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Software Project Management
Processes, Organization
The information contained in this presentation was obtained from the public domain
Quiz #1
Open book – 30 minutes
Good Project Management requires structured
software development environment, such as CMMI.
We also know that soft factors such as flextime, etc.
enable a highly productive project environment.
Doesn’t it seem to be a contradiction? As a project
manager, discuss the kind of environment you would
like to create to successfully manage your projects?
Project Success Rates
• The 2001 Standish Group Report Showed
significant Improvement in IT Project Success
Rates compared to 1995 stats:
– Time overruns: decreased to 63% compared to 222%
– Cost overruns were down to 45% compared to 189%
– Required features were up to 67% compared to 61%
– 78,000 U.S. projects were successful vs. to 28,000
– 28% of IT projects succeeded compared to 16%
• Why the Improvements?
• Better tools for monitoring and control
• More skilled PM’s, more process, more user involvement
• And “The fact that there are processes is significant in
itself.“
Why Do Projects Succeed?
• How to identify a projects success potential
– What metrics could you look at?
• Project size
• Project duration
• Project team size
Why Do Projects Succeed?
– Executive support
– User involvement
– Experience project manager
– Clear business objectives
– Minimized scope
– Standard software infrastructure
– Firm basic requirements
– Formal methodology
– Reliable estimates
Why Executive Support?
• Top management can help to:
– Secure adequate resources
– Get approval for unique project needs in a
timely manner
– Receive cooperation from people throughout
the organization
– Provide leadership guidance
• Define scope of project
• Identify stakeholders,
decision-makers, and
escalation procedures
• Develop detailed task list
(work breakdown structures)
• Estimate time requirements
• Develop initial project
management flow chart
• Identify required resources
and budget
• Evaluate project requirements
• Identify and evaluate risks
Prepare contingency plan
• Identify interdependencies
• Identify and track critical
milestones
• Participate in project phase
review
• Secure needed resources
• Manage the change control
process
• Report project status
15 PM Job Functions
*Northwest Center for Emerging Technologies, "Building a Foundation for Tomorrow: Skills Standards for Info
Technology,"Belleview, WA, 1999
PMI Framework
Source: Project Management Institute
The 5 PMI Process Groups
• 1. Initiating
• 2. Planning
• 3. Executing
• 4. Controlling
• 5. Closing
• Note: these can be repeated for each phase
• Each process is described by:
• Inputs
• Tools & Techniques
• Outputs
PMI Process Groups
Source: Project Management Institute
PMI: Process Links
PMI Phase Interactions
Initiating
Processes
Planning
Processes
Controlling
Processes
Executing
Processes
Closing
Processes
Design Phase
Initiating
Processes
Planning
Processes
Controlling
Processes
Executing
Processes
Closing
Processes
Implementation Phase
PMI: Initiating Process
• Inputs
– Product Description
– Strategic plan
– Project Selection
Criteria
– Historical Information
• Outputs
– Project charter
– Project Manager
assigned
– Constraints
– Assumptions
• Scope Planning
• Scope Definition
• Activity Definition
• Activity Sequencing
• Activity Duration
Estimating
• Resource Planning
• Cost Estimating
• Cost Budgeting
• Risk Planning
• Schedule Development
• Quality Planning
• Communications
Planning
• Organization Planning
• Staff Acquisition
• Procurement Planning
• Project Plan Development
Devising and maintaining a workable scheme to accomplish the business need that the project
was undertaken to address
PMI: Planning Process
PMI: Executing Process
• Project Plan Execution
• Scope Verification
• Quality Assurance
• Team Development
• Information
Distribution
• Source Selection
• Contract
Administration
Coordinating people and other resources to carry out the plan
PMI: Controlling Process
• Overall Change
Control
• Scope Change Control
• Schedule Control
• Cost Control
• Quality Control
• Performance Reporting
• Risk Response Control
Ensuring that project objectives are met by monitoring and measuring
progress and taking corrective measures when necessary
PMI: Closing Process
• Administrative Closure
• Contract Close-out
Formalizing acceptance of the project or phase
and bringing it to an orderly end
PMI Knowledge Areas
Organizational Structures
• Functional
– Engineering, Marketing, Design, etc
– P&L from production
• Project
– Project A, Project B
– Income from projects
– PM has P&L responsibility
• Matrix
– Functional and Project based
– Program Mgmt. Model
– Shorter cycles, need for rapid development process
Functional Organization
• Pros
– Clear definition of authority
– Eliminates duplication
– Encourages specialization
– Clear career paths
• Cons
– “Walls”: can lack customer orientation
– “Silos” create longer decisions cycles
– Conflicts across functional areas
– Project leaders have little power
• structure of an organization based on
functional performance; organizational
departments created to fulfill organizational
functions such as marketing, finance, and
personnel. This type of organization has
characteristics of both line and staff
functions.
