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Lecture 19

Chapter 10

A Portfolio Approach to ManagingIT Projects

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IT Disasters are still common

Companies fail to realize risk of project Multiple projects lead to larger aggregate risk

Different projects require different management

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Sources of Implementation Risk

Project Size Experience with Technology

Requirements Volatility

See fig 10.1

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Fig 10.1 Effect of Adding Risk Factors

on Project Risk

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Project Categories and Degree of Risk

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Risk Assessment

Figure 10.3 Risk profile questionnaire Higher risk score, higher management approval

required

Repeated several times throughout project Different perspectives on risk expectation can

lead to disaster

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Project Implementation Dip

Most projects dont go smoothly all the way New system going live common point

Expectations not always realistic

Short term downward shift may be necessary

All happens in middle of business cycle and

worker turnover

Need to focus on end goal to get through value

of change when people are complaining

Ideally see it before it comes and get people

ready

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Fig 10.4 Expectations vs. reality

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Portfolio Risk

Multiple projects can add or reduce risk Low-risk not always good

All high-risk is vulnerable

Identify risks in all projects, then considercombined portfolio of risks

See fig 10.5

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Fig 10.5 Risk and Return Distribution

for Portfolio of Projects

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Project Management

No single correct plan Management Tools

External integration tools

Internal integration tools Formal planning tools

Formal result controls

See table 10.1: Tools for project management

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Influences on Tool Selection

Low requirements volatility/low tech projects Easy to manage

Least common

PERT (program evaluation review technique)

CPM (critical path method)

Low requirements volatility/high tech projects

Difficult to manage

Eg. Converting mainframe system, developing web access Outputs well defined

Technical complexity drives characteristics of successful

manager

Formal planning not likely to add as much value

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Influences on Tool Selection (ctd)

High requirements volatility/low tech projects Involve users in design, development and implementation

Develop user support

Formal planning and control tools help

Close, aggressive management of external integration

Leadership from management not technologists

High Requirements Volatility/high-tech projects

Managers need technical expertise Ill-defined projects common

Formal tools useful once clarity is reached in direction

Cross effects of different factors becomes important

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Project Management

Relative Contribution of Management Tools Depends on specific project Results-oriented tools work in structured/formal environment

Depends on corporate culture

Emergence of Adaptive Project Management Methods Approaches to design, deployment, implementation and

investment that assume a need to gather information andlearn as one goes.

Not really effective universal methods yet

Software Development Life Cycles SDLC breaks down development into stages: Analysis and design

Construction

Implementation

Operation and maintenance

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Project Management (ctd.)

Adaptive Methodologies Quickly build rough preliminary version

Iterate through stages rather than finish every stage

Fast cycle through stages

Aim to deliver limited functionality fast

Require skilled staff

Adaptive Methods and change management

Intensely involve users in evaluating outcomes Strictly control migration of system features from

development, testing to production

Separating stages avoids major problems

P C i t d A ilit i

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Process Consistency and Agility in

Project Management

Balancing tension between process consistency andprocess agility

Tools useful one place shouldnt necessarily beapplied to everything

Success in balance often includes minimalformalization

Flow Understand interrelationships between projects

Completeness Keeping track of all tasks in project

Visibility Getting info on status of rest of project

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Survey