A Portfolio Approach to Managing IT Projects

1
Lecture 19

• Chapter 10
• A Portfolio Approach to Managing IT Projects

2
Final Exam Outline

• 12 3pm, Wednesday June 14
• Half short and long answers on theory and
  principles from course
• Half case-study

3
Question 1 Find New Zealand on a world map
4
Final Exam Sample Questions

• Short answer
• What is the difference between security and
  reliability?
• Give three advantages and three disadvantages of
  centralized IT support (as opposed to
  decentralized within the same organization)
• In what ways is IT infrastructure different from
  other infrastructure resources?
• Cite an example from one of the cases we studied
  that shows how customization can be implemented
  using IT

5
Final Exam Sample Questions

• Long answer
• Discuss what risks are associated with major IT
  projects, and what a company can do to mitigate
  against them
• Describe the evolution of IT outsourcing over the
  past 30 years.

6
IT Portfolio Management
7
IT Disasters are still common

• Companies fail to realize risk of project
• Multiple projects lead to larger aggregate risk
• Different projects require different management

8
Sources of Implementation Risk

• Project Size
• Experience with Technology
• Requirements Volatility
• See fig 10.1

9
Fig 10.1 Effect of Adding Risk Factors on Project
Risk
10
Project Categories and Degree of Risk
11
Risk Assessment

• Figure 10.3 Risk profile questionnaire
• Higher risk score, higher management approval
  required
• Repeated several times throughout project
• Different perspectives on risk expectation can
  lead to disaster

12
Project Implementation Dip

• Most projects dont go smoothly all the way
• New system going live common point
• Expectations not always realistic
• Short term downward shift may be necessary
• All happens in middle of business cycle and
  worker turnover
• Need to focus on end goal to get through value of
  change when people are complaining
• Ideally see it before it comes and get people
  ready

13
Fig 10.4 Expectations vs. reality
14
Portfolio Risk

• Multiple projects can add or reduce risk
• Low-risk not always good
• All high-risk is vulnerable
• Identify risks in all projects, then consider
  combined portfolio of risks
• See fig 10.5

15
Fig 10.5 Risk and Return Distribution for
Portfolio of Projects
16
Project Management

• No single correct plan
• Management Tools
• External integration tools
• Internal integration tools
• Formal planning tools
• Formal result controls
• See table 10.1 Tools for project management

17
Influences on Tool Selection

• Low requirements volatility/low tech projects
• Easy to manage
• Least common
• PERT (program evaluation review technique)
• CPM (critical path method)
• Low requirements volatility/high tech projects
• Difficult to manage
• Eg. Converting mainframe system, developing web
  access
• Outputs well defined
• Technical complexity drives characteristics of
  successful manager
• Formal planning not likely to add as much value

18
Influences on Tool Selection (ctd)

• High requirements volatility/low tech projects
• Involve users in design, development and
  implementation
• Develop user support
• Formal planning and control tools help
• Close, aggressive management of external
  integration
• Leadership from management not technologists
• High Requirements Volatility/high-tech projects
• Managers need technical expertise
• Ill-defined projects common
• Formal tools useful once clarity is reached in
  direction
• Cross effects of different factors becomes
  important

19
Project Management

• Relative Contribution of Management Tools
• Depends on specific project
• Results-oriented tools work in structured/formal
  environment
• Depends on corporate culture
• Emergence of Adaptive Project Management Methods
• Approaches to design, deployment, implementation
  and investment that assume a need to gather
  information and learn as one goes.
• Not really effective universal methods yet
• Software Development Life Cycles
• SDLC breaks down development into stages
• Analysis and design
• Construction
• Implementation
• Operation and maintenance

20
Project Management (ctd.)

• Adaptive Methodologies
• Quickly build rough preliminary version
• Iterate through stages rather than finish every
  stage
• Fast cycle through stages
• Aim to deliver limited functionality fast
• Require skilled staff
• Adaptive Methods and change management
• Intensely involve users in evaluating outcomes
• Strictly control migration of system features
  from development, testing to production
• Separating stages avoids major problems

21
Process Consistency and Agility in Project
Management

• Balancing tension between process consistency and
  process agility
• Tools useful one place shouldnt necessarily be
  applied to everything
• Success in balance often includes minimal
  formalization
• Flow
• Understand interrelationships between projects
• Completeness
• Keeping track of all tasks in project
• Visibility
• Getting info on status of rest of project

22
Survey