A guide to hardware 9th edition pdf free download

Table of contents :
Cover Page......Page 2
Title Page......Page 3
Copyright Page......Page 4
Dedication......Page 6
Preface......Page 7
New to the Ninth Edition......Page 9
Exercises, Running Cases, Templates, and Sample Documents......Page 10
Organization and Content......Page 12
Global Issues......Page 13
Test Banks in Cognero......Page 14
IT Project Management MindTap......Page 15
Acknowledgments......Page 16
About the Author......Page 19
Learning Objectives......Page 20
Introduction......Page 21
What Is a Project?......Page 23
Examples of IT Projects......Page 24
Project Attributes......Page 26
Project Constraints......Page 27
What Is Project Management?......Page 29
Project Stakeholders......Page 30
Project Management Knowledge Areas......Page 31
Project Management Tools and Techniques......Page 32
Project Success......Page 37
Programs......Page 40
Project Portfolio Management......Page 41
Organizational Project Management......Page 44
Project Manager Job Description......Page 46
Suggested Skills for Project Managers......Page 48
PMI Talent Triangle® and the Importance of Leadership Skills......Page 50
Careers for IT Project Managers......Page 53
History of Project Management......Page 54
The Project Management Institute......Page 58
Project Management Certification......Page 59
Ethics in Project Management......Page 61
Project Management Software......Page 62
Chapter Review......Page 64
Chapter Summary......Page 65
Quick Quiz......Page 66
Exercises......Page 69
Key Terms......Page 70
Learning Objectives......Page 72
A Systems View of Project Management......Page 73
What Is a Systems Approach?......Page 74
The Three-Sphere Model for Systems Management......Page 75
The Four Frames of Organizations......Page 76
Organizational Structures......Page 79
Organizational Culture......Page 82
Focusing on Stakeholder Needs......Page 84
The Importance of Top Management Commitment......Page 86
The Need for Organizational Commitment to Information Technology......Page 87
The Need for Organizational Standards......Page 88
Project Life Cycle......Page 89
Product Life Cycles......Page 90
The Importance of Project Phases and Management Reviews......Page 93
Characteristics of IT Project Team Members......Page 95
Recent Trends Affecting Information Technology Project Management......Page 96
Globalization......Page 97
Outsourcing......Page 98
Virtual Teams......Page 99
The Manifesto for Agile Software Development......Page 102
Scrum......Page 103
Agile, the PMBOK® Guide, and a New Certification......Page 104
Chapter Review......Page 106
Chapter Summary......Page 107
Discussion Questions......Page 108
Quick Quiz......Page 109
Exercises......Page 111
Key Terms......Page 112
Learning Objectives......Page 114
Project Management Process Groups......Page 115
Mapping the Process Groups to the Knowledge Areas......Page 120
Developing an IT Project Management Methodology......Page 122
Case Study 1: JWD Consulting’s Project Management Intranet Site Project (Predictive Approach)......Page 125
Pre-Initiation Tasks......Page 126
Initiating......Page 131
Identifying Project Stakeholders......Page 132
Drafting the Project Charter......Page 133
Holding a Project Kick-Off Meeting......Page 135
Project Planning......Page 136
Project Execution......Page 149
Project Monitoring and Controlling......Page 155
Project Closing......Page 159
Scrum Roles, Artifacts, and Ceremonies......Page 163
Project Pre-Initiation and Initiation......Page 167
Planning......Page 168
Monitoring and Controlling......Page 171
Closing......Page 173
Templates by Process Group......Page 174
Chapter Review......Page 177
Chapter Summary......Page 178
Quick Quiz......Page 179
Exercises......Page 182
Key Terms......Page 183
Learning Objectives......Page 185
What is Project Integration Management?......Page 186
Strategic Planning......Page 190
Identifying Potential Projects......Page 192
Aligning IT with Business Strategy......Page 193
Methods for Selecting Projects......Page 195
Categorizing IT Projects......Page 196
Performing Financial Analyses......Page 197
Net Present Value Analysis......Page 198
Payback Analysis......Page 202
Using a Weighted Scoring Model......Page 204
Developing a Project Charter......Page 206
Developing a Project Management Plan......Page 211
Project Management Plan Contents......Page 212
Using Guidelines to Create Project Management Plans......Page 213
Coordinating Planning and Execution......Page 215
Providing Strong Leadership and a Supportive Culture......Page 216
Capitalizing on Product, Business, and Application Area Knowledge......Page 217
Project Execution Tools and Techniques......Page 218
Managing Project Knowledge......Page 219
Monitoring and Controlling Project Work......Page 220
Performing Integrated Change Control......Page 222
Change Control on IT Projects......Page 223
Change Control System......Page 224
Closing Projects or Phases......Page 227
Using Software to Assist in Project Integration Management......Page 229
Considerations for Agile/Adaptive Environments......Page 230
Chapter Review......Page 232
Chapter Summary......Page 233
Quick Quiz......Page 234
Exercises......Page 237
Running Case......Page 238
Tasks......Page 240
Key Terms......Page 241
Learning Objectives......Page 243
What is Project Scope Management?......Page 244
Planning Scope Management......Page 245
Collecting Requirements......Page 248
Defining Scope......Page 252
Creating the Work Breakdown Structure......Page 256
Using Guidelines......Page 262
The Top-Down and Bottom-Up Approaches......Page 263
Mind Mapping......Page 264
The WBS Dictionary......Page 267
Advice for Creating a WBS and a WBS Dictionary......Page 268
Validating Scope......Page 269
Suggestions for Improving User Input......Page 272
Suggestions for Reducing Incomplete and Changing Requirements......Page 273
Using Software to Assist in Project Scope Management......Page 275
Considerations for Agile/Adaptive Environments......Page 276
Chapter Review......Page 278
Chapter Summary......Page 279
Quick Quiz......Page 280
Exercises......Page 283
Running Case......Page 284
Tasks......Page 285
Key Terms......Page 286
Learning Objectives......Page 288
The Importance of Project Schedules......Page 289
Planning Schedule Management......Page 292
Defining Activities......Page 293
Dependencies......Page 296
Network Diagrams......Page 297
Estimating Activity Durations......Page 301
Developing the Schedule......Page 303
Gantt Charts......Page 304
Adding Milestones to Gantt Charts......Page 305
Using Tracking Gantt Charts to Compare Planned and Actual Dates......Page 307
Critical Path Method......Page 308
Calculating the Critical Path......Page 309
Growing Grass Can Be on the Critical Path......Page 310
Using Critical Path Analysis to Make Schedule Trade-Offs......Page 311
Using the Critical Path to Shorten a Project Schedule......Page 313
Critical Chain Scheduling......Page 314
Program Evaluation and Review Technique (PERT)......Page 318
Agile and Schedule Management......Page 319
Controlling the Schedule......Page 320
Reality Checks on Scheduling and the Need for Discipline......Page 321
Using Software to Assist in Project Schedule Management......Page 322
Words of Caution on Using Project Management Software......Page 324
Considerations for Agile/Adaptive Environments......Page 325
Chapter Review......Page 327
Chapter Summary......Page 328
Discussion Questions......Page 329
Quick Quiz......Page 330
Exercises......Page 332
