Transcript Waubonsee Community College

Project Management – Day 3
WAUBONSEE COMMUNITY COLLEGE
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Review
WAUBONSEE COMMUNITY COLLEGE PROJECT MANAGEMENT TRAINING
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Project Management – A Systematic Process (and common sense)
Initiating
Planning
Executing
Monitoring
/Controlling
Closing
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Project Management Framework
Figure 1-2
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The Triple Constraint of Project Management
Successful project
management means
meeting all three goals
(scope, time, and cost)
and satisfying the project’s
sponsor!
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Intranet Gantt Chart Organized by
Project Management Process Groups
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Determining the Critical Path for Project X
Figure 6-8
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Communications Management
WAUBONSEE COMMUNITY COLLEGE PROJECT MANAGEMENT TRAINING
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Importance of Good Communications
 The greatest threat to many projects is a failure to communicate
 Our culture does not portray IT professionals as being good communicators
 Research shows that IT professionals must be able to communicate effectively to
succeed in their positions
 Strong verbal skills are a key factor in career advancement for IT professionals
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Project Communications Management Processes
• Identifying stakeholders: identifying everyone involved in or affected by the project and
determining the best ways to manage relationships with them
 Planning communications: determining the information and communications needs of the
stakeholders
 Distributing information: making needed information available to project stakeholders in a timely
manner
 Managing stakeholder expectations: managing communications to satisfy the needs and
expectations of project stakeholders and to resolve issues
 Reporting performance: collecting and disseminating performance information, including status
reports, progress measurement, and forecasting
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Project Communications Management Summary
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Identifying Stakeholders
• Recall that the ultimate goal of project management is to meet or exceed
stakeholder needs and expectations from a project, so you must first identify
who your particular project stakeholders are
• Two key outputs of this process include:
• Stakeholder register: a public document that includes details related to the
identified project stakeholders
• Stakeholder management strategy: an approach to help increase the
support of stakeholders throughout the project; often includes sensitive
information
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Stakeholder Management Strategy
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Planning Communications
 Every project should include some type of communications
management plan, a document that guides project communications
 Creating a stakeholder analysis for project communications also aids in
communications planning
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Sample Stakeholder Analysis for Project Communications
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Distributing Information
 Getting the right information to the right people at the right time and in a
useful format is just as important as developing the information in the first
place
 Important considerations include:
 Using technology to enhance information distribution
 Formal and informal methods for distributing information
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Distributing Information in an Effective
and Timely Manner
 Don’t bury crucial information
 Don’t be afraid to report bad information
 Oral communication via meetings and informal talks helps bring important
information—good and bad—out into the open
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Importance of Face-to-Face Communication
 Research says that in a face-to-face interaction:
 58 percent of communication is through body language
 35 percent of communication is through how the words are said
 7 percent of communication is through the content or words that are spoken
 Pay attention to more than just the actual words someone is saying
 A person’s tone of voice and body language say a lot about how he or she really feels
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Encouraging More Face-to-Face Interactions
 Short, frequent meetings are often very effective in IT projects
 Stand-up meetings force people to focus on what they really need to communicate
 Some companies have policies preventing the use of e-mail between certain hours
or even entire days of the week
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Media Choice Table
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Understanding Group and Individual Communication Needs
• People are not interchangeable parts
• As illustrated in Brooks’ book The Mythical Man-Month, you cannot assume that a
task originally scheduled to take two months of one person’s time can be done in
one month by two people
• Nine women cannot produce a baby in one month!
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Personal Preferences Affect Communication Needs
• Introverts like more private communications, while extroverts like to discuss
things in public
• Intuitive people like to understand the big picture, while sensing people need stepby-step details
• Thinkers want to know the logic behind decisions, while feeling people want to
know how something affects them personally
• Judging people are driven to meet deadlines while perceiving people need more
help in developing and following plans
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Other Communication Considerations
• Rarely does the receiver interpret a message exactly as the sender intended
• Geographic location and cultural background affect the complexity of project
communications
• Different working hours
• Language barriers
• Different cultural norms
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Setting the Stage for Communicating Bad News
Dear Mom and Dad, or should I say Grandma & Grandpa,
Yes, I am pregnant. No, I’m not married yet since Larry, my boyfriend, is out of a job. Larry’s employers just
don’t seem to appreciate the skills he has learned since he quit high school. Larry looks much younger than you,
Dad, even though he is three years older. I’m quitting college and getting a job so we can get an apartment before
the baby is born. I found a beautiful apartment above a 24-hour auto repair garage with good insulation so the
exhaust fumes and noise won’t bother us.
