Managing Information Technology

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THE OVERALL GOALS OF SYSTEMS PROJECTS ARE TO IMPLEMENT A QUALITYsystem that meets the needs of the targeted

business and its users, on schedule and within budget. Achieving these project goals requires not only an

appropriate systems methodology (e.g., the SDLC, prototyping, “agile” approaches, and purchasing life cycle

discussed in the previous chapters) but also “best practices” for managing projects. Frequently cited reports by the

Standish Group suggest that large portions of application development project costs are “wasted” because

companies fail to utilize effective project management practices. This organization’s 2009 report suggests that as

many as 44 percent of IT projects are delivered late, over budget, and/or did not provide the required features or

functionality (Standish Group, 2009).

The Project Management Institute (PMI, http://www.pmi.org.), an international society of project management

professionals established in 1969, has developed a globally recognized standard for managing projects. Released in

late 2008, the 4th edition of the Guide to the Project Management Body of Knowledge (PMBOK)details nine

knowledge areas certified by the PMI (see Figure 11.1). Four of these have traditionally been associated with project

management: scope, time, cost, and human resource management. The five other competency areas have been

developed more recently: managing project communications, procurement (including contract management),

quality management, risk management, and integration management. Managers of IT projects therefore need to

have competencies in these nine project management knowledge areas, as well as be skilled in unique techniques

and methods for managing IT projects in particular.

In today’s fast-changing business environment, IT project work also needs to stay in synch with changes in

the business. Although an IT project has been approved, and resources have been committed to it, unanticipated

events may also need to be addressed. These range from new corporate initiatives that affect a company’s

products or customer base, as well as external events such as unexpected changes in national or international

laws, political events, natural disasters, or other environmental events. Reevaluating IT projects in light of such

events is the responsibility of both business and IT managers, and many organizations have implemented a

committee of senior business leaders to approve, prioritize, and oversee such projects from an IT portfolio

managementperspective.

Chapter 11 IT Project Management

Chapter 11 IT Project Management

Project scope Project time Project cost

Human resources

Project communications Procurement

Quality management Risk management

Project integration

FIGURE 11.1 Nine Project Management Knowledge Areas (PMI)