Fisher College Week 2 Management and Business Case Study Project

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Fisher College

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write about a critical document that initiates a project which is the business case. 3-4 pages details in the attachment.

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PJM Case Study Case Study Background: Ms. Deidre Jackson, the CEO of Acme Company, was recently given a report published by the Project Management Institute called the Pulse of the Profession. 1 In the report, she learned a startling statistic. PMI® reported that when projects are poorly managed, approximately $122 million is wasted for every $1 billion spent (12.2%). Now, her company’s annual expense for projects is much smaller (approximately $3 million expected in the next 12 months), but if she could experience even a partial amount of that savings, she could reinvest those savings in future growth. In order to accomplish this, she believes that she needs to adopt a more formal or mature approach to managing projects, and she needs to professionalize the project management teams and, specifically, the project managers. She has a colleague, Xin Xue, from a previous company who was the internal project management expert in the company who she believes might be able to help, so she gives her a call to get her take. Ms. Jackson just finished a long conference call with Ms. Xue, and she now has a better idea of what this might take in terms of effort and resources to move forward. In short, in Ms. Xue’s opinion, there is a way to experience the savings that Ms. Jackson hopes for, but it will take some time and investment, so she thinks they should move forward with maturing their team and management approach, but, as noted, it will take an investment, so Ms. Jackson needs to be certain that the savings will deliver sufficient business value. In short, is there a solid, defensible business case for such a project? Present Situation: Ms. Jackson emailed you the Pulse of the Profession report over the weekend, and you are now sitting in her office at 9:00 am on Monday morning. She wants you to develop a business case for implementing a training program that will lead to maturing the organization’s project management practices. Based on her work over the weekend to see where some monies may be available for the unexpected project and her conversation with Ms. Xue, she provides you with the following information: • • • • • 1 The company expects to spend approximately $3,000,000 on project related work over the next 12 months (year 1) and $3,500,000 over the following 12 months (year 2). Based on her conversations with Ms. Xue, she believes the cost of training and implementing a more mature model will be approximately $175,000 as an initial investment Conservatively, she believes that the company will experience a savings of 3 percent in the first year and 4.5 percent in the second year Although the company will experience these savings for many more years in her opinion, she wants to show that the company will receive a sufficient savings within the first 2 years to justify this investment within the business case On most investments, the company would expect to see a return of 11½ - 12 percent (internal rate of return), and the cost of money (discount rate) is 6 percent. Including in assigned reading for Week 1. Ms. Jackson has to prepare a business case to share with her Board of Directors at the next quarterly board meeting. There are seven board members including the Chairman, Vice Chair, Secretary, and members of the Compliance Committee, The Chairman of the Board, Lou Jackson, is typically resistant to investing money in these types of initiatives so it is important that the business case is well defined. Ms. Jackson is considering having Jaitan Darshana, her internal PM who has a long tenure with the organization, assist her with the preparation of the business case but she is concerned that Jaitan may be resistant to the idea. Business Case Assignment Instructions & Considerations You have been tasked by Ms. Jackson with drafting a business case for this potential initiative, and she has provided you with a template to use (see template attached to assignment instructions). She provides you with the following comments related to each section of the template, but she tells you that you will need to sharpen and expand on the ideas that she has provided. She expects your final draft to be ready to take to the company’s Board of Directors for review and approval by week’s end. • • • • • • • • Background and Business Problem o She believes this has been covered in the contents of your initial conversation, where she provided you with background information (see above case study material) Strategic Case o She states that this is strategically tied to the company’s goal of becoming more project oriented, as they believe this will allow for more efficient and effective work, leading to the company being able to grow in a more scalable manner. Project Overview o In addition to what she has stated above, if the business case is approved, then she believes the basic project would be an 8 – 10 week training program for all project managers and team members that would train them in the adoption of a more mature project management model, and it would include some mentorships by the trainer. She believes this would cost a total of $175,000. Expected Benefits o The expected benefits would be increased efficiencies and effectiveness, as noted above. Financial Considerations o She has provided you with the investment amount to provide financial support for the investment Risks o She has asked you to look at primarily risks associated with the overall initiative, not necessarily those focused on the training aspect of the project. The CEO is concerned about potential disruptions to current projects that are already in flight. Timeline o Based on her conversations with Ms. Xue, she believes the project execution could begin within 60 - 90 days, depending on the path chosen for moving forward Recommendations and Next Steps o She has asked you to consider all the relevant data you have collected and put into the business case, and then provide a succinctly stated and well-supported recommendation and concrete next steps if the proposal is accepted General Case Considerations for Business Case: o It is expected that you will need to make reasonable assumptions in completing the business case, so rely on the case study as guide. This is similar to how projects are conceived in the real world. We have a basic set of factors, and then we must make reasonable assumptions as we progress forward. Assignment Overview: For this assignment, you will drafting a critical document that initiates a project which is the business case. that are often part of initiating a project. This document provide decision-makers with the information they need to make an informed decision about whether to approve a project or not. Learning Connection: This assignment is directly linked to the following key learning outcomes from the course syllabus: • Preparing or working with a business case In addition to these key learning outcomes, you will also have the opportunity to evidence the following skills through completing this assignment: • Critical thinking • Professional writing • Problem solving • Quantitative analysis Assignment Instructions: For this assignment, you be using the attached case study (see attached Case Study) to prepare a business case. A specific template, with instructions have been provided for each of these documents (see attached Wk2_AssignmentTemplate). Here are a few notes on each item: Case Study: The case study is fairly straightforward. You are part of a team that is trying to decide whether to use internal or external resources for a training project. As part of this case study, you will be preparing the business case which justifies the creation of the project. All the information you need is within the case study, but you will be required to draw reasonable conclusion from the case study, as every detail is not present. Please pay particular attention to the financial details provided, as well as, the considerations at the end of the case study, as it provides you with some 'hints' about how to consider various items. In a case study such as this, there are a range of good answers. So don't think that you have to select one option or the other. The key is to accurately analyze the case, and then provide a recommendation that is based on evidence you provide within the business case. Assignment Template: The assignment template contains various sections and can be leveraged for this assignment. • Business Case • The business case has eight sections that lead you through an analysis of the case study. Instructions are provided within each section, along with sample questions, which act as prompts. The key to doing a good business case is drawing logical conclusions from the information provided. Take the time to read the case study carefully, allowing for reasonable assumptions on your part to complete the business case template. If this is your first time completing something