Project management for modern information systems by dan brandon

TEAM LinG


i

Project Management
for Modern
Information Systems
Dan Brandon, PhD, PMP
Christian Brothers University, USA

IRM Press
Publisher of innovative scholarly and professional
information technology titles in the cyberage

Hershey • London • Melbourne • Singapore

TEAM LinG


ii
Acquisitions Editor:
Development Editor:
Senior Managing Editor:
Managing Editor:
Copy Editor:
Typesetter:
Cover Design:
Printed at:

Michelle Potter

Kristin Roth
Amanda Appicello
Jennifer Neidig
Becky Shore
Diane Huskinson
Lisa Tosheff
Integrated Book Technology

Published in the United States of America by
IRM Press (an imprint of Idea Group Inc.)
701 E. Chocolate Avenue, Suite 200
Hershey PA 17033-1240
Tel: 717-533-8845
Fax: 717-533-8661
E-mail:
Web site:
and in the United Kingdom by
IRM Press (an imprint of Idea Group Inc.)
3 Henrietta Street
Covent Garden
London WC2E 8LU
Tel: 44 20 7240 0856
Fax: 44 20 7379 0609
Web site:
Copyright © 2006 by Idea Group Inc. All rights reserved. No part of this book may be reproduced,
stored or distributed in any form or by any means, electronic or mechanical, including photocopying,
without written permission from the publisher.
Product or company names used in this book are for identification purposes only. Inclusion of the
names of the products or companies does not indicate a claim of ownership by IGI of the trademark
or registered trademark.

Library of Congress Cataloging-in-Publication Data
Brandon, Dan, 1946Project management for modern information systems / Dan Brandon.
p. cm.
Summary: "This book describes and illustrates practices, procedures, methods, and tools for IT project
management that address project success for modern times"--Provided by publisher.
Includes bibliographical references and index.
ISBN 1-59140-694-3 (softcover : alk. paper) -- ISBN 1-59140-695-1 (ebook : alk. paper)
1. Project management. 2. Management information systems. I. Title.
HD69.P75.B733 2005
004'.068'4--dc22
2005022459
ISBN (hardcover) 1-59140-693-5
British Cataloguing in Publication Data
A Cataloguing in Publication record for this book is available from the British Library.
All work contributed to this book is new, previously-unpublished material. The views expressed in this
book are those of the authors, but not necessarily of the publisher.

TEAM LinG


iii

Dedication

This book is dedicated to my family, who had to settle for less of my attention
during the writing of this book, but who, nonetheless, enthusiastically supported me; specifically to my father and mother, Dan and Shirley, who instilled in me the principles and ethics that have guided my life, and to my
children, Madison and Victoria, whose presence are my greatest blessing.

TEAM LinG

iv

Project Management
for Modern
Information Systems
Table of Contents

Preface ........................................................................................................................viii
Acknowledgment ......................................................................................................... xii
Chapter I
Today’s IT Environment ................................................................................................. 1
The Information Revolution ................................................................................. 2
Better, Cheaper, Faster ......................................................................................... 4
Teamed-Based Workplaces ................................................................................. 6
Projects and Project Management ........................................................................ 9
The Project Manager .......................................................................................... 11
IT Project Management ...................................................................................... 13
Chapter II
Critical Success Factors for IT Projects .................................................................... 18
Definition of Success ......................................................................................... 18
Completion and Satisfaction Criteria .................................................................. 19
Generalization of Success Factors for IT ............................................................ 20
Managing for Success ....................................................................................... 24
Chapter III
Project Selection and Initiation .................................................................................. 29
Organizational Planning ..................................................................................... 29
Project Initiation ................................................................................................. 31
Project Proposals ............................................................................................... 32
Project Business Plan ......................................................................................... 34

Financial Evaluation and Selection Methods ..................................................... 35
Decision Trees ................................................................................................... 37
Project Scoring Methods ................................................................................... 42
Project Stage Gates ............................................................................................ 45

TEAM LinG


v

Chapter IV
The Project Management Discipline .......................................................................... 48
Project Management Organizations ................................................................... 48
Project Management Institute ............................................................................ 50
Project Management Body of Knowledge ......................................................... 50
Chapter V
The Software Engineering Discipline ........................................................................ 59
Software Engineering vs. Project Management ................................................. 59
Software Development Lifecycle Methodology ................................................. 60
Management Stage Gates .................................................................................. 65
SDLC Variations and Alternatives ..................................................................... 66
Development Acceleration ................................................................................. 71
Modern SDLC Implementations ......................................................................... 74
Object-Oriented Software ................................................................................... 79
Software Reuse .................................................................................................. 85
Software Engineering Institute ........................................................................... 88
Institute of Electrical and Electronics Engineers ................................................ 92
Other Software Standards Organizations ........................................................... 94
Chapter VI
Project Overall Planning ............................................................................................ 98

