Ch01
Chapter 1: Introduction to Project Management
Introduction to Project Management
Current Trends
Increased global interest in project management.
Global IT Spending:
$3.5 trillion in 2017, marking a 2.4% increase from 2016.
Job Market:
Approximately 66 million project management jobs by 2017; projected need of 87.7 million by 2027.
Introduction (Continued)
Salary Statistics
Average annual salary in project management without bonuses:
U.S.: $112,000
Switzerland: $130,866
Skills in Demand
Top skills employers seek:
Teamwork
Problem-solving
Verbal communication
Project Failures
Organizations waste an estimated $97 million for every $1 billion spent due to project inefficiencies.
/
Advantages of Formal Project Management
Enhanced control over resources (financial, physical, human).
Improvement in customer relations and satisfaction.
Reduced development times and costs.
Increased productivity and quality.
Better internal coordination.
Alignment with strategic goals, impacting worker morale positively.
Challenges in IT Project Management
Track Record of IT Projects
Research indicates IT project failures:
1995 Standish Group study: 16.2% successful campaigns in scope, time, and cost; over 31% cancelled before completion.
PricewaterhouseCoopers study: Over half of all projects fail; only 2.5% meet all project goals consistently.
What Is a Project?
Definition: A project is a temporary endeavor designed to produce a unique product, service, or result (PMBOK® Guide).
Operations vs. Projects: Operations sustain business functions; projects conclude after objectives are achieved or terminated.
Examples of IT Projects (1 of 2)
Development of a smartphone application by students.
Creation of a driverless car by a company.
Government initiative for tracking child immunizations.
Bank mergers requiring system consolidation.
Examples of IT Projects (2 of 2)
Strategic Technologies for 2018 (Gartner)
Artificial Intelligence (AI)
Intelligent Things
Cloud Computing
Immersive Experiences
Media Snapshot
Gartner's predictions vs. actuals for mobile application downloads.
As of March 2017:
2.8 million apps available for Android users, 2.2 million for Apple users.
Facebook remains the leading downloaded app, with games as the most popular category.
Project Attributes
Characteristics of Projects:
Unique purpose
Temporary nature
Drives change and creates value
Developed through progressive elaboration
Requires diverse resources
Must have a primary sponsor
Involves inherent uncertainty
Responsibility: Project managers collaborate with sponsors, teams, and stakeholders to achieve project objectives.
Project Constraints
Various factors that impede project management effectiveness will be discussed further in subsequent sections.
What is Project Management? (1 of 2)
Definition: The process of applying knowledge, skills, tools, and techniques to meet project requirements (PMBOK® Guide).
Project managers maintain focus on the triple constraint (scope, time, cost) while facilitating stakeholder needs.
What is Project Management? (2 of 2)
Content and details on project management terminologies and frameworks will follow.
Project Stakeholders
Definition: Those involved in or affected by project activities. Key stakeholders include:
Project sponsor
Financial institutions
Project manager
Project team members
Support staff
Suppliers
Project opponents
Project Management Knowledge Areas
Key Competencies: Project managers must develop knowledge in 10 areas:
Scope, Schedule, Cost, Quality, Resource, Communications, Risk, Procurement, Stakeholder, Project Integration Management.
Detailed chapters on each knowledge area provided in the text.
Project Management Tools and Techniques (1 of 2)
Tools and Techniques: Aid project managers in various aspects, including:
Project charter, Scope statement, WBS (work breakdown structure)
Gantt charts, Network diagrams, Critical path analysis, Critical chain scheduling
Cost estimates and earned value management.
Project Management Tools and Techniques (2 of 2)
Categorization of Tools: Tools are classified based on their purposes:
Data gathering and analysis
Data representation
Decision making
Communication
Interpersonal/team skills.
What Went Right?
Comparative improvements according to CHAOS studies:
Success rates in IT projects reached 29% by 2015.
Small projects (62% success) outperform larger projects (6% success).
Agile methodologies show higher success rates (39% vs. 11% for waterfall).
Project Success (1 of 4)
Definitions of Success:
Meet scope, time, and cost goals.
Satisfy customer/sponsor needs.
Achieve main objectives, such as financial returns or stakeholder satisfaction.
Project Success (2 of 4)
Factors of Success
Top components contributing to project success, weighted by importance:
Executive Sponsorship: 15 points
User Involvement: 15 points
Skilled Resources: 10 points
Clear Business Objectives: 4 points
Project Success (3 of 4)
Federal Technology Projects
Reasons for success include:
Adequate funding
Skilled staff
Stakeholder engagement
Project Success (4 of 4)
High-Performing Companies
Companies excelling in project delivery:
Use an integrated toolbox
Develop project leaders
Streamline delivery processes
Measure project health with relevant metrics.
Program and Project Portfolio Management
Importance of project spending:
Projects account for about 25% of global GDP.
