CHAPTER 1 - OVERVIEW OF PROJECT MANAGEMENT CONCEPTS

What is a Project?

Project Management Institute (2004) defines a project as a temporary endeavor

undertaken to create a unique product or service.
OR
A project is a sequence of unique, complex, and connected activities that have one goal or
purpose and that must be completed by a specific time, within budget, and according to
specification.

Five important characteristics of a project

Note: some explicitly mentioned and some following as a consequence.
The first characteristic is that a project is temporary, that is, it has a beginning and an
end.

The fact that a project is temporary has a natural consequence. Every project will, in fact,
have
1. An initiating phase, during which the project infrastructure and the project’s goals
are drafted.
2. A planning phase, during which project goals are refined, activities identified and
scheduled, and many other support activities are properly planned.
3. An executing phase, during which the actual work takes place. Running in parallel, a
monitoring phase measures the progress and raises flags when plans and reality disagree.
4. A final closing phase, where the project outputs are handed out and the project is
closed.

The second characteristic is that a project delivers an output in the form of a product, a
service, or a capability. The outputs are tangible, and often their properties are also
measurable. Thus, a project can be set up and organized, starting from the description
and the characteristics of the outputs it delivers.
The third characteristic is that projects are resource constrained. A limited time is
available to build the project outputs. Also limited will be other project resources, such as
the budget and the team. An important consequence is that the project manager and the
team have to find an achievable solution, while respecting all project constraints. Thus,
the output of a project is seldom the best possible solution but rather the best solution
given the constraints.

The fourth characteristic is that a project requires a progressive elaboration to build

the project outputs. At the beginning, different ways are possible to achieve the project
goals. As we move along, many project activities require to take choices, which reduce the
degrees of freedom, till we get to the end of the project with the only possible
implementation of the project goals. Thus, the cost of changes increases as a project
progresses, since the amount of rework necessary to implement a change increases as we
reduce our degrees of freedom.

The fifth and final characteristic is that a project delivers a unique output. Thus, what a
project delivers has some novelty, one way or the other.

Lastly, a project always has some risk coming in the form of threats or opportunities.
Risks come from the unique characteristics of the project outputs, which sometimes are
not fully understood or not clear when a project starts. Other risks derive from additional
constraints that are set in a project; consider, for instance a situation in which a customer
pushes for a schedule that is too tight or for quality requirements that are set too high.

Programs, Subprojects, and Portfolios

Program
A program is a set of related projects managed in a coordinated way. The underlying
motivation is that coordination allows one to achieve additional benefits. Program
management uses many project management techniques, but it has a different focus and
goal. The higher abstraction level at which program management takes place, in fact,
requires a manager to reason in terms of vision, rather than goals, and roadmaps, rather
than detailed plans.

Subprojects
Complex projects for which program management is an overkill can be organized and
broken down into subprojects.

Portfolios
Organizations often use projects to develop similar systems. The term portfolio
management thus identifies a situation in which a set of independent projects are
coordinated to achieve better results.

What is a Software Project?

A software project is a complete procedure of software development from requirements
gathering to testing and maintenance, carried out according to the execution
methodologies, in a specified period of time to achieve intended software product.

Main types of software-related projects.

1. Application Development
Application development might not be the only type of software-related project, but it is
probably one that is great fun. The goal in this kind of project is building an application
and providing the additional services and outputs to support it. From the project
management point of view, we can distinguish the following types of applications:
• One-offs or bespoke systems that are software systems specifically created for
a customer. A bespoke system often implements a specific need of a customer,
although in some cases the customer base of the final product could be large.
Some examples of bespoke systems include a luggage tracking software, a compiler
for a specific hardware platform, and a system to monitor a fleet of trucks.
• Off-the-shelf applications are software systems implementing a function which
is useful to many different users. It is the software we buy from marketplaces or
stores and it is the equivalent of the Ford Model-T: one size fits all. ∗ The goals and
functions of the applications, in this case, come from the company developing the
 system, which sometimes conducts user surveys, to better understand needs and
features that are most useful.
• Finally, a customized off-the-shelf application sits somewhere between the
two other types of applications. They are systems that are developed similar to off-
the-shelf applications. However, they need to (or can) be customized to fit the
customer needs. An example of a customized off-the-shelf application is an
enterprise resource planning (ERP) system. An ERP system helps plan the resources
of an organization and automate information management.

