Transcript Lecture 28.pptx

Management Issues in
Systems Development
Lecture 28
Today’s Lecture

Project Management
 What is Project Management
 The Job of a Project Manager
 Change Management
 Risk Management
 Tips for Good IT Project Management
Introduction

Companies are in three ‘businesses’:
1. Infrastructure Management
2. Customer Relationship
3. Product Innovation

Traditionally companies have bundled the three
(businesses)
 Leads to compromises because the three
have conflicting agendas
Introduction cont.

IS departments can be viewed as being in the same
three businesses:
1. Operations are infrastructure management
2. The help desk is the customer relationship
business
3. System development is product innovation
Introduction cont.

Infrastructure management:
 Goal = reducing costs
 Providing infrastructure involves high fixed costs
 Battle = build scale
 Management
focus =
Efficiency
 Standards
 As we are seeing with operations and network
management
 Outsourcing?

Introduction cont.

Customer relationship:
 Goal = provide service
 PC support & help desks often outsourced
 Especially in Europe & Asia (multilingual needs)
 Outsourcing offshore = increasing dramatically

Product innovation:
 Goal = speed
 Provides nimbleness
Introduction cont.
 Key
to success = talent
 In IT, developers are “king” so they are given the
coolest tools
 There
are a number of management issues
surrounding system development:
“Staffing, staffing, staffing”,
 As well as speed & nimbleness

Project Management

Today, much organizational work is performed via
projects

In IS as well as other functions, being able to manage a
project to completion, and deliver the expected outcome
within the allotted time and budget, has become an
increasingly valuable skill
Project Management
What is Project Management?

Project Management is simply the management of a
project
 May sound simple and self-evident BUT = doesn’t
make it easy!
 Many people get confused/concerned because IT
project management contains the dreaded ‘T’
word – Technology
 In reality IT project management is not that
much different from other forms e.g.
construction
Project Management
What is Project Management? cont.


A project is a collection of related tasks and activities
undertaken to achieve a specific goal. All Projects (IT
or other) should:
 Have a clearly stated goal
 Be ‘finite’
 Clear beginning & end
IT Project Management:
 10% technical, 90% common sense
 Management styles vary as do backgrounds
 Key = keeping in mind, and under control the
numerous interdependencies
 GET THE JOB DONE!
Project Management
What is Project Management? cont.

Project Management Institute

Project Management encompasses five
processes
1. Initiating
2. Planning
3. Executing
4. Controlling, and
5. Closing
Project Management
What is Project Management? cont.
–
To become a certified PMP = must pass tests
covering nine knowledge areas:
1. Integration
2. Scope
3. Time
4. Cost
5. Quality
6. Human Resources
7. Communication
8. Risk
9. Procurement
Project Management
The Job of a Project Manager

Responsible for the following tasks:
1. Setting Up the Project


Why
 A brief background of the project, and
 The business objectives to be achieved
What
 Key outputs to be produced
 Benefits
Project Management
The Job of a Project Manager



When
 List of milestones and expected timing
 High level project plan
Who
 Project team
 Stakeholders – and their expectations
How
 Definition of the work that needs to be
undertaken
 Scope
 Specific exclusions
Project Management
The Job of a Project Manager cont.

Responsible for the following tasks cont.:
2.
Managing the Schedule

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
Schedule / project plan = heart of the project and main
communication tool
High level first – then break down as you proceed
Baseline and track
Use automated tools
Recommendations:
Project Management
The Job of a Project Manager cont.
1.
2.
3.
4.
Focus on the date that tasks are/ will be
completed rather than on the % of overall
project completed
Review progress at least monthly, preferably
more often
Focus on tasks to be completed Vs. those
finished
Reforecast when new evidence comes to light
Project Management
The Job of a Project Manager cont.

Responsible for the following tasks cont.:
3.
Managing the Finances


Financial plan, who is accountable, benefits etc.
Baseline costs and track


They will change!
Need to know how much has been spent and how
much money is left
Project Management
The Job of a Project Manager cont.
4.
Managing the Benefits


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

Difficult to estimate but must try
Base on same assumptions as costs
Look at timings
Track
Why are we doing this????

Should we still be doing it?
Project Management
The Job of a Project Manager cont.