Running Case......Page 335
Key Terms......Page 336
Learning Objectives......Page 339
The Importance of Project Cost Management......Page 340
What Is Cost?......Page 341
What Is Project Cost Management?......Page 342
Basic Principles of Cost Management......Page 343
Estimating Costs......Page 349
Types of Cost Estimates......Page 350
Cost Estimation Tools and Techniques......Page 352
Typical Problems with IT Cost Estimates......Page 353
How to Develop a Cost Estimate and Basis of Estimates......Page 354
Determining the Budget......Page 361
Earned Value Management......Page 364
Project Portfolio Management......Page 371
Using Project Management Software to Assist in Project Cost Management......Page 372
Considerations for Agile/Adaptive Environments......Page 374
Chapter Review......Page 375
Discussion Questions......Page 376
Quick Quiz......Page 377
Exercises......Page 380
Running Case......Page 381
Tasks......Page 382
Key Terms......Page 383
Learning Objectives......Page 385
The Importance of Project Quality Management......Page 386
What Is Project Quality Management?......Page 388
Planning Quality Management......Page 390
Managing Quality......Page 393
Tools and Techniques for Quality Control......Page 395
Statistical Sampling......Page 403
Six Sigma......Page 404
How Is Six Sigma Quality Control Unique?......Page 406
Six Sigma and Project Selection and Management......Page 407
Six Sigma and Statistics......Page 408
Testing......Page 410
Modern Quality Management......Page 412
Deming and His 14 Points for Management......Page 413
Juran and the Importance of Top Management Commitment to Quality......Page 414
Crosby and Striving for Zero Defects......Page 415
Feigenbaum and Workers’ Responsibility for Quality......Page 416
ISO Standards......Page 417
Leadership......Page 418
The Cost of Quality......Page 419
The Impact of Organizational Influences, and Workplace Factors on Quality......Page 421
Expectations and Cultural Differences in Quality......Page 422
Software Quality Function Deployment Model......Page 423
Capability Maturity Model Integration......Page 424
Project Management Maturity Models......Page 425
Using Software to Assist in Project Quality Management......Page 426
Considerations for Agile/Adaptive Environments......Page 427
Chapter Review......Page 428
Chapter Summary......Page 429
Quick Quiz......Page 430
Exercises......Page 433
Running Case......Page 434
Key Terms......Page 435
Learning Objectives......Page 438
The Global IT Workforce......Page 439
Implications for the Future of IT Human Resource Management......Page 440
What Is Project Resource Management?......Page 443
Maslow’s Hierarchy of Needs......Page 445
Herzberg’s Motivation-Hygiene Theory......Page 447
McGregor’s Theory X and Theory Y......Page 449
Influence and Power......Page 450
Covey and Improving Effectiveness......Page 453
Emotional Intelligence......Page 456
Leadership......Page 457
Developing the Resource Management Plan and Team Charter......Page 458
Project Organizational Charts......Page 459
Responsibility Assignment Matrices......Page 462
Staffing Management Plans and Resource Histograms......Page 463
Team Charters......Page 464
Estimating Activity Resources......Page 465
Resource Assignment......Page 466
Resource Loading......Page 468
Resource Leveling......Page 470
Developing the Project Team......Page 472
Training......Page 473
The Myers-Briggs Type Indicator......Page 474
The Social Styles Profile......Page 476
DISC Profile......Page 477
Tools and Techniques for Managing Project Teams......Page 479
General Advice on Managing Teams......Page 481
Using Software to Assist in Resource Management......Page 483
Considerations for Agile/Adaptive Environments......Page 484
Chapter Review......Page 485
Chapter Summary......Page 486
Discussion Questions......Page 488
Quick Quiz......Page 489
Exercises......Page 491
Running Case......Page 492
Key Terms......Page 494
Learning Objectives......Page 496
The Importance of Project Communications Management......Page 497
Focusing on Group and Individual Communication Needs......Page 499
Formal and Informal Methods for Communicating......Page 501
Distributing Important Information in an Effective and Timely Manner......Page 502
Setting the Stage for Communicating Bad News......Page 503
Determining the Number of Communication Channels......Page 504
Planning Communications Management......Page 506
Managing Communications......Page 508
Using Technology to Enhance Information Creation and Distribution......Page 509
Selecting the Appropriate Communication Methods and Media......Page 510
Reporting Performance......Page 513
Monitoring Communications......Page 514
Developing Better Communication Skills......Page 515
Running Effective Meetings......Page 517
Using E-Mail, Instant Messaging, Texting, Kanban Boards, and Collaborative Tools Effectively......Page 519
Using Templates for Project Communications......Page 522
Using Software to Assist in Project Communications......Page 528
Considerations for Agile/Adaptive Environments......Page 531
Chapter Review......Page 533
Chapter Summary......Page 534
Quick Quiz......Page 535
Exercises......Page 538
Running Case......Page 540
Key Terms......Page 541
Learning Objectives......Page 543
The Importance of Project Risk Management......Page 544
Planning Risk Management......Page 552
Common Sources of Risk on IT Projects......Page 554
Identifying Risks......Page 557
Suggestions for Identifying Risks......Page 558
The Risk Register......Page 560
The Risk Report......Page 562
Using Probability/Impact Matrixes to Calculate Risk Factors......Page 563
Top Ten Risk Item Tracking......Page 565
Performing Quantitative Risk Analysis......Page 567
Decision Trees and Expected Monetary Value......Page 568
Simulation......Page 569
Sensitivity Analysis......Page 572
Planning Risk Responses......Page 573
Monitoring Risks......Page 576
Considerations for Agile/Adaptive Environments......Page 577
Chapter Review......Page 579
Chapter Summary......Page 580
Discussion Questions......Page 581
Quick Quiz......Page 582
Exercises......Page 584
Running Case......Page 586
Key Terms......Page 587
Learning Objectives......Page 589
The Importance of Project Procurement Management......Page 590
Planning Procurement Management......Page 596
Types of Contracts......Page 597
Make-or-Buy Analysis......Page 602
Procurement Management Plan......Page 603
Statement of Work......Page 604
Procurement or Bid Documents......Page 605
Examples from a Real RFP......Page 607
Source Selection Criteria......Page 610
Conducting Procurements......Page 611
Controlling Procurements......Page 614
Using Software to Assist in Project Procurement Management......Page 616
Considerations for Agile/Adaptive Environments......Page 618
Chapter Review......Page 620
Chapter Summary......Page 621
Discussion Questions......Page 622
Quick Quiz......Page 623
Exercises......Page 625
Running Case......Page 626
Key Terms......Page 627
Learning Objectives......Page 629
The Importance of Project Stakeholder Management......Page 630
Identifying Stakeholders......Page 632
Planning Stakeholder Engagement......Page 637
Managing Stakeholder Engagement......Page 639
Monitoring Stakeholder Engagement......Page 642
Using Software to Assist in Project Stakeholder Management......Page 644
Considerations for Agile/Adaptive Environments......Page 646
Chapter Review......Page 648
Discussion Questions......Page 649
Quick Quiz......Page 650
Exercises......Page 652
Running Case......Page 653
Key Terms......Page 654

