Company A Project Plan

Company A Project Plan Project Name: Close Optimization Project Example Prepared By: David Done - Project Manager Title: John Doe -Project Manager Date: March 17, 2011

Project Plan Approval Signatures Project Name: Project Management Improvement Project Manager (Signature) (Date) David Dunne - Project Manager A Co. Project Manager Project Sponsor (Signature) (Date) Anita Synoff - Project Sponsor A Co. Process Manager Executive Sponsor (Signature) (Date) Dewey Niedit - Executive Sponsor Associate CIO Example Project Plan v2.2 Page i

Document Change Control The following is the document control for revisions to this document. Version Number Date of Issue Author(s) Brief Description of Change V1.0 March 2011 David Dunne - Project Manager Approved version. Definition The following are definitions of terms, abbreviations and acronyms used in this document. Term CFO A Co. Definition Chief Financial Officer Division of Information Technology Example Project Plan v2.2 Page ii

Table of Contents 1. PROJECT PLAN CRITICAL ASSUMPTIONS, KEY SUCCESS FACTORS... 1 2. PROJECT WORK PLANS... 2 2.1 PROJECT TASKS BY PHASE... 2 2.2 STAFFING PLAN... 6 2.3 PROJECT SCHEDULE... 9 2.4 PROJECT BUDGET...11 3. PROJECT CONTROL PLANS...12 3.1 COMMUNICATIONS PLAN...12 3.2 QUALITY MANAGEMENT PLAN...12 3.3 CHANGE MANAGEMENT PLAN...12 3.4 ISSUE MANAGEMENT PLAN...12 3.5 RISK MANAGEMENT PLAN...12 APPENDIX...13 A REVIEW TEAM...13 B COMMUNICATIONS PLAN...13 C QUALITY MANAGEMENT PLAN...13 D CHANGE MANAGEMENT PLAN...13 E ISSUE MANAGEMENT PLAN...13 F RISK MANAGEMENT PLAN...13 Example Project Plan v2.2 Page iii

1. Project Plan Critical Assumptions, Key Success Factors The purpose of the Project Plan is to present the detail required to successfully execute and control the Close Optimization project, facilitate communication among project stakeholders, and document approved schedule baselines. The project plan is a living document and is expected to change over time as more information about the project becomes available. The project plan was developed based upon certain key assumptions as noted in the management approved Project Charter. Any changes to these assumptions may impact the project schedule, projected costs, the project scope and/or the project quality. These assumptions are: The goals of this project support the vision, mission, and goals of A Co. The project helps A Co. achieve its goal of outstanding customer service. A Co. management actively supports improvements in each of the listed component areas: results of financial reporting processes, teamwork and communication, data collection and analysis of metrics. A Co. management and staff comply with specifications for all project management responsibilities. The timeline is reasonable and doable. The phased rollout supports early success and continuous improvement, based on Lean Six Sigma principles. A Co. management assigns key project roles and adequate budget for the development and implementation of this project. Effective, adequate, and appropriate levels of communication occur between A Co. management, the sponsor, and the project team during all phases of the project. The framework deliverable avoids excessive detail to ensure common understanding, flexibility, and adoption. The deliverables of the project will be implemented A Co.-wide, but will roll out in a phased approach with early adopters providing conference room pilots as models for subsequent diverse functional groups, geographic locations, and customers. Key Success Factors for All Optimization Projects 1. Follow continuous, incremental close optimization model 2. Use smaller, eager team for initial projects 3. Never jeopardize the progress of the close scope initial project so the normal close can be completed on time on deadline 4. Never change processes when implementing tools learn the tool before optimizing 5. Involve internal resources as much as possible ultimate goal is continuous incremental improvements which cannot be achieved if Company staff do not take ownership and lead the monthly improvement process 6. Consider impacts of all integration with Close optimization management, link across all relevant systems through document management tools Example Project Plan v2.2 Page 1

2. Project Work Plans 2.1 Tasks by Phase Steps with requirements specific to a close optimization identified with *. May include requirement for specific knowledge of the close or may be unique to the close process. PLANNING Due Date Owned By Complete Define scope of initial project with a manageable size team and set of closing activities Identify team champion Identify available internal resources consider capacity and availability throughout project cycle* Identify requirements for external resources needed to backfill, assist with training and implementation* Build strategic plan with business purpose, need analysis, critical success factors, benefits including expected ROI, calendar and defined people, resources, and systems to be included* Obtain executive management sponsorship, support, and formal approval Build change management plan to ensure understanding for need and obtain buy-in from all team members DISCOVERY Due Date Owned By Complete Identify functional groups that are stakeholders or preparers of closing data or tasks* Identify all persons and their roles who prepare, review, and approve closing data and tasks* Obtain chart of accounts and identify all accounts included in accounting close for groups in scope for close optimization* Identify and examine historical close binders for typical month, quarter, and annual close* Identify key systems and linkages between used for obtaining closing data or reports* Example Project Plan v2.2 Page 2