• Over time, this approach changes an organization.
The hierarchy and bureaucracy become weaker.
Career success depends on the results of the
projects on which you work, not just time on in a
position or politics. The organization develops
executives who manage projects. They are not
necessarily technical experts, they are experts in
running many different kinds of projects. Last, the
organization becomes more agile, able to respond
to changing customer needs.
Project Organization
• Pros
– Unity of command
– Effective inter-project
communication
• Cons
– Duplication of facilities
– Career path
• Examples: defense avionics, construction
Matrix Organization
• Pros
– Project integration across
functional lines
–Efficient use of resources
–Retains functional teams
• Cons
– Two bosses for personnel
– Complexity
– Resource & priority conflicts
Matrix Forms
• Weak, Strong, Balanced
• Degree of relative power
• Weak: functional-centric
• Strong: project-centric
Organizational Structure Influences on
Projects
MatrixOrganization Type
Project
Characteristics
Functional Weak Matrix Balanced
Matrix
Strong Matrix Projectized
Project Manager's
Authority
Little or
None
Limited Low to
Moderate
Moderate
To High
High to
Almost Total
Percent of Performing
Organization's
Personnel Assigned Full-
time to Project Work
Virtually
None
0-25% 15-60% 50-95% 85-100%
Project Manager's Role Part-time Part-time Full-time Full-time Full-time
Common Title for
Project Manager's Role
Project
Coordinator/
Project Leader
Project
Coordinator/
Project Leader
Project
Manager/
Project Officer
Project
Manager/
Program Manager
Project
Manager/
Program Manager
Project Management
Administrative Staff Part-time Part-time Part-time Full-time Full-time
PMBOK Guide, 2000, p. 19
Project Team
Structures
Isomorphic Team Structure
• If project team closely reflects the physical
structure of deliverables
• Risk of project’s quality integration
• PM functions as an integrator
• Duplication, linking, styles etc to be
standardized by the PM
• It’s a simple structure
• Best suited to independent modules
Isomorphic Team Structure
Chapter
1
Chapter
2
Chapter
3
Chapter
4
Chapter
5
Technical Report
Team
Member
A
Team
Member
B
Team
Member
C
Team
Member
D
Team
Member
E
Project Manager
Structure of the Deliverable
Structure of the Project Team
Specialty Team Structure
• Team members apply their special expertise
across a wide array of tasks
• Emphasis towards their specialty and not
deliverables
• Responsibility is more diffused and problem
diagnosis is difficult
• Integration problems are greater than those of
the isomorphic structure
• It fits in nicely with matrix system
Specialty Team Structure
PROJECT
MANAGER
Specialist
A
Specialist
B
Specialist
C
Chapter
1
Chapter
2
Chapter
4
Chapter
3
Chapter
5
Egoless Team Structure
• Egos may have ill-effects
• Ego-less team structure is a truly collaborative effort
that makes it hard to find who produced what
portion of the product
• No leader but consensus
• Team members collaborate jointly and ego problem
is minimized
• Encourages interactivity and communication
• Due to lack of leadership Ego-less team could drift
• State of the art projects
Team Member
A
Team Member
B
Team Member
C
Chapter
1
Chapter
2
Chapter
4
Chapter
3
Chapter
5
Egoless Team Structure
Software Teams
• Many organization structures …
• Political and practical consequences of
organizational change (is it within the PM
scope of responsibility?)