2. Process and Systems Re-engineering

Services Process and Systems Re-engineering Services are projects related to improving
the efficiency of an organization, by changing the way in which they conduct their
operational work. These projects often accompany the introduction of one or more
systems. In many cases, the system being introduced is an ERP. According to the project
goals and size of the client, these projects might be significant and complex.

Consider the example of a multinational company revising its customer helpdesk to

improve quality and responsiveness. This project requires to understand how the
organization currently works, what are the bottlenecks, and thus the possible
interventions. These could include modifications to the current practices, training, and
perhaps the introduction of a customer relationship management system to support the
new processes.

3. System Integration Services

System integration services are projects and services related to automating the
information flow among the different and independent systems used by an organization.
The goals are to improve the efficiency of work and to reduce data duplication and errors.
The approach is chosen when migrating to a new system is impractical or too costly. Two
types of integration are possible, vertical or horizontal. The first refers to the integration of
different systems performing similar functions (e.g., putting together data about
customers kept by different departments of a multinational company). The latter refers to
automating or improving business functions (e.g., automating the flow of orders from
marketing to production). System integration services are more common in large
organizations, which have a long history of system automation, or organizations in which
departments have large autonomy. In these cases, in fact, different departments might
automate similar functions without paying too much attention to data integration. Over
time,

4. Other Types of Projects

Consulting services might be asked to gain know-how, which is outside a company’s
core competence. An example of consulting services is the evaluation of the reliability of a
software system conducted using very specific techniques, which could not be part of the
core business of a company. Another very common request is the assessment of the state
of the art in a particular sector.

Installation and training services are services related to the installation of specific
software systems (also in the open source domain) and/or training in the use of specific
technologies or systems.

Project Stakeholders

Project Management Institute (2004) defines a project stakeholder as any individual or an

organization that is actively involved in a project, or whose interest might be affected as a
result of project execution or completion.

People are a key contributor to the success or failure of projects. It is the work of people
that makes the project outputs possible, mitigating the impact of technologies that do not
work as expected and finding creative solutions when the unexpected occurs. They can
also contribute to the failure of a project, with their sloppiness or disinterest.

The Stakeholders in a Software Project

The roles applies on medium- to large-sized software projects. The larger the project, the
more distinct the roles need to be, however, on smaller projects, it’s common for one
team member to wear multiple hats.
 All projects have the following:
1. A project leadership team: can be understood as a bridge between the “techies”
and the business. As a bridge, the project leadership team will have technology folks and
business people.

2. A project execution team: After the project leadership, we have the actual project
team. These are the people with the “hands on the keyboards,” so to speak: gathering
requirements, analyzing business needs, defining tasks, and doing tasks.

3. Key Business stakeholders, also called “internal customers”: There may be

many internal customers for a software project. But one of them is usually most important
and becomes part of the project leadership. In cases where there are many internal
stakeholders, this person serves as the “voice” for all of them. For example, the key
business stakeholder might be the head of finance who knows the company needs a new
accounting system. It might be the head of sales who is pushing for a new CRM system. It
might be the head of logistics who wants a new method for tracking inventory. Or it might
be the head of marketing who wants a new website.

The Project Sponsor

This is the business manager charged with overseeing the software development project
and with the accountability for its success or failure. This is the person in the business
with responsibility for the project. Top leadership has come to this person and handed
them the directive to make sure this project gets done. This person is often the chief
information officer, chief digital officer, or even the chief operations officer. All the teams
report to this person who, in turn, interfaces with the rest of the organization.

The Program Manager

The program manager role is usually seen on medium to large projects. This is a person
experienced in running large software projects who organizes all the teams, calls the
meetings, gives directions, identifies needs, and leads all the other team members through
the processes (we will discuss) of deciding on technology, picking team members and
vendors, gathering business requirements, breaking down the project into tracks,
budgeting, and leading execution. The program manager is often an outsourced role, but
sometimes an internal resource fills this role, often a senior technologist with years of
experience rolling out software projects and is comfortable with two or more project
managers working under her.

Project Manager
The project manager (PM) is a level down from the program manager. He or she is
formally trained in the methods of project management. He is in charge of interacting
daily with the technical team, making and tracking the detailed plans, and using project
management tools to report on progress. You will see this person conducting daily status
meetings, preparing agendas, capturing to-dos and follow-ups, and making sure they get
done. The PM will know how many hours have been assigned to program a certain widget,
and if the task is on schedule.

