Information Technology Project Management

Jack T. Marchewka is an associate professor, the Barsema Professor of Management Information Systems, and the director of the Business Information Technology Transfer Center (BITTC) at Northern Illinois University. He received his Ph.D. from Georgia State University's department of Computer Information Systems in 1994 and was a former faculty member at Kennesaw State University. Prior to entering academia, Dr. Marchewka was a vice president of MIS for a healthcare company in Atlanta, Georgia. Dr. Marchewka has taught a number of courses at both the undergraduate and graduate levels and has been a guest lecturer at the Rotterdam School of Management, Erasmus University in the Netherlands. His articles have appeared in journals such as Information Resources Management Journal, Information Technology & People, Journal of International Information Management, and Journal of Informatics Education and Research.

Preface xxi

About The Author xxvii

CHAPTER 1 The Nature of Information Technology Projects 1

Introduction 1

The Purpose of This Book 5

The State of IT Project Management 5

Why IT Projects Fail 7

Improving the Likelihood of Success 10

A Value-Driven Approach 10

A Socio-Technical Approach 10

A Project-Management Approach 10

A Knowledge-Management Approach 12

The Context of Project Management 13

What Is a Project? 13

Attributes of a Project 14

The Project Life Cycle and IT Development 16

Define Project Goal 17

Plan Project 18

Execute Project Plan 18

Close Project 18

Evaluate Project 18

The Systems Development Life Cycle (SDLC) 19

Planning 19

Analysis 19

Design 20

Implementation 20

Maintenance and Support 20

Implementing the SDLC 20

Structured Approach to Systems Development 21

Iterative Systems Development 22

The PLC and the SDLC 23

Extreme Project Management 24

The Project Management Body of Knowledge (PMBOK) 25

Project Management Knowledge Areas 25

Chapter Summary 27

Review Questions 28

Extend Your Knowledge 28

Global Technology Solutions 29

Husky Air—Pilot Angels 29

Husky Air Assignment 30

Case Studies 31

Bibliography 33

CHAPTER 2 Conceptualizing and Initializing the IT Project 34

Introduction 34

An Information Technology Project Methodology (ITPM) 35

Phase 1: Conceptualize and Initialize 37

Phase 2: Develop the Project Charter and Detailed Project Plan 37

Phase 3: Execute and Control the Project 38

Phase 4: Close Project 39

Phase 5: Evaluate Project Success 39

IT Project Management Foundation 40

Project Management Process Group 40

Project Objectives 40

Tools 41

Infrastructure 41

Project Management Knowledge Areas 41

The Business Case 42

What Is a Business Case? 42

Developing the Business Case 42

Step 1: Select the Core Team 43

Step 2: Define Measurable Organizational Value (MOV) 44

Step 3: Identify Alternatives 51

Step 4: Define Feasibility and Assess Risk 51

Step 5: Define Total Cost of Ownership 52

Step 6: Define Total Benefits of Ownership 53

Step 7: Analyze Alternatives 53

Step 8: Propose and Support the Recommendation 58

Project Selection and Approval 58

The IT Project Selection Process 60

The Project Selection Decision 60

IT Governance and the Project Management Office 63

The Project Management Office (PMO) 66

Chapter Summary 66

Review Questions 67

Extend Your Knowledge 68

Global Technology Solutions 68

Husky Air Assignment—Pilot Angels 69

Case Studies 71

Bibliography 74

CHAPTER 3 Developing the Project Charter and Baseline Project Plan 76

Introduction 76

Project Management Processes 77

Project Management Process Groups 79

Initiating 79

Planning 80

Executing 81

Monitoring and Controlling 81

Closing 81

Project Integration Management 81

The Project Charter 83

What Should Be in a Project Charter? 84

Project Identification 85

Project Stakeholders 85

Project Description 86

Measurable Organizational Value (MOV) 86

Project Scope 86

Project Schedule 87

Project Budget 87

Quality Issues 87

Resources 87

Assumptions and Risks 87

Project Administration 88

Acceptance and Approval 88

References 88

Terminology 88

Project Planning Framework 88

The MOV 90

Define the Project’s Scope 90

Subdivide the Project into Phases 91

Tasks—Sequence, Resources, and Time Estimates 91

Sequence 91

Resources 92

Time 92

Schedule and Budget—The Baseline Plan 92

The Kick-Off Meeting 93

Chapter Summary 93

Review Questions 94