I’m very happy. I thought you would be too.
Love, Ashley
P.S. There is no Larry. I’m not pregnant. I’m not getting married. I’m not quitting school, but I am getting a
“D” in Chemistry. I just wanted you to have some perspective.
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Determining the Number of Communications Channels
• As the number of people involved increases, the complexity of communications
increases because there are more communications channels or pathways through
which people can communicate
• Number of communications channels = n(n-1) / 2
where n is the number of people involved
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Managing Stakeholders
• Project managers must understand and work with various stakeholders
• Need to devise a way to identify and resolve issues
• An expectations management matrix can help clarify expectations
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Expectations
Management
Matrix
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Reporting Performance
Performance reporting keeps stakeholders informed about how resources are being
used to achieve project objectives:
• Status reports describe where the project stands at a specific point in time
• Progress reports describe what the project team has accomplished during a certain period of
time
• Forecasts predict future project status and progress based on past information and trends
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Suggestions for Improving Project Communications
• Manage conflicts effectively
• Develop better communication skills
• Run effective meetings
• Use e-mail and other technologies effectively
• Use templates for project communications
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Conflict Handling Modes
1.
Confrontation: directly face a conflict using a problem-solving approach
2. Compromise: use a give-and-take approach
3.
Smoothing: de-emphasize areas of difference and emphasize areas of agreement
4. Forcing: the win-lose approach
5. Withdrawal: retreat or withdraw from an actual or potential disagreement
6. Collaborating: decision makers incorporate different viewpoints and insights to
develop consensus and commitment
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Conflict Can Be Good
• Conflict often produces important results, such as new ideas, better alternatives,
and motivation to work harder and more collaboratively
• Groupthink: conformance to the values or ethical standards of a group;
groupthink can develop if there are no conflicting viewpoints
• Research suggests that task-related conflict often improves team performance, but
emotional conflict often depresses team performance
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Developing Better Communication Skills
• As organizations become more global, they realize they must invest in ways to
improve communication with people from different countries and cultures
• It takes leadership to improve communication
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Sample Template for a Monthly Progress Report
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Lessons-Learned Reports
• The project manager and project team members should each prepare a
lessons-learned report
 A reflective statement that documents important things an individual learned
from working on the project
• The project manager often combines information from all of the
lessons-learned reports into a project summary report
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Risk Management
WAUBONSEE COMMUNITY COLLEGE PROJECT MANAGEMENT TRAINING
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The Importance of Project Risk Management
• Project risk management is the art and science of identifying, analyzing, and
responding to risk throughout the life of a project and in the best interests of
meeting project objectives
• Risk management is often overlooked in projects, but it can help improve project
success by helping select good projects, determining project scope, and developing
realistic estimates
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Research Shows Need to Improve Project Risk Management
• Study by Ibbs and Kwak shows risk has the lowest maturity rating of all knowledge
areas
• A similar survey was completed with software development companies in
Mauritius, South Africa in 2003, and risk management also had the lowest
maturity
• KLCI study shows the benefits of following good software risk management
practices
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Project Management Maturity by Industry Group and Knowledge Area*
KEY: 1 = LOWEST MATURITY RATING
5 = HIGHEST MATURITY RATING
Telecommunications
Information
Systems
Hi-Tech Manufacturing
Knowledge Area
Engineering/
Construction
Scope
3.52
3.45
3.25
3.37
Time
3.55
3.41
3.03
3.50
Cost
3.74
3.22
3.20
3.97
Quality
2.91
3.22
2.88
3.26
Human Resources
3.18
3.20
2.93
3.18
Communications
3.53
3.53
3.21
3.48
Risk
2.93
2.87
2.75
2.76
Procurement
3.33
3.01
2.91
3.33
*Ibbs, C. William and Young Hoon Kwak. “Assessing Project Management Maturity,”
Project Management Journal (March 2000).
