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IT Project Management

IT Project Management. Agenda. Project Controlling H eavyweight Project Themes ITIL Cobit Scrum Six Sigma Prince 2 Kanban CMMI and others. Project-Controlling. Discussion of tasks and targets of project management Discussion of crucial factors for the project success

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IT Project Management

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  1. IT Project Management

  2. Agenda • Project Controlling • Heavyweight Project Themes • ITIL • Cobit • Scrum • Six Sigma • Prince 2 • Kanban • CMMI • and others

  3. Project-Controlling Discussion of tasks and targets of project management Discussion of crucial factors for the project success Breakdown of the tasks of project controlling starting from the enterprise controlling Clarification of the dependencies between project management, Controlling and project controlling Clarification of responsibilities for project controlling

  4. Project and project management Routine tasks are decreasing! Complex and new tasks are processed in the form of projects What is a project?

  5. What is a project? limited duration financial and personal restrictions fixed target cross-departmental teamwork often large scaled accompanied by uncertainty and risk Projects are intents, that are essentially marked by the uniqueness of the conditions in their totality.

  6. Project Criteria

  7. Project management Projects are of increasing complexity Research and development projects bear extreme risks. Overall of tasks concerning leading, organisation, techniques and processing of a project.

  8. Project management comprises… • What? • Determination of the project tasks • Determination of targets • Planning and controlling of personal and financial resources as well as the project progress • Who? • Determination of an organisational model • Determination of the project team • Organisational embedding of the project groups into the structure of the organisation • Implementation of decision making instance (steering comitee) • How? • Determination of a tool for scheduling • Methods for monitoring of milestones and costs • Tools for planning and reporting

  9. Targets of Project Management Magic Triangle Milestones Goals Cost Targets

  10. Determinants for the project success • Systematic proceeding in coordination with a project management fitting to the enterprise • Cardinal errors: • risks are not cared for • organisation does not fit to the project • no team spirit and not enough identification with the project • scheduling without involvement of the teams • decisions are delayed • Important changes of the plans come to late • not enough power for the project leader

  11. Soft Skills • Soft skills are crucial for the success of a project. • relationship between team members and the team and the surroundings Iceberg

  12. Controlling • Management and performing departments are highly specialised • Need for coordination • Two fields of coordination • c. between planning, controlling,… • c. between operative aspects and long term targets • System building function Above all, controlling has the task to coordinate planning, supervision and information.

  13. Basics of Project Controlling • Enterprises are confronted with new and numerous challenges • project management can help and • has to be interpreted in a new way. • thus, project controlling also has to be interpreted in a new and more comprehensive way

  14. Project Controlling • Insurance of the project targets through: • target-performance comparison • detection of deviations • weighting of consequences • proposal of corrective actions • participation in the planning of actions and in the control of realization.

  15. Other descriptions are… Development and maintenance of a system of project planning and control. Implementation of project reporting Planning of costs and required financial resources Risk analysis and evaluation Evaluation of project alternatives Cost planning Monitoring of costs, milestones and performance Execution of final inspection and documentation

  16. Enterprise Controlling • Project controlling guarantees the connection of project planning and management with enterprise controlling • Project controlling supports the project management concerning leading tasks. • Design of processes and structures

  17. Attitude of Project Controlling PROJECT Strategic Project Controlling Multi Project Controlling SingleProject Controlling CONTROLLIING Project Management strategic Planning Controlling Organisation Leading Information strategic Controlling operativ Planning Controlling Organisation Leading Information operativ

  18. Types of project controlling • Single project controlling • A project should be fulfilled successfully • Quality, time costs, functionality • Multiproject controlling • focusses on some projects with different deadlines and completion levels • Capacity • Costs and Financial Needs • possible further side effects (strategic targets) • strategic project controlling

  19. Parts of Controlling Single Project Controlling. Focus: Project Multi Project Controlling. Focus: Period Project Group Total of Projects Planning: Resources, Costs/Revenue Planning: Resources, Costs/Revenue Planning: Resources, Costs/Revenue Controlling: Resources, Costs/Revenue Controlling: Resources, Costs/Revenue Controlling: Resources, Costs/Revenue

  20. Challenges of Multiproject controlling Periodization of success data for projects Coordination of Resources Consolidation of information concerning success, finances and risk

  21. Strategic project controlling • there are not only operative aspects of projects • strategic project controlling • is responible for strategic tasks of project management • supports information and instruments for project choice and evaluation

  22. Configuration • -Tasks • Responibilities • Instruments • Information • Configuration • -Tasks • Responibilities • Instruments • Information • Configuration • -Tasks • Responibilities • Instruments • Information                         Coordination