of this nature, make sure to allow yourself sufficient time. Below are some key guidelines you will want to ensure you follow in writing the paper. Think of this short list as a quality control checklist, along with the attached grading rubric. • Each section of template is fully completed • Calculation supporting conclusions are performed accurately, making use of the financial background data provided • A clear recommendation is made and supported as part of the business case • Paper is free of grammatical errors Business Case1 Project Name: _________________________________ 1.0 Background & Business Problem This section should briefly describe how the current situation has been arrived at and, and it should briefly describe the business problem that the proposed project will address. This section should not describe how the problem will be addressed, but only what the problem is. 2.0 Strategic Case All projects should support the organization’s strategy and strategic plans in order to add value and maintain executive and organizational support. This section provides an overview of the organizational strategic plans that are related to the project. Essentially, where does this project fit in helping the organizational achieve its goals? This section should also list the business goals and objectives which are supported by the project and how the project will address them. 3.0 Project Overview This section describes high-level information about the project to include a description (high level scope), assumptions, and constraints. 4.0 Expected Benefits This section should describe the anticipated outcome if the proposed project or initiative is implemented. It should include how the project will benefit the business and describe what the end state of the project should be. 5.0 Financial Considerations Many consider this one of the most important parts of a business case as it is often the costs or savings a project yields which win final approval to go forward. It is important to quantify the financial benefits of the project as much as possible in the business case. This is usually done in the form of a cost benefit analysis. The purpose of this is to illustrate the costs of the project and compare them with the benefits and savings to determine if the project is worth pursuing. 6.0 Risks What the risks that you anticipate based on your analysis of the proposed solutions (i.e. project)? These are not the specific risks associated with your project’s performance, such as the project being delivered late, but are risks associated with whether or not the proposed solution will actually address the business problem you have identified above. 1 This document is based on an expanded business case template provided by www.projectmanagementdocs.com. 7.0 Timeline What is the high level timeline from this point forward? For instance, if the next step is to charter a project, how long until the results of the project are realized and the business problem is resolved? 8.0 Recommendations and Next Steps This section summarizes the recommendation(s) of the person(s) responsible for preparing the business case. How do you recommend that the organization proceed based on your analysis? As for next steps, should the project be chartered, or should a different outcome result from the analysis? *Be sure to remove the instructions before you submit your completed statement. Week 2 Assignment: Business Case, Project Charter, and Stakeholder Analysis Grading Rubric Topical Content & Focus (60%) Failing Below Average Average Above Average Superior 0 - 60 (F range) 70 - 79 (C range) 80 - 89 (B range) 90 - 93 (Arange) 94 - 100 (A range) Templates submitted are either incomplete or do not address the required material in each respective section. Only a few stakeholders and/or stakeholder groups mentioned or referred to in case study are accurately identified. Templates submitted are mostly complete, but possibly lack a few key details or information required for a couple of sections. Most stakeholders and/or stakeholder groups mentioned or referred to in case study are accurately identified. Templates submitted are complete and each section, including an accurately performed financial analysis, is covered in a thorough and well considered manner, paying particular attention to the instructional prompts and questions in each section. Additionally, all stakeholders and/or stakeholder groups mentioned or referred to in Templates submitted are not only completed in an excellent manner but also show a deeper analysis and understanding of the nuances of the case through the use of evidence and support from the case study Templates submitted are completed in an excellent and thorough manner, show a deep analysis of the case study through support from the case study, and evidence strong business acumen and judgment evidenced through the analysis and recommendations being contextually relevant and linked to the details of the case study in a clear manner. case study are accurately identified. Personal Competencies (15%) Submission reflects little to no applicable personal competencies Submission reflects a minimal applicable personal competencies Submission reflects both applicable personal competencie s in an acceptable manner Submission strongly reflects applicable personal competencies integrated throughout the assignment Submission reflects an excellent use of applicable personal competencies integrated throughout the paper in a way that synthesizes the personal competencies Grammar (10%) Writing contains numerous errors in spelling, grammar, sentence structure, etc. that interfere with comprehensio n. The reader is unable to understand some of the intended meaning. Frequent errors in spelling, grammar, sentence structure, and/or other writing conventions that distract the reader. Minimal errors in spelling, grammar, sentence structure and/or other writing conventions but the reader is able to understand what the writer meant. All work grammatically correct with rare misspellings. All work grammatically correct with rare misspellings. Clarity (10%) Sentence construction, word choice, lack of Sentence construction and word choice Minor sentence construction and word Expresses ideas and opinions clearly and concisely in a Expresses ideas and opinions clearly and concisely in a manner     Critical thinking Professiona l Writing Problem Solving Quantitativ e Analysis Formatting (5%) NOTE: Gross failure to provide PROPER citations and references – particularly with regard to direct quotes – will result in sanctions as outlined in the academic honesty policy. transitions, and/or sequencing of ideas makes reading/unders tanding difficult. Style and/or format are inappropriate for the assignment. interferes with clarity. Transitions between paragraphs may be choppy and difficult to follow. choice issues manner sometime appropriate to interfere the assignment. with clarity. Transitions between paragraphs are generally easy to follow. Appropriate conventions of style and format are used consistently. appropriate to the assignment. Multiple errors in formatting and document is not formatted in a manner consistent with the template provided. A few errors in formatting and presentation of material is mostly consistent with the template provided. Or assignment instructions are left in submission. Rare errors Virtually no in formatting errors in and formatting. formatting is consistent through the submission and in alignment with the template. Virtually no errors in formatting.
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Business Case1
Project Name: _________________________________
1.0 Background & Business Problem
Acme Company is suffering from poor project management. Ms. Deidre Jackson is the
company's new chief executive officer. She has been assigned the role recently and published in
one of the firm's recent magazines. She is significantly concerned with mitigating the challenge
of mismanaging the firm's projects. The firm's report shows that Acme Company has incurred a
loss equal to 122 million dollars from the one billion dollars spent on its projects. This wastage
rate shows that the company wastes around 12.2% of the funds meant for its projects. Following
this status, the new CEO is thinking about strategizing on making savings from its projects and
investing the saved amounts in future projects. She needs a business case that will facilitate a
reduction of the current expenditures and use of the resultant savings in training the company's
employees for increased future valuations.
2.0 Strategic Case
The Acme Company aims to cut down its expenses on business projects and facilitate
effective management of its resources. The employees are expected to play a central role in
enhancing the company for its long-term operations. They are expected to help the business
achieve 3% and 4.5% savings within the first year and second years, respectively. Internal
resource management is a primary concept that should be followed for maximum output from
any business organization. For instance, investing in its human resources can help the company
create a more stable human resource pool and achieve the 11.5% to 12% return rates more
effectively.

