**Module 14: Business Financial Planning and Management**

**Module Outline:**

  ------------------------------------------------- ----------- ---------------------
  Topic                                                         Time Frame

  Introduction/Objectives                           10 minutes  

  Change Management                                 30 minutes  

  Review                                            10 minutes  

  **Estimated/Approximate Time for Module           **50        
  Completion**                                      minutes**   
  ------------------------------------------------- ----------- ---------------------

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  **Topic 1: Introduction/Objectives**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image1.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key points:**                                                       |
|                                                                       |
| At the end of this module, Business Financial Planning and            |
| Management, you will be able to:                                      |
|                                                                       |
| -   Describe and apply the change management process that identifies  |
|     documents, makes decisions about, and controls changes to the     |
|     established baseline.                                             |
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  **Topic 1: Introduction/Objectives (continued)**

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+-----------------------------------------------------------------------+
| ![](media/image2.png){width="0.3993055555555556in"                    |
| height="0.63125in"} **Instructor Notes:**                             |
|                                                                       |
| This concludes the topic on the introduction and objectives. After    |
| addressing any questions the students may have, inform them that we   |
| will be moving on to the next topic: Change Management.               |
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  ![](media/image3.png){width="0.4798611111111111in"
  height="0.4798611111111111in"}**What questions do you have regarding
  the introduction and objectives?**

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  -----------------------------------------------------------------------
  **Topic 2: Change Management**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image1.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key points:**                                                       |
|                                                                       |
| Change management means establishing a baseline and managing the      |
| changes to that baseline. Its value is well understood and            |
| appreciated, and it provides you with a proven method for handling    |
| the changes in requirements, expectations, and scope that inevitably  |
| accompany your projects and programs.                                 |
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  **Topic 2: Change Management (continued)**

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  ------------------------------------------------ ----------------------
  (generate graphic here that illustrates the      Notes: Slide \# HERE
  change management process)                       (Topic \# - Slide #)

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| ![](media/image1.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key points:**                                                       |
|                                                                       |
| This is what the change management process looks like:                |
|                                                                       |
| Baseline  Identify the Change  Ask, "What is the impact?"          |
| Decision  Implement/Update Baseline                                  |
|                                                                       |
| Let us look at an example that will help to illustrate the change     |
| management process.                                                   |
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  **Topic 2: Change Management (continued)**

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  ------------------------------------------------ ----------------------
  (Martin will generate graphic here that          Notes: Slide \# HERE
  illustrates the change management process)       (Topic \# - Slide #)

  ------------------------------------------------ ----------------------

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| ![](media/image4.png)                                                 |
|                                                                       |
| You are a program or project manager with the Army Signal Corps near  |
| the turn of the century. The government has tasked you build to build |
| a heavier-than-air flying machine capable of flying for 1 hour with a |
| payload of 200lbs. You contract with the experts, the Wright          |
| Brothers, to meet your project objectives.                            |
|                                                                       |
| As the project progresses, however, President Roosevelt realizes it   |
| would be a boost to his image and standing to be the first president  |
| to fly in a heavier-than-air flying machine. He tells you he wants to |
| take a ride on the new airplane, but Roosevelt is a large man, and he |
| weighs 250lbs, more than the plane can carry.                         |
|                                                                       |
| You are the manager. What do you do next?                             |
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  **Topic 2: Change Management (continued)**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image3.png){width="0.5006944444444444in"                    |
| height="0.4888888888888889in"}**What is the baseline for your         |
| heavier-than-air flying machine project?**                            |
|                                                                       |
| **Answer:**                                                           |
|                                                                       |
| The baseline is a flying machine that can fly for 1 hour and carry    |
| 200lbs.                                                               |
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  **Topic 2: Change Management (continued)**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image3.png){width="0.5006944444444444in"                    |
| height="0.4888888888888889in"}**What is change you need to            |
| identify?**                                                           |
|                                                                       |
| **Answer:**                                                           |
|                                                                       |
| The change we are considering is carrying 50lbs more than originally  |
| designed.                                                             |
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  **Topic 2: Change Management (continued)**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image3.png){width="0.5006944444444444in"                    |
| height="0.4888888888888889in"}**What is the impact of the change you  |
| have identified?**                                                    |
|                                                                       |
| **Answer:**                                                           |
|                                                                       |
| The designer would meet with his engineers and ask, "What would it do |
| to us to add 50lbs?" The engine guy would say, "There is a design     |
| margin, so I am okay. No impact on the engine."                       |
|                                                                       |
| The designer then asks another team member, "What about the wings?"   |
| The wing builder has to build bigger wings to accommodate the 50lbs.  |
| He can do it, but it turns out that he would need 50lbs more of       |
| equipment. Back to the engine -- "I need 50 more pounds for wings and |
| 50 more pounds for the fat president." The engine man says, "No, we'd |
| need a bigger engine."                                                |
|                                                                       |
| This change impacts dollars, schedule, and risk. They ask the         |
| government for \$1,000 more dollars, one week longer to add the       |
| 50lbs, and the risk is that the airplane might not get off the        |
| ground.                                                               |
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  **Topic 2: Change Management (continued)**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image3.png){width="0.5006944444444444in"                    |
| height="0.4888888888888889in"}**After considering the impact, who     |
| makes the decision to proceed with the changes or not?**              |
|                                                                       |
| **Answer:**                                                           |
|                                                                       |
| The decision to proceed is made by the stakeholders, in this case the |
| President.                                                            |
|                                                                       |
| As the manager, it is your job to inform the stakeholder of the       |
| impact of the change, but the responsibility for the decision is      |
| theirs. The President listens to your impact analysis but says, "Hell |
| yeah, I don't care what it costs. I'm going for a ride." Stakeholder  |
| (the President) asks that the project moves forward, and is willing   |
| to take the risk (even though it might not get off the ground).       |
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  **Topic 2: Change Management (continued)**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image3.png){width="0.5006944444444444in"                    |
| height="0.4888888888888889in"}**After the decision to move forward    |
| has been made, what do you do next?**                                 |
|                                                                       |
| **Answer:**                                                           |
|                                                                       |
| Implement the changes.                                                |
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  **Topic 2: Change Management (continued)**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image3.png){width="0.5006944444444444in"                    |
| height="0.4888888888888889in"}**What is the new baseline for your     |
| project?**                                                            |
|                                                                       |
| **Answer:**                                                           |
|                                                                       |
| The new baseline is: "This airplane will carry 250lbs and fly for one |
| hour." From this moment on, that is the baseline. The rest of the     |
| project is adjusted to make that happen.                              |
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  **Topic 2: Change Management (continued)**