The Project Charter ............................................................................................ 98
The Project Master Plan ................................................................................... 100
Project Calendars and Fiscal Periods ............................................................... 100
Kickoff Meeting ............................................................................................... 104
Scope Management ......................................................................................... 106
Requirements Analysis .................................................................................... 109
Chapter VII
Developing the Schedule and Cost Plan .................................................................... 120
Detail Project Planning ..................................................................................... 121
Developing the Work Breakdown Structure .................................................... 122
Task Estimation ................................................................................................ 133
Task Sequencing and The Critical Path ........................................................... 143
Scheduling ....................................................................................................... 147
Resource Assignment and Costing Methods .................................................. 150
Developing the Cost Plan ................................................................................ 152
Chapter VIII
Risk Planning and Management ............................................................................... 157
Project Risks and Opportunities ....................................................................... 157
Risk Identification ............................................................................................ 160
Risk Quantification ........................................................................................... 166
Risk Response Development ........................................................................... 169
Risk Plan Example ............................................................................................. 175
Risk Response Control ..................................................................................... 179

TEAM LinG


vi

Chapter IX

Project Execution and Control .................................................................................. 183
The Control Process ......................................................................................... 183
What to Control ............................................................................................... 185
Measurement of Completion Factors ............................................................... 186
Measurement of Satisfaction Factors .............................................................. 191
Measuring and Reporting ................................................................................ 193
Stage Gate Implementation ............................................................................... 195
Corrective Actions ........................................................................................... 197
Chapter X
Managing Quality ..................................................................................................... 202
Quality Management ........................................................................................ 202
Quality Planning ............................................................................................... 204
Quality Assurance ........................................................................................... 208
Quality Control ................................................................................................. 209
Software Testing .............................................................................................. 212
Quality Stage Gates .......................................................................................... 220
Quality Programs .............................................................................................. 223
Software Development Standards .................................................................... 227
Chapter XI
Change and Closeout Management ........................................................................... 234
Project Changes ............................................................................................... 234
Establishing a Change Control System ............................................................ 236
Version Control ................................................................................................ 239
Configuration Control ...................................................................................... 240
Scope Creep ..................................................................................................... 241
Project Closeout ............................................................................................... 243
Chapter XII
Procurement and Outsourcing ................................................................................. 248
Procurement ..................................................................................................... 248
Procurement Planning ...................................................................................... 251

Solicitation Planning ........................................................................................ 253
Solicitation ....................................................................................................... 255
Source Selection ............................................................................................... 255
Contract Administration and Closeout ............................................................ 257
SEI SA-CMM .................................................................................................. 257
Outsourcing ..................................................................................................... 258
Chapter XIII
Stakeholder Management ......................................................................................... 274
Stakeholder Identification and Analysis .......................................................... 274
Communication Management .......................................................................... 278
Organizational Context ..................................................................................... 286
Human Resource Management ........................................................................ 291
Managing the Project Team ............................................................................. 297

TEAM LinG


vii

Chapter XIV
Performance Reporting and Earned Value Analysis ................................................ 309
Traditional Performance Reporting .................................................................. 310
Earned Value Analysis ..................................................................................... 316
Effective Implementation of EVA ..................................................................... 322
Progress Reporting .......................................................................................... 324
Actual Cost Data .............................................................................................. 327
Other EVA Issues ............................................................................................ 331
EVA, Success Factors, and Stage Gates .......................................................... 333
Chapter XV
Software Systems for Project Management ............................................................. 338

Spreadsheets .................................................................................................... 338
General Project Management Software ............................................................ 343
Open Source Software ...................................................................................... 345
The FiveAndDime System ............................................................................... 348
Chapter XVI
Managing Multiple Projects ..................................................................................... 351
The Project Management Office ....................................................................... 352
Portfolio Management ...................................................................................... 357
Knowledge Management ................................................................................. 365
Lessons Learned .............................................................................................. 367
Standard Forms and Templates ........................................................................ 372
Global Projects ................................................................................................. 372
The PMO Portal ............................................................................................... 374
Project Management Maturity ......................................................................... 376
Project Management and Strategic Planning ................................................... 378
Glossary and Acronyms ............................................................................................ 385
About the Author ....................................................................................................... 405
Index ........................................................................................................................ 407

TEAM LinG


viii

Preface

In the past, the formal discipline of project management was applied primarily to very
large projects lasting several years and costing millions of dollars; this was as true for
information technology (IT) projects as it was for other industries. Furthermore in the
20 th century, project management methods were largely based upon “command and

