PROJ 587. Week 6: United Healthcare Group Case Study—Budget and
Let’s look at our finances and funding. Also, we know that this program represents significant change. I’d like to have your recommendations on what change management methodologies we should use, and how it will fit into our planning. We decided to go forward with the current resource projections and cover the shortfall of subcontractors, that brings the average hourly rate up. Here are the average hourly rates for our project resources, representing a mix of internal and external resources to use for our preliminary budget. We don’t yet know the mix, but we do know that we’ll be adding enough resources to make up for the shortfall. Systems analysts average at $60 an hour, security $40 an hour, our data specialists will be about $35 an hour, and project managers $50 an hour. Here again is the allocation of each resource type by month for the first three projects in the program for the first year. Given this information, what is the total cost for each resource type and each project per month? We’d also like a forecast of the months when our spending will be at its highest. By the end of our first year, what will be the planned value of the program? Define the metrics that will be used to report performance and your recommendations for the frequency of those reports: weekly, monthly, or quarterly. Your next assignment is a recommendation regarding a change management methodology for the program. Please explain why you believe this to be the best approach and outline the steps for an implementation. Once all of that is done, we’ll be ready to start the first project. You have your work cut out for you. Thank you for all the work you’ve done in planning.
In a four- to five-page paper, do the following.
1. Formulate a preliminary budget per month for each resource and each project as well as an overall total.
2. Create a chart to show what months the spend will be the highest.
3. Calculate the planned value of the program at the end of the first year.
4. Make recommendations regarding the type of performance metrics you will be tracking and acceptable limits.
5. Recommend a change management methodology and justify your recommendation.
6. Outline the steps required to implement the change.
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