Implementation Plan
Objective
One strategic objective benefitting the firm is to better information management, manifested in the newly created frequency shopper program. This program aims to track purchase behavior by individuals and provide high-value incentives. Price discounts are not expected to be a deciding factor in the minds of consumers due to the discerning nature and tastes of Kudler's target market. To this end, the company has researched implementation of the program and the overall payoff in terms of revenue is expected to total 4.75%. Starting at .25% in Q1, and increasing substantially throughout the year, as consumers are made more aware of the program through promotional activities.
Work Breakdown Structure
The above work breakdown structure for Kudler is a typical high-level WBS structure for a small to medium sized project. The box at the top (The Project) represents the total system and is referred to as WBS level 1. Lower levels, which describe project components in increasing detail are numbered 2, 3, 4 and so on.
The concept of WBS level is important as it allows you to designate the level of detail at which you report cost estimates and project cost performance figures. For example, to effectively manage a large project a senior manager typically needs summary details of cost variance at level 2. By contrast the team leader responsible for developing a level 2 software component needs cost performance reports at level 3.
The partitioning of the project into major components occurs at level 2. Components at this level fall into the following classes:
Project Service. Project services applying to the entire project and cannot be allocated to a single deliverable item. Examples of this are project management and quality management. In the case of customer purchases tracking is classed as a Project Service as it is used to discover what the components are. The detailed design of a single software component however is allocated to component.
Hardware Component. A bill of materials breakdown of computer hardware used to run the software component.
Software Component. A bill of materials breakdown of computer software used to run the customer purchases tracking program.
Gantt
Software/Hardware 6w
assess needs 1w
present plan 1w
evaluate plan 1w
approve plan 1w
order system 1w
receive system 1w
Marketing 5w
plan advertising 1w
approve plan 1w
promotional items 1w
receive promotional items 1w
place advertising 1w
Training 1w
prepare material 2d
schedule 2d
train managers 1d
Install system 1w 4d
install test/train system 1w
install server 1d
test backup/recovery system 2d
final test 1d
Completion 2w 1d
post-mortem analysis 2w
Project completion 1d
Key Factors for Plan Implementation
When considering the costs associated with any project, failure at any number is a tough number for a company to overcome. With a well thought-out implementation plan, anyone can harness the full potential brought to the organization. The success for an implementation plan starts with ten key factors. These factors are: determining the scope of the project, getting management commitment, planning the project, preparing for change, training, gathering data, entering the gathered data, usable reports and analysis, follow-up and continue improvement, and assuring there are future access by reliable links and attachments.
Determining the scope of the project is making certain Kudler has the right applications and a well-defined package to increase customer-purchasing cycles. Kathy Kudler, CEO, will get management committed to what types of initial and ongoing resources Kudler will need to successfully complete the plan. Kudler will plan for the implementation by determining the milestones, gathering data, and what types of data being gathered. This will allow Kudler to figure out a numbering scheme, equipment ID scheme, location scheme, and charge accounts.
Cash Budget
Itemized Dollar Amount
Total Budget Pie Chart
Risk Management Plan
Kudler Fine Foods will define the risk management methodology to be used, the risk assumptions, the roles and responsibilities, the timeframes, risk rating/scoring techniques, establish risk thresholds, define risk communications, and develop a risk tracking process. This will go as follows:
- Define the risk management methodology to be used
The risk management process is scalable to ensure the level, type, and visibility of risk management commensurate of both the risk and the importance of the project.
A. Risk Identification – Risks will be identified by using the Risk Assessment Questionnaire Template, augmented to include other project specific risks, as appropriate.
B. Categorize Risks – The Risk Assessment Questionnaire Template groups the risks into categories. The project will create additional categories, as required.
C. Risk Impact Assessment - For each risk identified, assess the risk event in terms of likelihood of occurrence and its effect on project objectives if the risk event occurs. This information will be used to prioritize the risk using established threshold criteria.
D. Prioritize Risks - Risks that meet the threshold criteria will be recorded in the Risk Response Plan.
E. Risk Response Planning:
- For each risk in the Risk Response Plan, determine the options and actions to reduce the likelihood or consequences of impact to the project’s objectives.
- Determine the response based on a cost/benefit analysis (cost vs. expected effectiveness).
- Describe the actions to be taken to mitigate the risk
- Describe the actions to be taken when the risk event occurs (contingency plan)
- Assign responsibilities for each agreed upon response
- Assigned a “due date” where risk responses are time sensitive
- Incorporated this information into the Risk Response Plan
F. Risk Response Tracking:
- Document the dates and the actions taken to mitigate the risk
- Document the actions taken when the risk event occurred (contingency plan)
- Document any subsequent actions taken
- Incorporate this information into the Risk Response Plan
G. Monitor Risk:
- Establish systematic reviews and schedule them in the project schedule.
- These reviews are to ensure:
- All of the requirements of the Risk Management Plan are being implemented
- Assess currently defined risks
- Evaluate effectiveness of actions taken
- Status of actions to be taken
- Validate previous risk assessment (likelihood and impact)
- Validate previous assumptions
- State new assumptions
- Identify new risks
- Risk Response Tracking
- Communications
H. Control Risk:
- Validate mitigation strategies and alternatives
- Take corrective action when actual events occur
- Assess impact on the project of actions taken ($$, time, resources)
- Identify new risks resulting from risk mitigation actions
- Ensure the Project Plan (including the Risk Management Plan) is maintained
- Ensure change control addresses risks associated with the proposed change
- Revise the Risk Assessment Questionnaire and other risk management documents to capture results of mitigation actions.
- Revise Risk Response Plan
- Communications
2. Define assumptions having a significant impact on project risk
3. Define the roles and responsibilities unique to the Risk Management function
Risk Management Team-assigned by Kathy Kudler
Risk Response Tracking Coordinator- Kathy Kudler
4. Define Risk Management Milestones
Milestone Date
Risk Management Plan approved 05/01/10
Risk Assessment Questionnaire tailored to project 06/01/10
Risk Assessment Questionnaire complete 06/13/10
Risk Response Plan approved 07/01/10
Risk Management Reviews scheduled 09/01/10
5. Define risk rating/scoring techniques
The project will rate each identified risk (High, Medium, Low) based on the likelihood the risk event will occur and the effect on the project’s objectives if the risk event occurs. This will be a subjective evaluation based on the experience of those assigned to the project’s risk management team.
6. Establish risk thresholds
The project will establish risk responses for risk events having been determined to have a rating of “High”.
References
Barney, J. B. (2007). Gaining and sustaining competitive advantage (3rd ed.). Upper Saddle River, NJ: Pearson-Prentice Hall.
Mintzberg, H., Ghoshal, S., Lampel, J., & Quinn, J. B. (2003). The strategy process: Concepts contexts cases (4th ed.). Upper Saddle River, NJ: Pearson-Prentice Hall.
Pearce, J. A. & Robinson, R. B. (2007). Strategic management: Formulation, implementation, and control (10th ed.). Boston: McGraw-Hill/Irwin.
University of Phoenix. (2004). Kudler Fine Foods virtual organization. Retrieved February 1, 2010 from University of Phoenix, Week Three, resource, STR581.