1、Project Integration ManagementInformation Technology Project Management,Fourth Edition2Learning ObjectivesDescribe an overall framework for project integration management as it relates to the other project management knowledge areas and the project life cycle.Explain the strategic planning process a
2、nd apply different project selection methods.Explain the importance of creating a project charter to formally initiate projects.Discuss the process of creating a preliminary project scope statement.3The Key to Overall Project Success:Good Project Integration Management Project managers must coordina
3、te all of the other knowledge areas throughout a projects life cycle.Many new project managers have trouble looking at the“big picture”and want to focus on too many details.(See opening case for a real example.)Project integration management is not the same thing as software integration.4Figure 1-2.
4、Project Management Framework5Figure 3-1.Level of Activity and Overlap of Process Groups Over Time6Figure 3-1.Level of Activity and Overlap of Process Groups Over Time7Project Integration Management ProcessesDevelop the project charter:Work with stakeholders to create the document that formally autho
5、rizes a projectthe charter.Develop the preliminary project scope statement:Work with stakeholders,especially users of the projects products,services,or results,to develop the high-level scope requirements and create a preliminary project scope statement.Develop the project management plan:Coordinate
6、 all planning efforts to create a consistent,coherent documentthe project management plan.8Project Integration Management Processes(contd)Direct and manage project execution:Carry out the project management plan by performing the activities included in it.Monitor and control the project work:Oversee
7、 project work to meet the performance objectives of the project.Perform integrated change control:Coordinate changes that affect the projects deliverables and organizational process assets.Close the project:Finalize all project activities to formally close the project.9Strategic Planning and Project
8、 Selection Strategic planning involves determining long-term objectives,predicting future trends,and projecting the need for new products and services.Organizations often perform a SWOT analysis:Strengths,Weaknesses,Opportunities,and Threats As part of strategic planning,organizations should:Identif
9、y potential projects.Use realistic methods to select which projects to work on.Formalize project initiation by issuing a project charter.10Identifying Potential Projects Many organizations follow a planning process for selecting IT projects.Its crucial to align IT projects with business strategy.Res
10、earch shows that:Supporting explicit business objectives is the number one reason cited for investing in IT projects.Companies with consolidated IT operations have a 24 percent lower operational cost per end user.The consistent use of IT standards lowers application development costs by 41 percent p
11、er user.*Cosgrove Ware,Lorraine,“By the Numbers,”CIO Magazine()(September 1,2002).11Figure 4-1.Information Technology Planning Process12Methods for Selecting ProjectsThere is usually not enough time or resources to implement all projects.Methods for selecting projects include:Focusing on broad organ
12、izational needs.Categorizing information technology projects.Performing net present value or other financial analyses.Using a weighted scoring model.Implementing a balanced scorecard.13Focusing on BroadOrganizational Needs It is often difficult to provide strong justification for many IT projects,bu
13、t everyone agrees they have a high value.“It is better to measure gold roughly than to count pennies precisely.”Three important criteria for projects:There is a need for the project.There are funds available for the project.There is a strong will to make the project succeed.14Categorizing IT Project
14、s One categorization assesses whether the project provides a response to:A problem An opportunity A directive Another categorization is based on the time it will take to complete a project or the date by which it must be done.Another categorization is the overall priority of the project.Time Overall
15、 priority(High,Medium,and low)15Financial Analysis of Projects Financial considerations are often an important aspect of the project selection process.Three primary methods for determining the projected financial value of projects:Net present value(NPV)analysis Return on investment(ROI)Payback analy
16、sis16Net Present Value Analysis Net present value(NPV)analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time.Projects with a positive NPV should be considered if financial val
17、ue is a key criterion.The higher the NPV,the better.17Fgure 4-2.Net Present Value ExampleNote that totals are equal,butNPVs arenot because of the time value of money.NPV=t=1.n A/(1+r)t18Return on Investment Return on investment(ROI)is calculated by subtracting the project costs from the benefits and
18、 then dividing by the costs.ROI=(total discounted benefits-total discounted costs)/discounted costs The higher the ROI,the better.Many organizations have a required rate of return or minimum acceptable rate of return on investment for projects.Internal rate of return(IRR)can by calculated by setting
19、 the NPV to zero.19Payback Analysis Another important financial consideration is payback analysis.The payback period is the amount of time it will take to recoup,in the form of net cash inflows,the total dollars invested in a project.Payback occurs when the cumulative discounted benefits and costs a
20、re greater than zero.Many organizations want IT projects to have a fairly short payback period.20Figure 4-4.Charting the Payback PeriodExcel file21Weighted Scoring ModelA weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria.Steps in identi
21、fying a weighted scoring model:1.Identify criteria important to the project selection process.2.Assign weights(percentages)to each criterion so they add up to 100 percent.3.Assign scores to each criterion for each project.4.Multiply the scores by the weights to get the total weighted scores.The high
22、er the weighted score,the better.22Figure 4-5.Sample Weighted Scoring Model for Project Selection23Implementing a Balanced Scorecard Drs.Robert Kaplan and David Norton developed this approach to help select and manage projects that align with business strategy.A balanced scorecard is a methodology t
23、hat converts an organizations value drivers,such as customer service,innovation,operational efficiency,and financial performance,to a series of defined metrics.See www.balancedscorecard.org for more information.24Project Charters After deciding what project to work on,it is important to let the rest
24、 of the organization know.A project charter is a document that formally recognizes the existence of a project and provides direction on the projects objectives and management.Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project;a signe