Team Types
Democratic Decentralized
–No team leader
–Different task assigned to different
task coordinators who are appointed
for little time
–Consensuses based problem solving
–Horizontal communication
Controlled Decentralized
–Team leader
–Secondary leaders
–Group based problem solving
–Horizontal & vertical communication
–Tasks and sub tasks
Controlled Centralized
–Team leader
–Top level problem solving
–Vertical communication
Some Challenges
Because the project is, by definition, a temporary
entity and must come to an end, the PM must be
concerned with the future of the people who serve on
the team. If the PM does not get involved in helping
project workers with the transition back to their
functional homes or to new projects, then as the
project nears completion, project workers will pay
more and more attention to protecting their own future
careers and less to completing the project on time.
(Shown by “S”Curve)
Transition Challenge
Communication Challenge
Two people,
one channel
Three people,
three channels
Four people,
six channels
Five people,
ten channels
Key Differentiator: People
• The cultivation of motivated, highly skilled
software people has been discussed since
1960. In fact this factor is so important that
in addition to process capability model the
Software Institute has also developed a
people management capability maturity
model
Methods for Selecting Projects
• There are usually (always?) more projects
than available time and resources to
implement them
• Therefore: It is important to follow a logical process
for selecting IT projects to work on
• Methods include
– Focusing on broad needs
– Categorizing projects
– Financial methods
Broad Organizational Needs
• It is often difficult to provide strong justification
for many IT projects, but everyone agrees they
have a high value
• “It is better to measure gold roughly than to count pennies
precisely”
• Three important criteria for projects:
– There is a need for the project
– There are funds available
– There’s a strong will to make the project succeed
Categorizing IT Projects
• One categorization: whether project addresses
– a problem
– an opportunity
– a directive
• Another: how long it will take & when it is needed
• Another: overall priority of the project
Procurement Management
• Procurement means acquiring goods and/or
services from an outside source
– a.k.a. purchasing or outsourcing
• Know how your project fits-into this model
– Are you building “in-house”? “for hire”?
• Thus are you the ‘outside source’?
– As a startup? (thus in-house but as basis for
the business itself)
Why Outsource?
• To reduce both fixed and recurrent costs
• To allow the client organization to focus on
its core business
• To access skills and technologies
• To provide flexibility
• To increase accountability
Procurement Tools & Techniques
• Make-or-buy analysis (build vs. buy)
• Determining whether a particular product or service
should be made or performed inside the organization
or purchased from someone else. Often involves
financial analysis
• Experts
• Both internal and external, can provide valuable
inputs in procurement decisions

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Spm lecture-2

  • 1. Software Project Management Processes, Organization The information contained in this presentation was obtained from the public domain
  • 2. Quiz #1 Open book – 30 minutes Good Project Management requires structured software development environment, such as CMMI. We also know that soft factors such as flextime, etc. enable a highly productive project environment. Doesn’t it seem to be a contradiction? As a project manager, discuss the kind of environment you would like to create to successfully manage your projects?