If you find yourself getting confused between program manager and project manager,
think of the program manager as the ship’s captain and the project manager as first mate.

The client (a.k.a. business person)

These are the people who generate business solutions. They take business risks,
sometimes having to power through considerable fears and doubt. They hustle and
discover valuable things that other people need and are willing to pay for. Their ideas and
resolve for action accomplish the visionary work needed for the creation of something
new. Sometimes they need software tools in order to move their business ideas forward.
Even when they take on a project for building a software solution, they are not software
developers, rather they are business developers.

The developer (a.k.a. programmer, tester, designer)

These are the people whose brains and hands perform the implementation work and bring
a software solution into existence. They are skilled in software techniques and in making
computer systems perform complex things. They understand how users interact with
software. Many of these people can keep large amounts of information and abstractions in
their brains. They enjoy seeing these abstractions materialize in the form of working
software and sharing this miracle with the rest of us. A certain element of playfulness and
doing things purely for the sake of having them done can be found in many software
developers.

Business analyst
The business analyst (BA) is the person who collects, digests, and codifies all the software
development requirements from the business stakeholders. This person will often be found
interviewing members of different departments, learning from them how the software will
meet their needs and what it is expected to do when it’s done. The BA then writes all this
up in a way that both the programming team and business people can understand, with
all the necessary level of detail, including all the diagrams and descriptions programmers
will require.

These are the people who have the skill of converting the ideas of business people into a
format consumable by software developers. BA help describe, and to a degree define, the
solution that brings about the capabilities desired by business people. Their work greatly
affects the quality of information that developers get to process, the volume of
implementation work, and the end product suitability.
Architect
This person will be accountable for developing what’s called an “architectural map” or
“footprint.” This architectural map will identify the number of machines, types of
machines, and size of machines necessary to run the software. The architect will work
with the systems administrator to set things up so that integrations can happen.

Systems Administrator
Obviously the software will need to be deployed on machines that will run it. There must
be a person in charge of this hosting environment.

With all the roles outlined, one will have a starting point to get all the bases covered. As
you plan out your team, ask questions like:
◾ Who is going to keep track of tasks, schedules, and budgets? (the PM role)
◾ Who is going to collect business requirements and document them? (the BA role)

Understanding the Scope Triangle

You may have heard of the term Iron Triangle or Triple Constraint. It refers to the
relationship between Time, Cost, and Scope. These three variables form the sides of a
triangle and are an interdependent set. If any one of them changes, at least one other
variable must also change to restore balance to the project.

Consider the following constraints that operate on every project:

● Scope
● Quality
● Cost
● Time
● Resources
● Risk

Risk
Except for Risk these constraints form an interdependent set—a change in one constraint
can require a change in one or more of the other constraints in order to restore the
equilibrium of the project. The set of these five parameters form a system that must
remain in balance for the project to be in balance.

Scope
Scope is a statement that defines the boundaries of the project. It tells not only what will
be done, but also what will not be done. In the information systems industry, scope is
often referred to as a functional specification. In the engineering profession, it is generally
called a Statement of Work (SOW). Scope may also be referred to as a document of
understanding, a scoping statement, a project initiation document, or a project request
form. This document is the foundation for all project work to follow. It is critical that the
scope be correct. Scope is the most important of the six factors as it changes over the life
of the project and can cause significant changes to the project plan.

Beginning a project on the right foot is important, and so is staying on the right foot. It is
no secret that a project’s scope can change. You do not know how or when, but it will
change. Detecting that change and deciding how to accommodate it in the project plan
are major challenges for the project manager.

Quality

The following two types of quality are part of every project:

• Product quality: The quality of the deliverable from the project. “Product”
includes tangible artifacts like hardware and software as well as business processes.
The traditional tools of quality control, are used to ensure product quality.

• Process quality: The quality of the project management process itself. The focus
is on how well the project management process works and how it can be improved.
Continuous quality improvement and process quality management are the tools
used to measure process quality. A sound quality management program with
processes in place that monitor the work in a project is a good investment. Not only
does it contribute to client satisfaction, but it helps organizations use their
resources more effectively and efficiently by reducing waste and revisions. Quality
 management is one area that should not be compromised. The payoff is a higher
probability of successfully completing the project and satisfying the client.

