Final+Exam

FINAL:

=__1. Policies__ =

= Acceptable Use Policy: Required for security and privacy issues. What to use, what not to use, who to use, who not to use. It should be signed by employees every year. Every material should be inventoried to users that are signed by users. =

HIPAA: Schools are included. Patriot Act: Sarbanes Oxley:

//Ch 8 Compliance and Controls// //Rules greatly impact how many organizations and IT have to operate//

Acceptable policies are crucial for the success and sustainment of organizations. Information and communications technologies (ICT) are used both strategically and operationally at almost every organization. Organizations should be able to control usage and security of ICT means under their responsibilities. Policies should be taught to the members of the organization. Everybody in the organization should be notified of the policy and notification should be signed. Notification document that has signatures of members of organization should be kept updated in one of the departments. Shortly, organizations should have policies that are compatible with laws and regulations to protect their privacy and to secure their sensitive data. Organizations should be able to control ICT activities in the organization since they are accountable for any legal, privacy and security issues violated by their members. Policies are indispensible tools to use ICT means properly.

__HOW TO COMPLY__ Much debate about how to comply Regulations with terms like “adequate” and “sufficient” are especially subject to interpretation “when it comes to security and controls, there’s always more that can be done” Acceptable Use (of IT) Policy: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Uses of IT are far reaching- concern for security of company, privacy of clients and individuals <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Protect resources- only use for business purposes <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Must also include what happens if an employee breaches the policy; the level of infraction should dictate the “punishment”; don’t have to spell out each type of abuse but must; <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Define what technology is for your company <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">A new technology = update policy <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">How it should/shouldn’t be used <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">What happens if you use it incorrectly <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">If you don’t enforce it then people will not be accountable and won’t obey the policies <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Disclaim that you have the ability to monitor them and that you will do so <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">You must document that the employees are aware of the policies and agree to conduct themselves according to the policies. Should be reviewed and signed off by employees every year. Employees inventory of items (phone, laptop, etc) should be documented every year. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Policy should be updated every year. Maintained by HR but created with

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 0.25in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· How to comply with the rules – <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Document the policies <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Document everything and state the policy <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ How often the backup is run <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ What type of backup are executed (eg full, incremental, differential) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ What is being backed up (eg, servers, databases, email, workstations and remote sites) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ What process is employed to ensure that the backup tapes were successfully created <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ What tools are used like backup software, tape library, tape-drive format <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ What happens to the tapes after backup is complete like sent to off-site storage facility <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Any special encryption that might be used <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ How long the backup tapes are retained before being recycled or destroyed <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ What records are kept-logs from the backup software <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ This document should have <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Date it was published <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Name of the author and approver <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Some sort of revision history <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Review policies at least once a year and should be publicly available to everyone who needs to know. An intranet site or shared network folder

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Identify control mechanisms <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ With compliance you want to have processes to confirm that the defined policies and procedures are actually used. This control provides the perfect check and balance. If the policy states that only duly authorized people can enter the data center than you could review the logs to see if anyone unauthorized people entered. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Checking backup logs for errors. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Unused network accounts should be disabled, you could run a report to see when they were last used and to see if they were disabled. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Control mechanisms make sure the policies are followed, but they are also convenient for your auditors. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Educate your employees – Make sure that everyone is a aware of the control mechanisms. Network drive is ideal for centralizing the storage of these documents. You can email a link to the documents and when they are changed and updated. Hold meetings for more complex policies, demos discussed and questions can be answered. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Maintain evidence – Keep evidence of your activities. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ A single email indicating that the access-logs have been reviewed <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ When notifying about the new policy, a copy of the email would serve. A record of who attended the class and the class outline show that the class was held. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ For disabled accounts, emails indicating that the report was run and reviewed and directing which accounts to disable. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ When the auditors come they will be looking to see that you have policies that comply with the various rules and regulations and you are following them.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Acceptable Use (key parts) – They should be signed every year. Signed by employees every year.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ You should inventory everyone stuff, computer, cell phone etc. They sign in mostly at review time to make sure you still have it. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· How to implement? – who? And how?- How it should be used, how it shouldn’t be used, and what happens if you don’t follow it. Disclaim that you do have the ability to monitor them. On company equipment or time. Are all the company’s property. If we choose to monitor you whenever we like. Human resources keeps this document. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Staff <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Students