  • 3. Project Success Rates • The 2001 Standish Group Report Showed significant Improvement in IT Project Success Rates compared to 1995 stats: – Time overruns: decreased to 63% compared to 222% – Cost overruns were down to 45% compared to 189% – Required features were up to 67% compared to 61% – 78,000 U.S. projects were successful vs. to 28,000 – 28% of IT projects succeeded compared to 16% • Why the Improvements? • Better tools for monitoring and control • More skilled PM’s, more process, more user involvement • And “The fact that there are processes is significant in itself.“
  • 4. Why Do Projects Succeed? • How to identify a projects success potential – What metrics could you look at? • Project size • Project duration • Project team size
  • 5. Why Do Projects Succeed? – Executive support – User involvement – Experience project manager – Clear business objectives – Minimized scope – Standard software infrastructure – Firm basic requirements – Formal methodology – Reliable estimates
  • 6. Why Executive Support? • Top management can help to: – Secure adequate resources – Get approval for unique project needs in a timely manner – Receive cooperation from people throughout the organization – Provide leadership guidance
  • 7. • Define scope of project • Identify stakeholders, decision-makers, and escalation procedures • Develop detailed task list (work breakdown structures) • Estimate time requirements • Develop initial project management flow chart • Identify required resources and budget • Evaluate project requirements • Identify and evaluate risks Prepare contingency plan • Identify interdependencies • Identify and track critical milestones • Participate in project phase review • Secure needed resources • Manage the change control process • Report project status 15 PM Job Functions *Northwest Center for Emerging Technologies, "Building a Foundation for Tomorrow: Skills Standards for Info Technology,"Belleview, WA, 1999
  • 8. PMI Framework Source: Project Management Institute
  • 9. The 5 PMI Process Groups • 1. Initiating • 2. Planning • 3. Executing • 4. Controlling • 5. Closing • Note: these can be repeated for each phase • Each process is described by: • Inputs • Tools & Techniques • Outputs
  • 10. PMI Process Groups Source: Project Management Institute
  • 12. PMI Phase Interactions Initiating Processes Planning Processes Controlling Processes Executing Processes Closing Processes Design Phase Initiating Processes Planning Processes Controlling Processes Executing Processes Closing Processes Implementation Phase
  • 13. PMI: Initiating Process • Inputs – Product Description – Strategic plan – Project Selection Criteria – Historical Information • Outputs – Project charter – Project Manager assigned – Constraints – Assumptions
  • 14. • Scope Planning • Scope Definition • Activity Definition • Activity Sequencing • Activity Duration Estimating • Resource Planning • Cost Estimating • Cost Budgeting • Risk Planning • Schedule Development • Quality Planning • Communications Planning • Organization Planning • Staff Acquisition • Procurement Planning • Project Plan Development Devising and maintaining a workable scheme to accomplish the business need that the project was undertaken to address PMI: Planning Process
  • 15. PMI: Executing Process • Project Plan Execution • Scope Verification • Quality Assurance • Team Development • Information Distribution • Source Selection • Contract Administration Coordinating people and other resources to carry out the plan
  • 16. PMI: Controlling Process • Overall Change Control • Scope Change Control • Schedule Control • Cost Control • Quality Control • Performance Reporting • Risk Response Control Ensuring that project objectives are met by monitoring and measuring progress and taking corrective measures when necessary
  • 17. PMI: Closing Process • Administrative Closure • Contract Close-out Formalizing acceptance of the project or phase and bringing it to an orderly end
  • 19. Organizational Structures • Functional – Engineering, Marketing, Design, etc – P&L from production • Project – Project A, Project B – Income from projects – PM has P&L responsibility • Matrix – Functional and Project based – Program Mgmt. Model – Shorter cycles, need for rapid development process
  • 20. Functional Organization • Pros – Clear definition of authority – Eliminates duplication – Encourages specialization – Clear career paths • Cons – “Walls”: can lack customer orientation – “Silos” create longer decisions cycles – Conflicts across functional areas – Project leaders have little power
  • 21. • structure of an organization based on functional performance; organizational departments created to fulfill organizational functions such as marketing, finance, and personnel. This type of organization has characteristics of both line and staff functions.
  • 22. • Over time, this approach changes an organization. The hierarchy and bureaucracy become weaker. Career success depends on the results of the projects on which you work, not just time on in a position or politics. The organization develops executives who manage projects. They are not necessarily technical experts, they are experts in running many different kinds of projects. Last, the organization becomes more agile, able to respond to changing customer needs.