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Benefits from Software Risk Management Practices*
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*Kulik, Peter and Catherine Weber, “Software Risk Management Practices – 2001,” KLCI
Research Group (August 2001).
Negative Risk
• A dictionary definition of risk is “the possibility of loss or injury”
• Negative risk involves understanding potential problems that might occur in the
project and how they might impede project success
• Negative risk management is like a form of insurance; it is an investment
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Risk Can Be Positive
• Positive risks are risks that result in good things happening; sometimes
called opportunities
• A general definition of project risk is an uncertainty that can have a
negative or positive effect on meeting project objectives
• The goal of project risk management is to minimize potential negative
risks while maximizing potential positive risks
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Risk Utility
• Risk utility or risk tolerance is the amount of satisfaction or pleasure received
from a potential payoff
• Utility rises at a decreasing rate for people who are risk-averse
• Those who are risk-seeking have a higher tolerance for risk, and their satisfaction increases
when more payoff is at stake
• The risk-neutral approach achieves a balance between risk and payoff
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Risk Utility Function and Risk Preference
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Project Risk Management Processes
• Planning risk management: deciding how to approach and plan the risk
management activities for the project
• Identifying risks: determining which risks are likely to affect a project and
documenting the characteristics of each
• Performing qualitative risk analysis: prioritizing risks based on their probability
and impact of occurrence
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Project Risk Management Processes (continued)
• Performing quantitative risk analysis: numerically estimating the
effects of risks on project objectives
• Planning risk responses: taking steps to enhance opportunities and
reduce threats to meeting project objectives
• Monitoring and controlling risks: monitoring identified and residual
risks, identifying new risks, carrying out risk response plans, and
evaluating the effectiveness of risk strategies throughout the life of the
project
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Project Risk Management Summary
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Figure 11-3
Risk Management Planning
• The main output of risk management planning is a risk management
plan, a plan that documents the procedures for managing risk
throughout a project
• The project team should review project documents and understand the
organization’s and the sponsor’s approaches to risk
• The level of detail will vary with the needs of the project
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Topics Addressed in a Risk Management Plan
• Methodology
• Roles and responsibilities
• Budget and schedule
• Risk categories
• Risk probability and impact
• Risk documentation
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Contingency and Fallback Plans, Contingency Reserves
• Contingency plans are predefined actions that the project team will take if an
identified risk event occurs
• Fallback plans are developed for risks that have a high impact on meeting project
objectives and are put into effect if attempts to reduce the risk are not effective
• Contingency reserves or allowances are provisions held by the project sponsor or
organization to reduce the risk of cost or schedule overruns to an acceptable level
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Common Sources of Risk in Information Technology
Projects
• Several studies show that IT projects share some common sources of risk
• The Standish Group developed an IT success potential scoring sheet based on
potential risks
• Other broad categories of risk help identify potential risks
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Information Technology Success Potential Scoring Sheet
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Success Criterion
Relative Importance
User Involvement
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Executive Management support
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Clear Statement of Requirements
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Proper Planning
11
Realistic Expectations
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Smaller Project Milestones
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Competent Staff
8
Ownership
6
Clear Visions and Objectives
3
Hard-Working, Focused Staff
3
Total
100
Broad Categories of Risk
• Market risk
• Financial risk
• Technology risk
• People risk
• Structure/process risk
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Risk Breakdown Structure
• A risk breakdown structure is a hierarchy of potential risk categories for a
project
• Similar to a work breakdown structure but used to identify and categorize risks
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Sample Risk Breakdown Structure
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Potential Negative Risk Conditions Associated with Each Knowledge Area
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Identifying Risks
• Identifying risks is the process of understanding what potential events
might hurt or enhance a particular project
• Risk identification tools and techniques include:
• Brainstorming
• The Delphi Technique
• Interviewing
• SWOT analysis
