INFORMATION TECHNOLOGY

PROJECT MANAGEMENT

Seventh Edition

Kathy Schwalbe, Pli.D., PMP

Augsburg College

• 4 COURSE TECHNOLOGY
CENGAGE Learning-

Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States
 TABLE OF CONTENTS

Preface xix

Chapter 1 Introduction to Project Management 1

Introduction 2
What Is a Project? 4
Examples of IT Projects 4
Project Attributes 6
Project Constraints 7
What Is Project Management? 9
Project Stakeholders 10
Project Management Knowledge Areas 11
Project Management Tools and Techniques 12
Project Success 14
Program and Project Portfolio Management 16
Programs 17
Project Portfolio Management 17
The Role of the Project Manager 21
Project Manager Job Description 21
Suggested Skills for Project Managers 22
Importance of People Skills and Leadership Skills 24
Careers for IT Project Managers 25
The Project Management Profession 26
History of Project Management 26
The Project Management Institute 30
Project Management Certification 30
Ethics in Project Management 32
Project Management Software 33
Chapter Summary 36
Quick Quiz 37
Quick Quiz Answers 38
Discussion Questions 38
Exercises 39
Key Terms 40
End Notes 41

Chapter 2 The Project Management and Information Technology Context 43

A Systems View of Project Management 45
What Is a Systems Approach? 45
The Three-Sphere Model for Systems Management 46
< Table of Contents

Understanding Organization 47
The Four Frames of Organization^ 47
Organizational Structures 49
Organizational Culture
Stakeholder Management 52
The Importance of Top Management Commitment 54
The Need for Organizational Commitment to Information Technology 55
The Need for Organizational Standards 56
Projeet Phases and the Project Life Cycle 56
Produet Life Cycles 59
The Importance of Project Phases and Management Reviews 62
The Gontext of Information Technology Projects 64
The Nature of IT Projects 64
Characteristics of IT Project Team Members 64
Diverse Technologies 65
Recent Trends Affecting Information Technology Project Management 65
Globalization 65
Outsourcing 66
Virtual Teams 67
Agile Project Management 69
The Manifeste for Agile Software Development 70
Serum 70
Agile, the PMBOK® Guide, and a New Certification 71
Ghapter Summary 73
Quick Quiz 74
Quick Quiz Answers 75
Discussion Questions 75
Exercises 76
Key Terms 77
End Notes 78

Chapter 3 The Project Management Process Groups: A Case Study 81

Project Management Process Groups 82
Mapping the Process Groups to the Knowledge Areas 87
Developing an IT Project Management Methodology 88
Case Study 1: JWD Consultings Project Management Intranet Site Project
(Predictive Approach) 91
Project Pre-Initiation and Initiation 91
Pre-Initiation Tasks 92
Initiating 96
Project Flanning 100
Project Exeeution 109
Project Monitoring and Controlling 114
Project Closing 117
Case Study 2: JWD Consulting'« Project Management Intranet Site Project
(Agile Approach) 120
Serum Roles, Artifacts, and Ceremonies 121
Project Pre-Initiation and Initiation 123
Flanning 124
 Table of Contents

Executing 127
Monitoring and Controlling 127
Closing 129
Templates by Process Group 129
Chapter Summary 133
Quick Quiz 133
Quick Quiz Answers 135
Discussion Questions 135
Exercises 136
Key Terms 137
End Notes 138

Chapter 4 Project Integration Management 139

What Is Project Integration Management? 140
Strategie Flanning and Project Selection 143
Strategie Flanning 143
Identifying Potential Projects 145
Aligning IT with Business Strategy 146
Methods for Selecting Projects 148
Focusing on Broad Organizational Needs 148
Categorizing IT Projects 148
Performing Net Present Value Analysis, Return on Investment, and Payback
Analysis 149
Net Present Value Analysis 149
Return on Investment 152
Payback Analysis 153
Using a Weighted Scoring Model 154
Implementing a Balanced Scorecard 156
Developing a Project Charter 157
Developing a Project Management Plan 161
Project Management Plan Contents 161
Using Guidelines to Create Project Management Plans 164
Directing and Managing Project Work 166
Coordinating Flanning and Execution 166
Providing Strong Leadership and a Supportive Culture 167
Capitalizing on Product, Business, and Application Area Knowledge 167
Project Execution Tools and Techniques 168
Monitoring and Controlling Project Work 169
Performing Integrated Change Control 171
Change Control on IT Projects 172
Change Control System 173
Closing Projects or Phases 175
Using Software to Assist in Project Integration Management 175
Chapter Summary 178
Quick Quiz 178
Quick Quiz Answers 180
Discussion Questions 180
xiv Table of Contents