control” techniques. These techniques evolved from ancient military regimes and dictatorial governments, where relatively few educated people directed large numbers of
uneducated people. Some industries are still that way, but many companies and most IT
organizations are evolving into team- and project-based environments using knowledge workers, independent contractors, and, perhaps, various forms of outsourcing.
Competitive advantage today is increasingly based upon knowledge assets instead of
upon the traditional assets of land, labor, and capital. In addition there is now a separation of “work” from “workplace,” and operations may be performed on a global scale.
To be successful in our IT projects (and most IT projects are still not successful), it is
imperative that we apply formal project management methods and tools to all IT projectbased work. Also the formal methods and tools of project management need to evolve
to address the changes in modern software engineering and our high-tech global workplaces. In the past, project success was defined too narrowly as simply meeting time
and cost constraints for a given scope of work. However, in order for an IT project to be
completely successful, that basic definition of success needs to be extended. This
extension is particular with regard to product quality, stakeholder satisfaction, security,
organizational human capital, and long-term factors such as maintainability and adaptability. With that extended definition of success, management techniques and tools can
be extended or otherwise modified to be more effective.
This book describes and illustrates practices, methods, and tools for IT project management that address this extended definition of project success for modern times. As
such, this book is directed to IT project managers, those IT personnel aspiring to
become project managers, and also to experienced IT personnel who wish to learn of
new project management concepts, methods, and tools. This book is also designed for
use as a textbook or reference in graduate or upper-level undergraduate university

TEAM LinG


ix

programs in IT or project management. Throughout the book, a number of IT project
management “standard forms” are presented and a number of spreadsheet models are
also developed. An open source general Web-based project management software system (FiveAndDime) is used to illustrate many of the methods and applications discussed in the book. An appendix of the book contains a glossary of the IT project
management and software engineering terms and acronyms used.
Chapter I introduces and defines a project, project management, the project manager,
and project stakeholders. These management concepts are discussed relative to our

modern IT dominated world and in context with today’s “information revolution” and to
the business and technical forces that drive this revolution. The distinctions of IT
project management as compared to general project management are also identified
here.
Chapter II introduces the concept of project “critical success factors.” A key factor
leading to the continued failure in IT projects is the lack of identification and appreciation for all the major components of project success. Critical success factors are those
things that must be done or handled properly for a project to be successful. A comprehensive model of critical success factors for IT projects permits the development of
better management plans, processes, and metrics particularly for risk, quality, and performance control. In this chapter, general critical IT success factors are identified and
techniques for the management of those factors are introduced. The notion of a “dual
stage gate process” for the comprehensive and effective management of these success
factors is also introduced in this chapter; later chapters define metrics and control
methods for these success factors using dual stage gating.
Chapter III discusses project initiation and selection. The careful selection of which
projects to initiate is vital to the success of an organization. Project initiation represents a future commitment of both human and financial resources as well as of management attention. In this chapter, methods for the proper selection and initiation of projects
are discussed with regard to overall organizational goals and business justification. In
this chapter, project initiation and the processes and documents involved with project
evaluation from a business perspective are discussed and illustrated. Standard forms
for the “project proposal” and “project business plan” are presented. (Later, Chapter VI
continues with the life of a project after an organization has committed to perform said
project.)
Chapters IV and V discuss project management and software engineering from a disciplinary perspective, as these concepts and terms are used throughout the remainder of
this book. A number of worldwide professional organizations have been developed to
foster the project management discipline, and these organizations and their bodies of
knowledge are presented in Chapter V.
Although software engineering is not a formal part of project management, it is vital for
the proper planning of IT projects. Even for IT projects that primarily involve software
acquisition and integration instead of software development, the software engineering
embedded in the products that are acquired will significantly affect long-term project
success factors. In Chapter V, modern software engineering and its relation to IT project
management is discussed. Key challenges to software engineering in the 21st century

are presented as well as how software engineering together with project management
can address those challenges.

TEAM LinG


x

Chapter VI formalizes overall project planning and requirements analysis. Getting off to
a fast start in the right direction is important in any endeavor, and overall planning and
requirements are two of the most important aspects of IT project management. Standard
forms are presented for the project charter, overall project plan, software management
plan, and requirements document. The process of IT requirements’ discovery and documentation is formalized and illustrated. Once a complete and clear set of requirements
has been documented and approved by all relevant stakeholders, detail project planning can begin; such detail planning is covered in the following chapters.
Chapter VII is concerned with detail project planning, particularly the schedule and
cost plan. In this chapter, the formulation of a detail schedule and cost plan is discussed and illustrated. WBS formulation, task sequencing, task estimation, scheduling,
and costing methods are all covered. The detail scope, time, and cost planning of this
chapter forms the basis for other detail plans—including the risk plan, procurement
plan, HR plan, quality plan, control plan, and change plan—described in subsequent
chapters.
Success in the modern business world involves taking some risk. All the systems that
are really changing the world today are very risky systems, but one needs to know how
to manage risk, including how to identify risk sources, quantify risk parameters, and
develop plans to handle risks; these are the topics covered in Chapter VIII. The total
project risk-management process is described and illustrated and standard forms are
developed for an IT risk-management plan. A framework based upon critical success
factors for analyzing project risk threats and hazards is also presented.
Once a project is planned and underway, the project manager cannot simply walk away
and assume that everything will go according to plan. In Chapter IX, project performance control metrics and techniques are defined and discussed. Performance metrics
for each critical success factor are identified and illustrated. Standard forms for status

