DCS 066 - Introduction to

Project Management
JOHN A MWAIPOPO
INFORMATION SCIENCE DEPARTMENT
JORDAN UNIVERSITY COLLEGE
 Introduction to Project
Management

Lecture 3: Project Integration Management

Learning Objectives
 What is Project Management
Integration?
Project integration management involves coordinating all of the
other project management knowledge areas throughout a project’s life
cycle.
It ensures that all the elements of a project come together at the right
times to complete a project successfully.

Six processes are involved in project management integration:

1. Developing the project charter involves working with stakeholders
to create the document that formally authorizes a project—the
charter.

2. Developing the project management plan involves coordinating all

planning efforts to create a consistent, coherent document—the
project management plan.
 What is Project
Management Integration?
3. Directing and managing project work involves carrying out the
project management plan by performing the activities included in it.
The outputs of this process are deliverables, work performance
information, change requests, project management plan updates, and
project documents updates.

4. Monitoring and controlling project work involves overseeing

activities to meet the performance objectives of the project. The
outputs of this process are change requests, project management plan
updates, and project documents updates.
 What is Project Management
Integration?
5. Performing integrated change control involves identifying, evaluating,
and managing changes throughout the project life cycle. The outputs of
this process include change request status updates, project
management plan updates, and project documents updates.

6. Closing the project or phase involves finalizing all activities to formally

close the project or phase. Outputs of this process include final product,
service, or result transition and organizational process assets updates.

Project integration management the key to overall project success.