Citation preview

Information Technology Project Management

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Information Technology Project Management 9th Edition Kathy Schwalbe,Ph.D., PMP Professor Emeritus, Augsburg College Jonathan Lau SVP, GM Skills & Global Product Management Kristin McNary Product Team Manager Jaymie Falconi Product Manager Anna Goulart Product Assistant Mara Bellegarde Executive Director, Content Design Leigh Hefferon Director, Learning Design Maria Garguilo Learning Designer Jennifer Ann Baker Vice President, Strategic Marketing Services Sean Chamberland Marketing Director Scott Chrysler Marketing Manager Patty Stephan Director, Content Delivery Michele Stulga Content Manager Ann Shaffer Development Editor John Freitas Tech Editor Noah Vincelette Digital Delivery Lead Diana Graham Senior Designer SPi Global Production Service/Composition

Copyright Statement Information Technology Project Management COPYRIGHT © 2019, 2016 Cengage Learning, Inc. ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means—graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act—without the prior written permission of the publisher. WCN: 01-100-101 For product information and technology assistance, contact Cengage Customer & Sales Support, 1-800-354-9706. Screenshots for this book were created using Microsoft Project, and were used with permission from Microsoft. Microsoft and the Office logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. Cengage Learning is an independent entity from the Microsoft Corporation, and not affiliated with Microsoft in any manner. Screenshots from MindView Business software are used with permission from MatchWare. iPhone, iPad, iPod, and MacBook are registered trademarks of Apple Inc. Information pertaining to Northwest Airlines was used with their express permission. No part of it may be reproduced or used in any form without prior written permission from Cengage. This publication is a derivative work of A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, which is copyrighted material of and owned by Project Management Institute, Inc. (PMI), Copyright 2017. This publication has been developed and reproduced with the permission of PMI. Unauthorized reproduction of this material is strictly prohibited. The derivative work is the copyrighted material of and owned by Cengage, Copyright 2019. Sections in the text marked with an asterisk and Appendix A are used with permission from Schwalbe Publishing, Minneapolis, MN. PMI, PMI Talent Triangle, PMP®, CAPM®, PgMP, PMI-RMP, PMI-ACP, PMI-SP, OPM3®, and PMBOK® are registered marks of the Project Management Institute, Inc. For permission to use material from this text or product, submit all requests online at cengage.com/permissions Further permissions questions can be e-mailed to [email protected]

Library of Congress Control Number: 2018944898 ISBN-13: 978-1-337-10135-6 Cengage 20 Channel Center Street Boston MA 02210 USA Cengage is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world. Find your local representative at www.cengage.com. Cengage products are represented in Canada by Nelson Education, Ltd. To learn more about Cengage platforms and services, register or access your online learning solution, or purchase materials for your course, visit www.cengage.com.

For Dan, Anne, Bobby, and Scott

Preface The future of many organizations depends on their ability to harness the power of information technology, and good project managers continue to be in high demand. Colleges have responded to this need by establishing courses in project management and making them part of the information technology, management, engineering, and other curricula. Corporations are investing in continuing education to help develop and deepen the effectiveness of project managers and project teams. This text provides a much-needed framework for teaching courses in project management, especially those that emphasize managing information technology projects. The first eight editions of this text were extremely well received by people in academia and the workplace. The Ninth Edition builds on the strengths of the previous editions and adds new, important information and features. It’s impossible to read a newspaper, magazine, or web page without hearing about the impact of information technology on our society. Information is traveling faster and being shared by more people than ever before. You can buy just about anything online, surf the web on a mobile phone, or use a wireless Internet connection just about anywhere. Companies have linked their systems together to help them fill orders on time and better serve their customers. Software companies are continually developing new products to help streamline our work and get better results. When technology works well, it is almost invisible. But did it ever occur to you to ask, “Who makes these complex technologies and systems happen?” Because you’re reading this text, you must have an interest in the “behind-the-scenes” aspects of technology. If I’ve done my job well, you’ll begin to see the many innovations society is currently enjoying as the result of thousands of successful information technology projects. In this text, you’ll read about IT projects in organizations around the world that went well, including the National University Hospital in Singapore, which used critical chain scheduling to decrease patient admission times by more than 50 percent; retailer Zulily, one of a growing number of organizations developing software in-house to meet their need for speed and innovation; Dell’s green computing project that saves energy and millions of dollars; Google’s driverless car project, striving to reduce traffic accidents and save lives; and many more. Of course, not all projects are successful. Factors such as time, money, and unrealistic expectations, among many others, can sabotage a promising effort if it is not properly managed. In this text, you’ll also learn from the mistakes made on many projects that were not successful. I have written this book in an effort to educate you, tomorrow’s project managers, about what will help make a project succeed—and what can make it fail. You’ll also see how projects are used in everyday media, such as television and film, and how companies use best practices in

project management. Many readers tell me how much they enjoy reading these real-world examples in the What Went Right?, What Went Wrong?, Media Snapshot, Global Issues, and Best Practice features. As practitioners know, there is no “one size fits all” solution to managing projects. By seeing how different organizations in different industries successfully implement project management, you can help your organization do the same. Although project management has been an established field for many years, managing information technology projects requires ideas and information that go beyond standard practices. For example, many information technology projects fail because of a lack of executive support, poor user involvement, and unclear business objectives. This book includes many suggestions for dealing with these issues. New technologies can also aid in managing information technology projects, and examples of using software to assist in project management are included throughout the book. Information Technology Project Management, Ninth Edition, is the only textbook to apply all ten project management knowledge areas and all five process groups to information technology projects. As you will learn, the project management knowledge areas are project integration, scope, time, cost, quality, human resource, communications, risk, procurement, and stakeholder management. The five process groups are initiating, planning, executing, monitoring and controlling, and closing. This text builds on the PMBOK® Guide – Sixth Edition, an American National Standard, to provide a solid framework and context for managing information technology projects. In addition to the physical text, several resources are available online. Appendix A, Guide to Using Microsoft Project 2016, is provided online. When a new version of the software is released, a new appendix will be available. Additional case studies, including the one from the Seventh Edition, Manage Your Health, are available, as well as over fifty template files that students can use to create their own project management documents. The author’s personal website (www.kathyschwalbe.com or www.pmtexts.com) also provides additional, up-todate resources and links related to the field of project management, including topics like Agile, PMP® and CAPM® certification, simulation software, leadership, mind mapping, sample student projects, and more. Information Technology Project Management, Ninth Edition, provides practical lessons in project management for students and practitioners alike. By weaving together theory and practice, this text presents an understandable, integrated view of the many concepts, skills, tools, and techniques of information technology project management. The comprehensive design of the text provides a strong foundation for students and practitioners in project management.

New to the Ninth Edition Building on the success of previous editions, Information Technology Project Management, Ninth Edition introduces a uniquely effective combination of features. The main changes in the Ninth Edition include the following: Many updates based on the PMBOK® Guide – Sixth Edition. A new section in chapters 4-13 called “Considerations for Agile/Adaptive Environments.” A new feature called “Advice for Young Professionals.” Updated and additional exercises to enhance student learning and give instructors more options for in-class or out-of-class work. Additional content on important topics like leadership and agile. New examples that highlight IT project management at work in real, newsworthy companies. These timely, relevant examples help illustrate the realworld applications and impact of key project management concepts. They also serve as mini-case stories, suitable for class discussion. Many recent studies of IT project management and related topics. Summaries of classic, updated, and the most current research throughout the text build a rich context for essential IT project management concepts. User feedback is incorporated. Based on feedback from reviewers, students, instructors, practitioners, and translators, you’ll see a variety of changes that help clarify information. Many people have been practicing some form of project management with little or no formal study in this area. New books and articles are written each year as we discover more about the field and as project management software continues to advance. Because the project management field and the technology industry change rapidly, you cannot assume that what worked even a few years ago is still the best approach today. This text provides up-to-date information on how good project management and effective use of software can help you manage projects, especially information technology projects. Distinct features of this text include its relationship to the Project Management Body of Knowledge, its value in preparing for certification, its detailed guide for using Microsoft Project 2016, its inclusion of running case studies and online templates, its emphasis on IT projects, its coverage of several software tools that assist with project management, and its Companion website.

