project management assurance

Infotec: The Business of Technology – Apply ITApril 14th, 2010

Project Management AssuranceProject Management AssuranceDr. Deepak KhazanchipDawn Owens

Infotec 2010 – April 14th

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Infotec 2010 April 14th

IntroductionsIntroductions

• Dr Deepak Khazanchi• Dr. Deepak Khazanchi▫ Associate Dean for Academic Affairs and Professor of

Information Systems and Quantitative Analysis in the College of Information Science & Technology at the University of Nebraska in Omaha.

D O• Dawn Owens▫ Assistant Professor at Bellevue University in the College of

Information Technology teaching various IT related topics. She is Information Technology teaching various IT related topics. She is also a PhD in IT student in the College of Information Science and Technology at the University of Nebraska at Omaha working under the supervision of Professor Khazanchiunder the supervision of Professor Khazanchi.

© Dr. Deepak Khazanchi and Dawn Owens. May not be reproduced without permission.

Infotec 2010

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April 14th, 2010


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AgendaAgenda

• Introduction• Introduction• Project Management Assurance▫ Definition▫ Definition▫ Model of PMA▫ Risk and Controls▫ Risk and Controls▫ Performing PMAQuestions• Questions

• Feedback


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BackgroundBackground

• Two out of three IT projects fail to deliver • Two out of three IT projects fail to deliver planned outcomes resulting in cost overruns, schedule delays and unmet requirements schedule delays, and unmet requirements. (Standish 2004)

• Project failures cost the US economy at least $24 billion and possibly as high as $75 $24 billion and possibly as high as $75 billion between years 2000 and 2005. (Charatte 2005)(Charatte, 2005)



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Recommended Effort for Successful Outcomes (PMI Best Practice)

Initiation, 5%Closing, 5% Initiation, 5%

l iPlanning, 25%

Execution, Monitoring & Controlling,

15%

,50%


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© Dr. Deepak Khazanchi and Dawn Owens. May

Percent of Effort Dedicated to Project not be reproduced without permission.

Activities• A recent survey says -y y▫ Average of 7% of project

management effort is dedicated to risk dedicated to risk management planning

▫ Average of 6.5% of project management effort is management effort is dedicated to risk management assessment.


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PM Maturity by Knowledge AreaPM Maturity by Knowledge Area4

2.53

3.5

11.5

2

Engineering/Constr.

l i i

Lowest Rating

00.5 Telecommunications

Information Systems


Source: Ibbs & Kwak, 2000

Infotec 2010

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April 14th, 2010

“A little risk management saves a lot of fan cleaning.”Mike Harding RobertsMike Harding Roberts

Successful project managers are especially good risk Successful project managers are especially good risk managers.

Boehm (1989)

“If you don’t actively attack the risks, they will actively attack you ” attack you.

Gilb (1989, p. 54)


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Benefits from Software Risk Managementg

80%90%

den

ts

40%50%60%70%80%

y R

esp

ond

0%10%20%30%4

of S

urv

ey%

o


Source: Kulik and Weber, 2001


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CIOCIOs are

IT $CIOs are

increasingly held responsible for IT

Projects$

generating a positive return on IT project in estments project investments.

Great need for devising ways to assure successful project


assure successful project outcomes.


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© Dr. Deepak Khazanchi and Dawn Owens. May not be d d ith t i iInfotec 2010 April 14threproduced without permission.

Characteristics of IT ProjectsInadequate

Characteristics of IT ProjectsInadequate

risk assessment

Globally Uncertainty

Globally distributed

teamsThese characteristics can lead to

failed IT projects and projects that are difficult to manage

L k f

are difficult to manage.

IT Projects

Complexity

Lack of processes to

assess project f

jperformance


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Project AssessmentProject Assessment

• Continual project assessment can • Continual project assessment can ▫ lead to an increased chance of achieving success

because

▫ potential risks can be identified and addressed before it is too late.



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What is Assurance?

d d d d Set of services or activities

conducted by an

independent organization

to review internal control

mechanisms

reduced risk and

improved qualityq y



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© Dr. Deepak Khazanchi and Dawn Owens. May not be d d ith t i iInfotec 2010 April 14th

Project Management Assurance (PMA) Process

reproduced without permission.

Project Management Assurance (PMA) Process

Formal Definition:Formal Definition:A set of assurance activities that are integrated with the IT (information technology) project with the IT (information technology) project management lifecycle. An internal group, independent of the project team performs the independent of the project team, performs the assurance activities, which includes continual review of control mechanisms to assure review of control mechanisms to assure adherence to standards, best practices and procedures procedures.


