Transcript Research Schmesearch: A Summary of Recent Research in
Recent Developments in Information Technology (IT) Project Management
Kathy Schwalbe, Ph.D., PMP Associate Professor, Dept. of Business Administration, Augsburg College December 4, 2002 [email protected]
www.kathyschwalbe.com
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Personal Background
• • • • •
B.S. in math, 1981 (before Notre Dame and most colleges offered computer science or MIS degrees), MBA in 1986, Ph.D. in education in 1996 First job was as a project manager in the Air Force working on advanced communications systems Worked on many projects to develop and install several types of systems Now enjoy teaching, writing, and mentoring others Personality profile: ENTJ, driver, high need for achievement
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Presentation Overview
• • • • • Update on project management (PM) and progress in managing IT projects Key findings from recent PM research New developments in software to help manage projects Personal views on what’s changing and what needs to change Suggested references 3
Recent Facts About Project Management*
• •
The Project Management Institute (PMI) estimates that 4.5 million their profession of choice people in the U.S. (3.3% of the workforce) and over 12 million people in the rest of the world regard project management as The U.S. spends over $2.3 trillion on projects every year, or one quarter of the nation’s gross domestic product
*The PMI Project Management Fact Book, Second Edition, PMI, 2001 4
Certification Updates
• • •
Number of PMPs continues to grow PMI’s CAQ for IS Development came out summer 2002 CompTIA purchased the Gartner Institute IT PM exams and launched the IT Project+ exam in April 2001
45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1,000 1,900 1993 1994 1995 2,800 4,400 1996 6,415 1997 Year 1998 10,086 18,184 1999 2000 40,343 27,052 See www.pmi.org
and www.comptia.org
for more details on certification exams 5 2001
IT Project Demand
• • •
In 1998, corporate America issued 200,000 new start application development projects In 2000, there were 300,000 In 2001, the estimate was over 500,000
600,000 500,000 400,000 300,000 200,000 100,000 -
Number of New Application Development Projects
1998 2000 2001 *The Standish Group, "CHAOS 2001: A Recipe for Success," 2001 6
Motivation for Improving IT Project Management
• • •
A 1995 Standish Group study (CHAOS) found that only 16.2% features were provided of IT projects were “successful” and over 31% were canceled before completion, costing over $81 B in the U.S. alone. Time overruns were 222%, cost overruns were 189%, and only 61% of The latest CHAOS Study (2001 data) showed improvements in all areas but still… Only 28% of IT projects succeeded
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Recent Research Findings on Managing IT Projects
• • • •
Standish Group What the Winners Do (Dragon Milosevich) Project Management and ROI, Maturity Levels (Ibbs and Kwak) Project Management and Competitive Advantage (Jugdev and Thomas)
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The 2001 Standish Group Report Findings (Compared to 1995 Report)
• • • • •
Time overruns significantly decreased to 163% compared to 222% Cost overruns were down to 145% compared to 189% Required features and functions were up to 67% compared to 61% 78,000 U.S. projects were successful compared to 28,000 28% of IT projects succeeded compared to 16%
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Why the Improvements?
