Proj 587 Week 6 United Healthcare Group Case Study Budget ✓ Solved

Proj 587 Week 6 United Healthcare Group Case Studybudget Andlets L

Formulate a preliminary budget per month for each resource and each project as well as an overall total. Create a chart to show what months the spend will be the highest. Calculate the planned value of the program at the end of the first year. Make recommendations regarding the type of performance metrics you will be tracking and acceptable limits. Recommend a change management methodology and justify your recommendation. Outline the steps required to implement the change.

Sample Paper For Above instruction

The United Healthcare Group case study presents a comprehensive scenario requiring financial planning, performance measurement, and change management strategies to ensure successful project implementation. This paper systematically addresses each component outlined in the assignment, beginning with budget formulation, followed by data visualization through a chart, calculation of the planned value, determination of performance metrics, and finally, recommending an appropriate change management methodology along with its implementation steps.

1. Preliminary Budget Formulation

The first step involves estimating the monthly costs associated with different resources—systems analysts, security specialists, data specialists, and project managers—across three projects within the first year. Based on the provided hourly rates and resource allocation, the budget calculations follow a standard formula:

\[

\text{Resource Monthly Cost} = \text{Hourly Rate} \times \text{Hours per Month}

\]

Assuming a standard 160-hour work month for each resource, the monthly costs per resource are:

- Systems Analysts: $60/hour \times 160 hours = $9,600

- Security Staff: $40/hour \times 160 hours = $6,400

- Data Specialists: $35/hour \times 160 hours = $5,600

- Project Managers: $50/hour \times 160 hours = $8,000

The mixed-resource scenario indicates that there will be efforts to compensate for subcontractor shortfalls, which may slightly increase average hourly rates, potentially by a small percentage (e.g., 10%), to account for additional costs. Adjusted rates might be:

- Systems Analysts: $66/hour

- Security: $44/hour

- Data Specialists: $39/hour

- Project Managers: $55/hour

Assuming resource allocation varies monthly due to project needs, the total monthly cost per project can be computed by multiplying the number of allocated resources by their respective hourly costs and summing across resource types. For example, if Project 1 allocates:

- Systems Analysts: 2 FTEs

- Security: 1 FTE

- Data Specialists: 1 FTE

- Project Managers: 1 FTE

The monthly costs would be:

- Systems Analysts: 2 \times $66 \times 160 = $21,120

- Security: 1 \times $44 \times 160 = $7,040

- Data Specialists: 1 \times $39 \times 160 = $6,240

- Project Managers: 1 \times $55 \times 160 = $8,800

Total for Project 1 in a given month: $43,200. Similar calculations are performed for Projects 2 and 3, with resource allocations adjusted based on project phase and scope.

Summing across the three projects for each month yields the overall total expenditure. A detailed projection for each month over 12 months can be tabulated in a spreadsheet to demonstrate cumulative costs, highlighting months with peak spending such as project milestones or intensive development phases.

2. Chart of Highest Spending Months

Using the calculated monthly costs, a line or bar chart can be created to illustrate the progression of expenditure over time. Typically, peak months may coincide with critical implementation phases, testing, or deployment, often around months 4-6 and months 10-12, depending on project timelines. The chart visually indicates these periods, allowing financial oversight and resource planning adjustments.

3. Calculation of Planned Value at Year-End

The planned value (PV) quantifies the budgeted cost of work scheduled by the end of the first year. Assuming that each project follows a phased schedule with defined milestones, PV can be calculated as:

\[

PV = (\text{Total Budgeted Cost per Project}) \times (\text{Percentage of Work Scheduled by Year-End})

\]

If each project’s total estimated cost for the first year is $600,000, and the work schedule indicates 90% of the planned work is completed by year-end, then:

\[

PV = 600,000 \times 0.9 = \$540,000

\]

This metric provides a benchmark for performance comparison through Earned Value Management (EVM) techniques, facilitating identification of schedule or cost variances early.

4. Performance Metrics and Reporting Frequency

Key performance metrics include Cost Performance Index (CPI), Schedule Performance Index (SPI), and scope adherence, which combined evaluate project efficiency and timeliness. Acceptable limits might be CPI and SPI values above 0.9, indicating a project's cost and schedule are within acceptable variance thresholds. Regular reporting—monthly—enables timely corrective actions, fostering transparency and accountability.

5. Change Management Methodology Recommendation

The ADKAR model—a structured approach focusing on Awareness, Desire, Knowledge, Ability, and Reinforcement—is recommended for managing the organizational change associated with this program. Its focus on individual change readiness makes it suitable for multi-stakeholder projects like this, ensuring buy-in, minimizing resistance, and supporting sustainable change (Hiatt, 2006).

This methodology's steps include:

1. Building awareness of the need for change

2. Fostering desire among stakeholders to participate

3. Equipping teams with knowledge of new processes

4. Developing the ability to implement changes effectively

5. Reinforcing changes through continuous support and recognition

6. Steps to Implement the Change

Implementation begins with stakeholder engagement, communicating the vision and benefits of the program transparently. Training sessions, workshops, and coaching are organized to build skills. Feedback mechanisms, such as surveys and focus groups, address concerns and reinforce commitment. Leadership endorsement and recognition ensure sustained motivation. Regular monitoring and adjustment of strategies follow, aligned with organizational culture and readiness levels.

Conclusion

Successful execution of the United Healthcare Group project depends on meticulous financial planning, strategic performance measurement, and robust change management. By developing detailed budgets, visualizing spending trends, applying effective metrics, and utilizing a proven methodology like ADKAR, the organization can navigate challenges effectively. Proper implementation of these strategies will support the overarching goal of delivering a high-quality program aligned with organizational objectives.

References

• Hiatt, J. (2006). ADKAR: A Model for Change in Business, Government and Our Community. Prosci.
• Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.
• PMI. (2021). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). Project Management Institute.
• Meredith, J. R., & Mantel, S. J. (2017). Project Management: A Managerial Approach. Wiley.
• Fenton, N. E., & Neil, M. (2017). Risk assessment and decision analysis with Bayesian networks. CRC press.
• Schwalbe, K. (2018). Information Technology Project Management. Cengage Learning.
• Leach, L. P. (2014). Critical Chain Project Management. Artech House.
• Gido, J., & Clements, J. (2019). Successful Project Management. Cengage Learning.
• Collins, J., & Porras, J. (2004). Built to Last: Successful Habits of Visionary Companies. HarperBusiness.
• Patel, N., & Vasconcelos, R. (2019). Strategic Project Portfolio Management: Improving Governance of Projects, Programs and Portfolios. Routledge.