Based on PMBOK® Guide – Sixth Edition and Preparing for Certification The Project Management Institute (PMI) created the Guide to the Project Management Body of Knowledge (the PMBOK® Guide) as a framework and starting point for understanding project management. It includes an introduction to project management, brief descriptions of all 10 project management knowledge areas, and a glossary of terms. The PMBOK® Guide is, however, just that—a guide. This text uses the PMBOK® Guide – Sixth Edition (2017) as a foundation, but goes beyond it by providing more details, discussing the how and why of the knowledge areas, highlighting additional topics, and providing a real-world context for IT project management. This text is an excellent resource for preparing for PMI certifications, such as the Project Management Professional (PMP®) and Certified Associate in Project Management (CAPM®).

Detailed Guide to Microsoft Project 2016 Software has become a critical tool for helping project managers and their teams effectively manage information technology projects. Information Technology Project Management, Ninth Edition, includes a detailed guide in Appendix A (available on the Companion website for this text) for using the leading project management software on the market—Microsoft Project 2016. Examples that use Project 2016 and other software tools are integrated throughout the text. Appendix A, Guide to Using Microsoft Project 2016, teaches you in a systematic way to use this powerful software to help in project scope, schedule, cost, resource, and communications management.

Emphasis on IT Projects and Use of Software Tools Most of the examples of projects in this text are based on IT projects. Research studies and advice are specific to managing IT projects, and include expanded information on agile. Each of the knowledge area chapters includes examples as well as a separate section describing how software can be used to assist in managing that knowledge area. For example, Chapter 5, Project Scope Management, includes examples of using mind maps created with MindView software to create a work breakdown structure. Chapter 11, Project Risk Management, shows an example of using Monte Carlo simulation software to help quantify project risk.

Exercises, Running Cases, Templates, and Sample Documents Based on feedback from readers, the Ninth Edition continues to provide challenging exercises and running cases to help students apply concepts in each chapter. The text includes more

than 50 templates and examples of real project documents that students can use to help them apply their skills to their own projects. Students can access all of these materials for free through

Accesing MindTap To access the IT Project Management MindTap, open a browser and go to www.cengage.com. Click Sign In to navigate to the login page. Click Create an Account to begin the registration process. You will need the course link, access code, or course key to register your product.

Organization and Content Information Technology Project Management, Ninth Edition, is organized into three main sections, which provide a framework for project management, a detailed description of each project management knowledge area, and an appendix of practical information for applying project management. The first three chapters form the first section, which introduces the project management framework and sets the stage for the remaining chapters. Chapters 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13 form the second section, which describes each of the project management knowledge areas—project integration, scope, schedule, cost, quality, resource, communications, risk, procurement, and stakeholder management—in the context of information technology projects. An entire chapter is dedicated to each knowledge area. Each of these chapters includes sections that map to their major processes as described in the PMBOK® Guide – Sixth Edition. For example, the chapter on project quality management includes sections on planning quality management, managing quality, and controlling quality. Additional sections highlight other important concepts related to each knowledge area, such as Six Sigma, testing, maturity models, and using software to assist in project quality management. Each chapter also includes detailed examples of key project management tools and techniques as applied to information technology projects. For example, the chapter on project integration management includes samples of various project-selection techniques, such as net present value analyses, ROI calculations, payback analyses, and weighted scoring models. The project scope management chapter includes a sample project charter, a project scope statement, and several work breakdown structures for information technology projects. Appendix A, provided online to keep it up-to-date, forms the third section of the text, which provides practical information to help you learn how to use the most popular project management software available today. By following the detailed, step-by-step guide in Appendix A, which includes more than 60 screen illustrations, you will learn how to use Project 2016. You can download a free trial from the Microsoft website, use your school or company license, or purchase this powerful software.

Pedagogical Features Several pedagogical features are included in this text to enhance presentation of the materials so that you can more easily understand the concepts and apply them. Throughout the text, emphasis is placed on applying concepts to current, real-world information technology project management.

Opening Case and Case Wrap-Up To set the stage, each chapter begins with an opening case related to the material presented in that chapter. These real-life case scenarios, most of which are based on the author’s experiences, spark student interest and introduce important concepts in a real-world context. As project management concepts and techniques are discussed, they are applied to the opening case and other similar scenarios. Each chapter then closes with a case wrap-up— with some ending successfully and some failing—to further illustrate the real world of project management.

What Went Right? and What Went Wrong? Failures, as much as successes, can be valuable learning experiences. Each chapter of the text includes one or more examples of real information technology projects that went right, as well as examples of projects that went wrong. These examples further illustrate the importance of mastering key concepts in each chapter.

Media Snapshot The world is full of projects. Television shows, movies, newspapers, websites, and other media highlight project results that are good and bad. Relating project management concepts to the types of projects highlighted in the media helps you understand the importance of this growing field. Why not get excited about studying project management by seeing its concepts at work in popular television shows, movies, or other media?

Best Practice Every chapter includes an example of a best practice related to topics in that chapter. For example, Chapter 1 describes best practices written by Robert Butrick, author of The Project Workout, from the Ultimate Business Library’s Best Practice book. He instructs organizations to ensure that their projects are driven by their strategy and to engage project stakeholders.

Global Issues

Every chapter includes an example of global issues of importance today. For example, Chapter 2 describes some of the problems with outsourcing, such as rioting in Beijing when customers could not buy the latest iPhones. Chapter 12 describes the recent development of urban onshoring, one response to problems with offshoring.

Advice for Young Professionals A new feature in each chapter provides practical advice as you begin your career in IT and/or project management. For example, Chapter 1 provides insight to help you determine if you should pursue a career as a project manager.

Key Terms The fields of information technology and project management include many unique terms that are vital to creating a workable language when the two fields are combined. Key terms are displayed in boldface and are defined the first time they appear. A list of key terms is provided in alphabetical order at the end of each chapter and a glossary is provided on the Companion web site for text.

Application Software Learning becomes much more dynamic with hands-on practice using the top project management software tool in the industry, Microsoft Project 2016, as well as other tools, such as spreadsheet software and the Internet. Each chapter offers many opportunities to get hands-on experience and build new software skills. This text is written from the point of view that reading about something only gets you so far—to really understand project management, you have to do it for yourself. In addition to the exercises and running cases at the end of each chapter, several challenging exercises are provided at the end of Appendix A, Guide to Using Microsoft Project 2016.

Test Banks in Cognero The Test Bank for Information Technology Project Management, Ninth Edition, is available online in the Cognero system. Cengage Learning Testing Powered by Cognero is a flexible, online system that allows instructors to: Author, edit, and manage test bank content. Use searchable metadata to ensure tests are complete and compliant. Create multiple test versions in an instant.

Deliver tests from your learning management system (LMS), classroom, or wherever you want. Cengage Learning Testing Powered by Cognero works on any operating system or browser with no special installs or downloads needed. With its intuitive tools and familiar desktop drop-down menus, Cognero enables instructors to easily create and edit tests from school or home—anywhere with Internet access.

