Software Project Management For Dummies®

Software Project

Management

FOR

DUMmIES‰

by Teresa Luckey, PMP, MBA, and

Joseph Phillips, PMP

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01_749346 ffirs.qxp 8/30/06 10:15 PM Page i

Software Project

Management

FOR

DUMmIES‰

by Teresa Luckey, PMP, MBA, and

Joseph Phillips, PMP

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Software Project Management For Dummies®

Published by

Wiley Publishing, Inc.

111 River Street

Hoboken, NJ 07030-5774

www.wiley.com

Copyright © 2006 by Wiley Publishing, Inc., Indianapolis, Indiana

Published by Wiley Publishing, Inc., Indianapolis, Indiana

Published simultaneously in Canada

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Library of Congress Control Number: 2005935165

ISBN-13: 978-0-471-74934-9

ISBN-10: 0-471-74934-6

Manufactured in the United States of America

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About the Authors

Teresa Luckey was born in Indianapolis, Indiana, the eighth of twelve children.

She earned the degree of Bachelor of Science from the University of Southern

Indiana, with a major in Education. She earned her teaching endorsements in

Computer Education and Mathematics from the University of Indianapolis

and thoroughly enjoyed teaching (and learning from) junior high students for

several years. After deciding to expand her horizons beyond the teaching

profession, she pursued her interests in information systems and project

management while working at hospitals in Indianapolis, and then moved on

to a consulting firm, where she now works as a manager implementing health￾care systems. Teresa earned her Master of Business Administration degree

from Indiana Wesleyan University, where she served as co-class president

with her husband, David. She is just shy of completing her Master of Science in

New Media at Indiana University School of Informatics. One of these days —

soon — she hopes to finish that degree so that she can maintain her reputation

as a life-long learner.

Teresa earned her Project Management Professional Certification through the

Project Management Institute in 2001 and continues to maintain her certifica￾tion. She enjoys contributing to the field of project management, particularly

with regard to healthcare software.

Teresa takes pleasure in spending time with her family — especially her

husband David and their children, Amanda, Sara, and Adam. Being a firm

believer in the axiom that there’s more to life than work, Teresa and her

family are passionate about traveling and exploring all types of music.

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Joseph Phillips, PMP, Project+, is the Director of Education for Project

Seminars. He has managed and consulted on projects for various industries,

including technical, pharmaceutical, manufacturing, and architectural, among

others.

Phillips has served as a project management consultant for organizations cre￾ating project offices, maturity models, and best-practice standardization.

As a leader in adult education, Phillips has taught organizations how to

successfully implement project management methodologies, information

technology project management, risk management, and other courses.

Phillips has taught courses at Columbia College, University of Chicago,

Indiana University, and others. He is a Certified Technical Trainer and has

taught over 10,000 professionals. Phillips has contributed as an author or

editor to more than 30 books on technology, careers, and project management.

Phillips is a member of the Project Management Institute and is active in

local project management chapters. He has spoken on project management,

project management certifications, and project methodologies at numerous

trade shows, PMI chapter meetings, and employee conferences. When not

writing, teaching, or consulting, Phillips can be found behind a camera or

on the working end of a fly rod. You can contact Phillips through www.

projectseminars.com.

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Dedication

I dedicate this effort to David, Amanda, Sara, and Adam Luckey.

Authors’ Acknowledgments

Teresa Luckey: Thanks to Kevin Kirschner, Editorial Manager, for his confi￾dence in me and for providing me with this opportunity. I appreciate Katie

Feltman, Acquisitions Editor, for her diligence in bringing this book to fruition

and for her patience in gracefully answering all of my questions. Nicole Haims,

Project Editor, provided a great deal of guidance and support to me and I am

grateful to her for her efforts. Ed Kirschner, thanks for your ideas and input,

and most of all thank you to David, Amanda, Sara, and Adam Luckey for your

unrelenting support throughout this and all endeavors.

Joe Phillips: Books, like projects, are never done alone.

Thank you to Teresa Luckey for her hard work and incredible input on

this project. A humongous thank you to Katie Feltman and all the folks at

For Dummies for their patience and persistence. I would also like to thank the

hundreds of folks who have attended my PMP Boot Camps. Your questions,

conversations, and recommendations have helped me write a better book.

Finally, thank you to Elizabeth Lee, Rick Gordon, Scot Conrad, Phil Stuck, and

my son, Kyle.

Both authors would like to recognize and thank Cynthia Snyder and Karen

Scott for being conscientious and thorough while reviewing this book.

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Publisher’s Acknowledgments

We’re proud of this book; please send us your comments through our online registration form

located at www.dummies.com/register/.

