1. State of NC Internal Use Only – Do Not Distribute 1 Project Portfolio Management (PPM) Tool Change Request Training Enterprise Project Management Office (EPMO) March 2011

2. State of NC Internal Use Only – Do Not Distribute 2 Change Request Training Agenda Agenda 1.Types of Change Requests 2.Change Requests and Phases 3.Change Request Timeline Decisions 4.Entering a Budget Change Request 5.Change Request Approval Process 6.Examples & Scenarios 7.Best Practices to Help Avoid Entering Change Requests 8.Frequently Asked Questions & Answers 9.Documentation Links

3. State of NC Internal Use Only – Do Not Distribute 3 Change Request Training Types of Change Requests Types of Change Requests

4. State of NC Internal Use Only – Do Not Distribute 4 Change Request Training Types of Change Requests Types of Change Requests Agency Registered Projects ≤ $100K State Registered Projects < $500K Scope changes for Projects ≥ $500K Schedule changes for Projects ≥ $500K Budget changes for Projects ≥ $500K

5. State of NC Internal Use Only – Do Not Distribute 5 Change Request Training Types of Change Requests Projects With Total Investment < $500K (Registered and Agency Registered Projects) A Change Request is NOT required unless it is a Budget change that pushes the Total Investment cost over $500K If the budget change takes the project over $500K, the “Project Range” attribute on the Project Info tab must be updated to reflect the new dollar range of the project. The project will move back to Initiation and go through the normal approval process for a new project.

6. State of NC Internal Use Only – Do Not Distribute 6 Change Request Training Scope Change Requests Scope Changes Projects ≥ $500K Must be approved at Agency Level by project Sponsor before being entered Attach Change Request approval to Document Management tab Approval form can be email or formal Change Request document Update appropriate attributes on Project Info, Status, Schedule and Document Management tabs

7. State of NC Internal Use Only – Do Not Distribute 7 Scope Changes – Approved at the Agency Level  Attach Agency Approval Form in Documents Management Tab  Update Appropriate Attributes in PPM Change Request Training Scope Change Requests TabAttributes Updated Project Info Project Goals Project Deliverables Items Out of Scope Proposed Strategy High Level Assumptions and Constraints Status Business Functional Requirements (Scope) “Scope” Indicator Comment Schedule Milestones Document Management New Documents

8. State of NC Internal Use Only – Do Not Distribute 8 Types of Change Request Schedule Change Requests Schedule Changes Projects ≥ $500K Must be approved at the Agency level by the Project Sponsor before being entered Attach Change Request approval to Document Management tab Approval form can be email or formal Change Request document Update appropriate attributes on Project Info, Cost Forecast, Schedule, Status and Document Management tabs Update the phase planned hours in the Staffing Plan

9. State of NC Internal Use Only – Do Not Distribute 9 Schedule Changes – Approved at the Agency Level  Attach Agency Approval Form in Documents Management Tab  Update Appropriate Attributes in PPM Change Request Training Schedule Change Requests TabAttributes Updated Project Info End Date Cost Forecast Additional Months added to Phase Status “Milestones” Indicator Comment Schedule Actual Percent Complete Milestones/Phases Forecast Dates Document Management New Documents Staffing Plan

10. State of NC Internal Use Only – Do Not Distribute 10 Change Request Training Non-Iterative, Waterfall Projects ≥ $500,000 Closeout Implementation (Imp) Execution & Build (E&B) Planning & Design (P&D) Initiation From this point forward, slides pertain to Non-Iterative, Waterfall Projects ≥ $500,000

11. State of NC Internal Use Only – Do Not Distribute 11 Budget Changes Follow PPM Change Request Process If: Project TCO is ≥ $500K or Part of a Program  Project is in P&D and P&D budget will exceed the SCIO approved phase budget by over 5%  Project is in E&B or Implementation and budget will exceed the SCIO approved phase budget by over 5% DO NOT Need to Enter Change Request if: Project is in P&D and the budget for E&B or Implementation is changing  Just make necessary changes on Budget Cost tab and Cost Forecast tab Change Request Training Budget Change Requests

