is 425 enterprise information lecture 7 winter 2006-2007
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IS 425
Enterprise Information LECTURE 7
Winter 2006-2007
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Agenda IT Project Management The Flamholtz Leadership Effectiveness
Framework IT Project Risk Management Quiz for Week 9 Week 10: Guest Speaker and 1st Debate
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Projects Definition: an organized method for reaching
specific goals and planned benefits within a target schedule and defined budget. Project Management: The organized method Specific goals: These are the business, organizational,
technological, physical, cultural, and political goals of the project.
Planned benefits: Benefits can be financial, political, organizational, cultural, or any of many categories.
Target schedule: One aim of the project management approach.
Defined budget: Another aim of the project management approach.
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Organizations Traditional Functional IT Organization
Line Perform jobs directly related to the core activities Operations oriented Stable for people in the organization Vertical communication channels already in place Existing budgeting and cost accounting mechanisms Better technical control -- rare resources can be shared Great at handling routine and recurring tasks Horizontal communication between managers Organized around resources Traditional IT development
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Traditional IT Applications
“GL”Analysis
IS ApplicationsMgr
AnalystMgr
ProgrammingMgr
“PR”
Analysis
“GL”Programming
“PR” Programming
Department handlesApplication Development and Maintenance
The Payroll mgrhas a problem with theway the system is calculating Californiawithholding tax in the new system –Tell me how she would get this handled
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Traditional IT Applications
“GL”Analysis
IS ApplicationsMgr
AnalystMgr
ProgrammingMgr
“PR”
Analysis
“GL”Programming
“PR” Programming
Department handlesApplication Development and Maintenance
What are the goals of the Analyst Manager? What are the goals of the Programming Manager? The IS Applications Manager?
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Traditional IT Applications
“GL”Analysis
IS ApplicationsMgr
AnalystMgr
ProgrammingMgr
“PR”
Analysis
“GL”Programming
“PR” Programming
Department handlesApplication Development and Maintenance
Who is responsible for the GL application? Who is responsible for the PR application? Who is responsible for coordination between GL analysts and GL programmers?
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The Failure of Line
Lack of Focus and Attention Who keeps track of “GL” and “PR” Normal Maintenance is usually 60% of budget Development projects not part of the department
goals
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The Failure of Line
Inability to Cope with Different Project Characteristics Often development projects using new
platforms/technologies Projects “GL” and “PR” require constant
attention Analyst and Programming Managers are
mostly interested in meeting goals aimed at efficient use of resources
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The Failure of Line continued
Feelings of Being Used and Exploited Often no new people are added for “GL” or
“PR” Both “GL” and “PR” are “tack-on’s” Rewards are rarely tied to project’s success
Lack of project experience Programming and Analyst manager are
focused on deploying their resources efficiently Neither is focused on making sure project is
done on time and within budget.
