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Information Technology

FIT2002

IT Project Management

Lecture 2

Organisational structures,

Project and product lifecycles

Video 1:
Learning Objectives

 Describe the systems view of project management and how

it applies to information technology (IT) projects

 Understand organisations, including the four frames,

organisational structures, and organisational culture

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 2

Projects Cannot Be Run in Isolation

 Projects must operate in a broad organisational environment

 Project managers need to use systems thinking:

– taking a holistic view of carrying out projects within the

context of the organisation

 Senior managers must make sure projects continue to support

current business needs

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 3

A Systems View of Project Management

 A systems approach emerged in the 1950s to describe a more
analytical approach to management and problem solving

 Three parts include:

– Systems philosophy: an overall model for thinking about
things as systems

– Systems analysis: problem-solving approach

– Systems management: address business, technological,
and organisational issues before making changes to
systems

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 4

Perspectives on organisations

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 5

Structural frame

• Roles and responsibilities,
coordination and control.

• Organisational charts help
describe this frame.

Human resources frame:

• Providing harmony between
needs of the organisation
and needs of people.

Political frame

• Coalitions composed of
varied individuals and
interest groups.

• Conflict and power are key
issues.

Symbolic frame

• Symbols and meanings
related to events.

• Culture, language, traditions,
and image are all parts of
this frame.

Organisation
Frames

Organisational Structures

 3 basic organisation structures

– Functional: functional managers report to the CEO

– Project: program managers report to the CEO

– Matrix: middle ground between functional and project

structures; personnel often report to two or more

bosses; structure can be weak, balanced, or strong

matrix

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 6

Functional,

Project, and

Matrix

Organisational

Structures

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 7

Organisational Structure Influences on

Projects

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 8

Organisational Culture

 Organisational culture is a set of shared assumptions, values,

and behaviours that characterize the functioning of an

organisation

 Many experts believe the underlying causes of many companies’

problems are not the structure or staff

… but the culture !!

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 9

Ten Characteristics of Organisational Culture

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 10

• Member identity*

• Group emphasis*

• Risk tolerance*

• Reward criteria*

• Conflict tolerance*

• Unit integration*

• Open systems focus*

Project work is most successful in an organisational culture
where these items are strong/high

• People focus

• Means-ends orientation

• Control

Project work is most successful in an organisational culture
where these items are balanced

Video 2:
Learning Objectives

 Explain why stakeholder management and top

management commitment are critical for a project’s

success

 Understand the concept of a project phase and the project

life cycle, and distinguish between project development and

product development

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 11

 Project managers must take time to identify, understand, and

manage relationships with all project stakeholders – both the

internal as well as the external stakeholders

 Using the four frames of organisations can help meet

stakeholder needs and expectations

 Senior executives/top management are very important

stakeholders

 Project Stakeholder Management will be covered in greater

depth in Lecture 8

Stakeholder Management

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 12

 People in top management positions are key stakeholders in

projects

 A very important factor in helping project managers

successfully lead projects is the level of commitment and

support they receive from top management

 Without top management commitment, many projects will fail.

 Some projects have a senior manager called a champion

who acts as a key proponent for a project.

The Importance of Top Management

Commitment

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 13

 Providing adequate resources

 Approving unique project needs in a timely manner

 Getting cooperation from other parts of the organisation

 Mentoring and coaching on leadership issues

How Top Management Can Help Project

Managers

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 14

 IT governance addresses the authority and control for key IT

activities in organisations, including IT infrastructure, IT use,

and project management

 A lack of IT governance can be dangerous, as evidenced by

three well-publicized IT project failures in Australia:

– Sydney Water’s Customer Relationship Management

System,

– RMIT Academic Management System, and

– One.Tel’s billing system

Importance of IT Governance

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 15

 If the organisation has a negative attitude toward IT, it will be

difficult for an IT project to succeed

 Having a Chief Information Officer (CIO) at a high level in the

organisation helps IT projects

 Assigning non-IT people to IT projects and increase

involvement from end users may also encourage more

commitment

Need for Organisational Commitment to

Information Technology (IT)