12. State of NC Internal Use Only – Do Not Distribute 12 Change Request Training Key Points for Non-Iterative Waterfall Projects ≥ $500K Not entering a CR for a ≥ 5% increase to a Phase Approved Budget will result in the Quality Assurance (QA) representative entering a Yellow Phase Cost Jellybean Not entering a CR for a ≥ 10% increase to a Phase Approved Budget will result in the QA entering a Red Phase Cost Jellybean. Such infractions will be brought to the EPMO Director’s attention and potentially the State Chief Information Officer (SCIO). In the current phase, the Project Manager can move money around in the ‘Forecast’ tab, but should not increase the ’Budget Cost’ tab phase total or the ‘Forecast tab’ phase total without Business Sponsor approval and without a Change Request. An increase to an Approved Phase Budget without a Change Request will cause the QA team to enter an Issue. The same applies to Scope and Schedule. During P&D, changes to subsequent phases identified during P&D do not require a Change Request as the later phases have not been baselined. Budget and forecast cost changes to later phases can be documented on the ‘Budget Cost’ and ‘Forecast Cost’ tabs. At Gate Approval, the budget changes will be reviewed and approved as part of the State Approval Process. Once a project has been approved for Execution & Build, the ‘Budget Cost’ tab is Read Only and the information constitutes the Original Budget. During Implementation, changes in Scope, Schedule or Budget which lead to Change Requests that impact the Original Budget result in a Revised Budget. Never process a partial change (e.g., processing a change to the phase schedule prior to budget change approval)

13. State of NC Internal Use Only – Do Not Distribute 13 Change Request Training Change Requests & Phases

14. State of NC Internal Use Only – Do Not Distribute 14 Change Request Training Change Requests & Phases Initiation Change Requests cannot be entered

15. State of NC Internal Use Only – Do Not Distribute 15 Change Request Training Change Requests & Phases Current Phase - Planning & Design Changes to P&D Phase Budget Adjustments to the P&D approved phase cost total should be made within the change request cost breakdown tab Only enter the amount of the dollar change (positive or negative) DO NOT enter the new Budget amount Changes to E&B, IMP or O&M DO NOT require a CR because later phases have not been base lined Budget and Forecast cost changes can be recorded on the Budget Cost and Cost Forecast tabs

16. State of NC Internal Use Only – Do Not Distribute 16 Change Request Training Change Requests & Phases Current Phase – E&B or Imp Changes to E&B, IMP or O&M Budget Adjustments to approved phase cost total should be made within the change request cost breakdown tab Only enter amount of the dollar change (positive or negative) DO NOT enter the new Budget amount Entering the new required budget amount will double your budget

17. State of NC Internal Use Only – Do Not Distribute 17 Change Request Training Non-Iterative Waterfall Projects ≥ $500,000

18. State of NC Internal Use Only – Do Not Distribute 18 Change Request Training Change Request Time Line Decisions

19. State of NC Internal Use Only – Do Not Distribute 19 Plan Ahead – Enter CR before Status Report Due Date Enter the CR at the first sign you will need one Enter the CR prior to entering Monthly Status Report It is best to have the CR entered and approved prior to submitting monthly Status Report Change Request Training Change Request Time Line Decisions

20. State of NC Internal Use Only – Do Not Distribute 20 Change Request Training Change Request Time Line Decisions If CR Affects Current Reporting Month If the change request has not been approved, the status report cannot be done until the change request is processed This could result in a Yellow jellybean for late the Monthly Status Reporting  Better to have a Yellow jellybean for a late status report than a Yellow or Red jellybean for Phase Cost as a late status report does not impact the triple constraints

21. State of NC Internal Use Only – Do Not Distribute 21 Change Request Training Change Request Time Line Decisions If CR Affects Future Reporting Months If the change request does not impact the current status reporting month, then the status report can be assessed by the QA team without the CR being approved first. This could result in a “yellow” or “red” jellybean in the Phase Cost if the project is over budget for the phase and the change request has not been processed. If CR is Retroactive OSBM typically will not approve retroactive Change Requests. Approving budgets that have already been spent does not follow the process.

22. State of NC Internal Use Only – Do Not Distribute 22 Change Request Training Change Request Time Line Decisions Change Request Time Line Decisions

23. State of NC Internal Use Only – Do Not Distribute 23 Change Request Training Entering a Budget Change Request in PPM

24. State of NC Internal Use Only – Do Not Distribute 24 Change Request Training Entering a Change Request - ‘Project Info’ Tab

25. State of NC Internal Use Only – Do Not Distribute 25 Change Request Training ‘Change Request List’ & ‘Add Change Request’ Tabs Valid Change Request Status Values RAISED: The system generated status when a Change Request is initially entered. APPROVED: Approval was granted to proceed and steps should be taken to implement the Change Request. REJECTED: No further action should be taken as the Change Request was not approved for implementation. Change Requests are not editable after the request has been APPROVED or REJECTED