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Then Came Matrix Management
A table of rows and columns The line departments are the rows The projects are the columns with one for the “bench”
People are in a row and when assigned to project move to that column within the row
Two bosses – line manager and project manager Government contractors and S/W developers
often use matrix organization – projects are big part of business
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Matrix Management
Advantages Good for projects oriented
firms People on projects utilized Project mgt powerful at
getting resources People develop skills while
moving between projects Provides formal structure to projects
Can track what people are working on in projects
Disadvantages Good grabbed/others not Assigning control difficult Line mgrs tend to be weak Projects with long lives
confused with line mgt Sharing resources difficult More difficult for skills to cross
projects Project prospers and traditional
org suffers More difficult to anticipate
resource needs/staff requirements
More difficult to address small projects
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Matrix Modification
Use the Matrix with large projects Each project is an entity for duration
with project manager
Use the Functional for all small projects One functional manager with all reporting to
same line manager
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Project Management vs Line Management
Project Line
Focus Pjt: single focus Org: multiple foci
Time Focus
Short term Short to Long
Attitude Focus on project Overall org perf
Personnel Close working relationship
Overall mgt
Budget Project Organization
Drivers Milestones General objectives
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Project Environment/Infrastructure
Formalizes Project Recognition The process exists for Project:
Creation Oversight Management Termination Modification
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Project Environment/Infrastructure
Project Tier Structure (5 tiers max)
Simple(Intra-departmental)
IOISInter-OrganizationalInformation Systems
Enterprise-wide
Process-wide
Inter-departmental
Transition Process Necessary – Between Tiers Changing Project Plans Adjusting Resources Reexamining Control Mechanisms
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Projects – Scarce Resources
Types: Human Hardware/Software Capital Information
Resource Portfolio Management Line managers m/assign resources to projects No resources permanently assigned
(specifying time frame)
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Project Manager
3 Management Responsibilities Resource Manager
manages & directs project resources to achieve project objectives
Planning/Control Managerdevelops project plan to ensure the work is completed on time / within budget / with acceptable quality
Coordinating Managerinterfaces with upper management regarding: project reviews approvals project issues
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Project Manager Directs activities and resources Motivates team Plans activities Supervises team’s work Administers tasks Interfaces and Coordinates through meetings Does some tasks Trains members Counsels management on technical issues Delegates work Resolves conflicts over resources and schedules
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Power Sources for Project Managers
Formal Authority-- weakest form of power – can only be used effectively
Rewards/Penalties-- few tangible rewards and penalties
Technical Authority-- somewhat rare, too many technical areas
Respect / Trust -- leads to leadership -- best and most lasting form of power
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Team Characteristics
Work on shared tasks Some tasks require milestones Share common –
Methods Tasks Goals Results
Sink or Swim together
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Leadership
Definition:process of influencing members of an organization to achieve established long term and short term goals on a day-to-day basis.
Leadership BehaviorWhat someone actually does to influence people to
carry out the organizational goals
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Flamholtz Leadership Effectiveness F/W
The situation in which the leader is operating The work that the group is doing The nature of the people doing the work
The leader performs tasks relating to the Goals Work tasks Team interactions Feedback Member career development
The style in which work is done
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Flamholtz Leadership Effectiveness F/W
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The Leadership Styles and Categories
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Factors Affecting Optimal Leadership Style
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Flamholtz Leadership Effectiveness F/W
To use the framework Look at the situation
Is the work creative and unpredictable –or –Is it repetitive and best practices are easily documented?
Are the people highly trained and experienced – or – are the people inexperienced and untrained?
Determine the appropriate style Perform the task in that style
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Project Manager Types Administrator – people skills poor
-- written skills good Doer – no delegation Upward-Oriented
– delegates but does not monitor Task Master – monitors excessively Leader -- the BEST!!! – monitors
– delegates -- people skills good
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Some Concluding Thoughts
When researchers went out to look at effective leaders —
There are NO common traits Charisma is the least effective form of
governance – why? Trust is the most important
– easiest to loose-- hardest to rebuild
Why?
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Exercise
Each team is given Leadership Effectivenesstasks
For each task: Give one example of the wording of the task in:
Directive Style and who is the appropriate audience Interactive Style and who is the appropriate audience Nondirective Style and who is the appropriate audience
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IT Project Management
Need to consider both the project life cycle (PLC) and the systems development life cycle (SDLC) PLC: activities of the project SDLC: activities to accomplish the product/system
requirements
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Typical IT Project Life Cycle
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PLCPhases
SDLCPhases
The Project and System Development Life Cycles and Activities
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Trade-Off Analysis Process
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Project Risk ManagementDefinition
The process in which potential risks to a business are identified, analyzed and mitigated, along with the process of balancing the cost of protecting the company against a risk vs. the cost of exposure to that risk.
Or, "What imperils getting benefits from effort?"
