You%20are%20an%20AI%20assistant.%20Information%20will%20be%20provided%20to%20help%20answer%20the%20user's%20question.%20USE%20ONLY%20THE%20REFERENCE%20INFORMATION%20PROVIDED%20TO%20ANSWER%20THE%20QUESTION.%20Be%20very%20specific%20in%20your%20answer%20and%20focus%20only%20on%20the%20question.%20Do%20not%20reference%20the%20material%20provided%20in%20your%20response.%0AUser%20question:%20Types%20of%20sponsors%20%0AReference%20information:%20%0A%23%23%23%0AIn%20addition,%20the%20sponsor%20will:%20%20%0Ao%20Define%20the%20business%20objectives%20of%20the%20project%20%20%0Ao%20Represent%20the%20project%20interests%20to%20the%20next%20highest%20management%20level%20%20%0Ao%20Determine%20whether%20the%20project%20is%20a%20success.%20If%20the%20project%20was%20not%20totally%20successful,%20the%20project%20sponsor%20determines%20the%20degree%20of%20success%20%20%0Ao%20Obtain%20approval%20for%20any%20capital%20expenditures%20%20%0Ao%20Monitor%20the%20progress%20of%20the%20project%20%20%0Ao%20Monitor%20the%20business%20environment%20to%20ensure%20the%20project%20still%20meets%20the%20business%20needs%20%20%0Ao%20Chair%20the%20project%20steering%20committee,%20if%20one%20exists%20%20%0AThe%20sponsor%20is%20the%20business%20owner%20of%20the%20project%20and%20the%20solution%20that%20is%20created.%20While%20the%20project%20manager%20is%20responsible%20for%20the%20success%20of%20the%20project,%20the%20sponsor%20is%20responsible%20for%20delivering%20business%20benefit%20to%20the%20organization.%0A-%20Stakeholder.%20These%20are%20the%20specific%20people%20or%20groups%20that%20have%20a%20stake,%20or%20an%20interest,%20in%20the%20outcome%20of%20the%20project.%20Normally%20stakeholders%20are%20from%20within%20the%20company%20and%20could%20include%20project%20team%20members,%20internal%20customers,%20management,%20employees,%20administrators,%20etc.%20A%20project%20may%20also%20have%20external%20stakeholders,%20including%20suppliers,%20investors,%20constituents,%20community%20groups%20and%20government%20organizations.%0A-%20Steering%20committee.%20A%20steering%20committee%20is%20a%20group%20of%20high-level%20stakeholders%20that%20are%20responsible%20for%20providing%20guidance%20on%20overall%20strategic%20direction.%20The%20sponsor%20could%20take%20this%20role,%20but%20if%20the%20impact%20of%20the%20project%20is%20cross-functional,%20the%20sponsor%20may%20not%20want%20to%20make%20all%20the%20decisions.%20The%20sponsor%20may%20want%20to%20organize%20a%20steering%20committee%20of%20representatives%20from%20the%20different%20organizations%20impacted%20by%20the%20project.%20The%20steering%20committee%20does%20not%20take%20the%20place%20of%20a%20sponsor,%20but%20helps%20to%20spread%20the%20strategic%20input%20and%20buy-in%20to%20a%20larger%20portion%20of%20the%20organization.%20The%20steering%20committee%20is%20usually%20made%20up%20of%20organizational%20peers%20and%20consists%20of%20a%20combination%20of%20direct%20customers%20and%20indirect%20stakeholders.%0A-%20Identifying%20the%20formal%20sponsor%20%20%0AThe%20initial%20sponsor%20was%20probably%20the%20person%20that%20helped%20develop%20the%20Business%20Case%20and%20was%20the%20person%20that%20asked%20for%20the%20money%20for%20the%20project.%20Now%20that%20the%20project%20is%20ready%20to%20proceed,%20the%20sponsor%20should%20be%20validated.%20It%20is%20possible%20that%20the%20management%20team%20has%20changed%20and%20that%20a%20new%20sponsor%20needs%20to%20be%20identified.%20It%20is%20also%20possible%20that%20the%20original%20sponsor%20is%20at%20too%20high%20a%20level%20to%20perform%20the%20role%20of%20the%20%E2%80%9Cactive%E2%80%9D%20sponsor%20required%20for%20the%20project.