26. State of NC Internal Use Only – Do Not Distribute 26 Change Request Training Entering the Change Request – ‘Add Change Request’ Tab

27. State of NC Internal Use Only – Do Not Distribute 27 Change Request Training What to Include in the Change Request! When entering Budget, Scope and/or Schedule Change Requests, where applicable consider providing answers to the following questions What is changing? Have you received Business Sponsor approval? If so, attach the approval documentation via the ‘Document Management’ tab and identify the file name in the CR. Is the Change Request a re-allocation of monies between phases or an increase to a phase or multiple phases? What is the budget impact of the Change Request?  Budget Codes - Include the appropriate accounting budget codes that are associated with the project. — Example: Budget Code – 14410  Cost Centers - Populate the appropriate cost center with monetary values that identify the funding source of the Change Request —Benefits —Federal Funds or Grants —Local Funds —Non-Federal Grants —Receipts/User Fees —State Appropriations What is the business value of the change? What is the business impact if the change is not made?

28. State of NC Internal Use Only – Do Not Distribute 28 Change Request Training What to Include in the Change Request! When entering Budget, Scope and/or Schedule Change Requests, where applicable consider providing answers to the following questions What is the breakdown of the additional costs?  Are additional resources required? If so, —Internal, External or both? —How many resources? —Rates for External Resources? —For what duration of time are the Resource required? What Hardware or Software must be secured?  Why is the HW required? —What is the cost of Hardware?  Why is the SW required? —What is the cost of Software Licenses? Are there Other External Costs or Other Costs not listed? What is the schedule impact of the Change Request?  What is the reason for the schedule extension?  What dates at changing? —From Date —To Date Has other relevant documentation been attached to the project via the ‘Document Management’ tab?

29. State of NC Internal Use Only – Do Not Distribute 29 Change Request Training Entering the Change Request – additional tabs

30. State of NC Internal Use Only – Do Not Distribute 30 Change Request Training Entering the Change Request – ‘Cost Breakdown’ Tab

31. State of NC Internal Use Only – Do Not Distribute 31 Cost Breakdown tab tips: Dollars need to be entered at Level 4 and in the correct month Dollars entered on the Cost Breakdown tab DO NOT need to be added to the Cost Forecast; this will happen automatically when the CR is approved Change Request Training Entering the Change Request – ‘Cost Breakdown’ Tab

32. State of NC Internal Use Only – Do Not Distribute 32 Change Request Training Approval Process 1.When the submitter clicks the ‘ADD’ button at the bottom of the Change Request screen, by default the EPMO Director will receive an email alerting him/her that a Change Request has been submitted. 2.The EPMO Director logs onto the tool, reviews and vets the Change Request (including the description and cost breakdown tab). 3.The EPMO Director determines if the she/he has the authority and if so, Approves or Rejects the Change Request. Examples of Change Request that can be approved by the EPMO Director: Change Requests that are needed to correct PPM Tool entry mistakes made by the PM Increases in internal resource costs. 4.If the Change Request requires OSBM approval, the EPMO Director will ensure necessary information is present in order for OSBM to understand the change. This may result in a meeting with the PM to discuss the changes. Examples of Change Request that can be approved by OSBM Change Requests that cross fiscal years Projects ≥ $500,000 Note: If the Change Request is saved before it is ready for review, send an e-mail to the EPMO Director and your PMA letting them know it is not ready for review. Send a second e-mail when the Change Request is complete and ready for review. Approvals should generally be completed within seven (7) calendar days of receiving the email notification that the Change Request is ready for review.

33. State of NC Internal Use Only – Do Not Distribute 33 Change Request Training Approval Process – Post Approval After the Change Request is approved the Cost Forecast is increased by the amount of the Cost Breakdown in the Change Request for the appropriate months. The Budget Cost tab continues to contain the original budget costs and will NOT contain the change request costs The ‘Total Approved Phase Budget’ (Status Tab) needs to be updated to match the new Revised Budget TC for the phase You should NOT: Update the Cost Forecast tab with the additional dollars for the change request; updating the Cost Forecast tab will cause the phases Forecast Cost to be overstated Update the Budget Cost tab to show the additional dollars for the change request

34. State of NC Internal Use Only – Do Not Distribute 34 Change Request Training Possible Change Request Rejection Reasons Retroactive Typically, the Office of the State Budget and Management (OSBM) does not approve retroactive Change Requests. If the budget has already been exhausted, there is nothing to approve. Incorrect Information If the information identified in the Change Request is not deemed feasible, the Change Request will be rejected. No Funding If there are budget increases associated with the Change Request, the proper funding codes must be included or the Change Request will be rejected. No Budget Code If a budget increase is associated with the Change Request and no values have been entered into the ‘Cost Breakdown’ tab or if the values entered don’t reflect the correct difference between the current approved phase budget and the proposed revised phase budget, the Change Request will be rejected. No Business Sponsor Approval Approval from someone other than the Change Request submitter is required. The Business Sponsor/Owner is responsible for approving project changes. Such procedures keep the chain of responsibility intact and prevents unannounced or unauthorized project changes. If the Business Sponsor approval is not stored in the Document Management tab, the Change Request will be rejected.

