, and show the senior management about
why the favored vendor is or is not the best choice.
2.Report to legal department of your company.
3.Report to your Manager about this.
4.Get a written permission from your senior management to bypass the
formal bid process.
1 is the correct answer.
The best option is to follow the formal bid process, and show the
senior management about why the favored vendor is or is not the
best choice.
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Management, Eighth Edition Copyright 2016 50
Question - 3
Which of the following project management process gets MOST of a
project's budget expended?
1.Project Executing
2.Project Planning
3.Project Closing
4.Project Monitoring
1 is the correct answer.
Most of the resources are involved in the project executing process,
therefore most of a project's budget are expended on this process.
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Management, Eighth Edition Copyright 2016 51
Question - 4
Which of the following document can be used to guide all the work in
both project executing and project monitoring and controlling phase
of a project?
1.Project Management Plan
2.Project Risk Plan
3.Project QA Plan
4.Project Charter
1 is the correct answer.
Project Management plan can be used to guide all the work in both
project executing and project monitoring and controlling phase of a
project.
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Management, Eighth Edition Copyright 2016 52
Question - 5
You are a project manager of a company and you are assigned to a
project that has already decided to be outsourced. As a project manager,
you need to organize a formal bid process and select the vendor for this
project. You own stock in one of the vendor companies who also
participated in the bidding process. What is the BEST course of action
for you?
1.Get the vendor company selected for the project.
2.Keep the information to yourself.
3.Tell your manager and remove yourself from the vendor selection committee.
4. Ask other members of the selection committee to select your vendor
company.
3 is the correct answer.
The best option is to tell your manager and remove yourself from the
vendor selection committee.
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Management, Eighth Edition Copyright 2016 53
Question - 6
The 2 years project has 200 work packages and a $20,000 budget. After
one year, 100 work packages are completed and $10,000 has been spent.
Which of the following is TRUE?
1.The project need 50 work package to be completed in 6 months.
2.Not enough information available.
3.The project need 50 work package to be completed in 3 months.
4.The project is on schedule and on budget.
2 is the correct answer.
There is Not enough information available about the project. What
was planned? Is the work packages are same?
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Management, Eighth Edition Copyright 2016 54
Question - 7
Some of your team members want to work on a flexible schedule and
others want all team members should reach on fixed time. What should
you do?
1. Allow them for flexible time schedules.
2. Allow them for fixed time schedules.
3. Arrange a meeting and allow them to decide.
4. Ask your senior management to decide.
3 is the correct answer.
The best option is to arrange a meeting and allow them to decide.
Information Technology Project
Management, Eighth Edition Copyright 2016 55