Identify electronic document repositories (directories, file shares, personal hard drives, etc.)* Document As-Is close activities at a high level - Current Close Checklist* - Staff Checklists* - Add missing critical steps* Identify available tools already in place in the Company* Identify linkages between G/L Accounting and other teams (Revenue, FP&A, SEC Reporting, HR)* Document a realistic close calendar as it currently exists* Understand key controls that must be maintained for Close for internal and external compliance* Obtain lists of: (1)post-close adjustments over the past six months; (2) SOX exceptions and recommendations for the past fiscal year and quarters of current year; (3) internal and external audit exceptions related to financial close; (4) SOX controls and workpapers* Obtain full list of reconciliations performed* Obtain full list of JEs performed over the past six months, plus year end JEs* Gain an understanding of all accounting systems used to record and report accounting transactions and balances, including ERP system and other software, revenue, payroll, reporting databases and software, royalties, commissions, taxes, investments, treasury, etc.* IMPLEMENT TOOLS Due Date Owned By Complete Select close management tools and arrange for demos* Build RFP including key questions specific to the Company s close environment and needs* Select and acquire close management tool* Train accounting team on change management Example Project Plan v2.2 Page 3

process, sharing need analysis and objectives of the project, obtaining understanding and buy-in from team Train user team and administrators on tool navigation and functionality* Configure tool (build close calendar, checklist, company structure, users, description of activities, etc.)* Perform data migration Build reporting structure, including metrics and dashboards based on defined continuous improvement and success factors* DEFINE THE WORKFLOW Due Date Owned By Complete Define document retention policies and processes for the Close Define the transition from paper to paperless environment, consider compliance requirements* Define backup strategy for documents Define the review and approval process* Define the workflow that connects all close participants* Define the ongoing communication plan how close preparers and reviewers are alerted to next steps and exceptions when they occur* TRAINING Due Date Owned By Complete Build linkages with key staff across departments Build and train staff on expectations* Train on new tools* Train on new processes* Train on communication process* Example Project Plan v2.2 Page 4

Identify, select, and train on best practices* Assign and train system administrators Define and train on required compliance testing and documentation Validate user training ensuring all key competencies can be demonstrated CONFERENCE ROOM PILOT Due Date Owned By Complete Prepare Conference Room Pilot instructions and detailed plan for success Train team on instructions and detailed plan, managing the change process and validating learning Populate tools with current files* Complete a dry run of a monthly, quarterly, and annual close* Execute on preparation and review processes* Share lessons learned and prepare for Month One Close* Do not change processes only add essential steps that were left out and require inclusion in the close management tool* Report on progress to executive management sponsor and obtain approval to execute Month One Close using new tools MONTH ONE CLOSE Due Date Owned By Complete Execute Month One Close using tools* Monitor progress Capture potential improvements for future consideration Following close share lessons learned specific to using the tools and for related processes Example Project Plan v2.2 Page 5

Capture metrics on steps performed Analyze performance based on metrics Report on progress to executive management OPTIMIZATION Due Date Owned By Complete Execute monthly (quarterly, annual) closes as in prior months until team is proficient with tools Once team is proficient with tool, begin to consider and plan improvement to close activities, who does what, order of activities, amount of documentation, etc. Consider if goals and objectives should be updated given current level of proficiency Continue monthly lessons learned and optimization sessions with the entire team Consider if full extent of tool capability is being leveraged and identify capabilities to further implement Identify next team to implement Identify related functions that should be included in the optimization process and schedule their involvement Report on progress to executive management, tracking to goals and expectations 2.2 Staffing Plan The purpose of the staffing plan is to make certain the project has sufficient staff with the right skills and experience to ensure a successful project completion. Example Project Plan v2.2 Page 6