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 16

 Standards and guidelines help project managers be more

effective

 Senior management can encourage

– the use of standard forms and software for project

management

– the development and use of guidelines for writing project

plans or providing status information

– the creation of a project management office or center of

excellence

Need for Organisational Standards

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 17

Video 3:
Learning Objectives

 Understand the concept of a project phase and the project

life cycle, and distinguish between project development and

product development

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 18

 A project life cycle is a collection of project phases that defines

– what work will be performed in each phase

– what deliverables will be produced and when

– who is involved in each phase, and

– how management will control and approve work produced
in each phase

 A deliverable is a product or service produced or provided as
part of a project

Project Phases and the Project Life Cycle

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 19

 In early phases of a project life cycle

– resource needs are usually lowest

– the level of uncertainty (risk) is highest

– project stakeholders have the greatest opportunity to
influence the project

 In middle phases of a project life cycle

– the certainty of completing a project improves

– more resources are needed

 The final phase of a project life cycle focuses on

– ensuring that project requirements were met

– the sponsor approves completion of the project

More on Project Phases

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 20

 A project should successfully pass through each of the project

phases in order to continue on to the next

 Management reviews, also called phase exits or kill points,

should occur after each phase to evaluate the project’s

progress, likely success, and continued compatibility with

organisational goals

The Importance of Project Phases and

Management Reviews

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 21

Phases of the Traditional Project Life Cycle

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 22

Project Life Cycle (PLC) and Systems

Development Life Cycles
Define
Project
Goad

Plan
Project

Execute
Project

Close
Project

Evaluate
Project

Ref: Marchewka, J… (2015). Information Technology Project Management. (5e) Wiley

Planning

Analysis

Design
Implemen-

tation

Mainte-
nance &
Support

23

Project Life Cycle

System

Development Life

Cycle

 Products also have life cycles

 The Systems Development Life Cycle (SDLC) is a framework

for describing the phases involved in developing and

maintaining information systems

 Systems development projects can follow

– Predictive life cycle: the scope of the project can be

clearly articulated and the schedule and cost can be

predicted

– Adaptive Software Development (ASD) life cycle:

requirements cannot be clearly expressed, projects are

mission driven and component based, using time-based

cycles to meet target dates

Product Life Cycles

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 24

 Waterfall model: has well-defined, linear stages of systems
development and support

 Spiral model: shows that software is developed using an
iterative or spiral approach rather than a linear approach

 Incremental build model: provides for progressive
development of operational software

 Prototyping model: used for developing prototypes to clarify
user requirements

 Rapid Application Development (RAD) model: used to
produce systems quickly without sacrificing quality

Predictive Life Cycle Models

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 25

Waterfall and Spiral Life Cycle Models

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 26

 Examples of ASD:

– extreme programming, feature driven development,

dynamic systems development model, scrum, etc

 Agile software development has become popular to describe

new approaches that focus on close collaboration between

programming teams and business experts

 We will talk a bit more on agile methodology in the next video

and also in Lecture 11.

Agile Software Development

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 27

Video 4:
Learning Objectives

 Discuss the unique attributes and diverse nature of IT

projects

 Describe recent trends affecting IT project management,

including globalization, outsourcing, virtual teams, and agile

project management

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 28

 IT projects can be very diverse in terms of size, complexity,

products produced, application area, and resource requirements

 IT project team members often have diverse backgrounds and

skill sets

 IT projects use diverse technologies that change rapidly. Even

within one technology area, people must be highly specialized

The Context of IT Projects

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 29

 Globalization

 Outsourcing:

– Outsourcing is when an organisation acquires goods

and/or sources from an outside source.