Some of the people who helped bring this book to market include the following:

Acquisitions, Editorial, and

Media Development

Project Editor: Nicole Haims

Acquisitions Editor: Katie Feltman

Technical Editors: Cynthia Snyder and

Karen Scott

Editorial Manager: Jodi Jensen

Media Development Manager:

Laura VanWinkle

Editorial Assistant: Amanda Foxworth

Sr. Editorial Assistant: Cherie Case

Cartoons: Rich Tennant

(www.the5thwave.com)

Composition Services

Project Coordinator: Jennifer Theriot

Layout and Graphics: Claudia Bell, Carl Byers,

Lauren Goddard, Lynsey Osborn,

Heather Ryan, Julie Trippetti

Proofreaders: David Faust, Jessica Kramer,

Techbooks

Indexer: Techbooks

Publishing and Editorial for Technology Dummies

Richard Swadley, Vice President and Executive Group Publisher

Andy Cummings, Vice President and Publisher

Mary Bednarek, Executive Acquisitions Director

Mary C. Corder, Editorial Director

Publishing for Consumer Dummies

Diane Graves Steele, Vice President and Publisher

Joyce Pepple, Acquisitions Director

Composition Services

Gerry Fahey, Vice President of Production Services

Debbie Stailey, Director of Composition Services

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Contents at a Glance

Introduction .................................................................1

Part I: Starting Your Software Project ............................7

Chapter 1: Examining the Big Picture of Project Management.....................................9

Chapter 2: Initiating a Software Project.........................................................................25

Chapter 3: Creating the Software Scope........................................................................55

Part II: Planning Your Software Project........................77

Chapter 4: Planning for Communications .....................................................................79

Chapter 5: Planning for Software Project Risks..........................................................107

Chapter 6: Planning for Software Quality....................................................................131

Chapter 7: Building the Project Team..........................................................................147

Chapter 8: Creating Project Time Estimates...............................................................165

Chapter 9: Building Your Project Budget ....................................................................191

Part III: Executing Your Software Project Plan............209

Chapter 10: Working the Project Plan..........................................................................211

Chapter 11: Working with Project People....................................................................229

Chapter 12: Procuring Goods and Services ................................................................245

Part IV: Controlling Your Software Project..................263

Chapter 13: Managing Changes to the Software Project ...........................................265

Chapter 14: Using Earned Value Management in Software Projects ........................281

Chapter 15: Tracking Project Performance.................................................................295

Part V: Closing Your Software Project.........................313

Chapter 16: Finalizing the Project Management Processes ......................................315

Chapter 17: Documenting Your Software Project.......................................................333

Part VI: The Part of Tens ...........................................347

Chapter 18: Ten Ways to Make Your Software Project Crash and Burn ..................349

Chapter 19: Ten Ways to Make Any Software Project Better ....................................359

Appendix: Formal Project Management

Training and Certification .........................................369

Index .......................................................................375

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Table of Contents

Introduction..................................................................1

About This Book...............................................................................................1

Who Should Read This Book?.........................................................................2

How This Book Is Organized...........................................................................3

Part I: Starting Your Software Project ..................................................3

Part II: Planning Your Software Project................................................3

Part III: Executing Your Software Project Plan....................................4

Part IV: Controlling Your Software Project..........................................4

Part V: Closing Your Software Project..................................................4

Part VI: The Part of Tens .......................................................................5

Appendix .................................................................................................5

Icons Used in This Book..................................................................................5

Where to Go from Here....................................................................................6

Part I: Starting Your Software Project.............................7

Chapter 1: Examining the Big Picture of Project Management . . . . . .9

Defining Software Projects............................................................................10

Defining Software Project Management ......................................................10

Comparing Projects and Operations ...........................................................12

Examining Project Constraints.....................................................................13

Understanding Universal Constraints (Time, Cost, and Scope) ..............13

Managing time constraints..................................................................15

Managing cost constraints ..................................................................16

Managing the scope .............................................................................16

Controlling Scope Creep................................................................................17

Making Sense of Project Success (Or Failure)............................................18

Starting and Finishing Software Projects ....................................................19

Understanding What Makes Software

Project Management So Special................................................................20

Breaking Moore’s Law..........................................................................21

Dealing with Moore ..............................................................................21

Dealing with the first-time, first-use penalty.....................................23

Chapter 2: Initiating a Software Project . . . . . . . . . . . . . . . . . . . . . . . . .25

Identifying the Project Purpose....................................................................25

Talking to the stakeholders.................................................................26

Reaching project consensus ...............................................................30

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Dealing with Politics ......................................................................................31

Moving from Here to There...........................................................................32

Initiating the project ............................................................................34

Planning the project.............................................................................36

Examining project planning approaches...........................................37

Executing the project...........................................................................38

Controlling the project ........................................................................38

Closing the project ...............................................................................38

Living with Stakeholders...............................................................................39

Loving your project team ....................................................................39

Loving your project sponsor ..............................................................40

Balancing stakeholder expectations..................................................40

Completing a Project Feasibility Study .......................................................42

What feasibility studies do (and don’t do) .......................................43

Finding a feasibility consultant...........................................................43

Understanding How Executives Select Projects.........................................44

Using the benefit comparison selection model................................45

Using a scoring model .........................................................................46

Facing a murder board.........................................................................46

Finding a project’s ROI.........................................................................46

Writing the Product Description ..................................................................49

Making Your Project Wish List .....................................................................51

Finding the ideal tools .........................................................................51

Building a dream team.........................................................................52