Cost

The dollar cost of doing the project is another variable that defines the project. It is best
thought of as the budget that has been established for the project. This is particularly
important for projects that create deliverables that are sold either commercially or to an
external customer. Cost is a major consideration throughout the project management life
cycle. The first consideration occurs at an early and informal stage in the life of a project.

The client can simply offer a figure about equal to what he or she had in mind for the
project. Depending on how much thought the client put into it, the number could be fairly
close to or wide of the actual cost for the project. Consultants often encounter situations
in which the client is willing to spend only a certain amount for the work. In these
situations, you do what you can with what you have. In more formal situations, the
project manager prepares a proposal for the projected work. That proposal includes an
estimate (perhaps even a quote) of the total cost of the project. Even if a preliminary
figure has been supplied by the project manager, the proposal allows the client to base his
or her go/no-go decision on better estimates.

Time

The client specifies a time frame or deadline date within which the project must be
completed. To a certain extent, cost and time are inversely related to one another. The
time a project takes to be completed can be reduced, but costs increase as a result.

Time is an interesting resource. It can’t be inventoried. It is consumed whether you use it

or not. The objective for the project manager is to use the future time allotted to the
project in the most effective and productive ways possible. Future time (time that has not
yet occurred) can be a resource to be traded within a project or across projects. Once a
project has begun, the prime resource available to the project manager to keep the
project on schedule or get it back on schedule is time. A good project manager realizes
this and protects the future time resource jealously.

Resources

Resources are assets such as people, equipment, physical facilities, or inventory that have
limited availabilities, can be scheduled, or can be leased from an outside party. Some are
fixed; others are variable only in the long term. In any case, they are central to the
scheduling of project activities and the orderly completion of the project.

For systems development projects, people are the major resource. Another valuable
resource for systems projects is the availability of computer processing time (mostly for
testing purposes), which can present significant problems to the project manager with
regard to project scheduling.

Risk

Risk is not an integral part of the Scope Triangle, but it is always present and spans all
parts of the project both external as well as internal, and therefore it does affect the
management of the other five constraints.

Figure 1: The Scope Triangle

Code of Conducts and Ethical Aspects

According to the PMI (Project Management Institute), “Ethics is about making the best
possible decisions concerning people, resources and the environment. Ethical choices
diminish risk, advance positive results, increase trust, determine long term success and
build reputations. Sticking to a code of conduct and behaving ethically is often also the
most efficient and best choice both for the manager and for the project. Different
organizations provide different codes of conduct.

The code of conduct of the PMI has been written by practitioners and is organized in four
areas:

1. Responsibility: the duty of taking ownership of decisions made or failed to make and
their consequences
2. Respect: the duty of treating with respect the resources assigned to us, such as
people, money, reputation, environment, and so on
3. Fairness: the duty of taking decisions impartially and objectively
4. Honesty: the duty of acting in a truthful manner.

For each area, two types of requirements are listed. Mandatory requirements have to
be met in any situation. Aspirational requirements are nice to have (Project
Management Institute, 2013). Aspirational are ones we strive to attain and uphold.
Mandatory are firm requirements, such as those deemed by law.
Project Management Versus Software Project Management

The Project Management Institute (PMI) formally defines project management as: “The
application of knowledge, skills, tools and techniques to project activities to meet the
project requirements.”
OR
Project Management is an organized common-sense approach that utilizes the appropriate
client involvement in order to meet sponsor needs and deliver the expected incremental
business value, Robert (2019).

Software project management is the integration of management techniques into software

development. The need for such integration has its root in the 1960s, in the days of the
“software crisis,” when practitioners recognized the increasing complexity of delivering
software products meeting the specifications. A number of works started then to improve
the software development practices, detailing and structuring technical activities more
rationally, Robert (2019).
REFERENCES

Dimitrov, D., 2020. SOFTWARE PROJECT ESTIMATION INTELLIGENT FORECASTING,

PROJECT CONTROL, AND CLIENT RELATIONSHIP MANAGEMENT., Apress

Murray, P. A., 2016. THE COMPLETE SOFTWARE PROJECT MANAGER MASTERING

TECHNOLOGY FROM PLANNING TO LAUNCH AND BEYON. John Wiley & Sons, Inc.

Villafiorita, A., 2014. Introduction to Software Project Management, CRC Press.

Robert. K. W., 2019. Effective Project Management Traditional, Agile, Extreme, Hybrid.
John Wiley & Sons, Inc. Eighth Edition