Extend Your Knowledge 94

Global Technology Solutions 95

Husky Air Assignment—Pilot Angels 96

Case Studies 96

Bibliography 99

CHAPTER 4 The Human Side of Project Management 100

Introduction 100

Organization and Project Planning 102

The Formal Organization 102

The Functional Organization 102

The Project Organization 105

The Matrix Organization 107

Which Organizational Structure Is Best? 109

The Informal Organization 110

Stakeholders 110

Stakeholder Analysis 110

The Project Team 111

The Roles of the Project Manager 111

Team Selection and Acquisition 113

Team Performance 114

Work Groups 114

Real Teams 115

Project Teams and Knowledge Management 117

Learning Cycles and Lessons Learned 118

The Project Environment 122

Chapter Summary 125

Review Questions 126

Extend Your Knowledge 126

Global Technology Solutions 127

Husky Air Assignment—Pilot Angels 128

Case Studies 129

Bibliography 132

CHAPTER 5 Defining and Managing Project Scope 133

Introduction 133

Project Scope Management Processes 133

Scope Planning 136

Scope Boundary 136

The Scope Statement 136

Scope Statement 137

Out of Scope for This Project 137

Project Scope Definition 138

Project-Oriented Scope 138

Project-Oriented Scope Definition Tools 138

Product-Oriented Scope 140

Product-Oriented Scope Definition Tools 140

Project Scope Verification 144

Scope Change Control 144

Scope Change Control Procedures 145

Benefits of Scope Control 147

Chapter Summary 147

Review Questions 148

Extend Your Knowledge 149

Global Technology Solutions 149

Husky Air Assignment—Pilot Angels 150

Case Studies 150

Bibliography 152

CHAPTER 6 The Work Breakdown Structure and Project Estimation 153

Introduction 153

The Work Breakdown Structure (WBS) 154

Work Packages 155

Deliverables and Milestones 155

Developing the WBS 156

The WBS Should Be Deliverable Oriented 158

The WBS Should Support the Project’s MOV 158

The Level of Detail Should Support Planning and Control 159

Developing the WBS Should Involve the People Who Will Be Doing the Work 159

Learning Cycles and Lessons Learned Can Support the Development of a WBS 159

Project Estimation 159

Guesstimating 160

Delphi Technique 160

Time Boxing 161

Top-Down Estimating 161

Bottom-Up Estimating 162

Software Engineering Metrics and Approaches 163

Lines of Code (LOC) 164

Function Points 165

COCOMO 168

Heuristics 170

Automated Estimating Tools 171

What is the Best Way to Estimate IT Projects? 171

Chapter Summary 172

Web Sites to Visit 173

Review Questions 174

Extend Your Knowledge 174

Global Technology Solutions 175

Husky Air Assignment—Pilot Angels 176

Case Studies 177

Bibliography 179

CHAPTER 7 The Project Schedule and Budget 180

Introduction 180

Developing the Project Schedule 181

Gantt Charts 182

Project Network Diagrams 183

Activity on the Node (AON) 183

Critical Path Analysis 185

PERT 186

Precedence Diagramming Method (PDM) 188

Critical Chain Project Management (CCPM) 189

Project Management Software Tools 191

Developing the Project Budget 193

Cost Estimation 193

Other Costs 196

Resource Allocation 198

Finalizing the Project Schedule and Budget 199

Chapter Summary 199

Review Questions 199

Extend Your Knowledge 200

Global Technology Solutions 200

Husky Air Assignment—Pilot Angels 201

Case Studies 202

Bibliography 204

CHAPTER 8 Managing Project Risk 205

Introduction 205

IT Project Risk Management Planning Process 207

Risk Planning 209

Risk Identification 210

Risk Assessment 210

Risk Strategies 210

Risk Monitoring and Control 211

Risk Response 211

Risk Evaluation 211

Identifying IT Project Risks 211

An IT Project Risk Identification Framework 211

Applying the IT Project Risk Identification Framework 213

Tools and Techniques 215

Risk Analysis and Assessment 217

Qualitative Approaches 218

Expected Value 218

Decision Trees 219

Risk Impact Table 219

Quantitative Approaches 222

Discrete Probability Distributions 222

Continuous Probability Distributions 222

PERT Distribution 224

Triangular Distribution 224

Simulations 225

Risk Strategies 228

Risk Monitoring and Control 230

Risk Response and Evaluation 232

Chapter Summary 233

Web Sites to Visit 234

Review Questions 234

Extend Your Knowledge 235

Global Technology Solutions 235

Husky Air Assignment—Pilot Angels 236

Case Studies 237

Bibliography 239

CHAPTER 9 Project Communicaton, Tracking, and Reporting 240

