Effective Project Management

by Dr. Kanhaiya Jethani Tata Consultancy Services

ISPMC 2003 21 May 2003

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Agenda
Need for Effective Project Management Project Success Criteria Critical Factors for Effective Project Management Barriers Case Study Learning Organization Conclusions

Need for Effective Project Management

Scenario in US software industry

 $250 billion/year spent on software projects  31% of projects cancelled before completion  $81 billion spent on cancelled projects  53% of projects had cost overruns of 89%  84% of projects missed schedule and budget targets

The Chaos Report - the Standish group report on software application development projects in US, 1995

Problems in Software Projects

Effort & Budget Overrun Unimplemented Functionality

Poor Quality

Cancelled Projects

So is Software Development a Mission Impossible? Why is it so prone to failure? 5

Why projects fail ...

 Lack of project management



Improper Estimation Inadequate planning and tracking discipline

 Lack of user involvement  Trying to chase unrealistic targets  Volatility of requirements




Ambiguous Changes to original set

 Lack of training

Project Management
 Application of knowledge, skills, tools and techniques to project activities to meet project requirements (PMBOK)  Basic project management processes:
Planning Executing Controlling

Effective Project Management

 Software Project Planning (SW-CMMSM) - establish reasonable plans  Without reasonable plans, effective project management cannot be implemented (SW-CMMSM)  Processes critical for effective project management  Metrics critical for objective project management

Project Success Criteria

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Project Success Criteria

 Fit for use  Within budget  Within schedule  Desired Quality

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Constraints of Project Management

Scope Risks

Quality Schedule Cost

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Process Focus
 Quality of product depends on quality of processes followed to produce the product  Project success depends on implementation and effectiveness of project management processes  In the absence of effective processes, project

success depends on individual heroics (person dependence) 13

Process Focus
 Project Management Processes defined in PMBOK  Basic Project Management Processes are the focus of

SW-CMMSM Level 2 KPAs

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Critical Factors for Effective Project Management

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Critical Factors for Effective Project Management

 Setting Customer Expectations  Requirements Management  Planning & Controlling  Change Management  Configuration Management  Risk Management  Rework Reduction

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Setting Customer Expectations

 Marketing: Promise the moon  Project: Deliver the moon?  Problem: Expectations mismatch  Resolution: Deliver the image of the moon
Involve the customer/end user from planning stage

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Requirements Management
 Prevent scope creep  Prevent gold plating

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Planning
 Plan: Theory/ hypothesis  Improve probability of success:
Plan based on estimate / WBS Use optimistic, pessimistic, most likely estimates Use historical data/ expert opinion for estimation Replan when significant changes occur

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Project Planning

Customer demands, Deadlines

Constraints of Cost, resources, Organizational Requirements

Involves ensuring balance between the two

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Controlling
 Proactive Tracking  Tracking without metrics
90% completion syndrome

 Metrics
Provide visibility Pulse of the project

 Project dashboard - health overview  Stakeholder involvement customer, sponsor, project team  Corrective actions
Thresholds for taking corrective actions

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Metrics
Why Metrics
 bring objectivity in decision making  provide status visibility  help to set realistic expectations  focus peoples activities  help in competitive comparisons and benchmarking

In God we trust, all others bring data. - W. Edward Deming 22

Change Management
 Changes in
Scope Cost Schedule

 Reserves (contingency/ buffer) for cost & schedule

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Configuration Management
Ensure all requirements are satisfied Maintain consistency between work products Ensure all changes are fully implemented Baselines are controlled Ensure the sum of all components is the desired product

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Risk Management
 Project Management by Risk Management  Involve all stakeholders (customer, sponsor, project team)  Quantitative risk management  Track top 10 (5) risks  Re-prioritize risks (continuous risk management)

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Rework Reduction
 Do it right the first time training/ induction  Early defect detection review/ inspection  Stop recurring problems causal analysis/ preventive measures

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Barriers

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Barriers
 Mindset - Project management is not for techies  No time for project management  Lack of experience or data to support estimation  Too busy in fire-fighting  Unrealistic demands

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Case Study

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Case Study (1 of 5)
 Before project management processes:
A large project nearing acceptance testing phase (4 years after project start-up) The project team vanishes New team takes over

 Project review by new team

Only about 25 % of scope satisfied

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Case Study (2 of 5)
 Causal Analysis

In

Out
Project management practiced as a black art The requirements flow in and the product flows out 90 % completion syndrome

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Case Study (3 of 5)
 Actions taken by new team:
Negotiation with customer for revised schedule Close interaction with customer Planning & Controlling Requirements management Change management Configuration management Peer reviews Independent testing

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Case Study (4 of 5)
 Benefits of Process Changes

In

Out

Project management system in place Milestone visibility

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Case Study (5 of 5)
 After process changes:
Project completed in 20 months after new team took over Acceptance testing by the customer

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Learning Organization

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Learning Organization
      

Use processes to implement project management Use automation to facilitate project management Facilitate reuse through data repository Use historical data for estimation and planning Reuse lessons learnt in past projects Confidence in planning process Repeat the success of past projects

 Improve processes and project performance

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Conclusions

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Conclusions
 Effective project management processes critical for project success  Metrics provide visibility and objectivity  Reuse of organization learning provides confidence

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