1. NDIA PMSC Baseline Stability Working Group February 2010 Neil Albert Pete Wynne

2. 2 Baseline Stability Objective Adapt Program Performance Management to efficiently Integrate with the Acquisition Process given that change is inevitable. Goals Integrate Existing Performance Management With Existing Acquisition Processes Eliminate Waste and Reduce Re-Work in maintaining an integrated performance measurement baseline Streamline the Program Performance and Acquisition interfaces Minimize Deconstruction

3. 3 Baseline Stability Definition The stability of the Cost, Schedule, and Technical Baseline is demonstrated through the establishment of process definition, strong internal controls, and disciplined competency. The planning, statusing, and execution of the Baseline is accomplished within the confines of the EVMS work products using an adaptable approach. NEW Approach

4. Attributes of Baseline Instability High Risk Ill-defined requirements and volitility Unstable funding Ongoing changes to the contract Milestones not clearly defined Yet to be proven or immature technologies Poorly defined resources to execute the plan Schedule flux Inexperienced customer Contract inappropriate Mission/User need change Others

5. Approach Need to determine how we adapt EVM to the changing environment of acquisition –Adaptable –Agile –Risk focused –Scale to the needed level of detail and be responsive –Others Establish a common understanding of today’s environment –Work with customers to ensure we understand their position –Collaborate on a coordinated view –Create a plan as to how we meet changing activities –Deliver a proposed solution to PMSC Potential Solution: Rolling Wave Planning Approach

6. What is Rolling Wave Planning? From the EVMIG: –The contractor may also elect to plan the PMB in detail Work Packages for near term activities and hold the future budget in higher level Planning Packages. –The contractor should periodically plan the next increment of work into detailed Work Packages. This is known as rolling wave planning and typically provides more flexibility than laying out the complete baseline in detail at the beginning of the contract. –The contractor should establish procedures and a timetable for rolling wave planning. –Government approval of or interference with the process of rolling wave planning is not appropriate; however, the CMO and PMO should be aware of the contractor’s schedule for rolling wave planning. 6

7. Why Rolling Wave? What causes project failure –A key answer is “poor planning” Planning is the filter between the complex, dynamic, and risky “open” systems of the organizational environment and with the “closed” project system Project planning must provide structure, while preserving flexibility, especially for those projects involving inventive and/or long term complex work –Inventive and complex work involves strong elements of discovery, and requirements tend to emerge and evolve as the project evolves – it is often not possible to determine precise answers and create detailed plans. Need ways to “respond” to change and evolving innovations –Project planning must balance emphasis on project goals with capability (existing resources and knowledge) takes shape 7

8. Basic Concept 8 As the WBS evolves – so does the knowledge of what is needed to plan

9. Rolling Wave - Barrier to Use 9 Rolling Wave Planning Budget Planning Processes ANSI – 748? Customer Acceptance? Contract Reqmts? IMP/IMS DiD? EVMIG?

10. Rolling Wave – Barriers to Implementation Process Documentation – At what level? Contract Authorization – Structure of CLINs WBS – Variability in depth OBS – The OBS can shift RAM – Establishing the Control Account Structure IMP – Level? IMS – Depth? Work Authorization Documents – Required elements? Subcontract Integration – EV Flowdown Estimates to Complete – Comprehensive vs. Monthly Variance Analysis – Depth & Breadth Risk & Opportunity Integration – Level of integration Reporting Parameters ?

11. Next Steps Identify barriers to use and implementation –Find ways to mitigate –Collaborate with customer Identify process to determine when to use Rolling Wave Concept Coordinate through PMSC, create buy-in Create guidelines on implementation Educate stakeholders in application 11