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 0.25in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Implement governance policies for acceptable use 11/30/10 <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o IT Compliance and Controls (8)-Compliance is a broad term that could be the entrance to your building ADA(American Disabilities Act) compliant? HD compliant? HIPAA privacy act took effect in 2003, but the security provision didn’t happen until 2005. For ITers, the biggest impact of the rules and regulations of compliance generally realtes to controlling, securing, and managing data. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Non-Compliance – Can lead to media attention; lack of trust by employees, customers, suppliers, and partners; individual and organizational loss; and in some cases, bankruptcy. Victims are the employees, company loss of 401K’s and security breaches can cause this. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o IT managers use the rules of compliance to make the new IT manager aware of the various issues and their importance. Types pages 205-210 <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ CIPA (*)- Child Internet Protection Act

<span style="border-collapse: separate; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"> The Sarbanes-Oxley Act of 2002 (often shortened to SOX) is legislation enacted in response to the high-profile Enron and WorldCom financial scandals to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise. <span style="border-collapse: separate; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">The legislation not only affects the financial side of corporations, it also affects the IT departments whose job it is to store a corporation's electronic records. The Sarbanes-Oxley Act states that all business records, including electronic records and electronic messages, must be saved for "not less than five years." __Sec. 802(a)(1) "Any accountant who conducts an audit of an issuer of securities to which section 10A(a) of the Securities Exchange Act of 1934 (15 U.S.C 78j-1(a)) applies, shall maintain all audit or review work papers for a period of__ __5 years__ __from the end of the fiscal period in which the audit or review was concluded."__ <span style="border-collapse: separate; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px;">§ Sarbanes-Oxley – It ties to the accounting side of finance data that companies have. Having policies for all different types of processes in your company. You have to prevent some terrorist organizations form getting money. It ensures the integrity of financial statements. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">In 2002, Senator Paul S. Sarbanes and Representative Michael G. Oxley sponsored the Public Company Accounting Reform and Investor Protection Act. Now known as the Sarbanes-Oxley Act, it is considered by some government leaders as the most significant change to US securities law since the 1930’s. The Sabranes-Oxley act: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Enforces a form of checks and balances to enhance financial disclosures <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Ensures the integrity of financial statements <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Requires companies to establish and maintain financial reporting procedures <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">The SOX act mandates ethical independent auditing activities to combat corporate fraud. In order for auditing activities to become more transparent, corporations must maintain: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Annual assessment on the effectiveness of the reporting procedures <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Section 404 assessment auditing compliance procedures <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Mandatory rotation of Certified Public Accountants <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">The Sarbanes-Oxley (SOX) act has not been popular with IT staff. IT has been significantly impacted by the strict securities regulations. In fact, non-compliance and financial misstatements can lead to jail/fine for executives. In order to enforce corporate responsibility for financial reports, executives must: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Disclose auditory procedures in periodic reports <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Enhance reviews of issuer disclosures <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Manage assessments of internal controls <span style="border-collapse: separate; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; margin-bottom: 0.0001pt;">§ Sarbanes-Oxley – It ties to the accounting side of finance data that companies have. Having policies for all different types of processes in your company. You have to prevent some terrorist organizations form getting money. It ensures the integrity of financial statements. || <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">Health InsurancePortability andAccountability Act || <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">HIPAA regulates privacy and security of medical reports. It covers three basic entities; <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">- Health plans <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">- Health care providers <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">- Healthcare clearinghouses <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">It also effects some other organizations such as schools, companies etc. For example, school managements have to secure medical records of handicapped students. They cannot share any information regarding medical issues of students with third parties. Companies cannot share any medical information of their employees. Companies have to make sure that they are complying with the regulations while processing employee health benefits. <span style="border-collapse: separate; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px;">§ HIPAA - HIPAA privacy act took effect in 2003, but the security provision didn’t happen until 2005. It is the Health Insurance Portability and Accountability Act, has regulations promoting privacy and security of medical records. They cover health plans, providers, and clearinghouses. It can impact organizations outside the medical industry. Medical records are private and they will remain private. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Has regulations promoting the privacy and security of medical records <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Regulations cover three groups of individual or corporate entities <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 1in; margin-right: 0in; margin-top: 0in;">o Health plans(insurance and medical plans from employee, private and public <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;"> Carriers <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 1in; margin-right: 0in; margin-top: 0in;">o Healthcare Providers (like hospitals, Dr. etc) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 1in; margin-right: 0in; margin-top: 0in;">o Healthcare clearinghouses (billing services, processor of health info, etc) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Can effect inside AND outside of the medical industry, (non-medical industry employers would want to make sure that they are compliant) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· HIPAA security rule is designed to assure confidentiality of Protected Health Info (PFI) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 1in; margin-right: 0in; margin-top: 0in;">o PFI includes identifiable or even reasonably identifiable info. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 1in; margin-right: 0in; margin-top: 0in;">o Privacy Rule of HIPAA is intended to protect the privacy of all Individually Identifiable Health Info (IIHI) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 1in; margin-right: 0in; margin-top: 0in;">o Protected info can be electronic or paper || <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">Uniting <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">Strengthening <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">America by <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">Providing <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">Appropriate <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">Tools <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">Required to <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">Intercept & <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">Obstruct <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">Terrorism || <span style="border-collapse: separate; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Patriot Act is one of the basic regulations to control financial resources, paths and addresses. They have to check lists of terrorist organizations announced by US Government before fulfilling the requests of their customers. It passed in the wake of September 11 to fight effectively against terrorism.
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">Sarbanes-Oxley || <span style="border-collapse: separate; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Sarbanes-Oxley Act requires companies to have an adequate internal control structure and procedures for financial reporting and contain an auditing mechanism that assesses the effectiveness of internal control structure and procedures.
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">HIPAA
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">Patriot Act