PM must take responsibility for coordinating all of the people, plans,
and work required to complete a project. PM must make the final
decisions when conflicts occur among project goals or people. PM must
communicate key project information to top management.
 Project Integration
Management
 Good project integration management is critical to providing
stakeholder satisfaction.
 Project integration management includes interface management,
which involves identifying and managing the points of interaction
between various elements of a project.
 The primary tools for interface management are communication and
relationships. The number of interfaces can increase exponentially as
the number of people involved in a project increases.
 The project manager must communicate well with all project
stakeholders, including customers, the project team, top
management, other project managers, and opponents of the project.
 Project integration management must occur within the context of the
entire organization, not just within a particular project. The project
manager must integrate the work of the project with the ongoing
operations of the organization.
Strategic Planning and Project
Selection
 Strategic planning involves determining long-term objectives by
analyzing the strengths and weaknesses of an organization, studying
opportunities and threats in the business environment, predicting
future trends, and projecting the need for new products and services.
 Strategic planning provides important information to help
organizations identify and then select potential projects.
 SWOT analysis—analyzing Strengths, Weaknesses, Opportunities,
and Threats—which is one tool used in strategic planning.
 SWOT analysis are used to help firms or organizations identify
potential projects.
 Remember that the purpose of performing a SWOT is to reveal
positive forces that work together and potential problems that need
to be recognized and possibly addressed.
Strategic Planning and Project
Selection
Identifying Potential Projects
 The first step in project management is deciding what projects to do
in the first place.
 Project initiation starts with identifying potential projects, using
realistic methods to select which projects to work on, and then
formalizing their initiation by issuing some sort of project charter.
 What is a project charter? A project charter is an elevator pitch of
your project objectives, project scope, and project responsibilities in
order to get approval from key project stakeholders.
 In the charter, you should provide a short, succinct explanation of
the main elements of your project before you get started.
 A project charter should include: project goal, participants,
stakeholders, requirements, constraints, implementation milestones,
communication, deliverables and cost.
Strategic Planning and Project
Selection
 In projects selection organization use SWOT analysis but also they follow a
detailed four stage process shown in the figure below.
 Note, the hierarchical structure of this model and the results produced from
each stage.
 Aligning IT with Business
Strategy
 Most organizations face thousands of problems and opportunities for
improvement. To get the most value from technology, an organization’s
strategic plan should guide the IT project selection process.
 Organization must develop a strategy for using IT to define how it will
support the organization’s objectives. This IT strategy must align with the
organization’s strategic plans.
 Information systems often are central to business strategy. There an
importance of using IT to support strategic plans and provide a competitive
advantage.
 Information systems are classified as strategic because they directly support
key business strategies. For example, information systems can support an
organizational strategy of being a low-cost producer.
 Information systems can support a strategy of providing specialized
products or services that set a company apart from others in the industry.
 Information systems can also support a strategy of selling to a particular
market or occupying a specific product niche.
Methods for Selecting Projects
 Organizations identify many potential projects as part of their strategic planning
processes.
 They need to narrow down the list of potential projects to the ones that will be
of most benefit.
 They often rely on experienced project managers to help them make project
selection decisions.
 Selecting projects is not an exact science, and many methods exist for selecting
projects.
 Five common techniques are:
 Focusing on broad organizational needs
 Categorizing IT projects
 Performing net present value or other financial analyses
 Using a weighted scoring model
 Implementing a balanced scorecard
 In practice, many organizations use a combination of these approaches to select
projects.
 Each approach has advantages and disadvantages, and it is up to management to
determine the best approach for selecting projects based on their particular
organization.
Methods for Selecting Projects
Focusing on Broad Organizational Needs
 Top managers must focus on meeting their organizations’ many
needs when deciding what projects to undertake, when to
undertake them, and to what level.
 Projects that address broad organizational needs are much more
likely to be successful because they will be important to the
organization. For example, a broad organizational need might be
to improve safety, increase morale, provide better
communications, or improve customer service.
 One method for selecting projects based on broad organizational
needs is to determine whether they first meet three important
criteria: need, funding, and will. Do people in the organization
agree that the project needs to be done? Does the organization
have the desire and capacity to provide adequate funds to perform
the project? Is there a strong will to make the project succeed?
Methods for
Categorizing IT Projects
Selecting Projects
 Based on project’s impetus (motivation). The impetus is often to respond to a
problem, an opportunity, or an order.
 Problems are undesirable situations that prevent an organization from
achieving its goals. These problems can be current or anticipated. For example,
users of an information system may be having trouble logging on to the system
or getting information in a timely manner because the system has reached its
capacity. In response, the company could initiate a project to enhance the
current system by adding more access lines or upgrading the hardware with a
faster processor, more memory, or more storage space.
 Opportunities are chances to improve the organization. For example, creating
a new product.
 Directives are new requirements imposed by management, government, or
some external influence. For example, many projects that involve medical
technologies must meet rigorous government requirements.
Organizations select projects for any of these reasons. It is often easier to get
approval and funding for projects that address problems or directives because the
organization must respond to these categories to avoid hurting their business.
Many problems and directives must be resolved quickly.
Methods for Selecting Projects
Performing Financial Analyses
 Financial projections are a critical component of the business case.
 Three primary methods for projecting the financial value of projects include
net present value analysis, return on investment, and payback analysis.
Net Present Value Analysis
 A dollar earned today is worth more than a dollar earned five years from now—
a principle called the time value of money.
 Projects have financial implications that extend into the future. In order to
evaluate potential projects equally, you need to consider their net present value.
 Net present value (NPV) analysis is a method of calculating the expected net
monetary gain or loss from a project by calculating the value of all expected
future cash inflows and outflows at the present time. Organization should
consider only projects with a positive NPV if financial value is a key criterion for
project selection. A positive NPV means that the return from a project exceeds
the cost of capital—the return available from investing the capital elsewhere.
 The cost of capital is the rate of return that could have been earned by putting
the same money into a different investment with equal risk. Projects with
higher NPVs are preferred to projects with lower NPVs.
Methods for Selecting Projects
Return on Investment
 Another important financial consideration is return on
investment.
 Return on investment (ROI) is the result of subtracting the
project costs from the benefits and then dividing by the costs. For
example, if you invest $100 today and next year it is worth $110,
your ROI is ($110 – 100)/100 or 0.10 (10 percent). Note that the
ROI is always a percentage. It can be positive or negative.
 The higher the ROI is, the better.
 Many organizations have a required rate of return for projects.
The required rate of return is the minimum acceptable rate of
return on an investment. For example, an organization might have
a required rate of return of at least 10 percent for projects.
Methods for Selecting Projects
Payback Analysis
 Payback analysis is another important financial tool when
selecting projects. Payback period is the amount of time it will
take to recoup the total dollars invested in a project, in terms of
net cash inflows.
 Payback analysis determines how much time will elapse before
accrued benefits overtake accrued and continuing costs.
 Payback occurs when the net cumulative benefits equal the net
cumulative costs or when the net cumulative benefits minus costs
equal zero.
 Many organizations have requirements for the length of the
payback period of an investment. They might require all IT
projects to have a payback period of less than two years or even
one year, regardless of the estimated NPV (Net Present Value) or
ROI (Return On Investment).
Methods for Selecting Projects
Using a Weighted Scoring Model
 A weighted scoring model is a tool that provides a systematic
process for selecting projects based on many criteria.
 Criteria include factors such as meeting broad organizational
needs; addressing problems, opportunities, or directives; the
amount of time needed to complete the project; the overall priority
of the project; and projected financial performance of the project.
 Identify criteria that are important to the project selection process.
 Possible criteria for IT projects include:
 Supports key business objectives or strategies
 Has strong internal sponsor
 Has strong customer support
 Uses realistic level of technology
 Can be implemented in one year or less
 Provides positive NPV
 Has low risk in meeting scope, time, and cost goals
Methods for Selecting Projects
Using a Weighted Scoring Model

