Lecture 1

The Project Management and Information Technology Context

Projects cannot be run in isolation.
Project managers cannot run projects in isolation. Project managers must consider systems that are affected by the project and systems on which the project depends. Project managers must take a holistic view of the organization.
In the 1950s, a system approach began to emerge that described an analytical approach to management and problem solving. This approach consists of three parts. First, a system philosophy that involves thinking about things in terms of systems. Next, a systems analysis approach to problem-solving requires analysis of a system’s scope, individual components, constraints, and dependencies to investigate problems and propose solutions. The third part is systems management which addresses the business, organizational, and technological issues before making systems changes.
Systems analysis is important during the execution of a project. However, systems management should not be overlooked. The three spheres of system management business, organization, and technology can have a tremendous impact on the success of project selection and management. During a project, project managers must address all three spheres of the system management model. Project managers must consider the effects of a project on the interests and needs of an entire organization.
Organizational issues can often make working on and managing projects difficult. Many projects fail simply because of company politics. Project managers must spend time identifying all stakeholders including those opposed to projects. Project managers must spend time considering the political context of a project in the organizational culture and externally. Project managers must understand the organization as well as people.
The Four Frames of Organizations
Project managers can better understand organizations by considering different perspectives. Project managers may view organizations from four different frames of reference, structural, human resources, political and symbolic.

The structural frame pertains to organizational structure. This frame deals with personnel, departmental, and organizational, coordination and control. The human resources frame attempts to create a balance between the needs of the organization and the needs of the people within the organization. For example, an organization would be more efficient if employees worked 80 hours per week. However, such a work schedule would conflict with the health and personal lives of employees. A project manager must strike a balance within the human resources frame. The political frame involves power and competition for resources. Competition for resources can create conflict within organizations. Power increases the likelihood of obtaining resources. Project managers must pay attention to politics and power within an organization. The symbolic frame has to do with understanding the symbols or the signs. Understanding what it means if a CEO comes to a project’s kick-off meeting; is that a boon or threat? Interpreting how people dress in the organization and how many hours they work into the organizational culture. Understanding different cultures is a crucial part of the symbolic frame.
Organization Structures
There are three basic classifications of organizational structures, functional, project, and matrix. Some companies use a combination of these organizational structures or just one of them. A functionalorganizational structure is a traditional one where functional managers or vice presidents of areas such as engineering IT, manufacturing, or human resources, report to the CEO. Staff within these areas have dedicated skills. For example, engineers work only within engineering; HR managers work exclusively in HR, and a manufacturing designer a remains in the manufacturing area.
A project organizational structure is one in which program managers report to the CEO; it is also a hierarchical structure. Examples of a project organizational structure are companies under contract with defense, engineering, architectural and other types of organizations to perform projects. A matrixorganization has vice presidents reporting to the CEO. Functional managers manage departmental activities of the functional resources. Functional resources may participate on multiple projects that are run by project managers. People in matrix organizations report to functional managers and participate on multiple projects and are accountable to multiple project managers.

Organizational Culture
Project success can depend on organizational structure and culture. Organizational culture is a shared set of behaviors, values, and assumptions that individuals accept while working within the organization. Subcultures may exist within organizational cultures. Organizational culture can make project management easier. Equally, an organizational culture can make project management and business activities difficult.
Project Life Cycle
Traditional phases of a project lifecycle are concept, development, implementation, and closeout.

Just as a project has a life cycle, the system developed within a project also has a life cycle. Systems development life cycles can be described by predictive life cycle models or through agile software development, depending on whether or not the cost and the schedule can be predicted accurately.
Predictive Life Cycle Models
A predictive life cycle model is used when the cost of the software development and schedule can be accurately predicted. There are several predictive life cycle models.

• The waterfall model has linear stages where one stage completes before the next one begins. The stages consist of systems analysis, design, construction, testing, and support.
• The spiral life cycle model consists of iterative stages that allow changes and revisions within the life cycle.
• The incremental build life cycle model provides for the incremental development of operational software by adding capabilities with each release.
• The prototyping life cycle model develops a prototype for use in clarifying requirements. Users are heavily involved, and the developers generate the functional requirements. This approach is used for systems where the user interface is crucial to the system.
• The RAD lifecycle model uses a method in which an evolving prototype is developed. Users are heavily involved, and the system is produced quickly.