GS BUSA 497 CH 7 Project Management
The Gartner Group, for example, identifies Seven Best Practices for an Effective Project Management Office (PMO)
1. Acquire the Right People, Knowledge, Skills, and Collaborative Behaviors. 2. Identify and Execute High-Impact, High-Visibility Initiatives. 3. Report on What the Business Really Cares About. 4. Build a Framework that Shows How the PMO Aligns with Strategic Enterprise Objectives. 5. Provide Senior Managers with Simple, Unambiguous Information. 6. Highlight the PMOs Achievements. 7. Evolve the PMO to Support Bimodal IT and Digital Business.
5 Key Factors for Effective PM
1. Project tasks are adequately planned and defined.- Project Planning 2. Resources are available and efficient. - Resource Management 3. Project is completed on time, within budget, and follow quality standards - Oversight and Tracking 4. Effective use of tools - Project Management Tools 5. Project Manager Recognition - Certification
Effectively controlling projects requires a disciplined approach to their various life cycles: Overall, they relate to having the right people involved, following standard project management processes, and using a set of project management tools for effective execution.
1. project initiation, 2.planning, 3. execution, 4. monitoring and controlling, 5. and closing.
Project Management Certification The PMP Certification, a globally recognized certification offered by the PMI, validates the project manager's knowledge, experience, and skills in bringing projects to successful completion.† The PMP Certification evaluates candidates in five essential PMBOK process groups that outline the needed skills and competencies for managers to lead projects to successful solutions. These five project management areas or process groups include*: 1. Initiating—Involves the processes, activities, and skills needed to effectively define the start of a project. These would involve setting permits, authorizations, initial work orders, and clear phases for work to be completed, as well as initializing teams and having an approved budget before the project begins.
2. Planning—Process group that defines the scope of the project; sets strategic plans to maximize workflow; identifies project goals and expectations; assembles priority lists and plan team needs; and delineates the project infrastructure necessary to achieve desired goals based on timelines and budgetary constraints. 3. Executing—Process group with activities that involve managing teams effectively (i.e., addressing team concerns or other complex situations) while coordinating expectations and reaching benchmark goals on time and within budget. 4. Monitoring and Control—Involves processing change orders, addressing on-going budget considerations, and mitigating unforeseen circumstances that may impair a team's ability to meet initial project goals and expectations. 5. Closing—This process group relates to delivering a project to a successful close (i.e., on time and within budget). Good closure brings great reviews and can increase future word of mouth referrals.
LEARNING OBJECTIVES 1. Explain what project management is and list best practices for effective project management. 2. Discuss project management standards, leading authorities, and methodologies frequently used. 3. Describe key factors for effective project management.
4. Explain what program management is. 5. Discuss the role of the auditor in project management. 6. Explain the significance of big data in project management, and highlight the essential skills needed for project managers to effectively manage big data projects.
4. Build a Framework that Shows How the PMO Aligns with Strategic Enterprise Objectives.
A framework that articulates alignment between the PMOs and the continuously evolving organizational goals, milestones, and direction is essential to support the value of the PMO. • PMO may be a separate division or part of the same unit (dedicated to that group)
Traditional Waterfall Methodology The Waterfall method is used often in large-scale software development projects where thorough planning and a predictable process are vital. Use case: Large scale project where the outcome is known • Very rigid • Structured
A sequence of phases in which the output of each phase becomes the input for the next Often referred to as the classic approach, the Traditional project management methodology works well as it simply evaluates the various project tasks, and provides a process to manage and monitor the completion of those tasks.
methodology
A system of practices, techniques, procedures, and rules used by those who work in a discipline.
Australian Institute of Project Management (AIPM)
AIPM is the second-largest member of the International Project Management Association (IPMA).
Audit Plan The audit plan will detail the objectives and the steps to fulfill the audit objectives. • begins with a preliminary analysis of the control environment by reviewing existing standards and procedures. ○ identify the organization's strategy and the responsibilities for managing and controlling development. ○ assess the adequacy of the control environment for managing projects ○ identifying project risks and evaluating plans to mitigate and manage those risks,
Auditing can provide management with an independent review of project deliverables like project charter, tasks list, schedule, and budget. Auditing may also review the project tasks list and budget to verify that all project tasks are defined and all milestones have a deliverable.
3. Oversight and Tracking • Monitor progress and track deviations from plans • Ensure projects follow quality standards • Ensure projected benefits are realized • Document procedures and results
Completed on time and within budget and follows quality standards Tasks expand into project, generally due to waiting to the last minute to do items (procrastination) • Don't wait for due date to let people know that things are broken or need more time, etc. At end do a lessons learned
7. Evolve the PMO to Support Bimodal IT and Digital Business.
Effective PMOs must continuously reassess and adapt their service model, processes, and capabilities to ensure consistency with current goals, objectives, direction, and needs of the organization. PMOs that were focused on cost reduction and efficiency several years ago, may now need to shift gears to flexibility and delivery speed, for example.