"The reasons for the increase in successful projects vary. First, the average cost of a project has been more than cut in half. Better tools have been created to monitor and control progress and better skilled project managers with better management processes are being used. The fact that there are processes is significant in itself.”* The Standish Group, "CHAOS 2001: A Recipe for Success" (2001)
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•
“What the Winners Do”
Companies that excel in project delivery capability:
– Build an integrated project management
toolbox (use standard/advanced PM tools, lots of templates)
– Grow competent project leaders, emphasizing
business and soft skills
– Develop streamlined, consistent project
delivery processes
– Install a sound but comprehensive set of
project performance metrics
Dragan Milosevic, Portland State University, “Delivering Projects: What the Winners Do,” PMI Conference Proceedings, November 2001 11
• • •
Using a Standardized Project Management Approach (SPM)*
Research found that a consistent (one-size-fits all) managerial approach may be essential to the successful standardization of certain aspects of project management, and a contingency approach is needed for certain aspects, too Low standardization with a sufficient amount of variation is the more appropriate approach SPM factors organization, methods, metrics, culture, and leadership include process, technology,
Milesovich and Pantanakul, “The Impact of Standardized Project Management: New Product Development Projects versus Software Development Projects,” Proceedings of PMI Research Conference 2002 12
Significant Predictors of Project Management Capability
• •
For NPD projects: methods, metrics, and culture For SWD projects: metrics, culture, and leadership
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Metrics, Culture, and Leadership*
• • •
Metrics : Projects using comprehensive metrics to measure and monitor performance will have fewer problems Culture : In a strong project culture, team members are more satisfied, engaged, and mutually supportive Leadership : Projects managed by project managers with strong leadership skills are more successful and effective
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• • •
Project Management ROI*
Over 94% of senior project management professionals say that implementing PM added value to their organizations Higher PM maturity (PMM) leads to
– Better project schedule and cost performance – Lower PM costs (ave. about 11% of PM revenues)
Formula to predict increased company ROI based on increased PM maturity (PMM) level
– For example, current PMM of 2.3, future of 3.1,
upgrade cost $400K, 5% profit margin, $10 million in revenues, PM/ROI = 40%
William Ibbs, “The $$$ Value of Project Management: Continuing the Search for PM’s ROI,” PDS ’02 Conference Proceedings, PMI-ISSIG, also see http://www.ce.berkeley.edu/pmroi/PMROI%20PMI%20Presentation%20Feb2001.pdf
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Project Management Maturity*
But Today’s PM Maturity Models Only Measure Explicit Knowledge*
• •
Explicit knowledge : “ know what ,” can be put into IT, a digital or discrete process that can be codified and transmitted in formal, systematic language (Nonaka 1994) Tacit knowledge : “ know how ”, in one’s experience; hard to replicate and can be transferred indirectly though time consuming socialization processes (Kaplan et al 2001)
*Jugdev and Thomas, “Blueprint for Value Creation: Developing and Sustaining a Project Management Competitive Advantage Through the Resource Based View,” Proceedings of PMI Research Conference,2002 17
Need to Make PM a Strategic Asset (Just Like IT)
• • •
Many executives view project management as having worth at the operational and tactical rather than strategic level Resource Based View (RBV) frameworks emphasize how firms create value and profits from their internal resources and focuses on strategic assets RBV is relevant to project management because it emphasizes intellectual capital
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RBV Model*
high Social Capital Know How low Know What low
*Jugdev, Kam, presented at PMI Research Conference, July 2002
Strategic Assets PM Maturity high
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What’s New In Project Management Software
• •
By 2001, there were hundreds of different products to assist in performing project management Three main categories of tools:
– Low-end tools: Handle single or smaller projects
well, cost under $200 per user
– Midrange tools: Handle multiple projects and users, cost $200-500 per user, Project 2000 most
popular
– High-end tools: Also called enterprise project
management software, often licensed on a per user basis
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Move Toward Enterprise PM SW?
• • •
Microsoft’s Project 2002 now includes an enterprise version Microsoft suggests organizations plan to take at least 3-6 months to install their enterprise software, mostly because organizations need to standardize a lot of things and change the way they work to get the most out of the software Milesovich’s research did not find PM software as a distinguishing factor for what the winners do, perhaps because it’s still fairly new at the enterprise level
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•
Personal Views on What’s Changing and What Needs to Change What’s Changing
– More people are
“learning the language according to PMI”
– More people are
getting certified
– People are under
even more pressure at home and work, often have too many projects and unrealistic deadlines
•
What Needs to Change
– Top management needs to
emphasize a common language that fits in their organizations
– Certification is not
enough: Need to use best practices
– Organizations need to
focus on sound business planning: pick the high value projects and focus on them, get rid on unnecessary work
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Suggested References
• • •
Lots available (see citations and next slide) Take advantage of PMI’s web sites and conferences
–
www.pmi.org
–
www.pmi-mn.org
–
www.pmi-issig.org
My book and web site have lots of references
–
www.kathyschwalbe.com
(goes to www.augsburg.edu/ppages/~schwalbe with no ads/distractions
– Information Technology Project Management,
Second Edition (on www.amazon.com)
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•
Sources for Project Management Research
PMI’s research pages ( www.pmi.org/research )
•
Historical PM Research database (Kloppenborg, Opfer, and Gallagher)
•
Project management research on the web ( www.fek.umu.se/irnop/projweb.html
)
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Research methods knowledge base ( http://trochim.human.cornell.edu/kb )
•
The Standish Group ( www.standishgroup.com
)
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PMI’s ISSIG Web Site www.pmi-issig.org
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Several Free WebCasts and Great Conferences
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Questions or Comments?
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