Role Requirements The following is a detailed breakdown of the roles required to execute the project. It includes: the project role, the project responsibility of the role, skills required, number of staff required to fulfill the role, the estimated start date and the expected duration the staff resource will be needed on the project. Number of staff is dependent on size of accounting group and number of related functions. Assumes accounting group of less than 20 people. Role Project Team Project Responsibility Skills Required Number of Staff Required Estimated Start Date Duration Required FY11 Project Manager Lead team, report status Accounting Close, Project Management 1 x/x/11 Periodically over 6 months Technical Lead Implement tools Technical understanding of tools selected 1 x/x/11 2 8 weeks for initial implementation and periodically on call as needed Accounting Team Champion Facilitate coordination between accounting and implementation teams Understanding of accounting and related groups, understanding of company s close processes, technical aptitude 1 x/x/11 Periodically over 6 months Accounting Team Data gathering, configuration validation, and ongoing process improvement Understands company accounting processes Each Participant x/x/11 Periodically over 6 months IT Development Provide IT support in development and implementation Network, database, software, & desktop support, change management 1-4 x/x/11 TBD, depending on deployment approach Compliance Lead Ensure compliance requirements are met in design and execution Audit or other compliance requirement knowledge 1 x/x/11 1 week during design phase, 2 weeks during testing phase Accounting Temp Assist with accounting as needed to replace accounting team time General accounting and close knowledge 1 x/x/11 1 month during implementation phase Staff Assigned to Roles The following is a detailed breakdown of the actual staff assigned to the project role, the amount of Full Time Equivalent (FTE) requested for the role, the actual FTE assigned, the labor rate and unit of the labor rate for the resource and the source from which the resource is recruited. Example Project Plan v2.2 Page 7

Project Team Role Name Requested FTE FY11 Project Manager Sue J. Month 1: 100 percent Months 2 6: 10 percent Technical Lead Joe S. Month 1: 25 percent Months 2 6: 10 percent Accounting Team Champion Accounting Team Vaughn J, Sam B., Bill S, etc. IT Development Jill T. Ted J. Mary R. Roy M. Acquired FTE FY11 Month 1: 100 percent Months 2 6: 10 percent Month 1: 25 percent Months 2 6: 10 percent Rate Source $250 External FastProject Consulting $190 External FastProject Consulting John V. 25 percent 25 percent $80 A Co. Corp. Accounting Month 1: 20 percent each Months 2-6: 15 percent each Month 1: 25% Month 1: 25% Month 1: 25% Month 1: 25% Compliance Lead Ted J. Month 1: 5% Month 2: 15% Month 1: 20 percent each Months 2-6: 15 percent each Month 1: 15% Month 1: 35% Month 1: 25% Month 1: 25% Month 1: 5% Month 2: 15% $60 A Co. Corp. Accounting $70 $65 $45 $85 A Co. Corp. IT $80 A Co. Corp. Audit Accounting Temp Bob 100 percent 0 percent $55 Numbers R Us Total tbd tbd Staff Resource Loading Chart The following includes the estimated effort in Full Time Equivalent (FTE) days required by month for each staff resource assigned to the project. Role FTE in Days Number of Staff Required Project Manager 1 July Aug Sept Oct Nov Dec Total Technical Lead 1 Accounting Team Champion Accounting Team 1 # of participant IT Development 1-4 Compliance Lead 1 Accounting Temp 1 Example Project Plan v2.2 Page 8

Training Needs The following are the detailed training needs to bring staff to a level of skill required for project execution. Role/Staff Resource Training Need Timeframe Anticipated Suggested Vendor/Method Needed Cost Corp. Accounting Tool Navigation and Use By x/x/11 $3,000 Vendor FastProject Consulting Floyd Y. Tool Admin By x/x/11 $500 Vendor FastProject Consulting Yahav F. Lean Six Sigma By x/x/11 $500 Vendor OptiTrain, Inc. 2.3 Project Schedule This section includes a Gantt chart and a project schedule for the project. Gantt Chart The Gantt chart graphically represents a project by showing each task as a horizontal bar whose length is the time needed to complete the task. Close Optimization Project Phase 1 1 Planning 1.1 Develop Project Charter 2.0 3.0 3.1 4.0 4.1 4.2 4.3 Discovery Select Tools Implement Tools Define Workflow Document Review Control Review Approval Review 5.0 Training 5.1 5.2 5.3 Group Train Individual Train Admin Train 6.0 Conference Room Pilot 7.0 Month One Close 7.1 Go Live Support 7.2 Lesson Learned 7.3 Train Accounting Team 8.0 Optimization 9.0 9.1 9.2 Best Practice: 1 st Meeting 2 nd Meeting 3 rf Meeting 2011 2011 June July wk 2 July wk 3 Aug wk 2 Aug wk 3 Aug wk 4 Sept 1-10 Oct Nov Dec Example Project Plan v2.2 Page 9