  • 23. Project Organization • Pros – Unity of command – Effective inter-project communication • Cons – Duplication of facilities – Career path • Examples: defense avionics, construction
  • 24. Matrix Organization • Pros – Project integration across functional lines –Efficient use of resources –Retains functional teams • Cons – Two bosses for personnel – Complexity – Resource & priority conflicts
  • 25. Matrix Forms • Weak, Strong, Balanced • Degree of relative power • Weak: functional-centric • Strong: project-centric
  • 26. Organizational Structure Influences on Projects MatrixOrganization Type Project Characteristics Functional Weak Matrix Balanced Matrix Strong Matrix Projectized Project Manager's Authority Little or None Limited Low to Moderate Moderate To High High to Almost Total Percent of Performing Organization's Personnel Assigned Full- time to Project Work Virtually None 0-25% 15-60% 50-95% 85-100% Project Manager's Role Part-time Part-time Full-time Full-time Full-time Common Title for Project Manager's Role Project Coordinator/ Project Leader Project Coordinator/ Project Leader Project Manager/ Project Officer Project Manager/ Program Manager Project Manager/ Program Manager Project Management Administrative Staff Part-time Part-time Part-time Full-time Full-time PMBOK Guide, 2000, p. 19
  • 28. Isomorphic Team Structure • If project team closely reflects the physical structure of deliverables • Risk of project’s quality integration • PM functions as an integrator • Duplication, linking, styles etc to be standardized by the PM • It’s a simple structure • Best suited to independent modules
  • 29. Isomorphic Team Structure Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Technical Report Team Member A Team Member B Team Member C Team Member D Team Member E Project Manager Structure of the Deliverable Structure of the Project Team
  • 30. Specialty Team Structure • Team members apply their special expertise across a wide array of tasks • Emphasis towards their specialty and not deliverables • Responsibility is more diffused and problem diagnosis is difficult • Integration problems are greater than those of the isomorphic structure • It fits in nicely with matrix system
  • 32. Egoless Team Structure • Egos may have ill-effects • Ego-less team structure is a truly collaborative effort that makes it hard to find who produced what portion of the product • No leader but consensus • Team members collaborate jointly and ego problem is minimized • Encourages interactivity and communication • Due to lack of leadership Ego-less team could drift • State of the art projects
  • 33. Team Member A Team Member B Team Member C Chapter 1 Chapter 2 Chapter 4 Chapter 3 Chapter 5 Egoless Team Structure
  • 34. Software Teams • Many organization structures … • Political and practical consequences of organizational change (is it within the PM scope of responsibility?)
  • 36. Democratic Decentralized –No team leader –Different task assigned to different task coordinators who are appointed for little time –Consensuses based problem solving –Horizontal communication
  • 37. Controlled Decentralized –Team leader –Secondary leaders –Group based problem solving –Horizontal & vertical communication –Tasks and sub tasks
  • 38. Controlled Centralized –Team leader –Top level problem solving –Vertical communication
  • 40. Because the project is, by definition, a temporary entity and must come to an end, the PM must be concerned with the future of the people who serve on the team. If the PM does not get involved in helping project workers with the transition back to their functional homes or to new projects, then as the project nears completion, project workers will pay more and more attention to protecting their own future careers and less to completing the project on time. (Shown by “S”Curve) Transition Challenge
  • 41. Communication Challenge Two people, one channel Three people, three channels Four people, six channels Five people, ten channels
  • 42. Key Differentiator: People • The cultivation of motivated, highly skilled software people has been discussed since 1960. In fact this factor is so important that in addition to process capability model the Software Institute has also developed a people management capability maturity model
  • 43. Methods for Selecting Projects • There are usually (always?) more projects than available time and resources to implement them • Therefore: It is important to follow a logical process for selecting IT projects to work on • Methods include – Focusing on broad needs – Categorizing projects – Financial methods
  • 44. Broad Organizational Needs • It is often difficult to provide strong justification for many IT projects, but everyone agrees they have a high value • “It is better to measure gold roughly than to count pennies precisely” • Three important criteria for projects: – There is a need for the project – There are funds available – There’s a strong will to make the project succeed
  • 45. Categorizing IT Projects • One categorization: whether project addresses – a problem – an opportunity – a directive • Another: how long it will take & when it is needed • Another: overall priority of the project
  • 46. Procurement Management • Procurement means acquiring goods and/or services from an outside source – a.k.a. purchasing or outsourcing • Know how your project fits-into this model – Are you building “in-house”? “for hire”? • Thus are you the ‘outside source’? – As a startup? (thus in-house but as basis for the business itself)
  • 47. Why Outsource? • To reduce both fixed and recurrent costs • To allow the client organization to focus on its core business • To access skills and technologies • To provide flexibility • To increase accountability
  • 48. Procurement Tools & Techniques • Make-or-buy analysis (build vs. buy) • Determining whether a particular product or service should be made or performed inside the organization or purchased from someone else. Often involves financial analysis • Experts • Both internal and external, can provide valuable inputs in procurement decisions