IT Project Management MindTap MindTap for Information Technology Project Management, Ninth Edition is a personalized, fully online, digital learning platform of content, assignments, and services that engages students and encourages them to think critically, while allowing instructors to easily set their course through simple customization options. MindTap is designed to help students master the skills they need in today’s workforce. Research shows employers need critical thinkers, troubleshooters, and creative problem solvers to stay relevant in our fast paced, technology-driven world. MindTap helps you achieve this with assignments and activities that provide hands-on practice, real-life relevance, and certification test prep. Students are guided through assignments that help them master basic knowledge and understanding before moving on to more challenging problems. MindTap is designed around learning objectives and provides the analytics and reporting to easily see where the class stands in terms of progress, engagement, and completion rates. Students can access eBook content in the MindTap Reader, which offers highlighting, notetaking, search and audio, as well as mobile access. Learn more at www.cengage.com/mindtap/.

Acknowledgments I never would have taken on the project of writing this book, including all the prior editions, without the help of many people. I thank the staff at Cengage, including Jaymie Falconi, Michele Stulga, Maria Garguilo, Amber Hill, and Kathy Kucharek, for their dedication and hard work in helping me produce this book and in doing such an excellent job of marketing it. I thank my many colleagues and experts in the field who contributed information to this book. Joseph W. Kestel, PMP®, provided outstanding feedback on the agile information in this text based on his personal experience in leading agile projects. David Jones, Rachel Hollstadt, Cliff Sprague, Michael Branch, Barb Most, Jodi Curtis, Rita Mulcahy, Karen Boucher, Bill Munroe, Tess Galati, Joan Knutson, Neal Whitten, Brenda Taylor, Quentin Fleming, Jesse Freese, Nick Matteucci, Nick Erndt, Dragan Milosevic, Bob Borlink, Arvid Lee, Kathy Christenson, Peeter Kivestu, and many other people provided excellent materials included in this book. I enjoy the network of project managers, authors, and consultants in this field who are passionate about improving the theory and practice of project management. I also thank my students and colleagues at Augsburg College and the University of Minnesota for providing feedback on the earlier editions of this book. I received many valuable comments from them on ways to improve the text and structure of my courses. I learn something new about project management and teaching all the time by interacting with students, faculty, and staff. I also thank the faculty reviewers for providing excellent feedback for me in writing this book over the years. I thank the many instructors and readers who have contacted me directly with praise as well as suggestions for improving this text. I appreciate the feedback and do my best to incorporate as much as I can. In particular, I’d like to thank the following: Jody Allen, Mid-America Christian University William Baker, Southern New Hampshire University Tonya Barrier, Missouri State University Kevin Daimi, University of Detroit Mercy Antonio Drommi, University of Detroit Mercy Roger Engle, Franklin University Lisa Foster, Walsh College of Business & Accountancy Esther Frankel, Santa Barbara City College Guy Garrett, Gulf Coast State College James Gibbs, Mount St. Joseph University

Christa Glassman, Buffalo State College Thomas Haigh, University of Wisconsin, Milwaukee Scott Hilberg, Towson University Kay Hammond, Lindenwood University Sam Hijazi, Saint Leo University Henry Jackson, Schreiner University Karen Johnson, Indiana University Northwest Donna Karch, The College of St. Scholastica Carol Kaszynski, Inver Hills Community College Cyril Keiffer, Owens Community College Thomas King, Pennsylvania State University Jeff Landry, University of South Alabama Sang Joon Lee, Mississippi State University Sunita Lodwig, University of South Florida Max McQuighan, Anne Arundel Community College Barbara Miller, Zane State College Kimberly Mitchell, Illinois State University Tim Moriarty, Waubonsee Community College Brandon Olson, The College of St. Scholastica Olga Petkova, Central Connecticut State University April Reed, East Carolina University Jason Riley, Sam Houston State University Paula Ruby, Arkansas State University Carl Scott, University of Houston Ferris Sticksel, Webster University David Syverson, Embry-Riddle Aeronautical University Arthur Thomas, Syracuse University Angela Trego, Utah Valley University Barbara Warner, Wake Technical Community College Steven White, Anne Arundel Community College Dr. David Williamson, Colorado State University Most of all, I am grateful to my family. Without their support, I never could have written this

book. My wonderful husband, Dan, has always supported me in my career, and he helps me keep up-to-date with software development because he is a lead architect for Milner Technologies, Inc. (formerly ComSquared Systems, Inc.). Our three children, Anne, Bobby, and Scott, think it’s cool that their mom writes books and speaks at conferences. They also see me managing projects all the time. Anne, now 34, a research analyst for The New Teacher Project, teases me for being the only quilter she knows who treats each quilt as a project. (Maybe that’s why I get so many done!) After her colleagues at The Minnesota Evaluation Studies Institute at the University of Minnesota heard about my work and books, they hired me to teach a workshop on project management to evaluators, which was sold out. Our two sons are working as software developers and may become IT project managers soon. Our children understand the main reason I write—I have a passion for educating future leaders of the world, including them. As always, I am eager to receive your feedback on this book. Please send comments to me at [email protected] Kathy Schwalbe, Ph.D., PMP Professor Emeritus, Department of Business Administration Augsburg College

About the Author Kathy Schwalbe, Professor Emeritus in the Department of Business Administration at Augsburg College in Minneapolis, taught courses in project management, problem solving for business, systems analysis and design, information systems projects, and electronic commerce until her retirement in May 2015. She retired from teaching to focus on writing, traveling, and enjoying life. Kathy was also an adjunct faculty member at the University of Minnesota, where she taught a graduate-level course in project management in the engineering department. She also provides training and consulting services to several organizations and speaks at numerous conferences. Kathy’s first job out of college was as a project manager in the Air Force. She worked for 10 years in industry before entering academia in 1991. She was an Air Force officer, project manager, systems analyst, senior engineer, and information technology consultant. Kathy is an active member of PMI, having served as the Student Chapter Liaison for the Minnesota chapter, VP of Education for the Minnesota chapter, Editor of the ISSIG Review, Director of Communications for PMI’s Information Systems Specific Interest Group, member of PMI’s test-writing team, and writer for the community posts. Kathy earned her Ph.D. in Higher Education at the University of Minnesota, her MBA at Northeastern University’s High Technology MBA program, and her B.S. in mathematics at the University of Notre Dame. She was named Educator of the Year in 2011 by the Association of Information Technology Professionals (AITP) Education Special Interest Group (EDSIG). Kathy lives in Minnesota with her husband. Visit her personal website at www.kathyschwalbe.com or www.pmtexts.com. Other books by Kathy Schwalbe: An Introduction to Project Management, Sixth Edition (Minneapolis: Schwalbe Publishing, 2017). Healthcare Project Management, Second Edition, co-authored with Dan Furlong (Minneapolis: Schwalbe Publishing, 2017).

Chapter 1.

Opening Case Anne Roberts, the director of the Project Management Office for Information Technology at a large retail chain, stood in front of 500 people in the large corporate auditorium to explain the company’s new strategies during a monthly all-hands meeting. She was also streaming live video to thousands of other employees at other locations, suppliers, and stockholders throughout the world. The company had come a long way in implementing new information systems to improve inventory control, sell products online, streamline the sales and distribution processes, and improve customer service. However, a recent security breach had alarmed investors and the stock price plummeted. People were anxious to hear about the company’s new strategies. Anne began to address the audience, “Good morning. As you know, competition is fierce in our industry. We have made a lot of progress the last few years to become a more agile organization, especially in valuing people over process and responding to change over

following a plan. We all have to work together to overcome recent problems. Our two most important goals include providing the best computer security possible and improving online collaboration tools for our employees, suppliers, and customers. Our challenge is to work even smarter to deliver solutions that provide the most benefit for the company by leveraging the power of information technology. If we succeed, we’ll continue to be a world-class corporation.” “And if we fail?” someone asked from the audience. “Let’s just say that failure is not an option,” Anne replied.