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Purpose of Project Risk Management
Continuous &Iterative process
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Tightly integrated with the Project management process
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Propensity for Risk
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Risk Impact
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General Categories of Risks:
Economic Risks
Technical Risks
Organizational Risks
Legal Risks
Terrorist Risks
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General Categories of Risks:
Economic Risks applies to risks that can potentially impact the business. These risks could result to failure or loss of business. business environment changes vendor survival
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General Categories of Risks:
Technical Risks applies to the risks that can impact the development, implementation, and the operation of a system. Sources of these risks can come from the project team’s degree of familiarity with the technology, familiarity with the application, security and project size. integrating technology with existing portfolio poor training poor monitor/control
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General Categories of Risks:
Organizational Risks applies to the risks that could potentially impact the acceptance of the project. Problems arise when there is potential reduction of manpower, changing the way business process is performed, and when there is increase of workload. Consequences to these risks are defined below: resistance to the system low morale of personnel lack of political support possible rejection of the system poor procedures lack of trained support lack of trainers ineffective use by users poor help desk
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General Categories of Risks:
Legal Risksapplies to risks arising from potential lawsuits and liabilities associated with the implementation of a project. fiduciary responsibility of managers laws and regulations inappropriately administered personal financial and criminal liability (from
shareholder lawsuits and FCPA)
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General Categories of Risks:
Terrorist Risks
applies to risks arising from intentional destruction or malevolent modification of the physical equipment data and information files communication links software
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Sources of Project Risks
Project Work – quality and completeness of the work
Project Team and Leader – personality issuesallocation of resourcestrust issues
Management – poor or no decision makinglack of attention
Business Situation -- assumptions change-- conditions change
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Sources of Project Risks
Other Projects-- Changes in priorities
External Factors-- regulatory changes, -- union pressures, -- consumer groups-- various special interest groups
Technology-- changes that can make project irrelevant
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Sources of Project Risks
Vendors and Contractors-- reliability -- quality-- sustainability
Business Processes-- reengineering changes power bases
Business Units-- management changes-- organization changes-- staffing changing
Customers and Suppliers-- changes in mix
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Risk Management Process & Purposes
1. Risk management planning
2. Risk identification
3. Qualitative risk analysis
4. Quantitative risk analysis
5. Risk response planning
6. Risk monitoring and control
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Keeping Track of Risks
Projects Economic Technical Organizational
Keep a count of the OPEN RISKS by type for each project –Update regularly
Keep track of your progress in mitigating / resolving risksREMEMBER – MANY RISKS WILL COME TOWARDS THE END OF THE PROJECT – SO THINK / PLAN AHEAD
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Preferred Project Risk Strategy Method Group issues by
Impact if not solved Time pressure to do something
Use your judgment and experience on positioning issues
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Issues to be Addressed
Issues 23 and 27 must be addressed Issue 10 has time pressure so investigate
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Time Marches on
Some issues go away Some issues emerge Some get more troublesome
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Risk Issue Management Process
1. Create project risk issue database200+ commonly known problems
2. Identify 20-30 most likely based on experience
3. Present potential issues to management with project proposal
4. In estimating project tasks – more issues may emerge
5. All issues relate to tasks – if not find the missing tasks
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Risk Issue Management Process
6. Phase beginning -- team meetings on near term issues-- discuss impact of issues-- track the issues-- develop issues resolution table-- use 1-page project summary to Mgt.
7. Create table of issues versus projectsCreate GANTT chart (major tasks / issues)-- follow-up on resolved issues (no reappearance)-- implement actions when known or appropriate
8. When resolved -- celebrate
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Management Communications
Focus on informal communications with management on risk issues
Focus on getting management slowly on board with knowledge of problem growing
Then on presenting alternatives Then on getting approval for actions
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Project Risk Portfolio Approach
Same issues database for all major projects Common issues reporting method Periodically prepare new table of issues versus
projects Support / facilitate
Meetings Analysis on issues
When issue resolved -- take the decisions, then-- identify action items for each impacted project-- follow up on action items across project-- report to management
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NEXT WEEK
Quiz/Homework