Project Management Best Practices Project Management Best Practices for Successful GIS Implementationsfor Successful GIS Implementations

Erik Shepard, Ph.D., PMPErik Shepard, Ph.D., PMPMiner & Miner, a Telvent companyMiner & Miner, a Telvent company

StatisticsStatistics

•• Only 16.2% of information technology Only 16.2% of information technology projects complete onprojects complete on--time, ontime, on--budget budget and with full scopeand with full scope

•• 31% of information technology projects 31% of information technology projects are cancelled before they are completedare cancelled before they are completed

•• Costing over $81 billion annuallyCosting over $81 billion annually•• GIS is an information technologyGIS is an information technology…… plusplus

GIS Is Even More Than An GIS Is Even More Than An Information SystemInformation System

•• In addition to standard challenges of In addition to standard challenges of implementing an information system, GIS implementing an information system, GIS has additional componentshas additional components–– Increased storage requirementsIncreased storage requirements–– Drawing performance and spatial query Drawing performance and spatial query

performance requirementsperformance requirements–– High degree of integration in a single High degree of integration in a single

GeoDatabaseGeoDatabase–– Long transactions and versioningLong transactions and versioning

•• Equals increased riskEquals increased risk

PMBOKPMBOK

•• Project Management Institute (PMI) Project Management Institute (PMI) developed the Project Management Body developed the Project Management Body of Knowledge (PMBOK) to codify project of Knowledge (PMBOK) to codify project management best practicesmanagement best practices

•• Applicable to any sort of project, but Applicable to any sort of project, but heavily oriented toward information heavily oriented toward information technology projectstechnology projects

•• Application of PMBOK techniques can Application of PMBOK techniques can reduce riskreduce risk

Project Project -- DefinitionDefinition

•• A project is a temporary A project is a temporary endeavourendeavourundertaken to create a unique product, undertaken to create a unique product, service, or result.service, or result.–– TemporaryTemporary–– UniqueUnique–– Progressive ElaborationProgressive Elaboration

•• Projects vs. OperationsProjects vs. Operations–– A GIS Implementation is not the same as A GIS Implementation is not the same as

ongoing operationsongoing operations•• Projects are a means of achieving an Projects are a means of achieving an

organizationorganization’’s strategic plans strategic plan

Project ManagementProject Management

•• Project management is the application of Project management is the application of knowledge, skills, tools and techniques to knowledge, skills, tools and techniques to project activities to meet project project activities to meet project requirementsrequirements–– Identify requirementsIdentify requirements–– Establish clear and achievable objectivesEstablish clear and achievable objectives–– Balance competing demands for quality, Balance competing demands for quality,

scope, time and costscope, time and cost–– Adapt specifications, plans and approach to Adapt specifications, plans and approach to

stakeholder requirementsstakeholder requirements

Triple ConstraintTriple Constraint

Triple ConstraintTriple Constraint

CanCan’’t change one variable t change one variable without affecting at least without affecting at least

one of the othersone of the others

RiskRisk

•• Projects are managed within the context Projects are managed within the context of uncertaintyof uncertainty

•• Uncertainty = RiskUncertainty = Risk•• If uncertain (risk) event occurs, can have If uncertain (risk) event occurs, can have

negative or positive effect on project negative or positive effect on project outcomeoutcome

•• Want to manage to reduce uncertainty Want to manage to reduce uncertainty ––to make sure negative effect doesnto make sure negative effect doesn’’t t happen or positive effect doeshappen or positive effect does

StakeholdersStakeholders

•• Identify and manage stakeholdersIdentify and manage stakeholders•• Key stakeholders on every project Key stakeholders on every project

include:include:–– Project ManagerProject Manager–– Project TeamProject Team–– SponsorSponsor–– InfluencersInfluencers–– Customer/User Customer/User –– Could be External, but Could be External, but

could also be another department, e.g. could also be another department, e.g. Operations, Planning, etc.Operations, Planning, etc.