Introduction Many people and organizations today have a new—or renewed—interest in project management. Until the 1980s, project management primarily focused on providing schedule and resource data to top management in the military, computer, and construction industries. Today’s project management involves much more, and people in every industry and every country manage projects. Project management is a distinct profession with degree programs, certifications, and excellent career opportunities. New technologies have become a significant factor in many businesses. Computer hardware, software, networks, and the use of interdisciplinary and global work teams have radically changed the work environment. The following statistics demonstrate the significance of project management in today’s society, especially for projects involving information technology (IT): Worldwide IT spending was $3.5 trillion in 2017, a 2.4 percent increase from 2016 spending. Communications services accounted for 40 percent of the spending.* The Project Management Institute reported that the number of project-related jobs reached almost 66 million in 2017, and demand continues to increase. “By 2027, employers will need 87.7 million individuals working in project management–oriented roles.”* The unemployment rate for IT professionals is generally half the rate of the overall labor market in the United States. The U.S. Bureau of Labor Statistics estimates the rate to be only 2 percent, and project management is one of the ten hottest tech skills.* In 2017, the average annual salary (without bonuses) for someone in the project

management profession was $112,00 per year in the United States and $130,866 in Switzerland, the highest-paid country. Salaries of survey respondents across 37 counties were 23 percent higher for those with the Project Management Professional (PMP®) credential than those without it.* The top skills employers look for in new college graduates are all related to project management: team work, decision making, problem-solving, and verbal communications.* Organizations waste $97 million for every $1 billion spent on projects, according to PMI’s Pulse of the Profession® report. Excelling at project management definitely affects the bottom line.* The complexity and importance of IT projects, which involve using hardware, software, and networks to create a product, service, or result, have evolved dramatically. Today’s companies, governments, and nonprofit organizations are recognizing that to be successful, they need to use modern project management techniques, especially for IT projects. Individuals are realizing that to remain competitive in the workplace, they must develop skills to become good project team members and project managers. They also realize that many of the concepts of project management will help them in their everyday lives as they work with people and technology on a day-to-day basis.

What Went Wrong? In 1995, the Standish Group published an often-quoted study titled “The CHAOS Report.” This consulting firm surveyed 365 IT executive managers in the United States who managed more than 8,380 IT application projects. As the title of the study suggests, the projects were in a state of chaos. U.S. companies spent more than $250 billion each year in the early 1990s on approximately 175,000 IT application development projects. Examples of these projects included creating a new database for a state department of motor vehicles, developing a new system for car rental and hotel reservations, and implementing a client-server architecture for the banking industry. The study reported that the overall success rate of IT projects was only 16.2 percent. The surveyors defined success as meeting project goals on time and on budget. The study also found that more than 31 percent of IT projects were canceled before completion, costing U.S. companies and government agencies more than $81 billion. The study authors were adamant about the need for better project management in the IT industry. They explained, “Software development projects are in chaos, and we can no longer imitate the three monkeys— hear no failures, see no failures, speak no failures.”* Although this study was done 20 years ago, it was significant in making senior executives pay attention to the importance

of IT project management. In another large study, PricewaterhouseCoopers surveyed 200 companies from 30 different countries about their project management maturity and found that over half of all projects fail. The study also found that only 2.5 percent of corporations consistently meet their targets for scope, time, and cost goals for all types of projects.*

Although several researchers question the methodology of such studies, the results have prompted managers throughout the world to examine ways to improve their practices in managing projects. Many organizations assert that using project management techniques provides advantages, such as the following: Better control of financial, physical, and human resources Improved customer relations Shorter development times Lower costs and improved productivity Higher quality and increased reliability Higher profit margins Better internal coordination Positive impact on meeting strategic goals Higher worker morale This chapter introduces projects and project management, explains how projects fit into programs and portfolio management, discusses the role of the project manager, and provides important background information on this growing profession. Although project management applies to many different industries and types of projects, this text focuses on applying project management to IT projects.

What Is a Project? To discuss project management, it is important to understand the concept of a project. A project is “a temporary endeavor undertaken to create a unique product, service, or result.”* Operations, on the other hand, is work done in organizations to sustain the business. It

focuses on the ongoing production of goods and services. Projects are different from operations in that they end when their objectives have been reached or the project has been terminated. It is important to note that people focusing on operations and projects must work together for a smooth transition. For example, in software development, DevOps is a fairly new term used to describe a culture of collaboration between software development and operations teams to build, test, and release reliable software more quickly.

Examples of IT Projects Projects can be large or small and involve one person or thousands of people. They can be done in one day or take years to complete. As described earlier, IT projects involve using hardware, software, and networks to create a product, service, or result. Examples of IT projects include the following: A large network of healthcare providers updates its information systems and procedures to reduce hospital acquired diseases. A team of students creates a smartphone application and sells it online. A company develops a driverless car. A college upgrades its technology infrastructure to provide wireless Internet access across the whole campus as well as online access to all academic and student service information. A company implements a new system to increase sales force productivity and customer relationship management that will work on various laptops, smartphones, and tablets. A television network implements a system to allow viewers to vote for contestants and provide other feedback on programs via social media sites. A government group develops a system to track child immunizations. A large group of volunteers from organizations throughout the world develops standards for environmentally friendly or green IT. A global bank acquires other financial institutions and needs to consolidate systems and procedures. Government regulations require monitoring of pollutants in air and water. A multinational firm decides to consolidate its information systems into an integrated

enterprise resource management approach. Gartner, Inc., a prestigious consulting firm, identified the top 10 strategic technologies for 2018. A few of these technologies include the following: Artificial Intelligence (AI) Foundation: Creating systems that learn, adapt, and potentially act autonomously can enhance decision making and improve the customer experience. Intelligent Things: AI is driving advances for new intelligent things, including autonomous vehicles, robots, and drones as well as Internet of Things like thermostats, lights, and home appliances. Cloud to the Edge: Edge computing pushes data handling to the edge of the network, closer to the source of the data. Instead of sending data to the cloud server or central data center for processing, the device connects through a local gateway device, allowing faster analytics and reduced network pressure. Immersive Experience: Virtual, augmented, and mixed reality are changing the way that people perceive and interact with the digital world. “The virtual reality (VR) and augmented reality (AR) market is currently adolescent and fragmented. Interest is high, resulting in many novelty VR applications that deliver little real business value outside of advanced entertainment, such as video games and 360-degree spherical videos. To drive real tangible business benefit, enterprises must examine specific real-life scenarios where VR and AR can be applied to make employees more productive and enhance the design, training and visualization processes.”* As you can see, a wide variety of projects use information technologies, and organizations rely on them for success.

