Infotec: The Business of Technology – Apply ITApril 14th, 2010
Project Management AssuranceProject Management AssuranceDr. Deepak KhazanchipDawn Owens
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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.
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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
© Dr. Deepak Khazanchi and Dawn Owens. May not be reproduced without permission.
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© Dr. Deepak Khazanchi and Dawn Owens. May not be reproduced without permission.
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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)
© Dr. Deepak Khazanchi and Dawn Owens. May not be reproduced without permission.
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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%
© Dr. Deepak Khazanchi and Dawn Owens. May not be reproduced without permission.
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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
© Dr. Deepak Khazanchi and Dawn Owens. May not be reproduced without permission.
Source: Ibbs & Kwak, 2000
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“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
© Dr. Deepak Khazanchi and Dawn Owens. May not be reproduced without permission.
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
© Dr. Deepak Khazanchi and Dawn Owens. May not be reproduced without permission.
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.
© Dr. Deepak Khazanchi and Dawn Owens. May not be reproduced without permission.
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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
© Dr. Deepak Khazanchi and Dawn Owens. May not be reproduced without permission.
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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
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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
© Dr. Deepak Khazanchi and Dawn Owens. May not be reproduced without permission.
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© Dr. Deepak Khazanchi and Dawn Owens. May not be d d ith t i iInfotec 2010 April 14th
Model of PMA
reproduced without permission.
Model of PMA
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© Dr. Deepak Khazanchi and Dawn Owens. May not be d d ith t i iInfotec 2010 April 14th
Project Management Lifecycle in IT Projects
reproduced without permission.
• 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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© Dr. Deepak Khazanchi and Dawn Owens. May not be d d ith t i iInfotec 2010 April 14th
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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© Dr. Deepak Khazanchi and Dawn Owens. May not be d d ith t i iInfotec 2010 April 14th
Risks and Controls
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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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© Dr. Deepak Khazanchi and Dawn Owens. May not be d d ith t i iInfotec 2010 April 14threproduced without permission.
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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© Dr. Deepak Khazanchi and Dawn Owens. May not be d d ith t i iInfotec 2010 April 14threproduced without permission.
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
© Dr. Deepak Khazanchi and Dawn Owens. May not be reproduced without permission.
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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.
© Dr. Deepak Khazanchi and Dawn Owens. May not be reproduced without permission.
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Feedback
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Feedback
• Please take a few minutes to complete the • Please take a few minutes to complete the feedback form.
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© Dr. Deepak Khazanchi and Dawn Owens. May not be d d ith t i iInfotec 2010 April 14th
References
reproduced without permission.
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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