Finding a preferred vendor .................................................................53

Recognizing Doomed Projects......................................................................54

Chapter 3: Creating the Software Scope . . . . . . . . . . . . . . . . . . . . . . . . .55

Understanding Product Scope and Project Scope.....................................56

Completing stakeholder analysis .......................................................56

Interviewing stakeholders now to avoid surprises later.................57

Managing Stakeholder Objectives................................................................58

Knowing the sources of common conflicts.......................................58

Resolving common conflicts...............................................................60

Building the Software Scope.........................................................................61

Dealing with regulations and options ................................................62

Dealing with project constraints ........................................................64

Getting to the signature.......................................................................66

Creating the Project Scope ...........................................................................67

Knowing what the project scope statement must include .............68

What a project scope doesn’t include ...............................................70

Creating a Work Breakdown Structure ........................................................70

Creating your very own WBS ..............................................................71

Making updates to the WBS ................................................................73

Using a code of accounts.....................................................................73

x Software Project Management For Dummies

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Part II: Planning Your Software Project ........................77

Chapter 4: Planning for Communications . . . . . . . . . . . . . . . . . . . . . . . .79

The Importance of Communicating Effectively..........................................80

Ensuring accurate communication ....................................................80

How not to communicate ....................................................................82

Care and Feeding of Nerds ............................................................................83

Avoiding Communication Breakdowns .......................................................85

Facing the risks of communication meltdowns................................85

Managing communications across the enterprise...........................87

Calculating the Communication Channels..................................................88

Building an Effective Communication Management Plan .........................91

Knowing the six things every communication plan needs .............91

The communication responsibility matrix: Determining

who communicates to whom ..........................................................93

Setting up ten-minute meetings..........................................................94

Defining Who Needs What Information.......................................................96

What executives want to hear ............................................................96

What functional managers need to hear ...........................................97

What your project team needs to hear..............................................98

What you need to hear ........................................................................99

Defining When Communication Is Needed ...............................................100

Creating a communication schedule ...............................................100

Hosting team and stakeholder meetings.........................................102

Defining Communication Modalities .........................................................104

Modalities for formal communication .............................................104

Modalities for informal communication..........................................105

Automating communications............................................................105

Chapter 5: Planning for Software Project Risks . . . . . . . . . . . . . . . . .107

Identifying Pure and Business Risks..........................................................108

Dealing with pure risks in software projects ..................................109

Assessing business risks ...................................................................109

Accepting everyday technology risks

with your software project ............................................................110

Determining Stakeholder Risk Tolerance..................................................111

Mitigating Risks Early On ............................................................................112

Managing Risks in Your Organization........................................................113

Identifying risks ..................................................................................113

Ranking risks.......................................................................................114

Relying on Quantitative Analysis ...............................................................116

Creating a Contingency Reserve ................................................................117

Using Software Models for Risk Management ..........................................118

Using the waterfall model..................................................................119

Using the spiral model.......................................................................121

xi Table of Contents

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Using the V model ..............................................................................123

Using the scrum development model..............................................124

Preparing a Risk Response Plan.................................................................126

Avoiding risks .....................................................................................127

Transferring risks ...............................................................................128

Mitigating risks ...................................................................................128

Accepting the risks.............................................................................129

Examining Risk Responses and Impacts ...................................................129

Handling the ripple effect of risk response.....................................130

Getting to say, “I told you so!” ..........................................................130

Chapter 6: Planning for Software Quality . . . . . . . . . . . . . . . . . . . . . . .131

Defining Quality............................................................................................131

Referring to the product scope ........................................................132

Referring to the project scope..........................................................133

Avoiding gold-plated software ..........................................................134

Examining quality versus grade .......................................................135

Working with a Quality Policy ....................................................................136

Working ISO programs .......................................................................137

Getting a Total Quality Management workout................................137

Slipping into the sixth sigma.............................................................140

Using homegrown, in-house quality solutions ...............................142

Balancing Time, Cost, and Quality.............................................................142

Examining optimal quality ................................................................143

Considering quality when making changes ....................................144

Chapter 7: Building the Project Team . . . . . . . . . . . . . . . . . . . . . . . . . .147

Determining Your Project Needs................................................................148

Revisiting the work breakdown structure.......................................148

Creating a roles and responsibilities matrix...................................148

Finding the Talent ........................................................................................152

Asking the Right Questions (In the Right Way)........................................152

Asking questions that facilitate resource management ................153

Asking questions that facilitate leadership potential....................154

Finding a star ......................................................................................155

Working with organizational structures ..........................................155

Determining Who Is Really in Charge ........................................................156

Functioning in a functional organization.........................................157

Mixing it up in a matrix......................................................................158

Prospering in the projectized structure ..........................................159

Cooling in a composite structure.....................................................161

Hosting Your First Project Team Meeting .................................................161

Working with Organizational Policies........................................................162

Chapter 8: Creating Project Time Estimates . . . . . . . . . . . . . . . . . . . . .165

Organizing Information Before You Build a Timeline ..............................166

Understanding the Importance of a Project Network Diagram..............166

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