35. State of NC Internal Use Only – Do Not Distribute 35 Change Request Training Examples & Scenarios

36. State of NC Internal Use Only – Do Not Distribute 36 Change Request Training Examples & Scenarios Change Request Scenario 1: Increase to Planning & Design Phase Budget while in Planning & Design Change Request Scenario 2: Changes to multiple phases (Execution & Build, Implementation, Project Closeout) Change Request Scenario 3: Decrease in budget and resource hours initially planned

37. State of NC Internal Use Only – Do Not Distribute 37 Change Request Training C hange Request Scenario 1 Description of Change Request Scenario 1: An additional 2 months are required to complete the P&D phase of the project since it was decided the development work will be handled internally instead of using a vendor. P&D Original Phase Budget TC: $28,600 P&D Change Request TC: + $50,000 P&D Approved Revised Budget TC: $78,600 This scenario requires a Change Request to be entered for $25,000 for the months of June '10 and July '10.

38. State of NC Internal Use Only – Do Not Distribute 38 Change Request Training ‘ Cost Breakdown’ Tab & CR Amounts

39. State of NC Internal Use Only – Do Not Distribute 39 Change Request Training Original Budget + Change Request = Revised Budget

40. State of NC Internal Use Only – Do Not Distribute 40 Change Request Training Revised Budget TC – Forecast Cost TC = Forecast Var. TC

41. State of NC Internal Use Only – Do Not Distribute 41 Change Request Training Impact to ‘Cost Forecast’ after the Change Request is Approved

42. State of NC Internal Use Only – Do Not Distribute 42 Change Request Training Change Request Scenario 2 Description of Change Request Scenario 2: The results of the migration process testing indicated the migration process needed to be redesigned and rework is required for E&B. During the Implementation phase, more Internal Personnel are required and External Vendors will not be needed as previously thought. The Project Closeout phase will increase as a result of added activities. Original Budget Total Cost: $4,169,826 Change Request Total Cost: + $65,235 Revised Budget Total Cost : $4,235,061 Original CRRevised PhaseAmountPhase Execute & Build Phase Budget:$98,426$44,635 $143,061 Implementation Phase Budget: $203,950$17,800 $221,750 Project Closeout Phase Budget: $1,700 + $2,800 $4,500 $65,235

43. State of NC Internal Use Only – Do Not Distribute 43 Change Request Training ‘ Cost Breakdown’ Tab & CR Amounts – Scenario 2

44. State of NC Internal Use Only – Do Not Distribute 44 Change Request Training ‘Cost Tracking’ Tab Note, a negative amount ($20,240) was entered to account for not requiring External Personnel during the Implementation phase.

45. State of NC Internal Use Only – Do Not Distribute 45 Change Request Training Original Budget + Change Request = Revised Budget

46. State of NC Internal Use Only – Do Not Distribute 46 Change Request Training Change Request Scenario 3 Description of Change Request Scenario 3: Original budget included dollars for a full-time contract PM and contract IT Specialist. PM work is now being handled in-house and internal resource costs have come in under monthly forecast. IT Specialist position is not going to be filled. Internal Personnel and External Personnel need to be reduced. Cost Tracking P&D Original Phase Budget TC: $1,927,224 P&D Change Request TC: +$1,011,143 P&D Approved Revised Budget TC: $916,081

47. State of NC Internal Use Only – Do Not Distribute 47 Change Request Training Cost Breakdown Tab & CR Amounts

48. State of NC Internal Use Only – Do Not Distribute 48 Change Request Training Original Budget + Change Request = Revised Budget

49. State of NC Internal Use Only – Do Not Distribute 49 Change Request Training Impact to Cost Forecast After Change Request is Approved Cost Forecast Before CR Approved Cost Forecast After CR Approved and CR amounts are applied Note: There is no need to update the Cost Forecast tab manually. After the CR is approved the dollars from the Cost Breakdown tab are applied

