Cost Management Process MONTH DAY, YEAR

Purpose and Definition The Cost Management Process provides: a structured approach for managing and tracking costs at a project and overall IT level a means to assure that elements which adversely impact budget are addressed in a proactive manner

Guiding Principles To ensure efficiency in the process, the following will serve as guiding principles: A cost estimate using the Estimator Model should be provided for all projects before final project approval The Project Management Team and Sponsors shall serve as champions to ensure compliance of cost management across the project Costs should be proactively communicated to and managed with executive management on a quarterly basis, at a minimum Utilization of a Time & Attendance tool for time and cost management is preferred and will minimize overheard

Cost Management Process

Process Steps Ref ID Process Step Description Input/Output Time Horizon Owner 1 Develop IT Estimate (Estimator Model) Using the defined template, develop an IT Estimate, using the Estimator Model, for the entirety of the project Input: Cost elements Output: IT Estimate Discovery Project Manager/ Team Lead 2 Create ROI (if applicable) If the project warrants, a ROI analysis will be performed using the Estimator Model template approved template Input: IT Estimate Output: ROI 3 Review IT Estimate and ROI with Sponsors for Approval The Team Lead will review the findings of the estimate and ROI with the Project Manager for approval. If accepted, the project will move to the Plan & Analyze Phase for continued project execution. If rejected, the project work with terminate Input: IT Estimate, ROI Output: Project Approval 4 Define WBS Using the defined template, a WBS will be established for the project to an appropriate tracking level Input: N/A Output: WBS Plan & Analyze Project Manager 5 Load WBS into System of Record The WBS will be loaded into the system of record for centralized tracking Input: WBS Output: WBS (stored) 6 Define Initial Actuals/Forecast Report Using the data in the approved IT estimate and ROI, the initial actuals/forecast report will be populated Input: IT Estimate Output: Actuals/Forecast Report 7 Maintain Time and Cost in Tracking Tool On a period that is deemed appropriate (weekly or monthly) time and costs will be captured in the appropriate tool and extracts generated as appropriate Input: Time/Costs Output: Automated Time/Cost Tracking Manage Project Team 8 Update Monthly Actuals/Forecast Report On a monthly basis, costs will be extracted from the system of record to update the Actuals/Forecast report for the period Input: Actual Costs Output: Updated Actuals/Forecast Report

Process Steps cont. Ref ID Process Step Description Deliverable I/O Time Horizon Owner 9 Review Actuals/Forecast and Action Where Appropriate The Project Manager will conduct a monthly review to ensure costs are remaining in line. If costs have escalated beyond tolerance, an action plan will be established and monitored Input: Actuals/Forecast Report Output: Reviewd Actuals/Forecast Report Manage Project Manager 10 Complete Quarter Lock At the end of the quarter in addition to the monthly actuals/forecast report, a Quarter Lock report will be developed. The Team lead will provide estimates for the upcoming quarter. The initial quarter lock figures will be those from the IT Estimate. If it is not the end of the quarter, exit Cost Management process Input: Project Costs Output: Quarter Lock 11 Review Quarter Lock and Action Where Appropriate If there are significant changes to the upcoming quarter costs, the Project Manager must review causes and approve before proceeding. If overages are approved and action plan will be put in place to tightly manage cost overuns in the upcoming quarter Input: Quarter Lock Output: Reviewed/ approved Quarter Lock

Cost Management Forums Costs will be reviewed and managed based on the following schedule Timing Meeting Cost Mgmt Activities Monthly Weekly Team Meeting Review monthly forecast/actual reports across projects Quarterly Review Quarterly lock estimates for projects Biweekly or Monthly Executing Steering Committee Meeting Review completed IT estimates presented for approval Review project ROI, as appropriate Review current state (monthly and quarterly planned vs. actuals)

Key Roles & Responsibilities There are several key roles and responsibilities necessary to ensure effectiveness of the Quality Review Process: Role Responsibility Project Manager/ Team Leads Provide timely project cost tracking on a monthly and quarterly basis Ensure a project estimate is completed prior to initiation of project work Drive completion of ROI, as applicable Ensure compliance to cost management procedures Team Members Provide input to cost components for estimate, monthly and quarterly tracking and ROI Project Review and approved IT estimates Review/assess cost deliverables across projects and mitigate risks Consolidate costs across the projects for an enterprise view Provide consolidated cost reporting to executive management

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