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  ---------------------------------------------------- ----------------------
  ![](media/image5.jpeg){width="4.126388888888889in"   Notes: Slide \# HERE
  height="2.9805555555555556in"}                       (Topic \# - Slide #)

  ---------------------------------------------------- ----------------------

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| ![](media/image1.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key points:**                                                       |
|                                                                       |
| This is what the change control process looks like in more detail.    |
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  **Topic 2: Change Management (continued)**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image1.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key points:**                                                       |
|                                                                       |
| Definition - Change Control Board (CCB)                               |
|                                                                       |
| -   Purpose: Approves, defers, or rejects requirement change          |
|     requests.                                                         |
|                                                                       |
| -   Typical members:                                                  |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   Project Manager                                                   |
|                                                                       |
| -   Project Sponsor                                                   |
|                                                                       |
| -   Project Team Members                                              |
|                                                                       |
| -   Customer Representative                                           |
|                                                                       |
| -   Configuration Manager                                             |
|                                                                       |
| -   Chair Person                                                      |
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  **Topic 2: Change Management (continued)**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image1.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key points:**                                                       |
|                                                                       |
| Definition -- Re-Baseline                                             |
|                                                                       |
| -   Re-baseline at specified reviews or milestones:                   |
|                                                                       |
| -   After holding a project control gate review.                      |
|                                                                       |
| -   After the end of design and before the start of coding.           |
|                                                                       |
| -   After the end of coding and before verification.                  |
|                                                                       |
| -   Do not re-baseline with every requirement change? Rather, do it   |
|     after:                                                            |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   Numerous changes.                                                 |
|                                                                       |
| -   A significant project impact.                                     |
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  **Topic 2: Change Management (continued)**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image1.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key points:**                                                       |
|                                                                       |
| Metrics for Stability:                                                |
|                                                                       |
| -   Number of changes requested.                                      |
|                                                                       |
| -   Number of changes approved.                                       |
|                                                                       |
| -   Average cost per change.                                          |
|                                                                       |
| -   Number of changes implemented.                                    |
|                                                                       |
| -   Number of changes verified.                                       |
|                                                                       |
| -   Number of types of changes.                                       |
|                                                                       |
| -   Percent of requirements that have changed since initial baseline. |
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  **Topic 2: Change Management (continued)**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image1.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key points:**                                                       |
|                                                                       |
| Technical Control Techniques                                          |
|                                                                       |
| -   Single person controls project requirements.                      |
|                                                                       |
| -   Controlled work release system is implemented.                    |
|                                                                       |
| -   Audit for compliance with product requirements.                   |
|                                                                       |
| -   Deviations negotiated with the program/project manager.           |
|                                                                       |
| -   Rigorous configuration management.                                |
|                                                                       |
|     Let us look at configuration management in more detail.           |
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  **Topic 2: Change Management (continued)**