Controlling Quality 319

Tools and Techniques for Quality Control 320
Statistical Sampling 327
Six Sigma 328
How Is Six Sigma Quality Control Unique? 329
Six Sigma and Project Selection and Management 330
Six Sigma and Statistics 331
Testing 333
Modern Quality Management 335
Deming and His 14 Points for Management 336
Juran and the Importance of Top Management Commitment to Quality 336
Crosby and Striving for Zero Defeets 337
Ishikawa's Guide to Quality Control 338
Taguchi and Robust Design Methods 338
Feigenbaum and Workers' Responsibility for Quality 338
Malcolm Baldrige National Quality Award 338
ISO Standards 339
Improving IT Project Quality 340
Leadership 340
The Cost of Quality 341
Organizational Influences, Workplace Factors, and Quality 343
Expectations and Cultural Differences in Quality 343
Maturity Models 344
Software Quality Function Deployment Model 344
Capability Maturity Model Integration 344
Project Management Maturity Models 345
Using Software to Assist in Project Quality Management 347
Chapter Summary 348
Quick Quiz 348
Quick Quiz Answers 350
Discussion Questions 350
Exercises 351
Running Gase 352
Tasks 352
Key Terms 352
End Notes 355

Chapter 9 Project Human Resource Management 359

The Importance of Human Resource Management 360
The Global IT Workforce 360
Implications for the Future of IT Human Resource Management 361
What Is Project Human Resource Management? 363
Keys to Managing People 365
Motivation Theories 365
Maslow's Hierarchy of Needs 365
Herzberg's Motivation-Hygiene Theory 366
McClelland's Acquired-Needs Theory 367
McGregor's Theory X and Theory Y 368
Thamhain and Wilemon's Influenae and Power 368
 Table of Contents xv

Govey and Improving Effectiveness 370

Developing the Human Resource Plan 373
Project Organizational Charts 374
Responsibility Assignment Matrices 376
Staffing Management Plans and Resource Histograms 377
Acquiring the Project Team 378
Resource Assignment 379
Resource Loading 381
Resource Leveling 383
Developing the Project Team 384
Training 385
Team-Building Activities 386
The Myers-Briggs Type Indicator 386
The Social Styles Profile 388
DISC Profile 389
Reward and Recognition Systems 390
Managing the Project Team 390
Tools and Techniques for Managing Project Teams 391
General Advice on Managing Teams 393
Using Software to Assist in Human Resource Management 394
Chapter Summary 396
Quick Quiz 397
Quick Quiz Answers 399
Discussion Questions 399
Exercises 399
Running Gase 400
Key Terms 401
End Notes 402

Chapter 10 Project Communications Management 405

The Importance of Project Communications Management 406
Keys to Good Communications 408
Focusing on Group and Individual Communication Needs 409
Formal and Informal Methods for Communicating 410
Distributing Important Information in an Effective and Timely Manner 411
Setting the Stage for Communicating Bad News 412
Determining the Number of Communication Channels 412
Flanning Communications Management 414
Managing Communications 416
Using Technology to Enhance Information Creation and Distribution 416
Selecting the Appropriate Communication Methods and Media 417
Reporting Performance 420
Controlling Communications 420
Suggestions for Improving Project Communications 421
Developing Better Communication Skills 421
Running Effective Meetings 423
Using E-Mail, Instant Messaging, Texting, and Collaborative Tools Effectively 424
Using Templates for Project Communications 427
Using Software to Assist in Project Communications 430
xiv Table of Contents

