Part 1: Project Integration Management

Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of healthcare
services across the globe. MYH has more than 20,000 full-time employees and more than 5,000 part-
time employees. MYH recently updated its strategic plan; key goals include reducing internal costs,
increasing cross-selling of products, and exploiting new Web-based technologies to help
employees, customers, and suppliers work together to improve the development and delivery of
healthcare products and services. Below are some ideas the IT department has developed for
supporting these strategic goals:

1. Recreation and Wellness Intranet Project: Provide an application on the current intranet to
help employees improve their health. A recent study found that MYH, Inc. pays 20 percent more
than the industry average for employee healthcare premiums, primarily due to the poor health of
its employees. You believe that this application will help improve employee health within one
year of its rollout so that you can negotiate lower health insurance premiums, providing net
savings of at least $30/employee/year for full-time employees over the next four years. This
application would include the following capabilities:

 Allow employees to register for company-sponsored recreational programs, such as soccer,

softball, bowling, jogging, and walking.
 Allow employees to register for company-sponsored classes and programs to help them
manage their weight, reduce stress, stop smoking, and manage other health-related issues.
 Track data on employee involvement in these recreational and health-management programs.
 Offer incentives for people to join the programs and do well in them (e.g., incentives for
achieving weight goals, winning sports team competitions, etc.).

2. Health Coverage Costs Business Model: Develop an application to track employee healthcare
expenses and company healthcare costs. Healthcare premiums continue to increase, and the
company has changed insurance carriers several times in the past 10 years. This application
should allow business modeling of various scenarios as well as tracking and analyzing current and
past employee healthcare expenses and company healthcare costs. This application must be secure
and run on the current intranet so several managers and analysts can access it and download
selected data for further analysis. The new application must also import data from the current
systems that track employee expenses submitted to the company and the company’s costs to the
insurance provider. You believe that having this data will help you revise policies concerning
employee contributions to healthcare premiums and help you negotiate for lower premiums with
insurance companies. You estimate that this application would save your company about
$20/employee/year for full-time employees over the next four years and cost about $100,000 to
develop.

3. Cross-Selling System: Develop an application to improve cross-selling to current customers. The

current sales management system has separate sections for major product and service categories
and different sales reps based on those products and services. You see great opportunities to
increase sales to current customers by providing discounts when they purchase multiple products
and services. You estimate that this system would increase profits by $1 million each year for the
next three years and cost about $800,000 each year for development and maintenance.
4. Web-Enhanced Communications System: Develop a Web-based application to improve
development and delivery of products and services. There are currently several incompatible
systems related to the development and delivery of products and services to customers. This
application would allow customers and suppliers to provide suggestions, enter orders, view the
status and history of orders, and use electronic commerce capabilities to purchase and sell their
products. You estimate that this system would save your company about $2 million each year for
 three years after implementation. You estimate that the system will take one year and $3 million
to develop and require 20 percent of development costs each year to maintain.

Tasks
1. Summarize each of the proposed projects in the Running Case section using a simple table format
suitable for presentation to top management. Include the name of each project, identify how each
one supports business strategies, assess the potential financial benefits and other benefits of
each project, and provide your initial assessment of the value of each project. Write your results
in a one- to two-page memo to top management, including appropriate back-up information and
calculations.
Answer:
Project Support Business Financial Benefits Other Benefits
Description strategies
Reduces internal costs of Yield a net savings of Improve healthcare
Recreation and employee health care $30/employee/year over
Wellness Intranet premiums the next four years by
Project Add-on the existing negotiating lower health
Intranet will help insurance premiums
employees improve health
Reduces internal costs of The four-year net savings Allow business modeling as
employee health care projection is estimated to be well as tracking and
Health Coverage $20/employees/year. analyzing current and past
premiums
Costs Business employee, company
Model Add-on the existing
healthcare expenses
Intranet will help
employees improve health
Increase the cross-selling of Profit increase by $1 million Contributes to better cross-
products each year for the next three selling performance of our
Cross Selling years and cost about sale representatives
System $800,000 each year for
development and
maintenance
Developing new Web-based Estimate to save about $2 Provide suggestions, enter
technologies to help million each year for three orders, view the status and
Web-Enhanced employees, customers, years after implementation. history of the orders and use
Communication suppliers work together and After one year and $3 million e-commerce capabilities to
System improve the development and for developing. purchase and sell their
delivery of its healthcare products
products and services

2. Evaluate the four projects in the Running Case section by preparing a weighted scoring model
using the template provided on the companion Web site for this text. Develop at least four criteria,
assign weights to each criterion, assign scores, and then calculate the weighted scores. Print the
spreadsheet and bar chart with the results. Also write a one-page paper that describes this
weighted scoring model and the results.
Answer:

Recreation and
Health Cross Web-Enhanced
Wellness
Criteria Weight Coverage Costs Selling Communication
Intranet
Business Model System System
Project
Satisfies business
objective 35% 25 8.75 25 8.75 25 8.75 25 8.75
Provides positive
NPV 30% 100 30 70 21 25 7.5 50 15
 Can be
implemented in 1
year or less 15% 100 15 100 15 30 4.5 100 15
ROI within 3 years 20% 80 16 100 20 0 0 25 5
 
Weighted Project
100% 69.75 64.75 20.75 43.75
Scores

Project Weighted Scoring Model

80

70

60

50

40

30

20

10

0
Weighted Project Scores

Recreation and Wellness Intranet Project Health Coverage Cost Business Model
Cross Selling System Web-Enhanced Communication System
3. Prepare a business case for the recreation and wellness intranet project. Assume that the project
will take six months to complete and cost about $200,000. Use the business case template
provided on the companion Web site for this text.
Business Case for Project Name
Date
Project Name:
1.0 Introduction/ Background

2.0 Business Objective

3.0 Current Situation and Problem/Opportunity Statement

4.0 Critical Assumption and Constraints

.
5.0 Analysis of Options and Recommendation

6.0 Preliminary Project Requirements

 7.0 Budget Estimate and Financial Analysis

8.0 Schedule Estimate

9.0 Potential Risks

10.0 Exhibits
Exhibit A: Financial Analysis

4. Prepare a project charter for the recreation and wellness intranet project. Assume that the project
will take six months to complete and cost about $200,000. Use the project charter template
provided in this text and the sample project charter provided in Table 4-1 as guides.
Project Charter
Date
Project Title:
Project Start Date: Projected Finish Date:
Budget Information:

Project Manager: Name, phone, e-mail

Project Objectives:

Success Criteria:

Approach:

Roles and Responsibilities

Name and Signature Role Position Contact Information

Comments: (Handwritten or typed comments from above stakeholders, if applicable)

5. Prepare a change request for the recreation and wellness intranet project, using the template
provided on the companion Web site for this text. Be creative when making up information.