Next, assign a weight to each criterion based on its importance.

Determining weights requires consultation and final agreement.
Assign weights based on percentages; the weights of the criteria
must total 100 percent. Assign numerical scores to each criterion
(for example, 0 to 100) for each project.
The scores indicate how much each project meets each criterion.
Calculate a weighted score for each project by multiplying the
weight for each criterion by its score and adding the resulting
values.
For example, you calculate the weighted score for Project 1 in
Figure 4-7 as:
25% * 90 + 15% * 70 + 15% * 50 + 10% * 25 + 5% * 20 + 20% * 50 +
10% * 20 = 56
Project 2 would be the obvious choice for selection because
it has the highest weighted score.
Methods for Selecting Projects
Implementing a Balanced Scorecard
 A balanced scorecard is a strategic planning and
management system that helps organizations align business
activities to strategy, improve communications, and monitor
performance against strategic goals.
 It provides a framework that not only provides performance
measurements but helps planners identify what should be
done and measured.
 Organizations can use many approaches to select projects.
 Project Managers have some say in which projects their
organizations select for implementation.
 Project managers and team members are often called upon
to explain the importance of their projects, and
understanding project selection methods can help them
represent the project effectively.
 Developing a Project Charter
 After top management decides which projects to pursue, it is important
to let the rest of the organization know about these projects.
 Management needs to create and distribute documentation to authorize
project initiation.
 This documentation can take many different forms, but one common
form is a project charter.
 A project charter is a document that formally recognizes the existence
of a project and provides direction on the project’s objectives and
management.
 It authorizes the project manager to use organizational resources to
complete the project.
 Project manager plays a major role in developing the project charter.
 Some organizations initiate projects using a simple letter of agreement,
while others use much longer documents or formal contracts.
 Key project stakeholders should sign a project charter to acknowledge
agreement on the need for and intent of the project.
 A project charter is a key output of the initiation process.
 Developing a Project Charter
The following inputs are helpful in developing a project charter:
 A project statement of work: A statement of work is a document
that describes the products or services to be created by the
project team. Includes a description of the business need for
the project, a summary of the requirements and characteristics
of the products or services, and organizational information.
 A business case: a business case justify the need to invest on the
project. Information in the business case, such as the project
objective, high-level requirements, and time and cost goals, is
included in the project charter.
 Agreements: If you are working on a project under contract for
an external customer, the contract or agreement should include
much of the information needed for creating a good project
charter.
 Developing a Project Charter
 Enterprise environmental factors: These factors include
relevant government or industry standards, the organization’s
infrastructure, and marketplace conditions. Managers should
review these factors when developing a project charter.