Project Life CycleProject Life Cycle

•• Projects are often divided into logical Projects are often divided into logical phases, together constitute life cyclephases, together constitute life cycle

•• Phase is concluded when deliverable is Phase is concluded when deliverable is completed (may be actual deliverable, or completed (may be actual deliverable, or simply design documents)simply design documents)

•• Many types of life cycles:Many types of life cycles:–– WaterfallWaterfall–– Rational Unified ProcessRational Unified Process–– DesignDesign--DevelopDevelop--DeployDeploy

Project EvolutionProject Evolution

•• Risk is highest at the beginning of the Risk is highest at the beginning of the projectproject

•• Stakeholder Influence is highest at the Stakeholder Influence is highest at the beginning of the project and decreases beginning of the project and decreases rapidly as project proceedsrapidly as project proceeds

•• Cost of change is lowest at the beginning Cost of change is lowest at the beginning of the project and increases rapidly as of the project and increases rapidly as project proceedsproject proceeds

Project Process GroupsProject Process Groups

•• PMI defines 44 Project Processes in 5 PMI defines 44 Project Processes in 5 Project Process GroupsProject Process Groups–– InitiationInitiation–– PlanningPlanning–– ExecutingExecuting–– Monitoring and ControllingMonitoring and Controlling–– ClosingClosing

•• Not All Processes Will Be ExecutedNot All Processes Will Be Executed

InitiationInitiation

•• Project CharterProject Charter•• Preliminary Scope StatementPreliminary Scope Statement

PlanningPlanning

•• Project Management PlanProject Management Plan–– Scope of WorkScope of Work–– ScheduleSchedule–– BudgetBudget–– Change ManagementChange Management–– Quality Assurance / Quality ControlQuality Assurance / Quality Control–– Human ResourcesHuman Resources–– CommunicationsCommunications–– Risk ManagementRisk Management–– Procurement PlanProcurement Plan

ExecutingExecuting

•• DeliverablesDeliverables•• Change RequestsChange Requests•• MidMid--course Correctionscourse Corrections•• Work Performance DataWork Performance Data

Monitoring and ControllingMonitoring and Controlling

•• Change Request Approval or RejectionChange Request Approval or Rejection•• Corrective and Preventive Action Corrective and Preventive Action

DecisionsDecisions•• Project Management Plan UpdatesProject Management Plan Updates•• Performance ReportsPerformance Reports•• ForecastsForecasts•• Deliverable ApprovalDeliverable Approval

ClosingClosing

•• Lessons LearnedLessons Learned•• Archive Project DocumentsArchive Project Documents•• Contract ClosureContract Closure

Project ProcessesProject Processes

•• Planning is heavily emphasized Planning is heavily emphasized ––constitutes 21 of 44 processesconstitutes 21 of 44 processes

•• Monitoring and Controlling constitutes Monitoring and Controlling constitutes additional 12 processesadditional 12 processes

•• 33 of 44 processes 33 of 44 processes –– ¾¾ of all Project of all Project Management effort Management effort -- is in planning and is in planning and controllingcontrolling

•• Doing the actual work isnDoing the actual work isn’’t the hard partt the hard part

A Closer Look at PlanningA Closer Look at Planning

•• Project planning takes into account many Project planning takes into account many factorsfactors

•• Some may not apply Some may not apply …… choose the choose the pieces that dopieces that do

•• Plan upPlan up--front for how scope, schedule front for how scope, schedule and budget will be managedand budget will be managed

•• Plan upPlan up--front for communications front for communications methods, quality assurance, change methods, quality assurance, change management, etc.management, etc.

•• Takes the guesswork out laterTakes the guesswork out later

A Closer Look at ControllingA Closer Look at Controlling

•• Collect performance data during Collect performance data during executionexecution

•• Analyze the results and make decisions Analyze the results and make decisions during controllingduring controlling

•• Have a Change Management Board to Have a Change Management Board to approve changes to the project planapprove changes to the project plan

•• When the project plan changes, make When the project plan changes, make sure to update the Project Management sure to update the Project Management PlanPlan

Critical Path Method (CPM)Critical Path Method (CPM)