reports and stage gate reviews are presented. Corrective actions to bring a project back
in compliance with the plan are also identified and discussed.
As a project proceeds, quality is often the most difficult area to keep on track. Chapter
X discusses the many quality aspects of project management, and project success
factors are used as the basis for key quality metrics. A quality management plan for IT
projects includes both verification and validation, and such a plan is presented here.
Other important quality topics are also discussed in this chapter, including the many
types and methods of software testing, software development standards, and quality
organizations and programs. Standard forms for quality standards and quality stage
gates are included here.
Change is a fact of life for most projects, particularly IT projects. A major cause of IT
project overruns is changes in scope. Change can be good or bad, but change is
expected, and change has to be managed. Chapter XI is concerned with the overall IT
change management process, including version control and configuration control.
Project closeout and related topics such as lessons learned are also included and illustrated. Standard forms for change control plans, change orders, and project closeout are
presented in this chapter.
Many IT projects involve the purchasing of goods or services, and some IT projects
are mostly procurement activities, at least from a cost perspective. With the increase in
IT outsourcing and outsourcing offshore, there is an increasing need for very formal

TEAM LinG


xi

procurement management, and that overall management process is the subject of Chapter XII. This chapter covers general project procurement and the formal procedures and
documents used in procurements such as the statement of work, request for proposal,
and contracts. The different types of procurement documents are discussed and which
types are used in which situations and with what types of contracts. In particular for IT
projects the subject of outsourcing is also covered in detail.

The identification and management of a project’s stakeholders is vital to the complete
success of a project. Often, well-planned and properly executed projects can still fail
due to a lack of relationships or inappropriate relationships between the project manager and various stakeholders. Chapter XIII discusses matters related to the human
side of project management including stakeholder relations, communications, team
management, and security. Standard forms are presented for the project communications plan, human resources plan, and security plan.
Traditional methods of progress performance reporting are often inaccurate and misleading. Earned value analysis (EVA) has proven to be an extremely effective tool for
project time and cost management, providing good estimates of actual project completion cost and date. EVA is also is a good early indicator of project problem areas, so that
appropriate corrective action can be initiated. In Chapter XIV, EVA is defined, discussed, and illustrated in detail. EVA is one of the key metrics in the management-forsuccess philosophy that is developed in this book via critical success factors and dual
stage gates. EVA is often difficult to implement effectively and can have a number of
problem areas. However, this chapter identifies the EVA problem areas and their practical solutions.
There is a vast amount of project management software available today in a wide variety of capabilities, applicability, platform requirements, and prices. These software
products significantly enhance a PM’s job of managing a project in almost all aspects
including selection, planning, scheduling, execution, control, risk, communications,
and so forth. Therefore, PMs should be aware of the types of tools available and the
features and applicability of those tools. In Chapter XV, types of software products and
some specific products are identified and discussed, including spreadsheet models and
open source software.
Management of IT projects and being on an IT project team used to be simpler. PMs
typically had one project to manage and team members were only on one team. All the
team members were located in close geographic proximity, and the work was all done at
the workplace. Today, however, the project landscape has become much more complex,
where everyone is concerned, with multiple projects and teams spread out all over the
world. The business needs of cutting costs to the bone and being quicker to market
have increased the pressures on project teams and their managers. Chapter XVI discusses modern ways that organizations can effectively deal with these complexities,
including the use of project management offices (PMOs), project portfolio optimization,
knowledge management, project dashboards, and PMO portals. Chapter XVI also discusses project management from a strategic perspective.

TEAM LinG

xii

Acknowledgment

My sincere thanks and appreciation goes out to the many individuals both in
the academic world and in the commercial sector who discussed various book
topics with me. My particular appreciation goes to those who helped review
the content and style of the book: Jonathan Pierce at Computer Science Corporation; Richard Flaig at the NASA Stennis Space Center; Professors Frank
Marion, James Aflaki, and Larry Schmitt, all at Christian Brothers University;
and communication specialist Diane Brandon.

TEAM LinG


Today’s IT Environment 1

Chapter I

Today’s
IT Environment

A competitive advantage comes only with superior IT.
(Aetna Healthcare Chairman/CEO Richard Huber)
In the last few years, information technology (IT) has significantly impacted the
operation of most businesses, and even though most corporations still spend only 3%
to 8% of their revenue on IT, businesses depend upon IT for their day-to-day operations.
For many businesses, IT is a, if not the, key factor in their competitive strategy. Due to
IT, we have all experienced many changes, some good some bad, in our personal lives.
In fact, probably not since the industrial revolution have people all over the world
experienced such dramatic life-style changes. One is reminded of the opening sentence

from A Tale of Two Cities, by Charles Dickens: “It was the best of times, it was the worst
of times.” Dickens was referring to the French Revolution, but in the 21st century we are
well into the “IT Revolution.” In regard to project management, there are two IT related
matters: the utilization of IT in managing all types of projects and the management of IT
projects. Before we further discuss these project management matters in this modern IT
dominated world, we need to consider the technical and business forces that are shaping
this new environment.

Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.