Introduction 240

Monitoring and Controlling the Project 242

The Project Communications Plan 243

Project Metrics 246

Earned Value 247

Reporting Performance and Progress 253

Information Distribution 254

Chapter Summary 257

Review Questions 257

Extend Your Knowledge 258

Global Technology Solutions 258

Husky Air Assignment—Pilot Angels 259

Case Studies 260

Bibliography 262

CHAPTER 10 IT Project Quality Management 263

Introduction 263

Quality Tools and Philosophies 267

Scientific Management 267

Control Charts 268

The Total Quality Movement 269

Quality Planning, Improvement, and Control 271

Cause and Effect of Diagrams, Pareto Charts, and Flow Charts 272

Quality Systems 274

International Organization for Standardization (ISO) 274

Six Sigma (6σ ) 275

The Capability Maturity Model Integration (CMMI) 277

Level 1: Initial 280

Level 2: Repeatable 280

Level 3: Defined 280

Level 4: Managed 281

Level 5: Optimizing 281

The IT Project Quality Plan 283

Quality Philosophies and Principles 283

Focus on Customer Satisfaction 284

Prevention, Not Inspection 284

Improve the Process to Improve the Product 284

Quality Is Everyone’s Responsibility 285

Fact-Based Management 285

Quality Standards and Metrics 285

Verification and Validation 286

Change Control and Configuration Management 288

Monitor and Control 290

Learn, Mature, and Improve 291

Chapter Summary 292

Review Questions 293

Extend Your Knowledge 294

Global Technology Solutions 295

Husky Air Assignment—Pilot Angels 296

Case Studies 297

Bibliography 298

CHAPTER 11 Managing Organizational Change, Resistance, and Conflict 299

Introduction 299

The Nature of Change 302

Change Has an Impact 302

Change Is a Process 303

Change Can Be Emotional 304

The Change Management Plan 306

Assess Willingness, Readiness, and Ability to Change 306

Sponsor 306

Change Agents 307

Targets 307

Develop or Adopt a Strategy for Change 308

Rational-Empirical Approach 308

Normative-Reeducation Approach 309

Power-Coercive Approach 309

Environmental-Adaptive Approach 310

Implement the Change Management Plan and Track Progress 310

Evaluate Experience and Develop Lessons Learned 311

Dealing with Resistance and Conflict 311

Resistance 311

Conflict 312

Chapter Summary 315

Review Questions 316

Extend Your Knowledge 318

Global Technology Solutions 318

Husky Air Assignment—Pilot Angels 319

Case Studies 320

Bibliography 323

CHAPTER 12 Project Procurement Management and Outsourcing 324

Introduction 324

Project Procurement Management 325

The Project Procurement Management Processes 326

Plan Purchases and Acquisition 326

Plan Contracting 327

Request Seller Responses 327

Select Sellers 328

Contract Administration 330

Contract Closure 330

Outsourcing 331

The Beginning of the Outsourcing Phenomenon 331

Types of Outsourcing Relationships 332

The Realities of Outsourcing 332

Managing the Outsourcing Relationship 333

Chapter Summary 335

Review Questions 336

Extend Your Knowledge 337

Global Technology Solutions 337

Husky Air Assignment—Pilot Angels 338

Case Studies 338

Bibliography 340

CHAPTER 13 Leadership and Ethics 341

Introduction 341

Project Leadership 342

Some Modern Approaches to Leadership 343

Leadership Styles 344

Emotional Intelligence 346

Ethics in Projects 348

Ethical Leadership 350

Common Ethical Dilemmas 351

Making Sound Ethical Decisions 352

Codes of Ethics and Professional Practices 354

Multicultural Projects 355

The Challenges of International Projects 355

Understanding and Managing Diversity 357

Chapter Summary 358

Review Questions 359

Extend Your Knowledge 360

Global Technology Solutions 360

Husky Air Assignment—Pilot Angels 361

Case Studies 362

Bibliography 363

CHAPTER 14 Project Implementation, Closure, and Evaluation 364

Introduction 364

Project Implementation 365

Direct Cutover 366

Parallel 366

Phased 367

Administrative Closure 368

Project Sponsor Acceptance 371

The Final Project Report 371

The Final Meeting and Presentation 372

Closing the Project 373

Project Evaluation 373

Individual Performance Review 373

Postmortem Review 374

Project Audit 375

Evaluating Project Success—The MOV 376

Chapter Summary 377

Review Questions 378

Extend Your Knowledge 379

Global Technology Solutions 380

Husky Air Assignment—Pilot Angels 380

Case Studies 381

Bibliography 383

APPENDIX: An Introduction to Function Point Analysis 384

Index 397