Media Snapshot One of Gartner’s top 10 strategic technologies for 2012 included application stores and marketplaces for smartphones and tablets. Gartner predicted that by 2014 there would be more than 70 billion mobile application downloads every year, but the actual number was almost double!* Facebook is by far the most downloaded app, and the most popular category of all apps continues to be games. As of March 2017, Android users could download 2.8 million different apps, and Apple users could download 2.2 million.“In 2016, the global mobile internet user penetration has exceeded half the world’s population, while the average daily time spent accessing online content from a mobile device, such as a smartphone, a tablet computer or

wearable, has reached 185 minutes daily among Millennials, 110 minutes for Generation X and 43 daily minutes for Boomers.”*

Project Attributes Projects come in all shapes and sizes. The following attributes help define a project further: A project has a unique purpose. Every project should have a well-defined objective. For example, Anne Roberts, the director of the Project Management Office in the chapter’s opening case, might sponsor an IT collaboration project to develop a list and initial analysis of potential IT projects that might improve operations for the company. The unique purpose of this project would be to create a collaborative report with ideas from people throughout the company. The results would provide the basis for further discussions and selecting projects to implement. As you can see from this example, projects result in a unique product, service, or result. A project is temporary. A project has a definite beginning and end. In the IT collaboration project, Anne might form a team of people to work immediately on the project, and then expect a report and an executive presentation of the results in one month. A project drives change and enables value creation. A project is initiated to bring about a change in order to meet a need or desire. Its purpose is to achieve a specific objective which changes the context (a living situation, in this house project example) from a current state to a more desired or valued future state. A project is developed using progressive elaboration. Projects are often defined broadly when they begin, and as time passes, the specific details of the project become clearer. Therefore, projects should be developed in increments. A project team should develop initial plans and then update them with more detail based on new information. A project requires resources, often from various areas. Resources include people, hardware, software, and other assets. Many projects cross departmental or other boundaries to achieve their unique purposes. For the IT collaboration project, people from IT, marketing, sales, distribution, and other areas of the company would need to work together to develop ideas. A project should have a primary customer or sponsor. Most projects have many interested parties or stakeholders, but for a project to succeed someone must take the primary role of sponsorship. The project sponsor usually provides the direction and funding for the project. Executive support is crucial to project success, as described in later chapters.

Anne Roberts would be the sponsor for the IT collaboration project. A project involves uncertainty. Because every project is unique, it is sometimes difficult to define its objectives clearly, estimate how long it will take to complete, or determine how much it will cost. External factors also cause uncertainty, such as a supplier going out of business or a project team member needing unplanned time off. This uncertainty is one of the main reasons project management is so challenging, especially on projects involving new technologies. An effective project manager is crucial to a project’s success. Project managers work with the project sponsors, team, and the other people involved to achieve project goals.

Project Constraints Every project is constrained in different ways, often by its scope, time, and cost goals. These limitations are sometimes referred to in project management as the triple constraint . To create a successful project, a project manager must consider scope, time, and cost and balance these three often-competing goals: Scope: What work will be done as part of the project? What unique product, service, or result does the customer or sponsor expect from the project? How will the scope be verified? Time: How long should it take to complete the project? What is the project’s schedule? How will the team track actual schedule performance? Who can approve changes to the schedule? Cost: What should it cost to complete the project? What is the project’s budget? How will costs be tracked? Who can authorize changes to the budget? Figure 1-1 illustrates the three dimensions of the triple constraint. Each area—scope, time, and cost—has a target at the beginning of the project. For example, the IT collaboration project might have an initial scope of producing a 40- to 50-page report and a one-hour presentation on about 30 potential IT projects. The project manager might further define project scope to include providing a description of each potential project, an investigation of what other companies have implemented for similar projects, a rough time and cost estimate, and assessments of the risk and potential payoff as high, medium, or low. The initial time estimate for this project might be one month, and the cost estimate might be $45,000– $50,000. These expectations provide targets for the scope, time, and cost dimensions of the project.

Figure 1-1.

Project constraints

Note that the scope and cost goals in this example include ranges—the report can be 40 to 50 pages long and the project can cost between $45,000 and $50,000. Because projects involve uncertainty and limited resources, projects rarely finish according to their original scope, time, and cost goals. Instead of discrete target goals, it is often more realistic to set a range for goals, such as spending between $45,000 and $50,000 and having a 40- to 50-page report. These goals might require hitting the target, but not the bull’s eye. Managing the triple constraint involves making trade-offs between scope, time, and cost goals for a project. For example, you might need to increase the budget for a project to meet scope and time goals. Alternatively, you might have to reduce the scope of a project to meet time and cost goals. Experienced project managers know that you must decide which aspect of the triple constraint is most important. If time is most important, you must often change the initial scope and cost goals to meet the schedule. If scope goals are most important, you may need to adjust time and cost goals.

To generate project ideas for the IT collaboration project, suppose that the project manager sent an e-mail survey to all employees, as planned. The initial time and cost estimate may have been one week and $5,000 to collect ideas using this e-mail survey. Now, suppose that the e-mail survey generated only a few good project ideas, but the scope goal was to collect at least 30 good ideas. Should the project team use a different method like focus groups or interviews to collect ideas? Even though it was not in the initial scope, time, or cost estimates, it would really help the project. Because good ideas are crucial to project success, it would make sense to inform the project sponsor that adjustments are needed. Although the triple constraint describes how the basic elements of a project interrelate, other elements can also play significant roles. Quality is often a key factor in projects, as is customer or sponsor satisfaction. Some people, in fact, refer to the quadruple constraint of project management, which includes quality as well as scope, time, and cost. A project team may meet scope, time, and cost goals but might fail to meet quality standards and satisfy the sponsor. For example, Anne Roberts may receive a 50-page report describing 30 potential IT projects and hear a presentation that summarizes the report. The project team may have completed the work on time and within the cost constraint, but the quality may have been unacceptable. Other factors might also be crucial to a particular project. On some projects, resources are the main concern. For example, the entertainment industry often needs particular actors for movies or television shows. Project goals must be adjusted based on when particular people are available. Risk can also affect major project decisions. A company might wait to start a project until the risks are at an acceptable level. The project manager should be communicating with the sponsor throughout the project to make sure it is meeting expectations. Chapter 10, Project Communications Management, and Chapter 13, Project Stakeholder Management, address communicating with stakeholders and understanding their expectations in greater detail. How can you avoid the problems that occur when you meet scope, time, and cost goals, but lose sight of customer satisfaction? The answer is good project management, which includes more than managing project constraints.

What Is Project Management? Project management is “the application of knowledge, skills, tools, and techniques to project activities to meet project requirements.”* Project managers must not only strive to meet specific scope, time, cost, and quality goals of projects, but also facilitate the entire process to meet the needs and expectations of people involved in project activities or affected by them. Figure 1-2 illustrates a framework to help you understand project management. Key elements of this framework include the project stakeholders, project management knowledge

areas, project management tools and techniques, and the contribution of successful projects to the enterprise. Figure 1-2.

Project management framework

Project Stakeholders Stakeholders are the people involved in or affected by project activities, and include the project sponsor, project team, support staff, customers, users, suppliers, and even opponents of the project. These stakeholders often have very different needs and expectations. A familiar example of a project is building a new house. There are several stakeholders in a home construction project. The project sponsors would be the potential new homeowners who would be paying for the house. They could be on a very tight budget, so would expect the contractor to provide a realistic idea of what type of home they could afford given their budget constraints. They would also need a realistic idea of when they could move in. Regardless of budget, they would expect the contractor to provide accurate estimates for the building costs. The new homeowners would have to make important decisions to keep the costs of the house within their budget. Can they afford to finish the basement right away? If they can afford to finish the basement, will it affect the projected move-in date? In this example, the project sponsors are also the customers and users of the product, which is the house. The house may require financing by a bank or other financial institution like a credit union, which will secure a legal interest (lien) in the property and the finished home. This institution is an example of a legal stakeholder who must be informed of any changes to the plans or schedule because the project is part of a legal contract.