  23. Who is responsible for Project Controlling? Fulltime job Controlling on time = management consultant Project leader Self controlling

  24. Tasks of project controlling • What has a doctor in common with a project controller? • Why is it possible the project outcome is decreasing and what should be done to reache the aimed target? • project result is 4% beneath the plan • considers strategic questions • accompanies strategic change process • coordinates the implementation of strategic enterprise targets • concerning short term and middel term project measures • checks whether operative project decisions fit to the strategie of the enterprise

  25. Project leader and Project controller

  26. Strategic project controlling INPUT TASKS INSTRUMENTS OUTPUT

  27. Strategic project choice Collectionof Project Ideas Prioritized Projects SelectedPrioritized Projects

  28. Rough Preselection Target: limit the amount of projects in a reasonable way is there a conflict between project suggestions and strategic aims? Feasibility? “Must”-Projects are defined

  29. Evaluation of attractivity • After preselection the attractivity of project is evaluated. • strategic significance (competitive advantage, costumer focus) • urgency • efficiency • risk • costs (development costs, consequential costs) • need for resources • Tasks of the project controller • helps in the use of evaluation methods • checks the consistency of data for evaluation

  30. Instruments for evaluation of attractivity • Portfolios • Calculation of profitability • Utility analysis • also is suitable for evelation of solution alternatives • Risk analysis • Estimate success potential of projects

  31. Portfolio • Assessment of planned / running projects according to certain criteria • Proceeding • Systematic analysis of project landscape • Representation on portfolio • Analysis according to strategic enterprise targets • Determination of wanted changes • Documentation in a target portfolio • Development of activities to reach the target portfolio • Strategic orientated assignment of restricted resources on projects

  32. highstrategicimportance not urgent very urgent nostrategicimportance

  33. Risk-/Attractivity Portfolio • Evaluation of attractivity • potential profits and gains • market volume and growth • differentation potential • stability of competitive advantage • Risk • technical and economic risk

  34. Calculation of profitability

  35. Break Even Analysis plannedrevenues unplanned additional costsofdevelopment planned costs losszone Mile- stone Market entrance BEP Market exit

  36. Rentability – ROI and Dupont ROI = Earnings/Investment

  37. Payback Rule

  38. Dynamic procedures • net present value method • rate of interest • it is important at what time an inpayment/outpayment will take place  discounting

  39. Utility analysis • Not only “hard facts” should count for evaluation • qualitative impacts on attractivity have to be taken into account • strategic relevance • urgency • Utility analysis provides basis for such decisions

  40. Six Steps Targets are determined and weighted projects are rated with points weights are multiplied with points weighted sum of points is calculated sensitivity of results are analysed

  41. Determination of targets

  42. Weighted target structure

  43. Matrix of Preferences a c a c d a c e a c f g e c g f g f g g g

  44. Elements of Risk Controlling

  45. Risk Culture General attitude of the management and staff towards risks Risks have to be perceived and communicated consciously However, risk management must not lead to an excess of controll. Risk ignorant as well as risk fussy project leaders must be refused

  46. Risk management process • Risk analysis consists of: • Identification of risk • Experiences from earlier projects • Check lists • Risk evaluation • Project responsible often perceive risk blurred • catalogue of identified risks • Risk Map • Design of measures • low risks have to be accepted as measures would cost too much

  47. Possibilites of Risk Control

  48. Möglichkeiten der Risikovorbeugung • Risiken übertragen • Auftraggeber zurückgeben • selbst übernehmen • An Dritte weitergeben • an Lieferanten, Subunternehmen übertragen • Versicherungen • Risiken vermindern/vermeiden • Puffer im Termin- / Ressourcenplan • Risikoaufschlag in der Kalkulation • Einsatz qualifizierter Mitarbeiter • Zusätzliche Reviews • Qualifizierungsmaßnahmen

  49. Risikoanalyse systematisch durchführen Festlegung der einzelnen Planungsschritte Aufzeigen kritischer Bereiche Erkennen potentieller Probleme (Risiken) Bestimmung von Auswirkungen und Wahrscheinlichkeit der Risiken Ermittlung möglicher Ursachen Planung vorbeugender Maßnahmen Erarbeitung von Korrekturmaßnahmen für besonders kritische Risiken Einrichtung eines Warnsystems

  50. Analyse der Abhängigkeiten • Wie beeinflussen sich Projekte gegenseitig? • Innovationszusammenhang • Ein Projekt schafft die konzeptionelle Voraussetzungen für andere • Integrationszusammenhang • Ein Projekt muss zusammen mit einem anderen realisiert werden, damit das Gesamtziel erreicht wird • Investitionszusammenhang • Ein Projekt hat Auswirkungen auf die Kosten anderer Projekte

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