TEAM LinG


2 Brandon

The Information Revolution
According to the RAND organization (Hundley, 2004),
Advances in information technology are affecting most segments of business, society,
and governments today in many if not most regions of the world. The changes that IT
is bringing about in various aspects of life are often collectively called the “information
revolution.”
The current IT revolution is not the first of its kind. Historians and nations may debate
the exact time and place of previous information revolutions, but they are as follows:
•

Invention of writing, first in Mesopotamia or China, around 3000 BC

•

Invention of the written book in China or Greece, around 1000 BC

•

Gutenberg’s printing press and engraving, around AD 1450

Major revolutions help some people and some organizations, and, therefore, for them it
is the “best of times;” but revolutions also hurt some people and organizations, and for
them it is the “worst of times.” With big revolutions, there always will be big winners and
big losers. As an example, when the printing press was invented, the largest occupation
in Europe was the hand copying of books in thousands of monasteries, each of which
was home to hundreds of monks; 50 years later, the monks had been completely
displaced. The impact to society was enormous, not because of the displacement of
monks by other craftsmen and machines, but because the price of books dropped so
drastically that common men could now afford to educate themselves.
For many, this new IT revolution is bringing great things with unprecedented improvements in the quality and efficiency of all we do as organizations and as individuals. For
others, however, IT is a two-edged sword, bringing about many problems, disturbances,
and unresolved issues. A great digital divide is being created, and this divide has three
dimensions: income, age, and education. This divide will further separate the haves from
the have-nots as manufacturing operations move to lesser developed countries, where
over 1 billion low-paid workers will be available in a few years. In the future, for developed
countries, workers may be divided into InfoWorkers and McWorkers. In addition IT
security and privacy problems are getting out of control, as evidenced by computer
viruses, worms, e-mail fraud and spam, compromise of personal and private digital
information, spyware, piracy of intellectual property, ID theft, hacking, and other
computer crimes. Today, there are major and numerous security “holes” in most software
that corporations and individuals use every day.
The most important technology of this information revolution has to be the Internet,
which is the combination of several underlying technologies. Consider the penetration

Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.

TEAM LinG


Today’s IT Environment 3

rate (in the time to reach 50 million users) of recent milestone information technologies
compared to the Internet:
•

It took the telephone 40 years to reach 50 million users.

•

It took radio 38 years to reach 50 million users.

•

It took cable TV 10 years to reach 50 million users.

•

It only took the Internet only 5 years to reach 50 million users!

The Internet and related technologies are, however, beginning to cause significant
industrial disruptions:
•

Internet shopping is disrupting traditional sales channels for hard goods.

•

Internet sharing and distribution is disrupting traditional intellectual property
rights and sales of soft goods (print, audio, video, multimedia).

•

Voice Over IP combined with ultra-high-speed optical and wireless media will start
to disrupt traditional telecommunications.

•

Open source software with community online support will start to disrupt the
traditional software marketplace.

•

Separation of work from workplace will disrupt corporate and personal real estate
and related business sectors.

•

As national barriers (political, physical, economic, and temporal) are removed,
massive globalization will allow the free flow of both work and product.

•

The need for retraining and lifetime learning, coupled with distance education, is

transforming the traditional higher education landscape.

The process and results of these disruptions has been called “creative destruction” by
the RAND corporation, and this results in the “economic eclipse” of organizations not
embracing the new IT world. Traditional mechanisms of government (i.e., jurisdiction,
taxation, regulation, permits, and licenses, etc.) will also significantly be disrupted in
response to these other disruptions, as will the insurance and finance industries.
Likewise this process of creative disruption will result in the career destruction of
managers (including project managers) not embracing modern IT.
In his essay on this modern information revolution, business guru Peter Drucker (2004)
noted, “This revolution will surely engulf all major institutions of modern society,” and
“[t]his revolution will force us to redefine what the business enterprise actually is—the
creation of value and wealth.”
Furthermore, he questioned whether management is prepared for the full impact of this
revolution, and he saw no sign of it at that time.

Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.

TEAM LinG


4 Brandon

Better, Cheaper, Faster
The battle cry of the 1990s, what with the advent of client-server technology to replace
mainframes, was
Better!
Cheaper!
Faster!

These themes are still dominant in the 21 st century. That battle cry continues from the
board room down through the management chain, because these themes are the crux of
market positioning (quality, cost, and time to market), as illustrated in Figure 1.1.
To produce better and cheaper products or services and get them to market quicker
requires better, cheaper, faster processes, as is illustrated in Figure 1.2. In today’s world,
information systems play a key role and an ever-increasing role in the overall process of
producing and delivering products or providing services. Today, almost every aspect
in the design, creation, delivery, and support of products or services depends strongly
on IT.
As Tom Cruise said in the movie Top Gun (Paramount Pictures, 1986), “I feel a need, a
need for speed.” Upper management emphasizes that need for speed to IT project
managers and software development teams. Many managers and technologists see
speed as a solution to the problem illustrated in Figure 1.3. The world is changing so fast
that, by the time we develop an IT solution for a business problem, the shape of that
problem has changed.
Newer and faster project management and software engineering methods can address a
portion of this problem. Speed, however, is not the only way to address the problem
shown in Figure 1.3 (as this book will show). Compounding the problem is the fact that
too many in IT and general management have though that better-cheaper-faster processes are obtained primarily by better-cheaper-faster people. Thus management methods as exporting work to cheaper locations, importing cheaper workers, or dismissing (or
buying out) older workers have become common. Another management misconception
is that better and faster is obtained by using better and faster tools; but better-faster tools
without better practices and methods simply allow one to build the wrong product even
faster.
A basic premise of this book is that the best long-term solution to better-cheaper-faster
IT products and services involves a number of modern project management and software
engineering practices and methods that can be collectively called “IT project management maturity.” Three important basic project management and software engineering
themes are embodied in this maturity model:
1.

