Project Integration Management

PROJECT
INTEGRATION
MANAGEMENT
Project Integration
Management
• Coordinating all of the other project management

knowledge areas throughout a project’s life cycle.
Project Integration Management Processes
1
• Develop the project charter
2 • Develop the project management plan
3
• Direct and manage project execution
4
• Monitor and control the project work
5
• Perform integrated change control
6
• Close the project
3
Project Integration Management Summary
4
Strategic Planning and Project Selection
• Strategic planning involves determining long-term objectives,

predicting future trends, and projecting the need for new
products and services
• Organizations often perform a SWOT analysis
• Analyzing Strengths, Weaknesses, Opportunities, and Threats
• As part of strategic planning, organizations:
• Identify potential projects
• Use realistic methods to select which projects to work on
• Formalize project initiation by issuing a project charter
5
Methods for Selecting Projects
Focusing on broad organizational needs
Categorizing information technology projects
Performing net present value or other financial analyses
Using a weighted scoring model
Implementing a balanced scorecard
7
Focusing on Broad Organizational Needs
There is a need for the project
There are funds available
There’s a strong will to make the project

succeed
8
Categorizing IT Projects
A problem
An opportunity
A directive
9
Financial Analysis of Projects
Net Present Value

(NPV) analysis
Return on investment
(ROI)
Payback analysis
10
Net Present Value Analysis
• Net present value (NPV) analysis is a method of

calculating the expected net monetary gain or loss
from a project by discounting all expected future
cash inflows and outflows to the present point in
time
11
NPV Formula
t: year of the cashflow

A: the amount of the cashflow
r: discount rate
discount factor = 1/(1 + r)t

Net Present Value Example
Note that
totals are
equal, but
NPVs are
not because
of the time
value of
money
13
Consulting NPV Example
Multiply
by the
discount
factor each
year, then take
cum.
benefits –
costs to
get NPV
Note: See the template called business_case_financials.xls
14
Return on Investment
ROI = (total discounted benefits - total discounted costs) /

discounted costs
15
Payback Analysis
• The 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
• Payback occurs when the net cumulative discounted
benefits equals the costs
16
Charting the Payback Period
17
Weighted Scoring Model
Identify criteria important to the project selection process
Assign weights (percentages) to each criterion so they add up to 100%
Assign scores to each criterion for each project
Multiply the scores by the weights and get the total weighted scores
18
Sample
Weighted
Scoring Model
19
for Project
Selection
Implementing a Balanced Scorecard
• Drs. Robert Kaplan and David Norton developed this

approach to help select and manage projects that align
with business strategy
• A balanced scorecard:
• Is a methodology that converts an organization’s value
drivers, such as customer service, innovation, operational
efficiency, and financial performance, to a series of defined
metrics
• See www.balancedscorecard.org for more information
20
Balanced Scorecard Example
Defense Finance and Accounting Service, “DFAS Strategic Plan,” Nov 2001
(http://balancedscorecard.org/files/DFAS-strategic-plan.pdf ), p. 13.
21
Project Charters
• A project charter is a document that formally

recognizes the existence of a project and provides
direction on the project’s objectives and
management
Inputs in developing a project charter
A Project statement of Work

A business case
Agreements
Enterprise environmental factors
Organizational process assets
Project Charter’s Basic Informations
1. The project title and date of authorization
2. The project manager’s name and contact information
3. A summary schedule
A summary of the project’s budget
A description of the project’s objectives
Project success criteria

A summary of the planned approach for managing the project
A roles and responsibilities matrix

A sign off section for signatures of key project stakeholders
A comment section
Developing A Project Management Plan
A project management plan is a document used to

coordinate all project planning documents and help
guide a project’s execution and control.
Project Management Plan Contents
The project name
A description of the project
The sponsor’s name
The name of the project manager and keyn team members
Deliverables of the project
A list of important reference materials
A list of definitions and acronyms

Informations of how the project is organized
Organizational charts
Project responsibilities
Other organizational or process-related information
Managemen objectives
Project controls
Risk Management
Project Staffing and Technical process