Responsible for the following tasks cont.:
5. Managing Risks, Opportunities and Threats

Risk mitigation and risk management

Usually poorly done

Risk logs

Issue management
6. Soliciting Independent Reviews

Health checks (of the project)
 By someone independent (could be
external)
Project Management
Change Management

IS often assume a technically elegant system is a
successful system. (IT’S NOT!!!)

Many technically sound systems have turned into
implementation failures because the people side of the
system was not handled correctly

System is only a success if it meets the users’
requirements and they are happy with it and with using
it
Project Management
Change Management

Information technology is all about managing change

New systems require changing how work is done

Focusing only on the technical aspects is only half the
job – the other job is change management
Project Management
Change Management cont.

Changing management = process assisting people to
make change in their working environment
 Change – caused by the introduction of a new
computer system

People resist change, especially technological
change, when they view it as a crisis. ‘Resistance’
includes:
 Deny the change
 Distort information they hear about the change
 Convince themselves and others the new system
will not change status quo
Project Management
Change Management cont.


ODR (among others) offers a methodology to help
companies manage technological change
Type of people involved in a change project

Sponsor: the person or group that legitimizes the
change

Change agent: the person or group who causes
the change to happen

Target: the person or group who is being expected
to change and at whom the change is aimed
Project Management
Change Management cont.
Methodology to manage technological change
 Conduct surveys with all three groups to determine:

Whether the scope of the project is do-able, or
whether the organization is trying to change too
much at one time

Whether the sponsors are committed enough to
push the change through, or whether they are
sitting back expecting the organization to change
on its own

Whether the change agents have the skills to
implement the change, or whether e.g. they are
not adept at rallying support

Which groups are receptive to the change and
which are resistant
THE BOC GROUP
Case Example – Change Management
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Industrial gas manufacturer – operates in 60 countries
Industry= mature & highly competitive
Competition = price & service
$35million to improve position – reengineering BOC’s core
processes:
 9 reengineering projects over 2 ½ years
 All team members guaranteed a job after project in
same or equivalent work
 Teams co-led by Business and Information
Management (IM) process leader, as IT major
component of project
THE BOC GROUP
Case Example – Change Management cont.

Each team member studied everything, not just a selected
area:
 Existing processes
 How implementation should be handled
 Input into the training plan
 Devise the customer communication plan

Garnering True Executive Sponsorship
THE BOC GROUP
Case Example – Change Management cont.
= Executive Sponsor for all teams – not
intimately involved with project
 Vice presidents & directors = true executive sponsors
 President

ODR teach sponsorship to the nine sponsors over 2
days
 Sponsors reluctant to go off site – they see no
relevance to program as they could not see any
problems
THE BOC GROUP
Case Example – Change Management cont.

The workshop allowed sponsors to deal with issues of the
company’s ability to assimilate change, obstacles and so
on
Realization:
 Teams can only put the tools in place; the organization
had to make the change happen
 Sponsors need to drive change through the
organization – planning their own strategies and
examining possible consequences
THE BOC GROUP
Case Example – Change Management cont.
One Change Project
 Process of paperwork for delivering gas products and
invoicing customers
 Handwritten – into – Point of Delivery handheld
Device (PODD)
 PODD:
 Schedules downloaded overnight = pack truck
in night
THE BOC GROUP
Case Example – Change Management cont.
PODD accept signature of customer – print a
receipt
 Billing data automatically transmitted to
headquarters


Team members absorb each others’ knowledge and
become one entity rather than two
THE BOC GROUP
Case Example – Change Management cont.
Involving Middle Management

Advisory council:
 Upward job – provide feedback on recommended
changes and implementation issues
 Downward job – describe recommendations to
employees & get their buy-in
THE BOC GROUP
Case Example – Change Management cont.
Training the Drivers
 Created a six-hour training course
 “A Day in a Driver’s Life”
 Perfect day with PODD (handheld device)
 Harder scenarios
 Success – PODD team assessed its people aspects at
the outset & mitigated the identified risks by:
 Holding the sponsorship event
 Involving middle management via the advisory council
 Thoroughly informing and training the truck drivers
Project Management
Risk Management

Not all IT-based projects succeed

Many fail, especially the really large ones e.g. ERP, CRM

30 to 70% fail

Why? = Do not overcome their risks
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Technical
Business
Technical risks

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Sub-performance, scope creep making it too complex
Can’t always be predicted but they can be contained
Project Management
Risk Management
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
Business risks

Business does not change properly to use the new systems

Are not as easily righted
Need to:
1.
Assess the risk
2.
Mitigate the risk
3.
Adjust the project management approach
Project Management
Risk Management cont.