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Brainstorming
• Brainstorming is a technique by which a group attempts to generate ideas or find
a solution for a specific problem by amassing ideas spontaneously and without
judgment
• An experienced facilitator should run the brainstorming session
• Be careful not to overuse or misuse brainstorming
• Psychology literature shows that individuals produce a greater number of ideas working alone
than they do through brainstorming in small, face-to-face groups
• Group effects often inhibit idea generation
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Delphi Technique
• The Delphi Technique is used to derive a consensus among a panel of
experts who make predictions about future developments
• Provides independent and anonymous input regarding future events
• Uses repeated rounds of questioning and written responses and avoids
the biasing effects possible in oral methods, such as brainstorming
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Interviewing
• Interviewing is a fact-finding technique for collecting information in
face-to-face, phone, e-mail, or instant-messaging discussions
• Interviewing people with similar project experience is an important
tool for identifying potential risks
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SWOT Analysis
• SWOT analysis (strengths, weaknesses, opportunities, and threats) can
also be used during risk identification
• Helps identify the broad negative and positive risks that apply to a
project
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Risk Register
• The main output of the risk identification process is a list of identified
risks and other information needed to begin creating a risk register
• A risk register is:
• A document that contains the results of various risk management processes
and that is often displayed in a table or spreadsheet format
• A tool for documenting potential risk events and related information
• Risk events refer to specific, uncertain events that may occur to the
detriment or enhancement of the project
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Risk Register Contents
• An identification number for each risk event
• A rank for each risk event
• The name of each risk event
• A description of each risk event
• The category under which each risk event falls
• The root cause of each risk
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Risk Register Contents (continued)
• Triggers for each risk; triggers are indicators or symptoms of actual
risk events
• Potential responses to each risk
• The risk owner or person who will own or take responsibility for each
risk
• The probability and impact of each risk occurring
• The status of each risk
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Sample Risk Register
Table 11-5
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Performing Qualitative Risk Analysis
• Assess the likelihood and impact of identified risks to determine their
magnitude and priority
• Risk quantification tools and techniques include:
• Probability/impact matrixes
• The Top Ten Risk Item Tracking
• Expert judgment
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Figure 11-5. Sample Probability/Impact Matrix
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Top Ten Risk Item Tracking
• Top Ten Risk Item Tracking is a qualitative risk analysis tool that helps to
identify risks and maintain an awareness of risks throughout the life of a project
• Establish a periodic review of the top ten project risk items
• List the current ranking, previous ranking, number of times the risk appears on
the list over a period of time, and a summary of progress made in resolving the
risk item
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Example of Top Ten Risk Item Tracking
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Watch List
• A watch list is a list of risks that are low priority but are still identified
as potential risks
• Qualitative analysis can also identify risks that should be evaluated on
a quantitative basis
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Performing Quantitative Risk Analysis
• Often follows qualitative risk analysis, but both can be done together
• Large, complex projects involving leading edge technologies often
require extensive quantitative risk analysis
• Main techniques include:
• Decision tree analysis
• Simulation
• Sensitivity analysis
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Decision Trees and Expected Monetary Value (EMV)
• A decision tree is a diagramming analysis technique used to help select the best
course of action in situations in which future outcomes are uncertain
• Estimated monetary value (EMV) is the product of a risk event probability and
the risk event’s monetary value
• You can draw a decision tree to help find the EMV
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Expected Monetary Value (EMV) Example
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Simulation
• Simulation uses a representation or model of a system to analyze the expected
behavior or performance of the system
• Monte Carlo analysis simulates a model’s outcome many times to provide a
statistical distribution of the calculated results
• To use a Monte Carlo simulation, you must have three estimates (most likely,
pessimistic, and optimistic) plus an estimate of the likelihood of the estimate
being between the most likely and optimistic values
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Sensitivity Analysis
• Sensitivity analysis is a technique used to show the effects of changing one or more
variables on an outcome
• For example, many people use it to determine what the monthly payments for a loan