Do it right the first time

2.

Do only manageable portions at a time

3.

Do it in a reusable and adaptable manner

Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.

TEAM LinG


Today’s IT Environment 5

Figure 1.1. Marketing dimensions
Quality

B etter

C heaper

Produ ct
or Serv ice

Co st

Faster

T im e To
Mark et

Figure 1.2. Products and processes
Products
Better,
Cheaper, Faster

Processes
Requires

Better,
Cheaper, Faster

Figure 1.3. Changing shape of IT problems
Problem Domain

Business
Problem

Business
Problem

Business
Problem

Business
Problem

Requirements

Design

Development

Solution

Solution Domain

This method is illustrated in Figure 1.4, and each of these components will be discussed
later in this book.
The project management processes, practices, and methods that are the key to this IT
maturity model are based upon critical success factors. All too often in IT, project and
line management do not allocate enough time to do the project work right the first time,
but later they are forced to find the time and resources to do it over again. Completing

Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.

TEAM LinG


6 Brandon

Figure 1.4. IT Project management maturity

Software
Engineering
Maturity

Business
Justification

Success Factor
Based Project
Management

Quality
Program
(T QM,QFD, ISO
9000, Six Sigma)

Manageable
Scope
(Requirements
and Phasing)

IT Project

Security
Program
(project and
product)

OO
Architecture

Appropriate
Methodology

Standards
(embedded and
enforcable)

IT projects successfully the first time requires the identification and understanding of
all the critical success factors of such projects. Once these factors are itemized and fully
appreciated, then effective management and technical methods and metrics can be
formulated for project performance, risk, and quality control.
Theoretically and statistically, project success probability decreases as the size of an IT
project grows. Many factors, such as the interaction of project stakeholders and the
interaction of technical components, increase in complexity in ratio to the square of the
number of such items. Therefore, subdividing large IT projects into smaller parts
decreases complexity and thus increases the likelihood of success; however, this
subdivision needs to be consistent with the metrics and methods to monitor and control
all identified critical success factors. In the next chapter, critical success factors for IT
projects are identified and defined and, in later chapters, effective management and
technical techniques for the measurement and control of these factors are presented.

Teamed-Based Workplaces
In the 20th century, management methods were largely based upon “command and
control” techniques. These techniques evolved from ancient autocratic societies and
military environments in which relatively few educated people lead large numbers of
uneducated people. Management structures were developed to take much detailed
information and to summarize that information up through a number of middle manage-

Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.

TEAM LinG

Today’s IT Environment 7

ment levels so that decisions could be made in regard to different scopes and time
horizons. Several management levels were formed at each of the business operational,
tactical, and strategic decision points.
Today, however, in developed countries, management structures have changed and
evolved due to a number of factors. One is that the economies of developed countries
continue to shift from a manufacturing economy to a service economy. Another factor
is that most corporate workers have become knowledge workers, where a computer or
computer interface is an integral part of their job. And the other major factor is that IT is
used extensively to gather and summarize the information flow from the point of origin to
the eventual decision maker; IT is now often part of the decision process itself through
decision support systems.
This evolution of management structures has resulted in a reduction of the number of
middle management layers and the creation of team-based work at the lower levels. It used
to be that a corporate organization chart might have management positions for supervisors (or foremen), unit managers, section managers, department managers, division
managers, directors, and vice presidents. In a modern organization, there are much fewer
levels, such as team leader (or project manager), director, and vice president (or CIO).
Teams are given not only the work assignment(s) but also are given the responsibility
(at least partially) for the work results. Management used to monitor employee performance by observing work activity and work results, hence the old expression MBWA
(managing by walking around). But in the team environment, it is becoming the responsibility of teammates to observe work activity and the team leader to monitor work
results. This creation of teams at the lower levels of the organization has proven very
effective for maximizing employee performance, and where the nature of the work is the
completion of projects, the team leader is called the project manager (PM).
IT has also shown that productivity is not necessarily related to proximity and, thus, work
is being separated from the workplace. Many knowledge workers can do much of their
work from places other that the company facility including working from home, or while
traveling, or while at a customer or vendor location. In many cases, IT has made it possible

