Chapter 2

The Project Management and Information

Technology Context

Instructor : Faisel Elramalli

Slides prepared by D. Atef Hamza
Projects Cannot Be Run in Isolation

Projects must operate in a broad organizational

environment.
Project managers need to use systems thinking:
➢Taking a holistic view of carrying out projects
within the context of the organization.
Senior managers must make sure projects continue
to support current business needs ( that’s why we
create the project!)
A Systems View of Project Management

 System: are sets of interacting components working within an

environment to fulfill some purpose.
For example, the human body is a system composed of many
subsystems the nervous system, the skeletal system, and so on.
 Systems approach: is a holistic and analytical approach to
solving complex problems that includes using:
➢ Systems philosophy: an overall model for thinking about
things as systems.
➢ Systems analysis: problem-solving approach
➢ Systems management: address business, technological,
and organizational issues before making changes to systems
A Systems View of Project Management

Using a systems approach is critical to successful project

management.
Top management and project managers must follow a
systems philosophy to understand how projects relate to
the whole organization.
They must use systems analysis to address needs with a
problem-solving approach.
They must use systems management to identify key
business, technological, and organizational issues related
to each project in order to satisfy key stakeholders and do
what is best for the entire organization.
Three Sphere Model for Systems Management
Organizational Culture

 Organizational culture is a set of shared assumptions,

values, and behaviors that characterize the functioning of
an organization
 Many experts believe the underlying causes of many
companies’ problems are not the structure or staff, but
the culture.
Characteristics of Organizational Culture

 People focus: The degree to which management decisions

take into account the effect of outcomes on people within
the organization.
 Group emphasis: The degree to which work activities are
organized around groups or teams, rather than individuals.
 Unit integration: The degree to which units or departments
within an organization are encouraged to coordinate with
each other
Characteristics of Organizational Culture

 Risk tolerance: The degree to which employees are

encouraged to be aggressive, innovative, and risk seeking.
 Reward criteria: The degree to which rewards, such as
promotions and salary increases, are allocated according
to employee performance
 Conflict tolerance: The degree to which employees are
encouraged to air conflicts and criticism openly.
Organizational structure
There are Three general classifications of organizational structures are
functional, project, and matrix.
 Functional organizational structure: is based on hierarchy, Functional
managers or vice presidents in specialties (engineering, manufacturing,
IT) report to the chief executive officer (CEO). Their staffs have specialized
skills in their respective disciplines.
Organizational structure
 project organizational structure also is hierarchical, but instead of
functional managers or vice presidents reporting to the CEO, program
managers report to the CEO. Their staffs have a variety of skills needed to
complete the projects within their programs.
Organizational structure
 matrix organizational structure represents the middle ground between
functional and project structures. Personnel often report both to a
functional manager and one or more project managers.
Matrix organizational structures can be strong, weak, or balanced,
based on the amount of control exerted by the project managers
The Importance of Top Management Commitment

 People in top management positions are key stakeholders in

projects.
 A very important factor in helping project managers lead
projects is the level of commitment and support they receive
from top management.
 Some projects have a senior manager called a champion
who acts as a key supporter for a project.
 Several studies cite executive support as one of the key
factors associated with all project success.
How Top Management Commitment Can
Help Project Managers

 Providing adequate resources

 Approving unique project needs in a timely manner.
 Getting cooperation from other parts of the organization.
 Mentoring and coaching on leadership issues.

Note: information technology project managers work best

in an environment in which top management values
information technology.
The Context of IT Projects

 IT projects can be very diverse in terms of size, complexity,

products, and resource requirements.
 people within the same information technology job function
often do not understand each other because each uses
different technology. (Java vs Python)
 change rapidly, A project team might be close to finishing a
project when it discovers a new technology that can greatly
enhance the project and better meet long-term business
needs.
Recent Trends Affecting IT Project Management

➢ Globalization: the digital revolution has made it possible

to interact almost with billions of other people across the
planet.
➢ Outsourcing: is when an organization acquires goods
and/or sources from an outside source.
➢ Virtual teams: a virtual team is a group of individuals
who work across time and space using communication
technologies.
Globalization

Issues:
Communications. (people, time, language, culture)
Trust!
Common work practices
Tools.
Suggestions:
Think global, but act local align and integrate stakeholders
at all project levels.
Use newer tools and technology.
Outsourcing

Organizations remain competitive by using

outsourcing to their advantage, such as finding ways
to reduce costs.

Project managers should become more familiar with

negotiating contracts and other outsourcing issues.
 Virtual Teams

A virtual team: is a group of individuals who work across time and

space using communication technologies.

Virtual team advantages:

 Lowering costs because many virtual workers do not require
office space or support beyond their home offices.
 Providing more expertise and flexibility by having team members
from across the globe working any time of day or night.
 Increasing the work/life balance for team members by
eliminating fixed office hours and the need to travel to work.
Virtual Teams Disadvantages

 Isolating team members who may not adjust well to

working in a virtual environment.
 Increasing the potential for communications problems,
hard to build relationships and trust.
 Increasing the dependence on technology to
accomplish work.