%20In%20this%20case,%20the%20original%20sponsor%20would%20take%20the%20role%20of%20Executive%20Sponsor%20and%20delegate%20the%20details%20to%20a%20more%20tactical%20Project%20Sponsor.%0A-%20Assigning%20a%20project%20manager%20%20%0AThe%20project%20manager%20is%20the%20person%20to%20lead%20the%20project%20into%20the%20more%20detailed%20planning%20process,%20and%20then%20manage%20the%20project%20the%20rest%20of%20the%20way.%20The%20project%20manager%20needs%20to%20be%20assigned%20at%20this%20point.%0A-%20Identifying%20stakeholders%20%20%0AWhen%20the%20project%20is%20initiated%20it%20is%20important%20to%20start%20to%20understand%20and%20manage%20the%20various%20stakeholders.%20You%20can%20read%20more%20information%20at%200.0.1%20Identify%20Stakeholders%20%20%0AGetting%20the%20project%20through%20the%20initiation%20process%20does%20not%20guarantee%20that%20the%20project%20will%20be%20executed.%20If%20the%20project%20remains%20approved%20after%20initiation,%20it%20will%20move%20into%20the%20more%20detailed%20planning%20phase%20to%20define%20the%20work%20and%20build%20the%20more%20detailed%20schedule%20and%20budget.%0A10.2%20Manage%20Procurement%20/%20Techniques%20%20%0AChoose%20the%20Correct%20Contract%20Types%20for%20your%20Project%20(10.2.P1)%20%20%0AThere%20are%20a%20number%20of%20standard%20contract%20types%20to%20guide%20the%20relationship%20between%20buyers%20and%20sellers.%20There%20are%20also%20many%20variations%20on%20these%20basic%20contract%20types.%20These%20contract%20types%20are%20categorized%20based%20on%20the%20amount%20of%20risk%20each%20party%20agrees%20to%20accept.%20The%20buyer%E2%80%99s%20objective%20is%20to%20place%20maximum%20performance%20risk%20on%20the%20seller,%20while%20maintaining%20incentive%20for%20economical%20and%20efficient%20performance.%20The%20seller%E2%80%99s%20objective%20is%20to%20minimize%20risk%20while%20maximizing%20profit%20potential.%20The%20three%20broad%20categories%20of%20contracts%20are%20Cost%20Reimbursable,%20Fixed%20Price%20and%20Time%20and%20Material%20(T%26M).%20%20%0ACost-Reimbursable%20(CR)%20(10.2.P2)%20%20%0AThese%20contract%20types%20pay%20the%20seller%20for%20their%20costs,%20plus%20an%20incentive%20fee.%20The%20following%20example%20shows%20the%20general%20model%20for%20cost%20reimbursable%20contracts.%20%20%0AActual%20Cost%20+%20Target%20Fee%20+%20((Target%20Cost%20-%20Actual%20Cost)%20*%20Share%20Ratio)%0A-%20Suppliers%20/%20Vendors.%20Although%20some%20companies%20may%20have%20internal%20suppliers,%20in%20the%20TenStep%20Project%20Management%20Process%20suppliers%20and%20vendors%20always%20refer%20to%20third-party%20companies%20or%20specific%20people%20that%20work%20for%20third%20parties.%20They%20may%20be%20subcontractors%20that%20are%20working%20under%20your%20direction%20or%20they%20may%20be%20supplying%20material,%20equipment,%20hardware,%20software%20or%20supplies%20to%20your%20project.%20Depending%20on%20their%20role,%20they%20may%20need%20to%20be%20identified%20on%20your%20organization%20chart.%20For%20instance,%20if%20you%20are%20partnering%20with%20a%20supplier%20to%20build%20a%20critical%20component,%20you%20probably%20want%20them%20on%20your%20organization%20chart.%20On%20the%20other%20hand,%20if%20there%20is%20a%20vendor%20supplying%20a%20common%20piece%20of%20hardware,%20you%20probably%20would%20not%20consider%20them%20a%20part%20of%20the%20team.%0A-%20Users.%20These%20are%20the%20people%20who%20will%20actually%20use%20the%20deliverables%20of%20the%20project.%20Sometimes%20these%20people%20are%20also%20involved%20heavily%20in%20the%20project%20in%20activities%20such%20as%20defining%20business%20requirements.%20In%20other%20cases,%20they%20may%20not%20get%20involved%20until%20the%20testing%20process.