 Organizational process assets: Organizational process assets

include formal and informal plans, policies, procedures,
guidelines, information systems, financial systems,
management systems, lessons learned, and historical
information that can influence a project’s success.
Main tools and techniques for developing a project charter are
expert judgment and facilitation techniques, such as
brainstorming and meeting management.
 Developing a Project Charter
Output of the process to develop a project charter is the charter itself.
Format of project charters, should include at least the following basic information:
 The project’s title and date of authorization.
 The project manager’s name and contact information.
 A summary schedule, including the planned start and finish dates; if a summary
milestone schedule is available, it should also be included or referenced.
 A summary of the project’s budget or reference to budgetary documents.
 A brief description of the project objectives, including the business need or
other justification for authorizing the project.
 Project success criteria, including project approval requirements and who signs
off on the project.
 A summary of the planned approach for managing the project, which should
describe stakeholder needs and expectations, important assumptions, and
constraints, and should refer to related documents, such as a communications
management plan, as available.
 A roles and responsibilities matrix.
 A sign-off section for signatures of key project stakeholders.
 A comments section in which stakeholders can provide important comments
related to the project.
 Developing a Project Charter
 Many internal projects, do not have project charters. They often have
a budget and general guidelines, but no formal, signed
documentation.
 Project charters are usually not difficult to write. The difficult part is
getting people with the proper knowledge and authority to write and
sign the project charter.
 Projects fail because of unclear requirements and expectations, so
starting with a project charter makes a lot of sense.
 If project managers are having difficulty obtaining support from
project stakeholders, for example, they can refer to the agreements
listed in the project charter.
 Developing Project
Management Plan
 To coordinate and integrate information across project management
knowledge areas and across the organization, there must be a good
project management plan.
 A project management plan is a document used to coordinate all
project planning documents and help guide a project’s execution and
control.
 Assembling a good project management plan the project manager must
practice the art of project integration management, because information
is required from all of the project management knowledge areas.
 Project management plans should be dynamic, flexible, and subject to
change when the environment or project changes.
 These plans should greatly assist the project manager in leading the
project team and assessing project status.
 Inputs for developing a project management plan include the project
charter, outputs from planning processes, and organizational process
assets, etc.
 Developing Project
Management Plan
Project Management Plan Contents
A project management plan includes an introduction or overview of
the project, a description of how the project is organized, the
management and technical processes used on the project, and
sections describing the work to be performed, the schedule, and the
budget.
1. Introduction or overview of the project should include: The
project name, A brief description of the project and the need it
addresses, The sponsor’s name, The names of the project manager
and key team members, Deliverables of the project, A list of
important reference materials, A list of definitions and acronyms, if
appropriate.
2. Description of how the project is organized should include:
Organizational charts, Project responsibilities, Other
organizational or process-related information.
 Developing Project
Management Plan
3. Management and technical approaches should include:
Management objectives, Project controls (assess and track
performance), Risk management, Project staffing, Technical
processes (use particular Computer Aided Software Engineering).

4. Work to be Performed should include: Major work packages

(work breakdown structure (WBS)), Key deliverables, Other work-
related information.