for an individual to work for an organization and live anywhere.
Due to the tearing down of national barriers, the work of many companies and individuals
is now on a global scale. Furthermore, IT has permitted the team based workplace to be
extended to a global scale by the facilitation of virtual teams using electronic communication and collaboration tools such as e-mail, interactive Web sites with electronic forms,
chat rooms, bulletin boards, instant messaging, and other forms of groupware. Even
business processes, both intracorporate and intercorporate, have become Web-enabled.
Virtual teams may be assembled quickly with the right mix of skills to address a particular
problem or project, and then they may be disassembled just as quickly when the job is
done. It is not atypical for an individual to be a part of many virtual teams simultaneously.
In a virtual environment, managers only monitor work results and the old concept of
managing work activity has almost disappeared. This does not mean that managers no
longer interact with their staff, it is just that the mode of interaction has often become
digital instead of face to face.
Some organizations have gone a step further and created the virtual organization, in
which extensive use of IT is used to create an extremely flexible team- and project- based

Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.

TEAM LinG


8 Brandon

organization, which may need no physical facilities at all. A related concept is embedded
in the term virtual corporation, which refers to a business strategy for allying complementary businesses via IT into a “symbiotic network” and allowing them to respond to
customers as a single entity. The complete integration of IT into the work and virtual
workplace is creating a number of strategies that include the word (or synonym) instant
(Pearlson & Saunders, 2004, pp. 76-77):
•

Instant Value Alignment: Understanding the customer so well that the customer’s
needs are anticipated.

•

Instant Learning: Building learning directly into each employees work process
and/or schedule (“just in time training”).

•

Instant Involvement: Using IT to communicate all needed information to vendors,
employees, and so forth (“just in time inventory” and “supply chain automation”).

•

Instant Adaptation: Creating an environment enabling all teams to act instantly and
to make timely decisions.

•

Instant Execution: Designing business processes so that they have as few people
involved as possible and reduce cycle times so that these processes appear to
execute instantly.

To successfully function in this new IT-enabled instant world and workplace, managers
must adapt and obtain the necessary knowledge and skills. Several years ago, The
Gartner Group researched this topic, and their list of these management skills follow
(York, 1999):
•

Understand project management

•

Manage for results

•

Speak the language of business

•

Improvise with grace and harmony

•

Understand IT processes and business processes

•

Make informed business decisions quickly

•

Know how and when to measure performance

•

Cultivate an environment of risk tolerance

•

Communicate clearly, appropriately, and relentlessly

Computerworld also investigated this topic and called the new breed of IT team leaders
“business technologists” and listed their ideal characteristics as (Brandel, 2001):
•

Business and financial acumen

•

Understand tension between budget, operations, capital, expense, and head
count

Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.

TEAM LinG


Today’s IT Environment 9

•

Sensitivity to all the dimensions that influence a project

•

Both written and oral communication skills

•

An understanding of relationship management

•

Project planning skills

•

Performance monitoring skills

•

An understanding of the value of coaching

•

A customer focused approach

In the preceding lists, those items that specifically deal with project management (as
opposed to management in general) have been italicized; however, all these traits are
necessary for effective project managers.

Projects and Project Management
A project is defined as “a temporary endeavor undertaken to create a unique product or
service” (PMI, 2000). A project is undertaken when work is best accomplished through
methods that fundamentally differ from those of everyday operations. A list of the key

characteristics of a project can further clarify that definition:
•

Temporary endeavor with a beginning and an end

•

Often broken into subprojects (or phases)

•

Creates a unique product or service

•

Done for a purpose

•

Has interrelated activities (tasks)

•

Is an instrument of change

A project usually has certain aspects or key components which include project-related
management, a common vocabulary, project-related methods and tools, teamwork, a plan,
trade-offs (involving scope/deliverables, time, cost, and quality), identified requirements (needs) and unidentified requirements (wants or expectations), and stakeholders.
The stakeholders involved with a project may be many and possibly diverse in several
respects including interests, needs, expectations, and priorities. Satisfying the stakeholders is one of the key objectives of the project and the project manager. Key

stakeholders include the organization and people doing the work, who are called the
“performing organization,” and the people or organization benefiting from the work (and
also usually paying for the work), who are called the “benefiting organization.” These
two organizations may or may not belong to the same corporation. This is illustrated in
Figure 1.5. The benefiting organization, customer, and end user also may or may not be

Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.

TEAM LinG


10 Brandon

part of the same organization. The project manager is a key stakeholder, and this
individual is almost always part of the performing organization. Another key stakeholder
is the project sponsor (sometimes called the project champion), and this individual
usually initiates or formalizes the idea of the project. It is extremely helpful if a project
has support from high up in an organization, and the project sponsor is often part of upper
management. Usually the project sponsor does not (and should not) play an active role
in the day-to-day management of the project. Other stakeholders (shown in the diagram
as “S”) may be in either organization or be external to both.
Project management is “the application of knowledge, skills, tools, and techniques to
the project activities in order to meet or exceed stakeholder needs and expectations from
a project” (PMI, 2000). It involves the planning, organization, monitoring, and control of
all aspects of a project and also the management, leadership, and motivation of all
involved parties to achieve the project objectives within agreed time, cost, quality,
safety, and performance criteria.
Project management in some form has existed for thousands of years, and it was likely
used in the construction of the wonders of the ancient world. Modern project management, including the use of the engineering and management disciplines, started around

