Integrating Program Management with. and Critical Thinking

American Society of Military Comptrollers Professional Development Institutep

May 30th _to June 2nd ₂₀₁₂

Integrating Program Management with

Earned Value Management, Financial Management, Cost Analysis Earned Value Management, Financial Management, Cost Analysis

and

Critical Thinking

D e b r a E . H a h n D e b b i e . h a h n @ d a u . m i l

Program Management

The application of knowledge, skills, tools, and techniques to project activities in order to The application of knowledge, skills, tools, and techniques to project activities in order to 

meet or exceed stakeholder needs and expectations; typically technical in nature with a 

defined beginning and end.

P M

Program Management:  

The management of a related series of projects [a program] executed over a broad period  of time, and which are designed to accomplish broad goals, to which the individual 

DoD Acquisition Context:

, g p g ,

projects contribute; typically business and technical in nature and my be a an ongoing  effort

DoD Acquisition Context:

The development, production, deployment of a new system which meet the technical 

requirements within the limits of cost and schedule requirements approved by the 

Program Management

Technical

Schedule

Risk

Risk

Cost

Acquisition Program Baseline

The

contract

between

Milestone

Decision

Authority

and

Program Manager

Program

Manager

regarding

cost

,

schedule

, and technical performance

Interrelationships

Cost Estimating

Cost

Schedule

Technical

Ktr

Performance

APB/PMB

MS

Decisions

EAC

POM

‐

BES

ACTUALS

Estimate

EAC

Execution

ACTUALS

What

‐

If

BOE

_Measurement

PLAN

WORK

‐

VALUE

Measurement

Decision Factors

Cost Estimating

Decision

How

much

does

it

cost?

Cost

Estimating

Can

we

afford

it?

Financial

Management

Purposes

Cost Estimating

Financial Management: 

Has two major activities; budget development and budget execution; requesting the level 

of funding need to achieve mission requirements and the distribution and consumption of funding need to achieve mission requirements and the distribution and consumption 

of the allocated funds whike with measuring the effectiveness of the financial execution 

process.

Earned Value Management:  

A system to measure contractor planned cost, schedule, and technical performance to  their actual performance; identifies their cost and schedule efficiency along with 

pro iding data to estimate their f t re cost and sched le performance providing data to estimate their future cost and schedule performance. Cost Estimating and Analysis:

The process of analyzing program attributes/requirements to develop the estimated cost The process of analyzing program attributes/requirements to  develop the estimated cost 

of the program while identifying cost drivers and key parameters thus allowing for “What 

Decisions & Problem Solving

Cost Estimating

Type 1: 

• Problem can be clearly defined

• Clear (right or wrong) solutions

Straight Forward

• Clear (right or wrong) solutions  Forward

Solution Process:

1. Define Problem

2. Determine Alternatives 3 Analyze Alternatives Type 2: 

• Problem can be clearly defined

• Multiple “right” solutions Complex

3. Analyze Alternatives 4. Determine Solution

5. Implement Solution

• Multiple  right  solutions  p

Type 3: 

• Problem can not be clearly defined

• No right or wrong solution Dynamic 

Solution Process:

?

Characteristics of a Wicked Problem

•

No

definable

problem

•

Unique,

one

‐

of

‐

a

‐

kind

problem;

no

historical

perspective

•

Problem cannot be bound; entwined with other problems

•

Problem

cannot

be

bound;

entwined

with

other

problems

•

Problem

cause

changed

based

on

perspective

•

Multiple

interrelated

factors

•

Implementing solution changes the relationship between the factors

Implementing

solution

changes

the

relationship

between

the

factors

•

Dynamic

problem;

problem

is

a

symptom

of

another

problem

•

No

definite

solution

•

Difficult,

,

if

not

impossible,

p

,

to

measure

success

•

Solutions

are

judgment

calls

•

Multiple

measures

of

success

•

Has

a

social

context;

multiple

stakeholders

with

differing

objectives

•

Each

possible

solution

has

good

and

bad

aspects;

no

right

or

wrong

solution

•

Implementing

a

solution

leads

to

unforeseen

consequences;

another

problem

Wicked Problems tend to occur in organizations

which undergo constant change

Solving Wicked Problems

?

?

Decision-Making & Problem Solving

Problem Solving Process

Inputs Define_Problem the _AlternativesDevelop Determine_Solution Implement_Solution Outputs

Critical Thinking

Limits

Limits

Decision-Making & Critical Thinking

Inputs Define_Problem the _AlternativesDevelop Determine_Solution Implement_Solution Outputs

Critical Thinking

Elements

of

of

Thought

Critical Thinking

Standards

Critical Thinking

Must be applied to

Points of view Implications

Information Assumptions

Program Management Tools

Cost Estimating

P

Program

Stove Piping Career Fields

Tear Down the Walls

Innovative

solutions

require

integration

between

EVMs

,

FM

,

and

Cost

one dimensional thinking

one-dimensional thinking

results in