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Program Managers Guide to the - Table Of Contents

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The PMB is one of a manager's principle tools for measuring project performance. Project Management Institute, College of Performance Management

    The Program Managers’ Guide

    to the

    Integrated Baseline Review Process

    April 2003

    Table of Contents

    Foreword ............................................................................................................ 1 Executive Summary ........................................................................................... 2 Benefits ............................................................................................................ 2 Key Elements .................................................................................................. 3 Introduction ........................................................................................................ 4 IBR Process Overview ................................................................................... 4 The IBR Guide ............................................................................................... 5 PMB Assessment ................................................................................................ 6 IBR Preparation ................................................................................................. 8 General Guidance .......................................................................................... 8 Expectations and Assumptions ..................................................................... 9 Risk Areas ....................................................................................................... 9 Team Composition ....................................................................................... 10 Responsibilities ............................................................................................. 11 Training ......................................................................................................... 11 IBR Execution .................................................................................................. 13 General Guidance ........................................................................................ 13 IBR Objectives .............................................................................................. 14 IBR Closeout ................................................................................................. 15 Management Processes .................................................................................... 16 General Guidance ........................................................................................ 16 Management Processes ................................................................................ 17

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    Foreword

    In accordance with Department of Defense (DoD) acquisition policy, Program Managers (PMs) must conduct Integrated Baseline Reviews (IBRs)

    on contracts with Earned Value Management (EVM) requirements. IBRs are

    intended to provide a mutual understanding of risks inherent in contractors'

    performance plans and underlying management control systems. Properly

    executed, IBRs are an essential element of a PM's risk management

    approach. However, for some time there has been concern about IBRs meeting

    their stated goal. In response to this concern, a team reviewed the IBR Process

    to assess IBR conformance to DoD policy.

    The team found that most IBRs generally conform to DoD policy. However, the team found inconsistent policy interpretation, which

    resulted in the development of individual Service/Agency IBR guidebooks,

    differing perceptions of purpose and value, and inconsistent IBR

    execution. The team also found that the degree of focus on operational

    management processes broadly ranged from high to low during IBRs.

    As a consequence, The Program Managers' Guide to the Integrated

    Baseline Review Process was developed to improve the consistency of the

    overall IBR Process. This guide identifies the purpose of the IBR Process and

    conveys the need to make it a continuous process. This guide also integrates

    the IBR with risk management, within the framework of the IBR Process.

    This guide is the principal IBR reference and should be used to implement an integrated baseline discipline on an acquisition program. PMs

    are strongly encouraged to use this guide during IBR training, when preparing

    for an IBR, and then again during the actual execution and conduct of the IBR.

    1

    Executive Summary

    This guide clearly defines the purpose, goals, and objectives of an IBR. It also describes attributes of an effective IBR and discusses a baseline review

    process that will lead to a better understanding of program risks. It provides a

    common definition and framework for the IBR Process. This process

    harmonizes, and to the extent possible, unifies the management objectives for

    all PMs. The IBR Process enables managers to effectively utilize the project

    Performance Measurement Baseline (PMB) to assess performance, and to

    better understand inherent risks. The IBR Process should continue throughout

    the life of a project.

    Benefits

    The IBR Process benefits PMs in the following ways:

    ? Lays a solid foundation for mutual understanding of project risks;

    ? Provides an invaluable opportunity to compare PMs’ expectations,

    and to address differences before problems arise;

    ? Provides project management teams with a thorough understanding

    of the project plan and its risks, allowing early intervention and the

    application of resources to address project challenges; and

    ? Increases confidence in the project PMB, which provides a powerful,

    proactive, program management capability to obtain timely and

    reliable cost and schedule projections.

    Additional, continuing benefits to the PMs, once a PMB has been

    established and the IBR Process has been implemented, include the following:

    ? Management insight. Enables the principles of management by

    exception and improves problem traceability rather than require

    continuous oversight of all tasks.

    2

? Early warning. Indicates potential problems early.

    ? Earned value management. Enables management to quantify the

    impact of known problems, to measure work accomplished, and to

    obtain realistic estimates at completion.

    Key Elements

    The key elements in the IBR Process are the following:

    ? The IBR Process establishes and maintains a mutual understanding of

    the PMB and mitigates program risk. (page 4)

    ? Preparation for the IBR should begin as soon as practical. (page 8)

    ? Before executing the IBR, ensure the PMB reflects the entire scope of

    work, documented at the appropriate level of detail. (page 9)

    ? Preparation includes planning that identifies key responsibilities,

    required technical expertise, training, review dates, review scope, risk

    evaluation criteria, documentation needs, disposition of findings, and

    procedures for risk identification, documentation, and incorporation

    into project risk management planning. (page 9)

    ? The intent of the IBR is to provide the PMs with a mutual

    understanding of the project PMB and to attain agreement on a plan

    of action to handle the identified risks. (page 13)

    ? Anything that does not support the intent of the IBR should be moved

    outside the review. (page 14)

    ? Technical, Schedule, Cost, Resource, and Management Processes

    risks identified during the IBR should be reviewed; action risks

    should be incorporated into the project risk management planning.

    (page 14)

    ? Management processes provide the PMs with a continuous source of

    project information that enables mutual understanding and the

    reduction or elimination of the need for future IBRs. (page 16)

    3

    Introduction

    IBR Process Overview

    The IBR Process consists of the following jointly executed project

    management activities:

    ? PMB Assessment,

    ? IBR Preparation,

    ? IBR Execution, and

    ? Management Processes.