Project Management Tools For enterprise-wide project development and tracking, for example, there are several functions that can be automated and integrated like: ◾ Project task planning and tracking ◾ Resource and time tracking ◾ Labor hour tracking ◾ Time capture and billing ◾ Time reporting ◾ Project budgeting ◾ Project communication ◾ Project documentation
Enterprise-wide project management tools allow for tracking people working on multiple projects and aid in identifying cross-project dependencies and issues. • integrate tasks, resources, and costs into a single repository Additional project management tools are • task sheets used to allocate time (actual versus forecasted), assign personnel, and log the completion date and cost. In this way, the auditor and management can obtain a more detailed account of the time and money spent on a project and can track what is being worked on and what is finished.
The scope of a project management audit can include • evaluation of the administrative controls • specific deliverables to validate that the project is following established standards
If the auditor feels that his/her knowledge, skills, and abilities are not current with the technologies being applied, he or she should request preliminary training on the technology prior to being assigned.
The complexity of today's projects virtually requires the use of tools such as
Microsoft Project and Deltek's Open Plan
Key Factors for Effective Project Management Planning Effective project planning ensures that project tasks are adequately defined, resources are available and used efficiently, quality is maintained, and the project is completed on time and within budget. Resource Management The challenge for the project manager here is making sure that: ◾ Appropriate governance is in place. ◾ Right resources, such as money, people, and facilities are available at the right time. ◾ The project has a work breakdown structure that is sufficiently detailed to carry out. ◾ Project tasks are prioritized to prevent interference with other projects' due dates. ◾ Deliverables are produced successfully and in a timely fashion. ◾ Management is being communicated with and sufficiently involved. ◾ The end user is involved and takes delivery of the agreed-to-project results
Oversight and Tracking O&T helps ensure that a project lives up to its commitments. • identify projects that are running astray • continues after the project is implemented to ensure that all business benefits promised when the project was approved are realized • The objective of O&T is to provide adequate visibility into actual progress so that management can take effective actions when the project's performance deviates significantly from the plans.
3. Report on What the Business Really Cares About.
PMOs should communicate and report on the status of relevant projects, portfolios, and programs in an effective and consistent manner. Such status should be systematically, forthrightly, and invariably reported to provide organizational leadership with appropriate information necessary to support effective decision-making.
Projects IN Controlled Environments (PRINCE2) A project management methodology developed in the United Kingdom that defines 45 separate sub processes and organizes these into eight process groups Use Case: More common outside of U.S.
PRINCE2 divides projects into multiple manageable and controllable phases, each with their own plans and processes to follow. PRINCE2 assures business justification; defines organization structure for the project management team (e.g., roles and responsibilities); and provides flexibility at all levels of the project. useful for small and large organizations. There is a PRINCE2 certification which is process- and project-focused. The certification is administered in the United Kingdom by APMG-International Examination and Accreditation Institute.
Project vs. Program Management Project Management: • Focused on specific deliverables or set of deliverables • Plan and control based on deliverables
Program Management • Coordinate multiple, related projects • Bring "all pieces" of major projects together (communication, program deliverables, etc.) • Minimize cost overruns, delays, and cancellations • Keep vision of the organization
Program Management The process required to coordinate multiple related projects with the purpose of delivering business benefits of strategic importance.
Program management brings all the pieces of a major program together. It does so by: ◾ Defining a program management framework ◾ Creating a program management office ◾ Setting staffing requirements, processes, and metrics ◾ Establishing consistent project management practices ◾ Implementing technology for managing projects
PMI PMBOK Sections Foundational Standards • Kept fairly up to date • As techniques and new ideas drive success stories - these get added to the foundational standards. • Breathing / Living documents and standards; including guides Practice Standards • Tools techniques, processes and procedures in PMBOK • Ex. Project Estimation ○ Pricing for a project ○ Scheduling ○ Work assignment ○ Risk management Practice guides - provide supplemental information for how to apply standards How to identify project requirements How to make sure you are aligned with the business objectives
Project Management Terms Glossary of frequently used terms • Helps to have a set of standardized terms
Systems Development Life Cycle (SDLC) The traditional methodology used to develop, maintain, and replace information systems. • Fairly common • Very strict documentation guidelines
Project management methodology mostly used in software development projects that describes a process for planning, creating, testing, and deploying an information system. SDLC also heavily emphasizes on the use of documentation and has strict guidelines on it.