1

2

4

3

5

6

7

Estimating TimeEstimating Time

•• PERT EstimatesPERT Estimates–– Estimate Optimistic (O)Estimate Optimistic (O)–– Estimate Pessimistic (P)Estimate Pessimistic (P)–– Estimate Most Likely (ML)Estimate Most Likely (ML)–– PERT Estimate = (O + 4*ML + P) / 6PERT Estimate = (O + 4*ML + P) / 6

•• Example:Example:–– O = 1 day, P = 3 days, ML = 1.5 daysO = 1 day, P = 3 days, ML = 1.5 days–– PERT Estimate = 1.67 daysPERT Estimate = 1.67 days

Earned Value Project ManagementEarned Value Project Management

•• Statistics can be used for monitoring cost Statistics can be used for monitoring cost and scheduleand schedule

•• Compares planned and earned valueCompares planned and earned value•• For best results should be done for each For best results should be done for each

milestone in a project milestone in a project –– can be applied to can be applied to the whole project if milestones are not the whole project if milestones are not feasiblefeasible

•• Need to know percent completed and Need to know percent completed and percent scheduled for milestonepercent scheduled for milestone

Earned Value Project ManagementEarned Value Project Management

•• Budget At Completion (BAC) Budget At Completion (BAC) –– Budget Budget for the entire milestonefor the entire milestone

•• Actual Cost (AC) Actual Cost (AC) –– Incurred cost to Incurred cost to complete work on milestonecomplete work on milestone

•• Earned Value (EV) Earned Value (EV) –– Budgeted amount Budgeted amount for work actually completed on milestone for work actually completed on milestone Planned Value (PV) Planned Value (PV) –– Budgeted amount Budgeted amount for work scheduled to be completed on a for work scheduled to be completed on a milestonemilestone

Earned Value Project Management Earned Value Project Management -- CostsCosts

•• Cost Variance (CV) = EV Cost Variance (CV) = EV –– ACAC•• CV is the difference between actual costs CV is the difference between actual costs

and planned costsand planned costs

Earned Value Project Management Earned Value Project Management -- CostsCosts

•• Cost Performance Index (CPI) = EV/ACCost Performance Index (CPI) = EV/AC•• CPI < 1.0 CPI < 1.0 Cost OverrunCost Overrun•• CPI is the ratio between planned costs CPI is the ratio between planned costs

and actual costs and actual costs •• If planned costs are less than actual If planned costs are less than actual

costs, CPI less than 1 costs, CPI less than 1 …… youyou’’re over re over budgetbudget

Earned Value Project Management Earned Value Project Management -- ScheduleSchedule

•• Schedule Variance (SV) = EV Schedule Variance (SV) = EV –– PVPV•• SV is the difference between planned SV is the difference between planned

actual costs and scheduled costsactual costs and scheduled costs

Earned Value Project Management Earned Value Project Management -- ScheduleSchedule

•• Schedule Performance Index (SPI) = Schedule Performance Index (SPI) = EV/PVEV/PV

•• SPI < 1.0 SPI < 1.0 Schedule OverrunSchedule Overrun•• SPI is the ratio between planned actual SPI is the ratio between planned actual

costs and planned scheduled costscosts and planned scheduled costs•• If planned actual costs are less than If planned actual costs are less than

scheduled costs, SPI less than 1scheduled costs, SPI less than 1……youyou’’re latere late

Earned Value Project ManagementEarned Value Project Management-- ScheduleSchedule

•• Schedule performance is measured in Schedule performance is measured in terms of dollarsterms of dollars

•• Money has a time valueMoney has a time value•• A dollar today is worth more than a dollar A dollar today is worth more than a dollar

tomorrowtomorrow•• All things being equal, being late costs All things being equal, being late costs

money money …… even if you doneven if you don’’t overrun t overrun actual costsactual costs

Earned Value Project Management Earned Value Project Management -- ForecastingForecasting

•• Estimate To Complete (ETC)Estimate To Complete (ETC)–– ReRe--estimate remaining tasks estimate remaining tasks –– most most

accurate, but most workaccurate, but most work–– ETC = BAC ETC = BAC –– EV for atypical variancesEV for atypical variances–– ETC = (BAC ETC = (BAC –– EV) / CPI for typical EV) / CPI for typical

variancesvariances•• Estimate At Completion (EAC) = AC + Estimate At Completion (EAC) = AC +