Controlling Quality 319

Tools and Techniques for Quality Control 320
Statistical Sampling 327
Six Sigma 328
How Is Six Sigma Quality Control Unique? 329
Six Sigma and Project Selection and Management 330
Six Sigma and Statistics 331
Testing 333
Modern Quality Management 335
Deming and His 14 Points for Management 336
Juran and the Importance of Top Management Commitment to Quality 336
Crosby and Striving for Zero Defeets 337
Ishikawa's Guide to Quality Control 338
Taguchi and Robust Design Methods 338
Feigenbaum and Workers' Responsibility for Quality 338
Malcolm Baldrige National Quality Award 338
ISO Standards 339
Improving IT Project Quality 340
Leadership 340
The Cost of Quality 341
Organizational Influences, Workplace Factors, and Quality 343
Expectations and Cultural Differences in Quality 343
Maturity Models 344
Software Quality Function Deployment Model 344
Capability Maturity Model Integration 344
Project Management Maturity Models 345
Using Software to Assist in Project Quality Management 347
Chapter Summary 348
Quick Quiz 348
Quick Quiz Answers 350
Discussion Questions 350
Exercises 351
Running Case 352
Tasks 352
Key Terms 352
End Notes 355

Chapter 9 Project Human Resource Management 359

The Importance of Human Resource Management 360
The Global IT Workforce 360
Implications for the Future of IT Human Resource Management 361
What Is Project Human Resource Management? 363
Keys to Managing People 365
Motivation Theories 365
Maslow's Hierarchy of Needs 365
Herzberg's Motivation-Hygiene Theory 366
McClelland's Acquired-Needs Theory 367
McGregor's Theory X and Theory Y 368
Thamhain and Wilemon's Influenae and Power 368
 Table of Contents xv

Govey and Improving Effectiveness 370

Developing the Human Resource Plan 373
Project Organizational Charts 374
Responsibility Assignment Matrices 376
Staffing Management Plans and Resource Histograms 377
Acquiring the Project Team 378
Resource Assignment 379
Resource Loading 381
Resource Leveling 383
Developing the Project Team 384
Training 385
Team-Building Activities 386
The Myers-Briggs Type Indicator 386
The Social Styles Profile 388
DISC Profile 389
Reward and Recognition Systems 390
Managing the Project Team 390
Tools and Techniques for Managing Project Teams 391
General Advice on Managing Teams 393
Using Software to Assist in Human Resource Management 394
Chapter Summary 396
Quick Quiz 397
Quick Quiz Answers 399
Discussion Questions 399
Exercises 399
Running Gase 400
Key Terms 401
End Notes 402

Chapter 10 Project Communications Management 405

The Importance of Project Communications Management 406
Keys to Good Communications 408
Focusing on Group and Individual Communication Needs 409
Formal and Informal Methods for Communicating 410
Distributing Important Information in an Effective and Timely Manner 411
Setting the Stage for Communicating Bad News 412
Determining the Number of Communication Channels 412
Flanning Communications Management 414
Managing Communications 416
Using Technology to Enhance Information Creation and Distribution 416
Selecting the Appropriate Communication Methods and Media 417
Reporting Performance 420
Controlling Communications 420
Suggestions for Improving Project Communications 421
Developing Better Communication Skills 421
Running Effective Meetings 423
Using E-Mail, Instant Messaging, Texting, and Collaborative Tools Effectively 424
Using Templates for Project Communications 427
Using Software to Assist in Project Communications 430
xvi Table of Contents

Chapter Summary 433

Quick Quiz 433
Quick Quiz Answers 435
Discussion Questions 435
Exercises 435
Running Case 436
Key Terms 437
End Notes 437