Risk Assessment Process risks • negative organizational climate as well as • the lack of strategic direction, • project management standards, and • formal project management process
Project risks • resource unavailability, • budget overruns, • project complexity and magnitude, • inexperienced staff, and the • lack of end-user involvement • management commitment;
5. Provide Senior Managers with Simple, Unambiguous Information.
Senior Managers are very busy people. PMOs should concentrate on providing them with relevant, accurate, and timely information to support effective decision-making. This type of informative reporting also avoids disconnection between expectations and perceived reality. • Don't drown in detail
Audit Involvement Level Step 1— Complete Risk Assessment • Is it a risky project? Why? • Examples when projects are risky: 1. complex system being developed 2. inexperienced staff 3. lack of management commitment 4. no process/methodology in place
Step 2 — Develop Audit Plan, schedule, and procedures to achieve audit objectives • identify objectives and deliverables • identify project risks • identify controls to mitigate/manage risks • potential controls relate to: • management support end-user commitment (trainings)
6. Highlight the PMOs Achievements.
Success PMO stories, such as completion of projects on time and under budget and project contribution in solving a significant business problem, among others, should be shared, encouraged, and promoted throughout the organization.
Agile Project Management (APM) APM's key features involve short-termed delivery cycles (or sprints), agile requirements, dynamic team culture, less restrictive project control, and emphasis on real-time communication. APM is most commonly used in software development projects typically a good choice for relatively smaller software projects or projects with accelerated development schedules. • no official start / end Use Case: may not know the end product
The APM methodology is used on projects that need extreme agility in requirements APM focuses on adaptability to changing situations and constant feedback. In other words, with APM there is no clearly defined end product at the beginning stage.
Project management has often been described as part art and part science.
The art side involves the human element, the experience project managers bring to the project, the support they can muster from their management, and, a critical point, how project managers relate to the organization and their willingness to provide the right level of support to make the project succeed. The second part of the equation, the science side, is somewhat easier to deal with. The project manager should put in place the right project governance and project management life cycle (PMLC), and integrate these two elements with the appropriate project management methodology.
2. Identify and Execute High-Impact, High-Visibility Initiatives.
The focus here is on identifying and improving delivery of critical, highly visible projects to attract the attention of stakeholders and ensure their commitment and support for future PMO-driven initiatives. • PMO may not be in the driver seat as there could be steering committees.
Project Management: Auditor's Role The auditor's role in project management depends on the organization's culture, maturity of the information systems function, and philosophy of the auditing department. • provide early identification of issues that may hinder a timely and within-budget implementation • Auditor involvement likely ensures well-controlled projects
The objective of a project management audit is to provide an early identification of issues that may hinder successful implementation of an application that is controlled, documented, and able to be operated by a trained user community.
IT project management
The processes and techniques used in the beginning-to-end development of software or other systems.
1. Acquire the Right People, Knowledge, Skills, and Collaborative Behaviors.
This is a key characteristic of a highly effective PMO that allows project managers to place emphasis on hiring only resources that will best fit the project. • If you bring in outside help keep in mind if you need ongoing support.
4. Project Management Tools Use/implement tools for: • Task planning and tracking . Time tracking • Labor hour tracking • Time capture and billing • Time reporting • Project budgeting Project communication & documentation
Tools cannot fix a broken process
Recommendations are often rejected because of
a time and cost factor
Global Alliance for Project Performance Standards (GAPPS)
a unique alliance of government, industry, professional associations, national qualification bodies, and training/academic institutions that have been working together since 2003.
Big Data Project Management Challenges of big data include • analysis, • capture, • data curation, • search, • sharing, • storage, • transfer, • visualization, • querying, as well as • updating
challenges for auditors include the limited access to audit relevant data; scarcity of available and qualified personnel to process and analyze such particular data; and the timely integration of analytics into the audit
Project management tools allow the user to Exhibit 7.2 illustrates an example of what a project plan for the development of a financial application may look like.
define tasks and dependencies, and track progress. A project plan should include interim milestones and regular review of project deliverables. The objective of project planning is to be able to predict the project duration, resources required, and costs.
International Project Management Association (IPMA)
founded in 1965, is the world's first project management association established to advance the project management profession's achievements in project and business success
Analysis of significant amounts of data is crucial to
identify patterns and trends, as well as to create efficient and effective processes and solutions. Big data analyses allow project managers to pinpoint which processes, solutions, or technologies provide the best return or competitive advantage for the organization. Exhibit 7.4 Big Data Essential Skills for Project Managers
The purpose of project management is to
identify, establish, coordinate, and monitor activities, tasks, and resources for a project that is consistent with the goals and objectives of the organization. • Ensures Successful delivery of projects (on time, on budget, and with full functionality) • Considered a KEY control for Auditors and the Organization
Project management applies skills, tools, techniques, and, most importantly,
knowledge, in order to successfully initiate, plan, execute, manage, and complete projects. Knowledge is typically in the form of standards, guidance, and methodologies.
