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CHAPTER 4: PROJECT INTEGRATION MANAGEMENT - Coggle Diagram
CHAPTER 4:
PROJECT INTEGRATION MANAGEMENT
Return on Investment
Formula
: ROI = (total discounted benefits - total discounted costs) / discounted costs
Internal rate of return (IRR) can by calculated by finding the discount rate that makes the NPV equal to zero
The higher the ROI, the better
What is Project Integration Management?
Many new project managers have trouble looking at the “big picture” and want to focus on too many details (See opening case for a real example)
Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle
Project integration management is not the same thing as software integration
Main processes
Developing the project management plan
Directing and managing project work
Developing the project charter
Monitoring and controlling project work
Performing integrated change control
Closing the project or phase
Best Practice
Dyson: robotics and artificial intelligence research
Samsung: budget brand
Apple: great design and learning to ‘think different’
What Went Wrong?
Phoenix system project goal: reduce payroll processing overhead and staffing costs
Making sure people are paid is crucial to employee satisfaction
Strategic Planning and Project Selection
SWOT analysis
Strengths, Weaknesses, Opportunities, and Threats
Identifying potential projects
Start of project initiation
Long-term objectives
Studying opportunities and threats in the business environment
Predicting future trends
Analyzing the strengths and weaknesses of an organization
Projecting the need for new products and services
Aligning IT with business strategy
develop a strategy for using IT to define how it will support the organization’s objectives
Net Present Value Analysis
Method of calculating the expected net monetary gain or loss from a project
Projects with a positive NPV should be considered if financial value is a key criterion
Projects with higher NPVs are preferred
NPV calculations
Determine estimated costs and benefits
Calculate the net present value
Determine the discount rate
Important considerations
Discount rate can vary, often based on the prime rate and other economic considerations
Costs can be entered as negative numbers and can be listed first (and then benefits)
ome organizations refer to the investment year or years for project costs as Year 0 and do not discount costs in Year 0
Methods for Selecting Projects
Performing net present value or other financial analyses
Using a weighted scoring model
Categorizing information technology projects
Implementing a balanced scorecard
Focusing on broad organizational needs
Developing a Project Charter
A project charter is a key output of the initiation process
Inputs for developing a project charter
Business case
Benefits management plan
Agreements
Enterprise environmental factors
Organizational process assets
A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management
Payback Analysis
Payback period is the amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in a project
Many organizations have requirements for the length of the payback period of an investment
Payback occurs when the net cumulative discounted benefits equals the costs
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
Directing and Managing Project Work
Products of the project are produced during the execution phase
project manager needs
focus on leading the project team
managing stakeholder relationships
execute the project management plan successfully
Involves managing and performing the work described in the project management plan
Developing a Project Management Plan
Document used to coordinate all project planning documents and help guide a project’s execution and control
Common elements of a project management plan
Management and technical processes used on the project
Work to be done
Description of how the project is organized
Schedule and budget information
Introduction/overview of the project
References to other project planning documents
Closing Projects or Phases
Main inputs are
business documents
agreements
procurement documentation
project documents, accepted deliverables
project management plan
organizational process assets
project charter
To close a project or phase, we must finalize all activities and transfer the completed or cancelled work to the appropriate people
Performing Integrated Change Control
Determining that a change has occurred
Managing actual changes as they occur
Influencing the factors that create changes to ensure that changes are beneficial
Describes who is authorized to make changes, paperwork required for these changes, and any automated or manual tracking systems the project will use
Change control board (CCB) is a formal group of people responsible for approving or rejecting changes on a project
Coordinating Planning and Execution
Project managers must lead by example
Organizational culture can help project execution
The main function of creating a project management plan is to guide project execution
Project managers may still need to break the rules to meet project goals
Monitoring and Controlling Project Work
A baseline is a starting point, a measurement, or an observation that is documented so that it can be used for future comparison.
Monitoring project work includes collecting, measuring, and disseminating performance information