will be given different interest rates or periods of the loan, or for determining breakeven points based on different assumptions
• Spreadsheet software, such as Excel, is a common tool for performing sensitivity
analysis
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Sample Sensitivity Analysis for Determining Break-Even Point
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Planning Risk Responses
• After identifying and quantifying risks, you must decide how to respond to them
• Four main response strategies for negative risks
•
•
•
•
Risk avoidance
Risk acceptance
Risk transference
Risk mitigation
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General Risk Mitigation Strategies for:
Technical, Cost, and Schedule Risks
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Residual and Secondary Risks
• It’s also important to identify residual and secondary risks
• Residual risks are risks that remain after all of the response strategies
have been implemented
• Secondary risks are a direct result of implementing a risk response
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Monitoring and Controlling Risks
• Involves executing the risk management process to respond to risk events
• Workarounds are unplanned responses to risk events that must be done when
there are no contingency plans
• Main outputs of risk monitoring and control are:
• Risk register updates
• Organizational process assets updates
• Change requests
• Updates to the project management plan and other project documents
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The Importance of Project Quality Management
• Many people joke about the poor quality of IT products
• Cars and Computers joke
• People seem to accept systems being down occasionally or needing to reboot their
PCs
• But quality is very important in many IT projects
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Quality management
WAUBONSEE COMMUNITY COLLEGE PROJECT MANAGEMENT TRAINING
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What Went Wrong?
• In 1986, two hospital patients died after receiving fatal doses of radiation from a
Therac 25 machine after a software problem caused the machine to ignore
calibration data
• In one of the biggest software errors in banking history, Chemical Bank mistakenly
deducted about $15 million from more than 100,000 customer accounts
• In August 2008, the Privacy Rights Clearinghouse stated that more than 236
million data records of U.S. residents have been exposed due to security breaches
since January 2005
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Quality Management Knowledge Group
Six Sigma
• Six Sigma is “a comprehensive and flexible system for achieving, sustaining, and
maximizing business success. Six Sigma is uniquely driven by close understanding
of customer needs, disciplined use of facts, data, and statistical analysis, and
diligent attention to managing, improving, and reinventing business processes.”*
*Pande, Peter S., Robert P. Neuman, and Roland R. Cavanagh, The
Six Sigma Way, New York: McGraw-Hill, 2000, p. xi.
84
Basic Information on Six Sigma
• The target for perfection is the achievement of no more than 3.4
defects per million opportunities
• The principles can apply to a wide variety of processes
• Six Sigma projects normally follow a five-phase improvement process
called DMAIC
85
DMAIC
• DMAIC is a systematic, closed-loop process for continued improvement that
is scientific and fact based
• DMAIC stands for:
•
•
•
•
•
Define: define the problem/opportunity, process, and customer requirements
Measure: define measures, then collect, compile, and display data
Analyze: scrutinize process details to find improvement opportunities
Improve: generate solutions and ideas for improving the problem
Control: track and verify the stability of the improvements and the predictability of the solution
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How Is Six Sigma Quality Control Unique?
• It requires an organization-wide commitment
• Training follows the “Belt” system
• Six Sigma organizations have the ability and willingness to adopt contrary
objectives, such as reducing errors and getting things done faster
• It is an operating philosophy that is customer focused and strives to drive out
waste, raise levels of quality, and improve financial performance at breakthrough
levels
87
What Went Right?
• Motorola, Inc. pioneered the adoption of Six Sigma in the 1980s and saved about $14
billion
• Allied Signal/Honeywell saved more than $600 million a year by reducing the costs of
reworking defects and improving aircraft engine design processes
• After implementing the solutions recommended by a Six Sigma team for Baptist St.
Anthony's Hospital in Amarillo, Texas, the percent of delayed cases in the radiology
department dropped from 79 percent to 33 percent, delays decreased by 22 percent,
and the number of orders missing or needing clarification dropped to zero from 11
percent
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Six Sigma and Project Management
• Joseph M. Juran stated, “All improvement takes place project by project, and in no
other way”*
• It’s important to select projects carefully and apply higher quality where it makes
sense; companies that use Six Sigma do not always boost their stock values
• As Mikel Harry puts it, “I could genetically engineer a Six Sigma goat, but if a rodeo
is the marketplace, people are still going to buy a Four Sigma horse”**
• Six Sigma projects must focus on a quality problem or gap between the current and
desired performance and not have a clearly understood problem or a
predetermined solution
*“What You Need to Know About Six Sigma,” Productivity Digest (December 2001), p. 38.