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  ------------------------------------------------ ----------------------
                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image1.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key points:**                                                       |
|                                                                       |
| Configuration Management                                              |
|                                                                       |
| -   Applies a formal process to manage changes to the technical       |
|     baseline.                                                         |
|                                                                       |
| -   Process designed to:                                              |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   Identify and document *technical* baseline*.*                     |
|                                                                       |
| -   Control changes to technical baseline.                            |
|                                                                       |
| -   Record and report changes and status.                             |
|                                                                       |
| -   Audit items under baseline control.                               |
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  **Topic 2: Change Management (continued)**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image1.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key points:**                                                       |
|                                                                       |
| Configuration Management Process                                      |
|                                                                       |
| -   Focuses on increasing efficiency in lines of communication:       |
|                                                                       |
|     -   Reduced number of communication paths.                        |
|                                                                       |
|     -   Faster dissemination.                                         |
|                                                                       |
|     -   Less ambiguity.                                               |
|                                                                       |
| -   Assumes accountability at the correct level.                      |
|                                                                       |
| -   Applies 80/20 rule.                                               |
|                                                                       |
|     -   Geared towards managing the right thing at the right level.   |
|                                                                       |
|     -   Must be based on clearly stated policy supported by           |
|         management.                                                   |
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  **Topic 2: Change Management (continued)**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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| ![](media/image3.png){width="0.5006944444444444in"                    |
| height="0.4888888888888889in"}**How do you decide upon the            |
| appropriate level of change control for your program or project?**    |
|                                                                       |
| **Answer:**                                                           |
|                                                                       |
| (Solicit responses from the participants. Use graphic on next page as |
| answer.)                                                              |
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  **Topic 2: Change Management (continued)**

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  ---------------------------------------------------- ----------------------
  ![](media/image6.jpeg){width="4.126388888888889in"   Notes: Slide \# HERE
  height="3.0694444444444446in"}                       (Topic \# - Slide #)

  ---------------------------------------------------- ----------------------

+-----------------------------------------------------------------------+
| ![](media/image1.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key points:**                                                       |
|                                                                       |
| The graph above indicates the appropriate level of change control on  |
| a graph. The larger and more complex the project, the more formal     |
| your change control implementation should be.                         |
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  **Topic 2: Change Management (continued)**

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+-----------------------------------------------------------------------+
| ![](media/image2.png){width="0.3993055555555556in"                    |
| height="0.63125in"} **Instructor Notes:**                             |
|                                                                       |
| This concludes the topic on change management. After addressing any   |
| questions the students may have, inform them that we will be moving   |
| on to the next topic: Course Review.                                  |
+-----------------------------------------------------------------------+

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  ![](media/image3.png){width="0.4798611111111111in"
  height="0.4798611111111111in"}**What questions do you have regarding
  change management?**

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  **Topic 3: Review**

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  ------------------------------------------------ ----------------------
                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

  ------------------------------------------------ ----------------------

+-----------------------------------------------------------------------+
| ![](media/image1.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key points:**                                                       |
|                                                                       |
| Let's review the learning objective for this module on Business       |
| Financial Planning and Management:                                    |
|                                                                       |
| -   Describe and apply the change management process that identifies  |
|     documents, makes decisions about, and controls changes to the     |
|     established baseline.                                             |
+-----------------------------------------------------------------------+

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  **Topic 3: Review (continued)**

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  ------------------------------------------------ ----------------------
                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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+-----------------------------------------------------------------------+
| ![](media/image1.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key points:**                                                       |
|                                                                       |
| The change management process, at a high level, looks like this:      |
|                                                                       |
| Baseline  Identify the Change  Ask, "What is the impact?"          |
| Decision  Implement/Update Baseline                                  |
|                                                                       |
| "Implement" this change management method on your programs and        |
| projects!                                                             |
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  **Topic 3: Review (continued)**

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                                                   Notes: Slide \# HERE
                                                   (Topic \# - Slide #)

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+-----------------------------------------------------------------------+
| ![](media/image3.png){width="0.5006944444444444in"                    |
| height="0.4888888888888889in"}**Do you think that the                 |
| heavier-than-air flying machine carrying the President got off the    |
| ground?**                                                             |
|                                                                       |
| **Answer:**                                                           |
|                                                                       |
| (Solicit responses from the participants.)                            |
+-----------------------------------------------------------------------+

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  **Topic 3: Review (continued)**

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+-----------------------------------------------------------------------+
| ![](media/image2.png){width="0.40555555555555556in"                   |
| height="0.6354166666666666in"} **Instructor Notes:**                  |
|                                                                       |
| Address any questions the participants may have. Inform them that we  |
| are moving on to the next module, Module 15: Business, Cost           |
| Estimating, and Financial Management.                                 |
+-----------------------------------------------------------------------+

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  ![](media/image3.png){width="0.5006944444444444in"
  height="0.4888888888888889in"}**What questions do you have about Module
  14: Business Financial Planning and Management?**

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