Key Concepts:
Utilize programs to meet enterprise objectives.
Implement project portfolio management strategies.
Programs
Definition: A program is a coordinated group of related projects to achieve control and benefits.
Common IT examples: Infrastructure management, applications development, user support.
The program manager leads and provides direction within the project management team.
Project Portfolio Management (1 of 2)
Definition: Grouping projects as investments for enterprise success.
Portfolio managers help organizations analyze and select projects strategically.
Project Portfolio Management (2 of 2)
Further insights into portfolio management are introduced in subsequent sections.
Best Practices in Project Management
Definition: Recognized optimal approaches for achieving set goals.
Principles to Follow:
Align projects with strategic business objectives.
Engage stakeholders throughout the project lifecycle to avoid failures.
Organizational Project Management (1 of 2)
Framework Overview: Integration of portfolio, program, and project management with organizational enablers to achieve strategic objectives.
Organizational Project Management (2 of 2)
Continued analysis of the organization’s project management framework and its effectiveness.
The Role of the Project Manager
Primary Functions:
Collaborate with stakeholders, sponsors, and teams.
Familiarity with project management knowledge areas and relevant tools.
Project Manager Job Description
Common responsibilities include:
Planning, scheduling, and coordination.
Collaboration with team members for goal achievement.
Project management is essential in various IT fields.
Advice for Young Professionals
Questions to assess suitability for project management:
Frustration with leadership?
Interest in organizational dynamics?
Previous experience in leadership roles?
Abilities in mentoring and skill development?
Suggested Skills for Project Managers (1 of 2)
Key areas of knowledge include:
Application area knowledge
Project environment understanding
General management skills
Soft skills or human relations skills.
Suggested Skills for Project Managers (2 of 2)
Traits of Effective Project Managers
Strategic partnerships
Recognition of contributions
Stakeholder motivation
Integrity and accountability
Comfortable with ambiguity.
PMI Talent Triangle® and Importance of Leadership Skills
Key Components:
Technical Project Management Skills
Strategic and Business Management Skills
Leadership Skills
Overview of various leadership styles relevant to project management.
Careers for IT Project Managers (1 of 2)
In-Demand Skills:
According to a 2017 survey, project management is a key skill sought by IT executives, second only to full-stack development.
Importance of project management knowledge even in technical roles.
Careers for IT Project Managers (2 of 2)
Top 10 Tech Skills Required (2017)
Full-stack software development
Project management
Cyber-security
Networking
UX/UI design
Quality assurance
Cloud engineering
Big data expertise
Machine learning
DevOps.
The Project Management Profession
The project management profession is on the rise.
Understanding its history and PMI's role is crucial.
Growth in project management software enhances industry standards.
History of Project Management (1 of 4)
Historical Milestones:
Notable projects include the Egyptian pyramids and the Great Wall of China.
The Manhattan Project marked the first use of modern project management tools and management structures.
History of Project Management (2 of 4)
Continuation of historical context and significance.
History of Project Management (3 of 4)
Establishment of Project Management Offices (PMOs) in the 1990s to streamline project handling and management complexity.
History of Project Management (4 of 4)
Evolution of project management as a vital business component.
Global Issues in Project Management
Organizations are responding to global dynamics by:
Focusing on talent development for project managers.
Prioritizing basic project management skills.
Adopting agile methodologies.
Emphasizing benefits realization as a primary success metric.
The Project Management Institute
The Project Management Institute (PMI) established in 1969, serves as a professional body for project managers.
Significant membership growth, with over 500,000 by late 2017.
Continuous expansion in research and certification programs.
PMI Student Membership
Students benefit from reduced fees and opportunities to gain certification like the Certified Associate in Project Management (CAPM).
Project Management Certification (1 of 2)
Certification Overview: PMI offers the Project Management Professional (PMP®) certification.
Requirements include:
Documented project experience
Adherence to a code of ethics
Successful completion of the PMP® exam.
Project Management Certification (2 of 2)
The number of PMP® certifications granted is rapidly increasing.
Ethics in Project Management
Definition of Ethics: Principles influencing decision-making regarding right and wrong.
Ethical dilemmas frequently arise in project management.
PMPs must commit to PMI's Code of Ethics and Professional Conduct.
Project Management Software
Hundreds of tools available for project management.
Categorization:
Low-end tools: Under $200, suitable for small projects.
Midrange tools: Cost $200-$1,000, capable of managing multiple projects (e.g., Microsoft Project).
High-end tools: Enterprise projects, typically licensed per user.
Chapter Summary
A project is a temporary endeavor to create a unique outcome.
Project management applies knowledge, skills, and tools to meet project needs.
Programs coordinate related projects for added benefits.
Portfolio management organizes projects and programs for strategic success.
The project management profession is expanding and evolving.