%20Sometimes%20you%20want%20to%20specifically%20identify%20the%20user%20organization%20or%20the%20specific%20users%20of%20the%20solution%20and%20assign%20a%20formal%20set%20of%20responsibilities%20to%20them.%20Users%20can%20be%20inside%20and%20outside%20of%20the%20sponsor%20organization.%20For%20instance,%20if%20your%20company%20has%20a%20time%20reporting%20system,%20the%20sponsor%20organization%20might%20be%20the%20Human%20Resources%20Department.%20However,%20the%20users%20would%20include%20people%20from%20every%20organization%20that%20used%20the%20time%20reporting%20system.%0AMake%20Sure%20Only%20the%20Sponsor%20Approves%20Changes%E2%80%93Not%20Users%20and%20Customer%20Managers%20(5.2.P7)%20%20%0AA%20typical%20problem%20on%20a%20project%20is%20that%20the%20team%20does%20not%20understand%20the%20roles%20of%20the%20sponsor,%20customer%20and%20end%20users%20in%20the%20area%20of%20change%20management.%20The%20sponsor%20(or%20his%20designee)%20must%20give%20the%20approval.%20End%20users%20can%20request%20scope%20changes,%20but%20they%20cannot%20approve%20them.%20The%20end%20user%20cannot%20allocate%20additional%20funding%20to%20cover%20the%20changes%20and%20he%20cannot%20know%20if%20the%20project%20impact%20is%20acceptable.%20If%20the%20change%20is%20important%20enough%20to%20the%20sponsor,%20he%20will%20approve%20it,%20along%20with%20the%20appropriate%20budget%20and%20duration%20changes.%20If%20the%20change%20is%20not%20important%20enough,%20it%20will%20not%20be%20approved.%20However,%20it%20will%20be%20the%20sponsor%20making%20the%20decision,%20not%20the%20project%20manager,%20customer%20manager,%20project%20team%20or%20end%20users.%20%20%0ADon%E2%80%99t%20Think%20that%20Saying%20%E2%80%98Yes%E2%80%99%20to%20Change%20Requests%20Shows%20Good%20Customer%20Focus%20(5.2.P8)%20%20%0AThe%20project%20manager%20and%20project%20team%20sometimes%20think%20that%20they%20are%20being%20customer-focused%20by%20accepting%20scope%20change%20while%20still%20trying%20to%20deliver%20the%20project%20within%20the%20original%20commitments.%20However,%20if%20the%20project%20is%20delivered%20late%20or%20over%20budget,%20it%20is%20usually%20not%20good%20enough%20to%20point%20out%20all%20the%20additional%20work%20that%20was%20included%20because%20of%20this%20%E2%80%98customer%20focus.%E2%80%99%20The%20project%20sponsor%20and%20your%20managers%20don%E2%80%99t%20want%20to%20hear%20about%20it.%20In%20most%20cases,%20the%20project%20will%20not%20be%20seen%20as%20successful%20since%20it%20did%20not%20deliver%20as%20promised%20within%20the%20agreed%E2%80%93upon%20budget%20and%20delivery%20date.%20%20%0AThe%20sponsor%20is%20the%20primary%20customer%20representative.%20Allowing%20the%20sponsor%20(or%20his%20designee)%20to%20make%20scope%20change%20decisions%20shows%20good%20customer%20focus.%20If%20the%20project%20team%20approves%20scope%20changes,%20he%20is%20not%20showing%20good%20customer%20focus%20from%20the%20sponsor%E2%80%99s%20perspective.%20%20%0AInclude%20Deferred%20Benefits%20in%20the%20Cost%20of%20a%20Scope%20Change%20(5.2.P9)%20%20%0AThe%20project%20sponsor%20cannot%20make%20an%20informed%20decision%20on%20a%20scope%20change%20request%20without%20understanding%20the%20business%20value%20of%20the%20change%20and%20the%20impact%20to%20the%20project.%20Typically%20the%20project%20manager%20provides%20information%20on%20the%20impact%20to%20the%20project%20in%20terms%20of%20effort,%20cost%20and%20duration.%20If%20the%20scope%20change%20request%20results%20in%20a%20delay%20in%20the%20project%20end%20date,%20the%20sponsor%20should%20also%20understand%20the%20impact%20of%20the%20delayed%20project%20benefit.%0A%23%23%23