Chapter 11 Project Risk Management 439

The Importance of Project Risk Management 440
Flanning Risk Management 447
Common Sources of Risk on IT Projects 448
Identifying Risks 452
Suggestions for Identifying Risks 453
The Risk Register 455
Performing Qualitative Risk Analysis 457
Using Probability/Impact Matrixes to Calculate Risk Factors 457
Top Ten Risk Item Tracking 459
Performing Quantitative Risk Analysis 461
Decision Trees and Expected Monetary Value 461
Simulation 463
Sensitivity Analysis 405
Flanning Risk Responses 467
Controlling Risks 469
Using Software to Assist in Project Risk Management 469
Chapter Summary 471
Quick Quiz 472
Quick Quiz Answers 474
Discussion Questions 474
Exercises 474
Running Case 475
Key Terms 476
End Notes 478

Chapter 12 Project Procurement Management 479

The Importance of Project Procurement Management 480
Flanning Procurement Management 483
Types of Contracts 485
Tools and Techniques for Flanning Procurement Management 489
Make-or-Buy Analysis 489
Expert Judgment 490
Market Research 490
Procurement Management Plan 491
Statement of Work 491
Procurement Documents 493
Source Selection Criteria 494
Conducting Procurements 495
Controlling Procurements 497
Closing Procurements 499
 Table of Contents xvii

Using Software to Assist in Project Proeurement Management 499

Chapter Summary 502
Quick Quiz 503
Quick Quiz Answers 504
Discussion Questions 504
Exercises 505
Running Gase 505
Key Terms 506
End Notes 507

Chapter 13 Project Stakeholder Management 509

The Importance of Project Stakeholder Management 510
Identifying Stakeholders 512
Flanning Stakeholder Management 516
Managing Stakeholder Engagement 516
Controlling Stakeholder Engagement 519
Using Software to Assist in Project Stakeholder Management 522
Chapter Summary 524
Quick Quiz 524
Quick Quiz Answers 526
Discussion Questions 526
Exercises 526
Running Gase 527
Key Terms 527
End Notes 527

Appendix A Guide to Using Microsoft Project 2010 AI

Introduction A.2
New Features of Project 2010 A.3
Before You Begin A.4
Overview of Project 2010 A.5
Starting Project 2010 and Using the Help Feature A.5
Main Screen Elements A.7
Project 2010 Views A ll
Project 2010 Filters A.15
Project Scope Management A.17
Creating a New Project File A.17
Developing a Work Breakdown Structure A.20
Creating Summary Tasks A.22
Numbering Tasks A.23
Saving Project Files with or without a Baseline A.24
Project Time Management A.24
Manual and Automatic Scheduling A.24
Entering Task Durations A.25
Establishing Task Dependencies A.30
Changing Task Dependency Types and Adding Lead or Lag Time A.33
Gantt Charts A.36
Network Diagrams A.38
Critical Path Analysis A.40
XVIII Table of Contents

Project Cost Management A.42

Fixed and Variable Cost Estimates A.43
Entering Fixed Costs in the Cost Table A.43
Entering Human Resource Costs A.43
Adjusting Resource Costs A.44
Assigning Resources to Tasks A.45
Assigning Resources Using the Entry Table A.45
Assigning Resources Using the Resource Tab A.46
Assigning Resources Using the Split Window A.47
Viewing Project Cost Information A.49
Baseline Plan, Actual Costs, and Actual Times A.51
Establishing a Baseline Plan A.51
Entering Actual Costs and Times A.52
Earned Value Management A.57
Project Human Resource Management A.60
Resource Calendars A.60
Resource Histograms A.61
Resource Leveling A.63
Using the New Team Planner Feature A.65
Project Communications Management A.66
Common Reports and Views A.66
Using Templates and Inserting Hyperlinks and Comments A.68
Discussion Questions A.72
Exercises A.72
Exercise A-l: Homework Assignments A.72
HW1: Project 2010, Part 1 (100 points, 25 points for each item) A.72
HW2: Project 2010, Part 2 (100 points, 25 points for each item) A.73
Exercise A-2: Web Site Development A.73
Exercise A-3: Software Training Program A.75
Exercise A-4: Project Tracking Database A.76
Exercise A-5: Real Project Application A.79

Appendix B
(Available on GengageBrain.com)

Appendix C
(Available on CengageBrain.com)
Glossary Gl
Index 1.1