The project manager in this example would normally be the general contractor responsible for building the house. The project manager needs to work with all the project stakeholders to meet their needs and expectations. The project team for building the house would include several construction workers, electricians, and carpenters. These stakeholders would need to know exactly what work they must do and when they need to do it. They would need to know if the required materials and equipment will be at the construction site or if they are expected to provide the materials and equipment. Their work would need to be coordinated because many interrelated factors are involved. For example, the carpenter cannot put in kitchen cabinets until the walls are completed. Support staff might include the buyers’ employers, the general contractor’s administrative assistant, and people who support other stakeholders. The buyers’ employers might expect their employees to complete their work but allow some flexibility so they can visit the building site or take phone calls related to building the house. The contractor’s administrative assistant would support the project by coordinating meetings between the buyers, the contractor, suppliers, and other parties. Building a house requires many suppliers. The suppliers would provide the wood, windows, flooring, appliances, and other materials. Suppliers would expect exact details on the items they need to provide, and where and when to deliver those items. A project might have opponents. In this example, a neighbor might oppose the project because the workers make so much noise that she cannot concentrate on her work at home, or the noise might wake her sleeping children. She might interrupt the workers to voice her complaints or even file a formal complaint. Or, the neighborhood might have association rules concerning new home design and construction. If the homeowners do not follow these rules, they might have to halt construction due to legal issues. Even without such complaints, the home must comply with certain building codes and other restrictions; these considerations may also result in changes to the project’s requirements, making the local government a stakeholder in the project. As you can see from this example, projects have many different stakeholders, and they often have different interests. Stakeholders’ needs and expectations are important in the beginning and throughout the life of a project. Successful project managers develop good relationships with project stakeholders to understand and meet their needs and expectations.

Project Management Knowledge Areas Project management knowledge areas describe the key competencies that project

managers must develop. The center of Figure 1-2 shows the 10 knowledge areas of project management. 1. Project scope management involves defining and managing all the work required to complete the project successfully. 2. Project schedule management (formerly called project time management) includes estimating how long it will take to complete the work, developing an acceptable project schedule, and ensuring timely completion of the project. 3. Project cost management consists of preparing and managing the budget for the project. 4. Project quality management ensures that the project will satisfy the stated or implied needs for which it was undertaken. 5. Project resource management is concerned with making effective use of the people and physical resources involved with the project. 6. Project communications management involves generating, collecting, disseminating, and storing project information. 7. Project risk management includes identifying, analyzing, and responding to risks related to the project. 8. Project procurement management involves acquiring or procuring goods and services for a project from outside the performing organization. 9. Project stakeholder management includes identifying and analyzing stakeholder needs while managing and controlling their engagement throughout the life of the project. 10. Project integration management is an overarching function that affects and is affected by all of the other knowledge areas. Project managers must have knowledge and skills in all 10 of these areas. This text includes an entire chapter on each of these knowledge areas because all of them are crucial to project success.

Project Management Tools and Techniques Thomas Carlyle, a famous historian and author, stated, “Man is a tool-using animal. Without tools he is nothing, with tools he is all.” As the world continues to become more complex, it is even more important for people to develop and use tools, especially for managing important

projects. Project management tools and techniques assist project managers and their teams in carrying out work in all 10 knowledge areas. For example, some popular timemanagement tools and techniques include Gantt charts, project network diagrams, and critical path analysis. Table 1-1 lists some commonly used tools and techniques by knowledge area. You will learn more about these and other tools and techniques throughout this text. Table 1-1. area

Common project management tools and techniques by knowledge

Knowledge Area/Category

Tools and Techniques

Super Tools

Project selection methods

Project management software

Project management methodologies

Change requests

Stakeholder analyses

Lessons-learned reports

Integration management

Work requests Project charters Project management plans Change control boards Project review meetings Scope management Statements of work

Scope statements

Scope management plans

Work breakdown structures

Scope verification techniques

Requirements analyses

Scope change controls Schedule management

Gantt charts Project network diagrams Critical path analysis Crashing Fast tracking Schedule performance measurements

Cost management Project budgets Net present value Return on investment Payback analysis

Earned value management Project portfolio management Cost estimates Cost management plans Cost baselines Quality management Quality metrics Checklists Quality control charts Pareto diagrams Fishbone diagrams Maturity models Statistical methods Test plans Resource management Motivation techniques Empathic listening Responsibility assignment matrices Project organizational charts Resource histograms Team building exercises Communications management Communications management plans

Kick-off meetings

Conflict management

Progress reports

Communications media selection Status reports Virtual communications Templates Project websites Risk management Risk management plans Risk registers Probability/impact matrices

Risk rankings Procurement management Make-or-buy analyses Contracts Requests for proposals or quotes Source selections Supplier evaluation matrices

A survey of 753 project and program managers was conducted to rate several project management tools. Respondents rated tools on a scale of 1–5 (low to high) based on the extent of their use and the potential of the tools to help improve project success. “Super tools” were defined as those that had high use and high potential for improving project success. These super tools included software for task scheduling (such as project management software), scope statements, requirement analyses, and lessons-learned reports. Tools that are already used extensively and have been found to improve project performance include progress reports, kick-off meetings, Gantt charts, and change requests. These super tools appear in column 3 of Table 1-1.* Note that project stakeholder management was not a separate knowledge area at the time of this survey. The PMBOK® Guide – Sixth Edition now lists tools and techniques based on their purpose, as follows: Data gathering: benchmarking, brainstorming, check sheets, checklists, focus groups, interviews, market research, questionnaires and surveys, and statistical sampling Data analysis: alternatives analysis, assessment of other risk parameters, assumption and constraint analysis, cost of quality, cost-benefit analysis, decision tree analysis, document analysis, earned value analysis, and several other tools fit in this category Data representation: affinity diagrams, cause-and-effect diagrams, control charts, flow charts, hierarchical charts, histograms, logical data models, matrix diagrams, matrixbased charts, mind mapping, probability and impact matrix, scatter diagrams, stakeholder engagement assessment matrix, stakeholder mapping/representation, and text-oriented formats Decision making: multi-criteria decision analysis and voting Communication: feedback and presentations

Interpersonal and team skills: active listening, communication styles assessment, conflict management, cultural awareness, decision making, emotional intelligence, facilitation, influencing, leadership, meeting management, motivation, negotiation, networking, nominal group, observation/conversation, political awareness, team building Ungrouped: several other tools fit in this category These long lists of tools and techniques can be overwhelming. This text will focus on those used most often and with the most potential, providing the context and detailed examples for using them. It is crucial for project managers and their team members to determine which tools will be most useful for their particular projects. Selecting the appropriate tools and techniques (as well the processes, inputs, outputs, and life cycle phases, discussed later in this book) is part of project tailoring. Project management should be tailored to meet the unique needs of projects, organizations, and most importantly, people. After all, projects are done by, and for, people. Despite its advantages, project management is not a silver bullet that guarantees success on all projects. Some projects, such as those involving new technologies, have a higher degree of uncertainty, so it is more difficult to meet their scope, schedule, and cost goals. Project management is a very broad, often complex discipline. What works on one project may not work on another, so it is essential for project managers to continue to develop their knowledge and skills in managing projects. It is also important to learn from the mistakes and successes of past projects.