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Introduction: Why Project

Management?

Chapter 1

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Introduction

Examples of projects

Split the atom

Channel between England and France

Introduce Windows Vista Disneylands Expedition Everest

Projects, rather than repetitive tasks, are now thebasis for most value-added in business

-Tom Peters

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Project vs. Process Work

Project

Take place outside the

process world

Unique and separatefrom normal organization

work

Continually evolving

Process

Ongoing, day-to-day

activities

Use existing systems,properties, and

capabilities

Typically repetitive

A project is a temporary endeavor undertaken to

create a unique product or service.

PMBoK 2000

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Additional Definitions

A project is a unique venture with a beginning

and an end, conducted by people to meet

established goals within parameters of cost,

schedule and quality. Buchanan & Boddy 92

Projects are goal-oriented, involve the

coordinated undertaking of interrelated activities,

are of finite duration, and are all, to a degree

unique. Frame 95

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Elements of Projects

Complex, one-time processes

Limitedby budget, schedule, and resources

Developed to resolve a clear goalor set of

goals

Customer-focused

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General Project Characteristics(1/2)

Ad-hocendeavors with a clear life cycle

Building blocksin the design and execution of

organizational strategies

Responsible for the newestand most improved

products, services, and organizationalprocesses

Provide a philosophy and strategy for the management

of change

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General Project Characteristics (2/2)

Entail crossingfunctional and organization boundaries

Traditional management functionsof planning,

organizing, motivating, directing, and controlling apply

Principal outcomes are the satisfaction of customer

requirements within technical, cost, and schedule

constraints

Terminatedupon successful completion

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Project Success Rates

Software & hardware projects fail at a 65% rate

Over halfof all IT projects become runaways

Up to 75% of all software projects are cancelled

Only 2.5% of global businesses achieve 100% projectsuccess

Average success of business-critical applicationdevelopment projects is 35%.

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Why are Projects Important?

1. Shortened product life cycles

2. Narrow product launch windows

3. Increasingly complex and technical products

4. Emergence of global markets

5. Economic period marked by low inflation

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Project Life Cycles

Man Hours

Conceptualization Planning Execution Termination

Fig 1.3 Project Life Cycle Stages

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Project Life Cycles and Their Effects

Conceptualization Planning Execution Termination

Uncertainty

Client Interest

Project Stake

Creativity

Resources

Fig 1.4

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Quadruple Constraint of Project Success

Success

Budget

Client

Acceptance

Schedule Performance

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Six Criteria for IT Project Success

System quality

Information quality

Use

User satisfaction

Individual Impact

Organizational impact

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Four Dimensions of Project Success

Project

Completion

Time

Importance

1

Project

Efficiency

4

Preparing for

The Future

2

Impact on

Customer

3

BusinessSuccess

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Project Success

Project Efficiency

Meeting budget and schedule expectation

Impact on Customer

Meeting technical specifications, addressing

customers needs, and creating a project that

satisfies the clients needs

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Project Success

Business Success

Determining whether the project achieved

significant commercial success

Preparing for the Future

Determining whether the project opened new

markets or new product lines or helped to

develop new technology

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Developing Project Management Maturity

Project management maturity models

Center for business practices

Kerzners project management maturity model

ESI Internationals project framework

SEIs capability maturity model integration

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Spider Web Diagram

0

0.5

1

1.5

2

2.5

3Project Scheduling

Structural Support for

Project Management

Portfolio Management

Coaching, Auditing and

Evaluating Proejcts

Control Practices

Project Stakeholder

Management

Networking Between

Projects

Personnel Development for

Projects

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Project Management Maturity

Generic Model

Low Maturity

Ad hoc process, no common language, little support

Moderate Maturity

Defined practices, training programs,

organizational support

High

Maturity

Institutionalized,

seeks continuousimprovement

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Project Elements and

Text Organization

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