The Work Needed To Perform And Reference The
Scope Management Plan
Major work packages
Key deliverables
Other work related information

The project schedule information section
Summary schedule
Detailed Schedule
Other schedule related information

The Budget Section Of The Project Management Plan
Summary budget
Detailed budget
Other budget related information

Directing And Managing Project Work
• Directing and managing project work involves
managing and performing the work described in
the project management plan, one of the main
inputs for this process
Coordinating Planning and Execution
• Project Execution Tools and Techniques:
1. Expert judgment
2. Meetings
3. Project Management Information System

Monitoring And Controlling Project Work
• Monitoring project work includes collecting,

measuring, and disseminating performance
information.
• It also involves assessing measurements and
analyzing trends to determine what process
improvements can be made.
• The project team should continuously monitor
project performance to assess the overall health of
the project and identify areas that require special
attention.
Integrated Change Control
• Three main objectives are:
• Influencing the factors that create changes to ensure
that changes are beneficial
• Determining that a change has occurred
• Managing actual changes as they occur
• A baseline is the approved project management
plan plus approved changes
37
Change Control on Information Technology Projects
• Former view: the project team should strive to do

exactly what was planned on time and within budget
• Problem: stakeholders rarely agreed up-front on the
project scope, and time and cost estimates were
inaccurate
• Modern view: project management is a process of
constant communication and negotiation
• Solution: changes are often beneficial, and the project
team should plan for them
38
Change Control System
• A formal, documented process that describes when
and how official project documents and work may
be changed
• Describes who is authorized to make changes and
how to make them
39
Change Control Board (CCB)
• A formal group of people responsible for approving
or rejecting changes on a project
• CCBs provide guidelines for preparing change
requests, evaluate change requests, and manage
the implementation of approved changes
• Includes stakeholders from the entire organization
40
Making Timely Changes
• Some CCBs only meet occasionally, so it may take
too long for changes to occur
• Some organizations have policies in place for time-
sensitive changes
• “48-hour policy” allows project team members to make
decisions, then they have 48 hours to reverse the
decision pending senior management approval
• Delegate changes to the lowest level possible, but keep
everyone informed of changes
41
Closing Projects
• To close a project, you must finalize all activities
and transfer the completed or cancelled work to
the appropriate people
• Main outputs include:
• Administrative closure procedures
• Contract closure procedures
• Final products, services, or results
• Organizational process asset updates
42
Using Software to Assist in Project
Integration Management
• Several types of software can be used to assist in
project integration management
• Documents can be created with word-processing software
• Presentations are created with presentation software
• Tracking can be done with spreadsheets or databases
• Communication software like e-mail and Web authoring tools
facilitate communications
• Project management software can pull everything together
and show detailed and summarized information
• Business Service Management (BSM) tools track the
execution of business process flows
43
End of File

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PROJECT

• Coordinating all of the other project management

2 • Develop the project management plan

• Strategic planning involves determining long-term objectives,

Categorizing information technology projects

Performing net present value or other financial analyses

Using a weighted scoring model

Implementing a balanced scorecard

There is a need for the project

There are funds available

There’s a strong will to make the project

Net Present Value

• Net present value (NPV) analysis is a method of

t: year of the cashflow

discount factor = 1/(1 + r)t

Note: See the template called business_case_financials.xls

ROI = (total discounted benefits - total discounted costs) /

• The payback period is the amount of time it will take

Assign weights (percentages) to each criterion so they add up to 100%

Assign scores to each criterion for each project

• Drs. Robert Kaplan and David Norton developed this

• A project charter is a document that formally

A Project statement of Work

2. The project manager’s name and contact information

A description of the project’s objectives

Project success criteria

A roles and responsibilities matrix

A project management plan is a document used to

A description of the project

The sponsor’s name

The name of the project manager and keyn team members

Deliverables of the project

A list of important reference materials

A list of definitions and acronyms

Other organizational or process-related information

Project Staffing and Technical process

Major work packages

Other work related information

Other schedule related information

Other budget related information

3. Project Management Information System

• Monitoring project work includes collecting,

• Former view: the project team should strive to do

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