5. Project schedule information should include: Summary

schedule, Detailed schedule, Other schedule-related information.
6. Budget section of the project management plan should include:
Summary budget, Detailed budget, Other budget-related
information.
 Using Guidelines to Create
Project Management Plans
 Many organizations use guidelines to create project management plans.
 Microsoft Project 2022 and other project management software packages come
with several template files to use as guidelines.
 Directing and Managing Work
 Directing and managing project work involves managing and
performing the work described in the project management plan, one of
the main inputs for this process.
 Other inputs include approved change requests, enterprise
environmental factors, and organizational process assets.
 The majority of time on a project is usually spent on execution, as is
most of the project’s budget.
 Project manager needs to focus on leading the project team and
managing stakeholder relationships to execute the project management
plan successfully.
 Project human resource management, communications management,
and stakeholder management are crucial to a project’s success.
 If the project involves a significant amount of risk or outside resources,
the project manager also needs to be well versed in project risk
management and project procurement management.
 Many unique situations occur during project execution, so project
managers must be flexible and creative in dealing with them.
 Project Execution Tools and
Techniques
 Specific tools and techniques to perform activities that are part of
execution processes include:
 Expert judgment in making good decision.
 Meetings are crucial during project execution.
 Project management information systems
 Project managers should delegate the detailed work involved in using
these tools to other team members and focus on providing leadership
for the whole project to ensure project success.
 Stakeholders often focus on the most important output of execution
from their perspective: the deliverables.
 Outputs of project execution include work performance information,
change requests, and updates to the project management plan and
project documents.
 Monitoring and Controlling
Project Work
 Many project managers say that 90 percent of the job is
communicating and managing changes.
 Changes are inevitable on most projects, so it’s important to develop
and follow a process to monitor and control changes.
 Monitoring project work includes collecting, measuring, and
disseminating performance information.
 It also involves assessing measurements and analyzing trends to
determine what process improvements can be made.
 The project team should continuously monitor project performance
to assess the overall health of the project and identify areas that
require special attention.
 The project management plan, schedule and cost forecasts, validated
changes, work performance information, enterprise environmental
factors, and organizational process assets are all important inputs for
monitoring and controlling project work.
 Monitoring and Controlling
Project Work
 The project management plan provides the baseline for identifying
and controlling project changes.
 A baseline is the approved project management plan plus approved
changes. For example, the project management plan includes a
section that describes the work to perform on a project. This section
of the plan describes the key deliverables for the project, the
products of the project, and quality requirements. The schedule
section of the project management plan lists the planned dates for
completing key deliverables, and the budget section of the plan
provides the planned cost of these deliverables.
 Schedule and cost forecasts, validated changes, and work
performance information provide details on how project execution is
going. The main purpose of this information is to alert the project
manager and project team about issues that are causing problems or
might cause problems in the future.
 Monitoring and Controlling
Project Work
 Important outputs of monitoring and controlling project work
include change requests and work performance reports.
 Change requests include recommended corrective and preventive
actions and defect repairs.
 Corrective actions should result in improvements in project
performance.
 Preventive actions reduce the probability of negative consequences
associated with project risks.
 Defect repairs involve bringing defective deliverables into
conformance with requirements.
 Many organizations use a formal change request process and forms
to keep track of project changes.
 Work performance reports include status reports, progress reports,
memos, and other documents used to communicate performance.
Performing Integrated Change
Control
Integrated change control involves identifying, evaluating, and managing
changes throughout the project life cycle.
Three main objectives of integrated change control are:
 Influencing the factors that create changes to ensure that changes are
beneficial
 Determining that a change has occurred
 Managing actual changes as they occur
 Important inputs to the integrated change control process include the
project management plan, work performance information, change
requests, enterprise environmental factors, and organizational process
assets.
 Important outputs include approved change requests, a change log, and
updates to the project management plan and project documents.
 Change requests are common on projects and occur in many different
forms.
Performing Integrated Change Control
Change Control on IT Projects
 IT is often referred to as data automation or data processing.
 Most project managers and top management realized that project
management is a process of constant communication and negotiation
about project objectives and stakeholder expectations.
 Changes happen throughout the project life cycle and recognizes that
changes are often beneficial to some projects.
 All projects will have some changes, and managing them is a key
issue in project management, especially for IT projects.
 Many IT projects involve the use of hardware and software that is
updated frequently.
 Some changes might make sense but be too large to fit into a current
project. Projects have scope, time, cost, and other goals, and changes
often affect those goals. If the organization wants to meet time and
cost goals, for example, it must control changes to the project’s
scope. Organizations often decide to document some change
requests and include them in an upgrade to the current project.
Performing Integrated Change Control
Change Control System
 A change control system is a formal, documented process that
describes when and how official project documents may be changed.
 It also describes the people authorized to make changes, the paperwork
required for these changes, and any automated or manual tracking
systems the project will use.
 A change control system often includes a change control board,
configuration management, and a process for communicating changes.
 A change control board (CCB) is a formal group of people responsible
for approving or rejecting changes to a project.
 The primary functions of a CCB are to provide guidelines for preparing
change requests, evaluating change requests, and managing the
implementation of approved changes.
 Configuration management ensures that the descriptions of the
project’s products are correct and complete. It involves identifying and
controlling the functional and physical design characteristics of
products and their support documentation.
Performing Integrated Change Control
 Another critical factor in change control is communication.
 Project managers should use written and oral performance reports
to help identify and manage project changes.
 Why is good communication so critical to success? One of the most
frustrating aspects of project change is not having everyone
coordinated and informed about the latest project information.
 Closing Projects or Phases
 The last process in project integration management is closing the
project or phase, which requires that you finalize all activities and
transfer the completed or cancelled work to the appropriate
people.
 The main inputs to this process are the project management plan,
accepted deliverables, and organizational process assets.
 The main tool and technique is again expert judgment. The
outputs of closing projects are:
 Final product, service, or result transition: Project sponsors are
usually most interested in making sure they receive delivery of the
final products, services, or results they expected when they
authorized the project.
 Organizational process asset updates: The project team should
provide a list of project documentation, project closure
documents, and historical information produced by the project in
a useful format.
Using Software to Assist in Integration
Management
 Project teams can use various types of software to assist in project
integration management.
 Project teams create documents with word processing software, give
presentations with presentation software, track information with
spreadsheets, databases, or customized software, and transmit
information using various types of communication software.
 Project management software are important tool for developing and
integrating project planning documents, executing project
management plan, monitoring and controlling project activities, and
performing integrated change control.
 The growth of cloud computing has transformed how, when, and
where people work. Many project management software tools are
now available in the cloud, as are other tools and services. Most
business professionals and students now store their files using some
type of cloud storage (Google Drive, Microsoft OneDrive, DropBox,
etc.).
Thank you 

44
THE END