Step 1: Assess the Risks
 Three predominant risk factors:
1. Leadership of the business change
2. Employees’ perspective of the change
3. Scope and urgency of the change
• Decision tree (Figure 10-1)

Project leader = executive(s) responsible for the
change
–
Must be a business executive

It is the business, not IT that is required to
change
Project Management
Risk Management cont.
•
Contributes to success/failure? – 6 questions:
1. Are they committed to the business case?
2. Do they understand the extent of change in
work behaviour required for the project to
succeed?
3. Are they formally motivated to pull off the
change?
4. Are they at the appropriate org. level with the
formal power…..?
5. Do they have experience with a project of
similar scope, urgency and people impact?
6. Do they have informal power, such as
credibility and respect?
Project Management
Risk Management cont.


Step 2: Mitigate the Risks

Project management styles
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Project’s budget and timeframe
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
Authoritative Vs. Participative
Rigid Vs. Adjustable
Figure 10-2

Big Bang

Only appropriate when all 3 factors = positive
Project Management
Risk Management cont.
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Improvisation
 Leadership and employee = positive but
scope or urgency place the project at risk
 Committed workforce can adapt etc.
Guided Evolution
 Used when only the employee perception
is negative
 Can be overcome by involving them
Top-down Coordination
 Only works when the leadership factor
supports the business change and when
the leadership is respected, full-time and
highly experienced in leading business
change
DOW CORNING
Case Example: Project Management
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Successful ERP implementation from 1995 to 1999
Each project phase had different business risks
 Realizing this the project executive took a different
project management approach in each phase
Phase 0: Get Ready
 Leadership = High Risk
 Employee Perception = High Risk
 Scope and Urgency = High Risk
DOW CORNING
Case Example: Project Management


Phase 1: Understand the New System
 Use the Improvisation approach of participative
management and flexible deadlines
 Concerned employee reticence in the later phases
so focus = on building commitment
Phase 2: Redesign the Work Processes
 Use the Guided Evolution approach of participative
management with fixed deadlines
 Phase 1 = got them committed but did little to get
the work processes redesigned
 Continued through the pilot – cutover to SAP at
newly acquired European sub.
DOW CORNING
Case Example: Project Management cont.

Phase 3: Implement the ERP Worldwide
 Use
Top-down coordination with an authoritative
management style and flexible timelines


Pilot’s success demonstrated management’s
determination and shifted employee perception to the
positive
Scope shifted to negative because it was ‘company wide’
DOW CORNING
Case Example: Project Management cont.

Phase 4: Complete Implementation
 Use
the Big Bang approach of authoritative
management and firm deadlines

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By the end of 1998, most of the sites had implemented so all
the risk factors had turned positive
Initially conversion took 18 months. These later sites = 4
Tips for Good IT Project Management
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
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the Ground Rules
 Open systems, industry standards, web-enabled etc.
Foster Discipline, Planning, Documentation and
Management
 If the process is not controlled properly, anything can
happen or, more realistically, potentially nothing will
happen
Obtain and Document the ‘Final’ User Requirements
 Don’t get too technical
Tips for Good IT Project Management
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Obtain Tenders from All Appropriate Potential Vendors
Include Suppliers in Decision Making
Convert Existing Data
 Task might appear quite simple but often causes the
biggest headaches
Follow Through After Implementation
 Cross the t’s and dot the i’s in terms of
documentation, future maintenance processes etc.
Reasons for Success
 Proper Planning
 Appropriate User Involvement
 Strong Visible Management Support
 Project Manager(s) with Power and Time
 Good Change Management
 Working As A Team
 Proper Project Monitoring and Control
 Proper Project Closure
Summary
We covered Today,

Project Management
 What is Project Management
 The Job of a Project Manager
 Change Management
 Risk Management
 Tips for Good IT Project Management
Summary..


DOW CORNING
Case Example: Project Management
THE BOC GROUP
Case Example – Change Management