– Offshoring is sometimes used to describe outsourcing

from another country

 Virtual teams: A virtual team is a group of individuals who

work across time and space using communication

technologies

 Agile project management

Recent Trends Affecting IT Project Management

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 30

 Issues

– Communications

– Trust

– Common work practices

– Tools

 Suggestions

– Employ greater project discipline

– Think global but act local

– Consider collaboration over standardisation

– Keep project momentum going

– Use newer tools and technology

Important Issues and Suggestions Related to

Globalization

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 31

 Organisations remain competitive by using outsourcing to their

advantage, such as finding ways to reduce costs

 Their next challenge is to make strategic IT investments with

outsourcing by improving their enterprise architecture to ensure

that IT infrastructure and business processes are integrated

and standardised

 Project managers should become more familiar with

negotiating contracts and other outsourcing issues

Outsourcing

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 32

 Increasing competiveness and responsiveness by having a

team of workers available 24/7

 Lowering costs because many virtual workers do not require

office space or support beyond their home offices.

 Providing more expertise and flexibility by having team

members from across the globe working any time of day or

night

 Increasing the work/life balance for team members by

eliminating fixed office hours and the need to travel to work.

Virtual Teams Advantages

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 33

 Isolating team members

 Increasing the potential for communications problems

 Reducing the ability for team members to network and transfer

information informally

 Increasing the dependence on technology to accomplish work

 Some of the factors that help virtual teams succeed:

– team processes,

– trust/relationships,

– leadership style, and

– team member selection

Virtual Team Disadvantages

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 34

Agile Project Management

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 35

 Agile means being able to move quickly but does project

management allow for that?

 Early software development projects often used a waterfall

approach. However, this is becoming a challenge.

 Agile uses a method based on iterative and incremental

development, in which requirements and solutions evolve

through collaboration.

 But, what about the triple constraint?

 See the Resources tab from www.pmtexts.com for more info

http://www.pmtexts.com/

 Many seasoned experts in project management warn people

not to fall for the hype associated with Agile.

 For example, J. Leroy Ward, Executive Vice President at ESI

International, said that

“Agile will be seen for what it is … and isn’t….Project

management organisations embracing Agile software and

product development approaches will continue to grow while

being faced with the challenge of demonstrating ROI

through Agile adoption.”*

Agile Makes Sense for Some Projects…,

But Not All

*J. Leroy Ward, “The Top Ten Project Management Trends for 2011,” projecttimes.com

(January 24, 2011).

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 36

Video 5:
Learning Objectives

 Discuss what is the manifesto for Agile Software

Development

 Understanding Agile project management

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 30

 In February 2001, a group of 17 people that called itself the

Agile Alliance developed and agreed on the Manifesto for Agile

Software Development, as follows:

 “We are uncovering better ways of developing software by

doing it and helping others do it. Through this work we have

come to value:

– Individuals and interactions over processes and tools

– Working software over comprehensive documentation

– Customer collaboration over contract negotiation

– Responding to change over following a plan”*

Manifesto for Agile Software Development

*Agile Manifesto, www.agilemanifesto.org.

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 38

 What exactly is Agile Project Management?

 Process by which projects can be managed and implemented

in small deliverables.

 Deliver value to the business in frequent small deliveries of

product called features

 Recommended when business needs are frequently

changing or when the business wants to receive product

benefits earlier

 Items are created in small logical chunks of work called

iterations or sprints.

Agile Project Management

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 39

 Sprints are normally 4 – 12 weeks long

 Communication is critical – Face-to-face is encouraged

 Teams should be co-located (or at least virtually)

 100% Sponsor commitment

 Changes to requirements are anticipated and accommodated

 As with traditional approach:

– Having a vision for the end goal

– Clear understanding of the requirements

– Follow a universally accepted project lifecycle

– A dedicated team…and communication..communication..

Characteristics of Agile Projects

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 40

The Agile Lifecycle

41

Scrum

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 42

 What is Scrum?

 The leading agile development method for completing projects

with a complex, innovative scope of work.

 The term was coined in 1986 in a Harvard Business Review

study

 Scrum was initially applied to software development projects, but

today other types of projects use this technique

 Watch the Axosoft video “Scrum in 10 Minutes,” by Hamid

Shojaee, an experienced software developer

Scrum Framework

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 43

 Technique that can be used in conjunction with scrum

 Developed in Japan by Toyota Motor Corporation

 Uses visual cues to guide workflow

 Kanban cards show new work, work in progress, and work

completed

Kanban

Schwalbe, K.. (2015). Information Technology Project Management. (8e) Cengage Learning 44