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PMA ProcessPMA Process

While Assures successful

Improving lit

While adhering to the stated

h d l

project outcomes by

Assessing internal l

quality schedule and budget constraints

by

Reducing Risk

controlsconstraints

Reducing Risk



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Model of PMA


Model of PMA


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Project Management Lifecycle in IT Projects


• Considers each of the following eight phases in

Project Management Lifecycle in IT Projects

• Considers each of the following eight phases in an IT project’s lifecycle:▫ 1) initiation 2) planning 3) analysis 4) design ▫ 1) initiation, 2) planning, 3) analysis, 4) design,

5) development, 6) testing, 7) implementation, and 8) closingand 8) closing

• Each phase requires specific • Each phase requires specific ▫ inputs, outputs, controls, and identification of

risksrisks.


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Continual PMA Activitiesreproduced without permission.

Feedback Loop

t on

Feedback Loop

Initi

atio

n

Plan

ning

Ana

lysi

s

Des

ign

evel

opm

ent

Test

ing

lem

enta

tio

Clo

singInputs

&Outputs

Inputs &

Outputs

Inputs &

Outputs

Inputs &

Outputs

Inputs &

Outputs

Inputs &

Outputs

Inputs &

Outputs

I P A

De

Imp

risks & risks & risks & risks & risks & risks & risks & risks &risks & controls

risks & controls

risks & controls

risks & controls

risks & controls

risks & controls

risks & controls

risks & controls

Project Management Assurance


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Risks and Controls


Risks and Controls

• Identify risks and controls in each phase of the • Identify risks and controls in each phase of the project lifecycle.

▫ Continuously monitor and control those risks

To proactively identify and respond to problems with enough time to avoid criseswith enough time to avoid crises.


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InitiationImproper feasibility analysis or business case

Example Risk Factors

Pl i

Improper feasibility analysis or business case.Incomplete or inaccurate project cost estimate.Lack of executive commitment.Poorly defined scope statement PlanningPoorly defined scope statement.Failure to gain user involvement.Incomplete or misunderstood requirements.

j l i ExecutionPoor project planning.Insufficient resources.Lack of adherence to design standards.Incomplete test planning.Lack of a proper test environment.Poor communication.

Monitoring and Control

Failure to manage user expectations.Lack of project metrics.No post project review Closing

Phases in Project Lifecycle

No post project review.


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InitiationP j Ch l i

Example Controls

Pl i

Project Charter completion

Executive signoff

Stakeholder verificationPlanning

Validate estimates

Development of Risk Management Plan

f b l f b lExecution

Verify requirements, ensure testability & feasibility

Adhere to Software Development Plan

Assure adequate testing environment

Assure management and user involvement

V if th t th Ch C t l Pl i i l

Monitoring and Control

Verify that the Change Control Plan is in place

Assure adequate status reporting

Project closing activities including lessons learnedClosing

Phases in Project Lifecycle

Project closing activities, including lessons learned


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Performing PMAe o g MDefine

standardsValidate controls standardscontrols

Independent

Adh Random

pPMA Audit

Team (E l Adherence

to standards

Random or

scheduled audits

(External; Objective)

Identify deviations

f from standards


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© Dr. Deepak Khazanchi and Dawn Owens. May

When I go out to check on a software development [project] the answers I get sound like ‘We’re frantically busy

not be reproduced without permission.

g f y yweaving this magic cloth. Just wait a while and it’ll look terrific.’ But there’s nothing I can see or touch, no numbers

l i k i l h hi ’I can relate to, no way to pick up signals that things aren’t really all that great. And there have been too many people I know who have come out at the end wearing a bunch of I know who have come out at the end wearing a bunch of expensive rags or nothing at all.” (Boehm, B. W., 1973)”

Project audits and reviews included in our PMA framework can provide positive reinforcement for projects that are on track and early warning signals for those that are not!


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SummarySummary

• PMA differs from traditional project • PMA differs from traditional project management and development methodologies by focusing on project risks by focusing on project risks.

• Internal project controls are used to assure project risks are continuously identified and project risks are continuously identified and assessed throughout the project lifecycle.



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Feedback


Feedback

• Please take a few minutes to complete the • Please take a few minutes to complete the feedback form.


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References


References• Charette, R. N. Why Software Fails. IEEE Spectrum 2005; 42.

ll ff ff f l• Gill, N. S. Factors Affecting Effective Software Quality Management Revisited. ACM Sigsoft Software Engineering Notes 2005; 30 (2):1-4.

• Glass R L Challenges of Complex IT Projects Communications of • Glass, R. L. Challenges of Complex IT Projects. Communications of the ACM 2006; 49(11):15-18.

• Ibbs, C. William and Young Hoon Kwak . Assessing Project Management Maturity, Project Management Journal, March 2000.Management Maturity, Project Management Journal, March 2000.

• Keil, M., Cule, P., E., Lyytinen, K., Schmidt, R. C. A Framework for Identifying Software Project Risks. Communications of the ACM 1998; 41(11):76-83.

• Khazanchi, D. , Sutton, S. Assurance Services for Business-to-Business Electronic Commerce: A Framework in Implications. Journal of the Association for Information Systems 2001; 1(11). K lik P and Weber C Soft are Risk Management Practices • Kulik, P. and Weber, C. Software Risk Management Practices –2001, KLCI Research Group, August 2001.

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