**Clifford, Lee, “Why You Can Safely Ignore Six Sigma,” Fortune (January 22, 2001), p. 140.
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Six Sigma Projects Use Project Management
• The training for Six Sigma includes many project management concepts, tools, and
techniques
• For example, Six Sigma projects often use business cases, project charters, schedules,
budgets, and so on
• Six Sigma projects are done in teams; the project manager is often called the team
leader, and the sponsor is called the champion
90
Six Sigma and Statistics
• The term sigma means standard deviation
• Standard deviation measures how much variation exists in a
distribution of data
• Standard deviation is a key factor in determining the acceptable
number of defective units found in a population
• Six Sigma projects strive for no more than 3.4 defects per million
opportunities, yet this number is confusing to many statisticians
91
Six Sigma Uses a Conversion Table
• Using a normal curve, if a process is at six sigma, there would be no more
than two defective units per billion produced
• Six Sigma uses a scoring system that accounts for time, an important factor
in determining process variations
• Yield represents the number of units handled correctly through the process
steps
• A defect is any instance where the product or service fails to meet customer
requirements
• There can be several opportunities to have a defect
92
Normal Distribution and Standard Deviation
93
Sigma Conversion Table
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Types of Tests
• Unit testing tests each individual component (often a program) to ensure it is as
defect-free as possible
• Integration testing occurs between unit and system testing to test functionally
grouped components
• System testing tests the entire system as one entity
• User acceptance testing is an independent test performed by end users prior to
accepting the delivered system
95
Testing Alone Is Not Enough
• Watts S. Humphrey, a renowned expert on software quality, defines a software
defect as anything that must be changed before delivery of the program
• Testing does not sufficiently prevent software defects because:
• The number of ways to test a complex system is huge
• Users will continue to invent new ways to use a system that its developers never
considered
• Humphrey suggests that people rethink the software development process to
provide no potential defects when you enter system testing; developers must be
responsible for providing error-free code at each stage of testing
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Modern Quality Management
• Modern quality management:
• Requires customer satisfaction
• Prefers prevention to inspection
• Recognizes management responsibility for quality
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Leadership
• As Joseph M. Juran said in 1945, “It is most important that top
management be quality-minded. In the absence of sincere
manifestation of interest at the top, little will happen below.”*
• A large percentage of quality problems are associated with
management, not technical issues
*American Society for Quality (ASQ), (www.asqc.org/about/history/juran.html).
98
The Cost of Quality
• The cost of quality is the cost of conformance plus the cost of
nonconformance
• Conformance means delivering products that meet requirements and fitness for
use
• Cost of nonconformance means taking responsibility for failures or not meeting
quality expectations
• A study reported that software bugs cost the U.S. economy $59.6 billion
each year and that one third of the bugs could be eliminated by an
improved testing infrastructure
99
Organizational Influences, Workplace Factors, and Quality
• Study by DeMarco and Lister showed that organizational issues had a much
greater influence on programmer productivity than the technical environment or
programming languages
• Programmer productivity varied by a factor of one to ten across organizations, but
only by 21 percent within the same organization
• Study found no correlation between productivity and programming language,
years of experience, or salary
• A dedicated workspace and a quiet work environment were key factors to
improving programmer productivity
100
Expectations and Cultural Differences in Quality
• Project managers must understand and manage stakeholder expectations
• Expectations also vary by:
• Organization’s culture
• Geographic regions
101
Title and Content Layout with Chart
Series 1
Series 2
Series 3
6
5
4
3
2
1
0
Category 1
Category 2
Category 3
Category 4
Two Content Layout with Table
• First bullet point here
Group A
Group B
Class 1
82
85
• Second bullet point here
Class 2
76
88
• Third bullet point here
Class 3
84
90