1

This document is based on an expanded business case template provided by www.projectmanagementdocs.com.

1.0 Background & Business Problem
Acme Company is suffering from poor project management. Ms. Deidre Jackson is the
company's new chief executive officer. She has been assigned the role recently and published in
one of the firm's recent magazines. She is significantly concerned with mitigating the challenge
of mismanaging the firm's projects. The firm's report shows that Acme Company has incurred a
loss equal to 122 million dollars from the one billion dollars spent on its projects. This wastage
rate shows that the company wastes around 12.2% of the funds meant for its projects. Following
this status, the new CEO is thinking about strategizing on making savings from its projects and
investing the saved amounts in future projects. She needs a business case that will facilitate a
reduction of the current expenditures and use of the resultant savings in training the company's
employees for increased future valuations.
3.0 Project Overview
The project's primary scope will include the training programs, training tools, internal
changes in the business's project management practices, and a reliable IT infrastructure. The
external factors associated with this practice include trainers' availability, cost variation
associated with the training, and the training's output. The following assumptions are made for
the effective application of the resources listed above.
1. 11.5% - 12% internal rate of return
2. 6% discount
3. 3% and 4.5% savings within the first year and second years, respectively
The following are the business’s expected constraints.
1. Lack of sufficient trainers
2. Lack of new business projects and hence lack of the project’s effective cost variation
3. Lack of training tools’ cost variation

1.0 Background & Business Problem
Acme Company is suffering from p...


Anonymous
Really useful study material!

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