50. State of NC Internal Use Only – Do Not Distribute 50 Change Request Training Best Practices to Help Avoid Entering Change Requests

51. State of NC Internal Use Only – Do Not Distribute 51 Ensure all stakeholders are identified early on and understand the project’s impact to their agency in order to avoid the need to add scope Define the skills needed for the project and obtain people with those skills to avoid having to secure additional resources Determine early on if the project will encounter resource constraints as a result of resources working on multiple projects Allow enough time for procurement, the process typically takes longer than expected Use expert judgment and historical information from similar projects to ensure time estimates for activities are realistic Plan for quality in order to limit the amount to time and money required to fix defects Allow time and resources for documentation and testing Prior to submitting CR’s, have your PMA or a peer validate the data entry to avoid having to enter another CR to correct mistakes Change Request Training Best Practices to Help Avoid Entering CR’s

52. State of NC Internal Use Only – Do Not Distribute 52 Frequently Asked Questions & Answers Change Request Training Frequently Asked Questions & Answers

53. State of NC Internal Use Only – Do Not Distribute 53 Change Request Training Frequently Asked Questions & Answers When should I enter the CR? CR’s should be entered at the first sign additional monies will be needed. The longer you wait, the more likely you are already spending money that has not been approved. Note, OSBM does not typically approve retroactive CR’s. After entering the CR, why is my phase budget doubled? Usually doubling happens when the new budget total has been entered instead of the additional request amount. What must be done prior to entering a CR? Obtain agency approval and attach the approvals to the project using the Document Management tab. What is the text box character limit? Text box input is limited to 3,950 characters. Attach additional documentation to the project’s Document Management tab. How can I confirm the total amounts for the CR? Copy and paste the rows from the CR Cost Breakdown tab into Excel. Use the Excel sum function to identify the totals. Should I submit the project’s monthly status report if I have a pending CR? No, it is better to have a yellow or red status report jellybean/indicator than a yellow or red phase cost jellybean. Submit the report after the CR is approved.

54. State of NC Internal Use Only – Do Not Distribute 54 Change Request Training Frequently Asked Questions & Answers If the CR alters the project range, what should be done? Contact your PMA to inform them of the project range change and they will advise what action should be taken. Can I entered negative numbers for a CR? Yes, negative CR amounts are allowed Am I required to entered a CR if the total phase budget has not changed? No, only increases to the total phase budget ≥ 5% are required. However, if the phase budget increase is ≥ 5%, a CR is required. If the CR project date range does not extend to required dates needed, what should be done? The first month displayed in the CR Cost Breakdown tab is the month in which the CR was entered. The last month in the Cost Breakdown tab is based on the “Actual End Date” in the Schedule tab plus the number of months in the “Capitalization Period” (60). The Actual End Date on the Schedule tab should be the same as the latest Phase Planned End Date and the End Date on the Project Information tab. Am I required to enter the budget code in the CR if the budget code is currently associated with the original project scope? Yes, add the budget code associated with the CR.

55. State of NC Internal Use Only – Do Not Distribute 55 Are there additional updates to consider once a CR has been approved? If a substantial amount of money is required, a revised business case may be needed When applicable, ensure the staffing plan is updated to reflect the change and document additional milestones If the CR impacts each one of the triple constraints- Budget, Schedule and Scope, how should I proceed? Obtain Sponsor approval for all three constraints Enter the Budget portion of the CR After Budget approval is granted enter the Scope and Schedule CR  This avoids entering Scope and Schedule data unnecessarily if the Budget CR is not approved Change Request Training Frequently Asked Questions & Answers

56. State of NC Internal Use Only – Do Not Distribute 56 Change Request Training Documentation - Direct Links Change Request Training: http://www.epmo.scio.nc.gov/library/pps/NCHelp/Change_Request_Training.pps Change Request Guidelines: http://www.epmo.scio.nc.gov/library/pdf/ChangeRequestGuidelines.pdf http://www.epmo.scio.nc.gov/library/pdf/ChangeRequestGuidelines.pdf Project Change Request Form: http://www.epmo.scio.nc.gov/library/docs/Change_Request_Form.doc

57. State of NC Internal Use Only – Do Not Distribute 57 Change Request Training Documentation - NC Help

58. State of NC Internal Use Only – Do Not Distribute 58 Change Request Training Contacts for Change Request Questions Charles Richards Charles.Richards@nc.gov (919)754-6612 Janet Stewart Janet.Stewart@nc.gov (919)754-6555 EPMO Staff http://www.epmo.scio.nc.gov/staffDirectory/default.aspx