ETCETC

Earned Value Project Management Earned Value Project Management -- ForecastingForecasting

•• Variance At Completion (VAC) = BAC Variance At Completion (VAC) = BAC --EACEAC

•• ToTo--Complete Performance Index (TCPI) Complete Performance Index (TCPI) = (BAC = (BAC –– EV)/(BAC EV)/(BAC –– AC)AC)

Earned Value Project Management Earned Value Project Management -- An ExampleAn Example

•• Milestone with BAC = $100, 50% Milestone with BAC = $100, 50% completed and 75% scheduled, AC = completed and 75% scheduled, AC = $60$60

•• EV = $50, PV = $75EV = $50, PV = $75

•• CPI = 0.83, SPI = 0.67CPI = 0.83, SPI = 0.67•• ETC = $60.24, EAC = $120.24ETC = $60.24, EAC = $120.24•• VAC = VAC = $20.24,$20.24, TCPI = 1.25TCPI = 1.25

•• CV = CV = $10$10, SV = , SV = $25$25

Risk ManagementRisk Management

•• Project Management is about minimizing Project Management is about minimizing risk and obtaining acceptable and risk and obtaining acceptable and consistent resultsconsistent results

•• Risk Management is not about Risk Management is not about preventing riskpreventing risk…… itit’’s about having a plan s about having a plan to deal with it when it occursto deal with it when it occurs

Risk ManagementRisk Management

•• Identify all possible risksIdentify all possible risks•• Determine probability of risk occurring Determine probability of risk occurring

and impact if it does and impact if it does …… use probability use probability and impact matrixand impact matrix

0.800.80 0.2000.200 0.4000.400 0.6000.6000.500.50 0.1250.125 0.2500.250 0.3750.3750.200.20 0.0500.050 0.1000.100 0.1500.150

0.2500.250 0.5000.500 0.7500.750

Probability

Impact

Risk ManagementRisk Management

< 0.25< 0.25 0.25 0.25 –– 0.50.5 0.5 0.5 –– 1.01.0

ScopeScope Minor Minor decreasedecrease

Major Major decreasedecrease

UnusableUnusable

TimeTime 10% +10% + 25% +25% + 40% +40% +

CostCost 15% +15% + 25% +25% + 30% +30% +

QualityQuality Minor Minor impactimpact

Major Major impactimpact

UnusableUnusable

Impact Scales

Risk ManagementRisk Management

•• Rank risks according to impact scalesRank risks according to impact scales•• Plan response strategy for each riskPlan response strategy for each risk•• For major risks, strategy might be to For major risks, strategy might be to

avoid if possible (including additional avoid if possible (including additional expense to avoid)expense to avoid)

•• For minor risks strategy might be to For minor risks strategy might be to ““ride ride it outit out”…”… cost to avoid may be higher than cost to avoid may be higher than impactimpact

•• Know these strategies before risk occursKnow these strategies before risk occurs

Quality Assurance / Quality ControlQuality Assurance / Quality Control

•• Define success earlyDefine success early•• For conversion projects, use statistical For conversion projects, use statistical

samples to establish qualitysamples to establish quality•• For performance, use benchmarkingFor performance, use benchmarking•• Develop and use a test plan with specific Develop and use a test plan with specific

test use cases to establish functionality test use cases to establish functionality completioncompletion

•• Test early, test often.Test early, test often.

GISGIS

•• The methods in the PMBOK apply to any The methods in the PMBOK apply to any project, particularly focused toward IT project, particularly focused toward IT projectsprojects

•• Can be applied to GIS with appropriate Can be applied to GIS with appropriate scope, quality control metrics and risk scope, quality control metrics and risk management plan (i.e. the specifics of management plan (i.e. the specifics of these things define the type of project)these things define the type of project)

•• Project Management is a science Project Management is a science –– it is it is repeatablerepeatable

Questions?