The level of risk may be a function of the
size of the project, scope of organizational change, complexity of the application system being developed, the number of people involved, and the importance of the project to the organization.
Communication of Scope of Involvement and Recommendations • communicate is the auditor's involvement role in the project management audit • If a good relationship between these groups does not exist, information might be withheld from the auditor ○ he or she must remain independent
the auditor will be making control recommendations. • always consider the value of the control recommendation versus the cost of implementing such recommendation • Recommendations should be specific. They should identify the problem, not the symptom, and allow for the proper controls to be implemented and tested.
Auditors' Tasks in Project Development
• Gain the support and cooperation of the users and IT professionals • Assess methodology used • Check PM tools for proper usage • Perform phase reviews • Assess readiness for implementation • Present findings to management Maintain independence (remain objective)
5. PM Certification and recognition • PMP Certification: • Globally-recognized certification offered by the PMI • Validates project manager's knowledge, experience, and skills in bringing projects to Successful completion • Certified PMs = higher salaries, better reputation, credibility, opportunities
• PMP Can be a barrier if you don't have a particular certification but does not guarantee a job
2. Resource Management Ensures: • Right resources available at right time • Breakdown of work is sufficiently detailed • Project tasks are prioritized • Deliverables are produced gn time • Deliverables conform to requirements Management/users are aware and involved
• People are matched properly • Proper workload • Availability and allocated
Project managers employ methodologies for the design, planning, implementation, and achievement of project objectives. no project management methodology can meet the objectives of all business organizations.
• Traditional/Waterfall, • Agile, • Systems Development Life Cycle, • Projects IN Controlled Environments (PRINCE2), • Portfolio, • Program, and Project Management, • Critical Chain/Path, • Adaptive, • Projects integrating Sustainable Methods (PRiSM), • and the Crystal Method • Scrum, • Kanban, • Extreme Programming (XP),
Controls over managing projects that satisfy organizational business requirements typically consider:
◾ Business management sponsorship of project ◾ Project management capabilities ◾ User involvement ◾ Task breakdown, milestone definition, and phase approvals ◾ Allocation of responsibilities ◾ Rigorous tracking of milestones and deliverables ◾ Budgets and balancing internal and external resources ◾ Quality assurance plans and methods ◾ Program and project risk assessments ◾ Transition from development to operations
Project Management Institute (PMI) 1969 Project Management Body of Knowledge (PMBOK)
◾ Foundational standards ◾ Practice standards Describe the tools, techniques, processes, and/or procedures identified in the PMBOK or other foundational standards ◾ Practice guides ◾ Lexicon of project management terms
The following list highlights some of the key tasks the auditor may perform during a project's development: To determine the level of involvement • first complete a risk assessment of the project development process • develop an audit plan that includes a schedule for the specific review points tied to the project schedule
◾ Gain the support and cooperation of the users and IT professionals ◾ Check project management tools for proper usage ◾ Perform project reviews at the end of each phase ◾ Assess readiness for implementation ◾ Present findings to management ◾ Maintain independence to remain objective
Other common project management standards and guidance include:
◾ IEEE Standard 1490-2011: IEEE Guide. Adoption of the Project Management Institute Standard. A Guide to the PMBOK ◾ ISO 21500:2012. Guidance to Project Management ◾ ISO 10006:2003 Guidance. Quality Management Systems and Guidelines for Quality Management in Projects
Common features to look for when selecting a project management methodology include:
◾ Organizational goals, objectives, and direction ◾ Core values ◾ Project constraints ◾ Project stakeholders ◾ Project size • Cost of the project? • Ability to take risks? • Need for flexibility?
Microsoft Project Central, the Web-based companion to Microsoft Project, to exchange project information with the project team and senior management. Some of the main benefits and features of Microsoft Project include:
◾ Personal Gantt chart. Renders Gantt views such as those in Microsoft Project to outline each team member's own tasks across multiple projects. ◾ Task delegation. Once assigned by the project manager, tasks may be delegated from team leaders to team members or from peer to peer. The delegation feature can also be disabled if desired. ◾ View nonworking time. Team members can report nonworking time to the project manager, such as vacation or sick leave, and also report work time that cannot be devoted to the project. ◾ Database performance. Gets improved performance and access to data with changes to the Microsoft Project database. ◾ Network diagram. Customizes network diagrams with new filtering and layout options, increased formatting features, and enhanced box styles.
Because of various audit projects, auditors develop an overall knowledge of the organization and establish relationships with multiple groups and departments, including: These relationships are helpful in a software development project for making sure the information is flowing between the development team and other functionaries.
◾ Primary users ◾ Secondary users ◾ Vendors and consultants ◾ Programmers and analysts ◾ Database administrators ◾ Testing teams ◾ Computer operations ◾ Interfacing systems ◾ Implementation team ◾ Production support and maintenance programmers
