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Project Risk Management
Tony and his team identified some risks during the first month of the Recreation and Wellness Intranet Project. However, all they did was document the risks in a list. They never ranked the risks or developed any response strategies. Because the project has had several problems, such as key team members leaving the company, users being uncooperative, and team members not providing good status information, Tony has decided to be more proactive in managing risks. He also wants to address positive risks as well as negative risks.
1.    Create a risk register for the project. Identify six potential risks, including risks related to the problems described in the previous paragraph. Include negative and positive risks.
2.    Plot the six risks on a probability/impact matrix. Also assign a numeric value for the probability and impact of each risk on meeting the main project objective. Use a scale of 1 to 10 in assigning the values, with 1 representing the lowest values. For a simple risk factor calculation, multiply the probability score and the impact score. Add a column called Risk Score to your risk register to the right of the impact column. Enter the new data in the risk register. Write your rationale for how you determined the scores for one of the negative risks and one of the positive risks.
3.    Develop a response strategy for one of the negative risks and one of the positive risks. Enter the information in the risk register. Also write a separate paragraph describing what specific tasks would be required to implement the strategy. Include time and cost estimates for each strategy as well.
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Project Procurement Management
Senior management at Manage Your Health, Inc. (MYH) decided that it would be best to outsource employee training on the Recreation and Wellness system, which will be rolled out soon. MYH also wants to outsource the incentive program designed to motivate employees to use the system and improve their health. MYH feels that the right outside company could get people excited about the system and provide a good incentive program. As part of the seller selection process, MYH will require interviews and samples of similar work to be presented to a review team. Recall that MYH has more than 20,000 full-time employees and more than 5,000 part-time employees. Assume that the work would involve several instructor-led training sessions, developing a training video that employees could view from the company’s intranet site, developing a training manual for the courses that anyone can download from the intranet site, developing an incentive program for using the system and improving health, creating surveys to assess the training and incentive programs, and developing monthly presentations and reports on the work completed. The initial contract would last one year, with annual renewal options.
1.    Suppose that your team has discussed management’s request. You agree that it makes sense to have another organization manage the incentive program for this new application, but you do not think it makes sense to outsource the training. Your company has extensive experience doing internal training. You also know that your staff will have to support the system, so you want to develop the training to minimize future support calls. Write a one-page memo to senior management stating why you think the training should be done in-house.
2.    Assume that the source selection criteria for evaluating proposals are as follows:
Management approach, 15%
Technical approach, 15%
Past performance, 20%
Price, 20%
Interview results and samples, 30%
Using the weighted scoring model template, create a spreadsheet that could be used to enter ratings and calculate scores for each criterion and total weighted scores for three proposals. Enter scores for Proposal 1 as 80, 90, 70, 90, and 80, respectively. Enter scores for Proposal 2 as 90, 50, 95, 80, and 95. Enter scores for Proposal 3 as 60, 90, 90, 80, and 65. Add a paragraph to the spreadsheet that summarizes the results and your recommendation. Print your results on one page.
3.    Draft potential clauses that you could include in the contract to provide incentives to the seller based on MYH achieving its main goal of improving employee health and lowering healthcare premiums as a result of this project. Be creative in your response, and document your ideas in a one-page paper.

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