toilaai_89_tq
09-03-2009, 10:23 AM
Project Management Models at Bank of America
Project management models are an important part of model management in most decision support systems. These models allow decision makers to monitor and control projects. Project management was one of the first applications implemented on personal computers. Project management software is being used for simple tasks, such as coordinating job schedules, to very complex and long projects, including the construction of a new manufacturing plant or the coordination of a major military engagement.
Today, a number of software packages are available to implement the models used by project management. The total market for project management software is close to $900 million annually and growing at about 20% per year according to some reports. Project management software is available for mainframe computers, client server systems, and personal computers. Computer Associates’ CA-SuperProject/Net is a project management tool for client server systems. Microsoft is the leader in project management software for personal computers, with a majority market share of about two-thirds. Project 98 is Microsoft’s most recent entry in the project management market.
Most organizations have to manage a number of large and often complex projects. It is not uncommon for these organizations to have hundreds of projects, from developing new computer programs to starting a completely new business line that are active at the same time. Some of them are critical to the success or survival of the organization. But large projects often fail to be delivered on time and within budget. Some never get implemented, after millions of dollars of expenditures. The number of unsuccessful or failed computer-related projects may be as high as 50% according to some experts.
Like many other software modeling tools, how the software is used can be as important as or more important than the sophistication of the software. This was the case with Bank of America. To get its projects on track, Bank of America hired Chris Higgins, a new project manager with a tough military background. Higgins used good software, Microsoft’s Project 98, and good leadership skills. He also used the Microsoft Excel spreadsheet program for financial calculations. Higgins instituted a training program that stressed discipline, structure, tools, training, and leadership. He had a team of 140 people and a budget of $100,000. Just a few problems with a few projects could result in millions of dollars of loss. More important than the financial losses are lost opportunities because of failed projects. Higgins knew that the stakes were high. In addition to an extensive training program, Higgins managed by example, showing his project managers how things should be done. To date, his performance has been promising. Higgins has been able to reduce project times by about 20% on average. Personnel expenses have been reduced by about 10%. This is impressive when so many projects fail, resulting in millions of dollars of losses and lost opportunities. Higgins has not only shown Bank of America how to correctly use project management models, but he shows all of us that success requires both good software and good leadership skills.
Discussion questions:
1. What is project management software? Give some examples of how this type of software can be used.
2. How was Bank of America able to manage its project management models? What are the keys of success for using software to manage projects?
Sources: Melymuka, Kathlen, “Spit and Polish,” Computerworld, February 16, 1998, pp. 65; Coffey, Brendan, “The Buy-Side Elite,” Wall Street and Technology, January, 1998, pp. 50; Garland, Susan, “Bank of America’s Back is Against the Wall,” Business Week, March 9, 1998, pp. 64; Carrillo, Karen, “Is It All a Project,” Information Week, February 23, 1998; Vandersluis, Chris, “Fighting for Project Control,” Computing Canada, January 26, 1998, pp. 18.
:hiepsi:
Project management models are an important part of model management in most decision support systems. These models allow decision makers to monitor and control projects. Project management was one of the first applications implemented on personal computers. Project management software is being used for simple tasks, such as coordinating job schedules, to very complex and long projects, including the construction of a new manufacturing plant or the coordination of a major military engagement.
Today, a number of software packages are available to implement the models used by project management. The total market for project management software is close to $900 million annually and growing at about 20% per year according to some reports. Project management software is available for mainframe computers, client server systems, and personal computers. Computer Associates’ CA-SuperProject/Net is a project management tool for client server systems. Microsoft is the leader in project management software for personal computers, with a majority market share of about two-thirds. Project 98 is Microsoft’s most recent entry in the project management market.
Most organizations have to manage a number of large and often complex projects. It is not uncommon for these organizations to have hundreds of projects, from developing new computer programs to starting a completely new business line that are active at the same time. Some of them are critical to the success or survival of the organization. But large projects often fail to be delivered on time and within budget. Some never get implemented, after millions of dollars of expenditures. The number of unsuccessful or failed computer-related projects may be as high as 50% according to some experts.
Like many other software modeling tools, how the software is used can be as important as or more important than the sophistication of the software. This was the case with Bank of America. To get its projects on track, Bank of America hired Chris Higgins, a new project manager with a tough military background. Higgins used good software, Microsoft’s Project 98, and good leadership skills. He also used the Microsoft Excel spreadsheet program for financial calculations. Higgins instituted a training program that stressed discipline, structure, tools, training, and leadership. He had a team of 140 people and a budget of $100,000. Just a few problems with a few projects could result in millions of dollars of loss. More important than the financial losses are lost opportunities because of failed projects. Higgins knew that the stakes were high. In addition to an extensive training program, Higgins managed by example, showing his project managers how things should be done. To date, his performance has been promising. Higgins has been able to reduce project times by about 20% on average. Personnel expenses have been reduced by about 10%. This is impressive when so many projects fail, resulting in millions of dollars of losses and lost opportunities. Higgins has not only shown Bank of America how to correctly use project management models, but he shows all of us that success requires both good software and good leadership skills.
Discussion questions:
1. What is project management software? Give some examples of how this type of software can be used.
2. How was Bank of America able to manage its project management models? What are the keys of success for using software to manage projects?
Sources: Melymuka, Kathlen, “Spit and Polish,” Computerworld, February 16, 1998, pp. 65; Coffey, Brendan, “The Buy-Side Elite,” Wall Street and Technology, January, 1998, pp. 50; Garland, Susan, “Bank of America’s Back is Against the Wall,” Business Week, March 9, 1998, pp. 64; Carrillo, Karen, “Is It All a Project,” Information Week, February 23, 1998; Vandersluis, Chris, “Fighting for Project Control,” Computing Canada, January 26, 1998, pp. 18.
:hiepsi: