Introduction To Project Management

1 Introduction to Project Management
Objectives
After reading this chapter, you will be able to:
1. Understand the growing need for better project management, especially for
information technology projects
2. Explain what a project is, provide examples of information technology projects,
list various attributes of projects, and describe the triple constraint of projects
3. Describe projectmanagement and discuss key elements of the project management framework, including project stakeholders, the project management
knowledge areas, common tools and techniques, and project success factors
4. Understand the role of the project manager by describing what project managers do, what skills they need, and what the career field is like for information technology project managers
5.Describe the project management profession, including its history, the role
of professional organizations like the Project Management Institute, the
importance of certification and ethics, and the growth of project management software

OPENING CASE

A

nne Roberts, the new Director of the Project Management
Office for a large retail chain, stood in front of five hundred
people in the largecorporate auditorium to explain the company’s
new strategies. She was also broadcasting to thousands of other
employees, suppliers, and stockholders throughout the world via the
Internet. The company had come a long way in implementing new
information systems to improve inventory control, sell products
using the Web, and streamline the sales and distribution processes.

2

CHAPTER

1However, the stock price was down, the nation’s economy was
weak, and people were anxious to hear about the company’s new
strategies.
Anne began to address the audience, “Good morning. As many of
you know, our CEO promoted me to a new position as Director of
the Project Management Office. Most of what we do in this department involves projects, and my role in this new position is to turnthe company around by helping us effectively select and manage
those projects. Our challenge is to develop a culture in which we all
work together to provide high-quality goods and services to our consumers while earning a profit in this difficult market. To meet this
challenge, we must collaborate to focus on finding solutions to complex problems. We must decide what projects will most benefitthe
company, how we can continue to leverage the power of information
technology to support our business, and how we can exploit our
human capital to successfully plan and execute those projects. If we
succeed, we’ll become a world-class corporation.”
“And if we fail?” someone asked from the audience.
“Let’s just say that failure is not an option,” Anne replied.

INTRODUCTION
Many peopleand organizations today have a new or renewed interest in project management. Until the 1980s, project management primarily focused on
providing schedule and resource data to top management in the military and
construction industries. Today’s project management involves much more, and
people in every industry and every country manage projects. New technologies
have become a significant factorin many businesses. Computer hardware, software, networks, and the use of interdisciplinary and global work teams have
radically changed the work environment. The statistics below demonstrate the
significance of project management in today’s society, especially for projects
involving information technology (IT):
s

A 2001 report showed that the U.S. spends $2.3 trillion on projects everyyear, an amount equal to one-quarter of the nation’s gross domestic product. The world as a whole spends nearly $10 trillion of its $40.7 trillion
gross product on projects of all kinds. More than sixteen million people
regard project management as their profession.1

1 Project Management Institute (PMI), The PMI Project Management Fact Book, Second

Edition, 2001.

INTRODUCTION TO PROJECT...