Project Schedule The project schedule includes milestones, task dependencies, task duration, delivery dates, and staff resources assigned to complete the tasks. Close Optimization Project Phase 1 1 Initiate 1.1 Develop Project Charter 1.1.1 Define Scope 1.1.2 Define Requirements 1.1.3 Identify High-Level Roles 1.1.4 Develop High-Level Budget 1.1.5 Identify High-Level Control Strategies 1.1.6 Finalize Charter and Gain Approvals 1.1.6.1 Consolidate and Publish Project Charter 1.1.6.2 Hold Review Meeting 1.1.6.3 Revise Project charter 1.1.6.4 Gain approvals 2 Plan 2.1 Develop Work Plan 2.1.1 Develop Work Breakdown Structure 2.1.2 Develop Project Staffing Plan 2.1.3 Develop Project Schedule 2.1.4 Develop Project Budget 2.2 Develop Project Control Plan 2.2.1 Develop Communication Plan 2.2.2 Develop Quality Management Plan 2.3 Finalize Project Plan and Gain Approvals 3 Implement 3.1 Identify and Implement Tools 3.1.1 Define tool requirements 3.1.2 Build or acquire and configure 3.1.3 Implement software 3.2 Identify and Train Team Resources 3.2.1 Define skills 3.2.2 Identify internal resources 3.2.3 Identify external resources 3.2.4 Train accounting team 3.3 Define Build and Test 3.3.1 Collect and Load Data 3.3.2 Build As-Is Close Activities 3.3.3 Configure software 3.3.4 Build feed-back procedures 3.4 Close Month 1 Effort Estim ate in Days Planned Start Date Planned End Date Resource Example Project Plan v2.2 Page 10

Close Optimization Project Phase 1 3.4.1 Execute Month 1 Close activities 3.4.2 Capture data and analyze 4 Optimize and Repeat 4.1 Conduct post-close lessons learned 4.2 Optimize and repeat Effort Estim ate in Days Planned Start Date Planned End Date Resource 2.4 Project Budget The project budget describes cost and budget needed to complete the project tasks. It may include cost and budget for ongoing support after project completion. Budget during the life of the Project The budget below provides the detail estimates for labor, material and other items for the duration of the project. Line Item FY11 FY12 Labor Material Other FY Total Labor Material Other FY Total Phase I 1. Initiate Project 1.1 Develop Project Charter 2. Plan the Project 2.1 Develop Work Plan 2.2 Develop Project Control Plan 2.3 Finalize Project Plan 3. Implement 3.1 Identify and Implement Tools 3.2 Train Team 3.3 Test and Build 3.4 Close Month 1 4. Optimize and Repeat Total Total Project Budget On-going Support Budget after Project Completion The on-going support budget is the detail estimates for on-going support after project completion. Line Item FY11 FY11 Total Budget Support Labor $5,000 $5,000 $10,000 Total Two-Year Support Budget $5,000 $5,000 $10,000 Comments: Support Labor includes an estimate for minimal support provided for tool maintenance and Help Desk assistance to users of the Optimized Close Management software tool. Example Project Plan v2.2 Page 11

3. Project Control Plans Project Control Plans provide the basis to control and monitor the progress of the project. The Project Control Plan includes the following detail plans that can be found in the Appendixes: 3.1 Communications Plan Defines the information needs of the project stakeholders and the project team by documenting what, when, where, and how information will be distributed. See Appendix B. 3.2 Quality Management Plan Provides a plan that defines the quality control and quality assurance activities to be performed during the course of the project and the resources responsible for project quality control and quality assurance activities. See Appendix C. 3.3 Change Management Plan Provides a plan that helps control the effect of changes during the execute and control stage, thereby avoiding overruns in cost and schedule, incoherent scope, poor quality, etc. See Appendix D. 3.4 Issue Management Plan Provides a plan that brings visibility to issues, accountability as to how issues are acted upon and helps ensure issues are resolved effectively and in a timely manner. See Appendix E. 3.5 Risk Management Plan Provides a plan that helps assure satisfactory project results by identifying project risks and factors that may cause each risk to be realized, specifying a process to follow during the Execute and Control Stage for detecting the occurrence of these factors, and specifying a process for responding to the resulting realized risks. See Appendix F. Example Project Plan v2.2 Page 12

Appendix A Review Team Link to separate document. B Communications Plan Link to separate document. (See example provided in PMA.) C Quality Management Plan Link to separate document. (See example provided in PMA.) D Change Management Plan Link to separate document. (See example provided in PMA.) E Issue Management Plan Link to separate document. (See example provided in PMA.) F Risk Management Plan Link to separate document. (See example provided in PMA.) Example Project Plan v2.2 Page 13