the turn of the 20th century. “Around that time, managers of such projects faced pressure
from proponents of scientific management to organize in a centralized way and control
not just what was done but the details of how and when it was done” (Yates, 2000). Henry
Gantt developed the Gantt Chart in World War I, and it was used in huge projects like
the construction of the Hoover Dam in the 1930s. IT project management appears to go
back to the 1950s, when the Critical Path Method (CPM) was developed by DuPont and
Remington Rand/Univac.
However, it is not always necessary to use formal project management methods for
important temporarily endeavors, and the British Computer Society (in the spirit of David
Letterman’s Top Ten List) itemizes the top 10 reasons not to use such formality:
10.

Our customers really love us, so they don’t care if our products are late and don’t
work.

9.

I know there is a well-developed project management body of knowledge, but I can’t
find it under this mess on my desk.

8.

All our projects are easy, and they don’t have cost, schedule, and technical risks
anyway.

7.

Organizing to manage projects isn’t compatible with our culture, and the last thing
we need around this place is change.

6.

We aren’t smart enough to implement project management without stifling creativity and offending our technical geniuses.

5.

We might have to understand our customers’ requirements and document a lot of
stuff, and that is such a bother.

4.

Project management requires integrity and courage, so they would have to pay me
extra.

Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.

TEAM LinG


Today’s IT Environment 11

3.

Our bosses won’t provide the support needed for project management; they want
us to get better results through magic.

2.

We’d have to apply project management blindly to all projects regardless of size

and complexity, and that would be stupid.

1.

We figure it’s more profitable to have 50% overruns than to spend 10% on project
management to fix them.

The Project Manager
The project manager (PM) is the leader of a team performing a project. The project
manager and his team must identify the stakeholders, determine their needs, and manage
and influence those needs to ensure a successful project. A key to stakeholder
satisfaction is the diligent and accurate analysis of the stakeholders themselves as well
as their stated needs and unstated expectations. A project manager should not just be
handed a statement of work from upper management and then try to complete it; rather
the PM should be deeply involved with the development of that statement of work. The
roles of a PM are many, some of which include the following:
•

Identifying the requirements and risks

•

Making plans and organizing the effort

•

Qualifying and possibly selecting project team, vendors, and other participants

•

Communication among team, management, stakeholders

•

Assessing the probability of occurrence of problems

•

Developing solutions to problems (both in advance and on the spot)

•

Ensuring that progress occurs according to the plan

•

Deliverable management

Figure 1.5. Project stakeholders
S

Performing
Organization

S

Customer

S

Benefiting
Organization

End
User

S

Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.

TEAM LinG


12 Brandon

•

Running meetings

•

Acquiring resources for the project

•

Influencing the organization

•

Leading and team building

•

Negotiation (external and internal)

The many elements of a PM’s work were expressed in the “PM’s Worldview,” as shown
in Figure 1.6 (Cooke-Davies, 2004).
It is the role of the project team members to do their assigned duties, complete their
assigned tasks, and help each other. It is the role of upper management to define the goals
of the project, support the project, and protect it from disruptive influences. Other project
matters fall to the PM; thus, the prime role of the PM is as the integrator, communicator,
and problem solver for the project team, upper management, the customer, and all other
stakeholders. Project managers need a host of skills and knowledge of both business and
technical matters, and this is particularly true in IT. Computerworld states:
Shouldering project management responsibilities isn’t for the average Joe or the
fainthearted. It requires people who have a relentless, or one might say obsessivecompulsive, attention to detail. They must also be thick-skinned individuals, willing
to withstand verbal barbs, insults to their genealogy and possibly some old-fashioned
assault and battery from people tired of being prompted for their part of the project.
(Hall, 2004)
“It’s a tough job with long hours and stress that needs someone who’s a cross between
a ballet dancer and a drill sergeant” (Murch, 2000). A well-known story (but of unknown
origin) about PMs emphasizes their role:
A project manager, his chief software engineer, and lead network analyst were having
a lunchtime stroll in the woods when they happened on a small brass lamp. They picked
it up and rubbed it and a grateful genie appeared. When confronted with three of them,
the genie granted the traditional three wishes, but only one wish to each of them.
The eager analyst went first and requested a South Sea Island with sweet music, swaying
palm trees with a matching supply of lei-clad girls delivering endless Tequila Sunrises.
“No problem” said the Genie, and with a quick flash and a cloud of smoke, the analyst

disappeared.
Next came the software engineer, who merely wished to be locked in the sample room
of the Coors Brewery with a guarantee of a self-regenerating liver. “No problem” said
the Genie, and with a quick flash and a cloud of smoke the software engineer
disappeared.
Then came the project manager. “No problem!” he said. “I want those other two back
at their desks by 1:15.”

Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.

TEAM LinG