    Deserving particular notice, the IBR is not the end objective. It is one

    element of an iterative, continuing process that provides a structure for

    program management to openly discuss the project’s plan, strengths, and risks.

    The IBR Process establishes and maintains a mutual

    understanding of the PMB and mitigates program risk.

    Integrated Baseline Review ProcessIntegrated Baseline Review Process

    Management ProcessesManagement ProcessesPMB AssessmentPMB AssessmentPMB AssessmentBaseline Maintenance

    Risk Management

    ProgramBusiness ProcessesProgram

    Managers’Managers’

    MutualMutual

    UnderstandingUnderstanding

    IBR PreparationIBR Preparation

    IBR ExecutionIBR ExecutionExpectations/Assumptions Evaluate PMBTrainingIdentify Risks and Update RMPResponsibilitiesAssign Responsibility for Risk MitigationTeam Composition

    Establish PMB

     Figure 1

    4

    The IBR Process depicted in Figure 1 provides a continuous opportunity for all engaged management and staff personnel to develop and maintain a

    mutual understanding of the project objectives, the PMB, and the project risks.

    PMs should establish a mutual understanding of the PMB and associated project risks early in the life of the project, and maintain this understanding

    throughout the life of the project. Initially, the IBR Process enables this

    understanding through the preparation for and execution of an IBR.

    Management processes provide for the steady-state mutual understanding of

    the PMB and project risks. As the project matures, PMB assessments may

    determine the need for a subsequent IBR.

    Managers can use the IBR Process to understand a PMB that results from either formal contracts or other agreements to achieve an end product.

    Parties to the agreements may include the Government, industry, or academia.

    Relationships may span any combination of the parties, such as Government

    and industry, Government and Government, industry and academia, or

    Government, industry and academia; and may include subcontractor, as well as

    prime contractor entities.

    The IBR Guide

    This guide identifies the purpose of the IBR Process and conveys the need for a continuous IBR process environment. It integrates the IBR with risk

    management. Identifying and mitigating risks, including those associated with

    the PMB and management processes, is essential to successful project

    completion.

    This guide is not a how-to plan or a step-by-step tool kit for executing an IBR. The IBR is only one element in a series of management activities that

    comprise the IBR Process. This guide discusses the framework within which

    the project or program managers employ the IBR. In so doing, this Guide will

    improve the overall understanding of the total IBR Process, and enhance its

    contribution to program success.

    5

    PMB Assessment

    Integrated Baseline Review Process

    ManagementPMB AssessmentProcessesPMs

    Mutual

    Understanding

    IBR PreparationIBR Execution

    For many years, the Government and Industry organizations that manage

    acquisition programs have recognized the need to understand the PMB. The

    PMB is a total, time-phased budget plan against which program performance is

    measured. Budgets assigned to the scheduled control accounts and to higher

    level Contract Work Breakdown Structure elements, applicable indirect

    budgets, and undistributed budgets form the PMB budget plan. The PMB is

    one of a manager’s principle tools for measuring project performance.

    A PMB assessment examines the PMs’ mutual understanding of the PMB and risks. This assessment will result in either the execution of an IBR

    or the PMs’ continued utilization of the Management Processes. In some cases,

    however, an IBR may be required by policy or contract.

    The PMB is a primary tool for measuring project performance and

    identifying risk. The PMB should reflect the entire scope of work documented

    at the appropriate level of detail. Some factors to consider when determining

    the appropriate level of detail for the PMB are key events or major milestones,

    the duration of detail planning, and the degree of planning for the remaining

    work. Management processes provide on-going assessment of the PMB.

    The objective of this activity is to determine whether the need exists to

    execute an IBR or to allow management processes to continue to provide the

    requisite mutual understanding of the PMB and inherent project risks.

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    Throughout the life cycle of the project, there will be “fact-of-life”

    changes to the PMBa reflection of the dynamics of program management. In some instances, an external factor, beyond the PMs’ control, may induce a

    change; at other times, nominal management activities or events may drive a

    change. Examples of such program dynamics include contract award,

    authorization to proceed, contract modification, funding changes, changes to

    project scope and/or schedule, the assignment of a new PM, revision of the

    acquisition plan or strategy, and an executive decision. Such changes would

    require the preparation of a revised PMB and subsequent PMB assessment, but

    may not necessarily require an IBR.

    7

    IBR Preparation

    Integrated Baseline Review Process

    ManagementPMB AssessmentProcessesPMs

    Mutual

    Understanding

    IBR ExecutionIBR Preparation

    General Guidance

    Preparation for the IBR should begin as soon as practical.

    Preparation is the foundation for a successful IBR. PMs need to ensure

    that the team is adequately prepared to focus the IBR on those risks that may

    impact the PMB. Preparation for the IBR should begin as soon as practical

    after determining the need for IBR. When required by policy, contract, or an

    obvious degree of project complexity, preparation for the IBR should be

    concurrent with development of the PMB.

    The PMs should agree on the approach for conducting the IBR to

    achieve a mutual understanding of the risks inherent in the PMB and

    management processes, and to formulate a plan to handle these risks. A close

    relationship between all of the PMs promotes the cooperative environment

    necessary to effectively manage these program risks. All managers are

    stakeholders in the success of the project.

    The time and effort involved in the IBR depend on the project. Principal

    factors that influence time and effort include project management and risk

    planning, the authorization/negotiation process, the number, type, and severity

    of the risks identified during preparation for and execution of the IBR, size and

    complexity of the project, and the number and experience level of the IBR

    team members.

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