25、d charter is a key output of initiation process.25Figure 4-6.Project Integration Management Overview26PreliminaryScope Statements A scope statement is a document used to develop and confirm a common understanding of the project scope.It is an important tool for preventing scope creep:The tendency fo
26、r project scope to keep getting bigger.A good practice is to develop a preliminary or initial scope statement during project initiation and a more detailed scope statement as the project progresses.27Contents of a Preliminary Scope Statement Project objectives Product or service requirements and cha
27、racteristics Project boundaries Deliverables Product acceptance criteria Project assumptions and constraints Organizational structure for the project Initial list of defined risks Summary of schedule milestones Rough order of magnitude cost estimate Configuration management requirements Description
28、of approval requirements28Project Management Plans A project management plan is a document used to coordinate all project planning documents and help guide a projects execution and control.Plans created in the other knowledge areas are subsidiary parts of the overall project management plan.29Attrib
29、utes of Project Plans Just as projects are unique,so are project plans.Plans should be:Dynamic Flexible Updated as changes occur Plans should first and foremost guide project execution by helping the project manager lead the project team and assess project status.30Common Elements of a Project Manag
30、ement Plan 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.31Table 4-1.Sample Contents for a Software Project Management Plan(SPMP)32What the Winners Do “The win
31、ners clearly spell out what needs to be done in a project,by whom,when,and how.For this they use an integrated toolbox,including PM tools,methods,and techniquesIf a scheduling template is developed and used over and over,it becomes a repeatable action that leads to higher productivity and lower unce
32、rtainty.Sure,using scheduling templates is neither a breakthrough nor a feat.But laggards exhibited almost no use of the templates.Rather,in constructing schedules their project managers started with a clean sheet,a clear waste of time.”*Milosevic,Dragan and And Ozbay,“Delivering Projects:What the W
33、inners Do,”Proceedings of the Project Management Institute Annual Seminars&Symposium(November 2001).33Stakeholder Analysis A stakeholder analysis documents important(often sensitive)information about stakeholders such as:Stakeholders names and organizations.Their roles on the project.Unique facts ab
34、out each stakeholder.Their level of influence on and interest in the project.Suggestions for managing relationships with each stakeholder.34Table 4-2.Sample Stakeholder Analysis35Project Execution Project execution involves managing and performing the work described in the project management plan.Th
35、e 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 project execution.36Coordinating Planning and Execution Project planning and execution are intertwined and insepar
36、able 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.37Leadership and a Supportive Culture Project managers must lead by example to demonstrate the importance of creating and then following good project p
37、lans.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.38What Went Wrong?Many people have a poor view of p
38、lans based on their experiences.Top managers often require a project management plan,but then no one follows up on whether the plan was followed.For example,one project manager said he would meet with each project team leader within two months to review their project plans.The project manager create
39、d a detailed schedule for these reviews.He cancelled the first meeting due to another business commitment.He rescheduled the next meeting for unexplained personal reasons.Two months later,the project manager had still not met with over half of the project team leaders.Why should project members feel
40、 obligated to follow their own plans when the project manager obviously did not follow his?39Important Skills for Project Execution General management skills such as leadership,communication,and political skills.Product,business,and application area skills and knowledge.Use of specialized tools and
41、techniques.40Project Execution Tools and Techniques Project management methodology:Many experienced project managers believe the most effective way to improve project management is to follow a methodology that describes not only what to do in managing a project,but how to do it.Project management in
42、formation systems:Hundreds of project management software products are available on the market today,and many organizations are moving toward powerful enterprise project management systems that are accessible via the Internet.See the“What Went Right?”example of Kuala Lumpurs Integrated Transport Inf
43、ormation System.41Monitoring and Controlling Project Work Changes are inevitable on most projects,so its important to develop and follow a process to monitor and control changes.Monitoring project work includes collecting,measuring,and disseminating performance information.Two important outputs of m
44、onitoring and controlling project work include recommended corrective and preventive actions.42Media SnapshotThe 2002 Olympic Winter Games and Paralympics took five years to plan and cost more than$1.9 billion.PMI awarded the Salt Lake Organizing Committee(SLOC)the Project of the Year award for deli
45、vering world-class games.Four years before the Games began,the SLOC used a Primavera software-based system with a cascading color-coded WBS to integrate planningThe SLOC also used an Executive Roadmap,a one-page list of the top 100 Games-wide activities,to keep executives apprised of progress.Activi
46、ties were tied to detailed project information within each departments schedule.A 90-day highlighter showed which managers were accountable for each integrated activity.Fraser Bullock,SLOC Chief Operating Officer and Chief,said,“We knew when we were on and off schedule and where we had to apply addi
47、tional resources.The interrelation of the functions meant they could not run in isolationit was a smoothly running machine.”*Foti,Ross,“The Best Winter Olympics,Period,”PM Network(January 2004),p.23.43Integrated Change ControlThree main objectives are:Influence the factors that create changes to ens
48、ure that changes are beneficial.Determine that a change has occurred.Manage actual changes as they occur.A baseline is the approved project management plan plus approved changes.44Change Control on Information Technology Projects Former view:The project team should strive to do exactly what was plan
49、ned on time and within budget.Problem:Stakeholders rarely agreed beforehand 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 fo
50、r them.45Change Control System 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.46Change Control Boards(CCBs)A formal group of people responsible for approving or rejecting chan