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">After the terrorist attacks of 9/11, the passed United States Government passed the PATRIOT act of 2001. The Patriot Act allows law enforcement to use many of the same techniques that were already in service to investigate organized crime. The Patriot act allows MORE communication about citizens between various law enforcement agencies in order to fight crime and terror. The patriot act enables: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Security agencies to use sophisticated surveillance techniques <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Law enforcement to conduct undetected investigations <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Federal agents, such as the FBI and CIA are now able to subpoena business records for suspected terrorists more readily <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">New technology procedures are now more clearly defined in the Patriot Act allowing law enforcement to fight terrorism more efficiently. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Security agencies have far less red tape to get search warrants for suspected terrorists then before. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Victims of computer trespassing can seek the assistance of enforcement agencies to monitor computer hackers. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Penalties for terrorist crimes have increased significantly with enhanced maximum penalties. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Conspiracy penalties and statues of limitations have been adjusted accordingly. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">The private sector has felt the impact of these changes as well. ID requirements have tightened across the nation. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Original birth certificate abstracts are required when Americans move between states. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Passports are now required to enter Canada <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt;">· Financial institutions and airports face stricter ID requirements. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">Financial Institutions are now under the obligation to make steps to verify customer Identification more closely. When opening new accounts, institutions must document attempts to determine whether the customer appears on any list of terrorist suspects.

<span style="border-collapse: separate; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">§ Patriot Act-Security you have to verify the identity of the person who you might be hiring. To protect us from terrorism. A lot of privacy is discarded. ||

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">New Communication Policy immediately in effect: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Instant Messaging (IM): IM is the departments preferred method of communication. IM may be recorded so keep personal chatting to a minimum. IM may be used to contact other department employees for immediate or pertinent information. If an employee contacts you for a service order, direct them to the online service order form so that we can track the request. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">E-mails: E-mails should be used between employees when attaching paperless memos. Paperless memos and communication are preferred whenever applicable. E-mails are typically used when documenting communication is pertinent to the task. E-mails should be kept to about a paragraph in length. An e-mail auto-response should be set up if you will not be answering e-mails for more than two days due to vacation or illness. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">In-house phone usage: In house phone calls are pertinent for the day to day communication between employees and with customers. Phone calls should be made when communication needs to be more in depth then instant messaging or e-mails. In house phone calls are encouraged over cell phones whenever possible. If working at a desk for a while, forward company cell calls to your in-house line. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Cell Phones: Cell phone usage in the workplace should be kept to a minimum. Personal calls should be made during employee breaks only. Cell phones should be turned off during meetings. Employees may use cell phones to contact each other if they have been issued a company cell phone. Cell phone calls between employees should be used conservatively. Cell phones may be used to contact customers or answer calls when away from the desk. If working away from your desk, forward in-house calls to your cell phone whenever possible. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Voicemail: Voicemail should be set up with a personal greeting. During meetings, voicemail will pick up automatically when you turn your cell phone off. If leaving the office for vacation or a personal day, please post an announcement on your voicemail about your return date and if you will be checking your messages while out. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Texting: Texting should be kept to a minimum. Texting during meetings is discouraged. Texting should be used as a last resort for pertinent information notifications or emergencies. IM, e-mails and phone calls are preferred to texting. Personal texting should take place during break in the staff lounge.

=<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">__2. RFIs and RFPs:__ =

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">RFIs and RFPs: what they are, why is the RFP process important (best price and competition),. RFI is less formal than RFP. =<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">//what they are, why is the RFP process important (best price and competition),. RFI is less formal than RFP.// =

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">RFI (discovery document; helps build requirements)vs RFP: define, why important,

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Request for proposal (RFI) is a type of procurement document whereby the buyer requests potential sellers to provide various pieces of information related to a product or service or seller capability. It is requested before Request for Proposals. RFI is less formal than RFP. Generally, it doesn’t have legal aspect. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">RFI should cover below issues <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">-Introduction; What is the purpose of this RFI (request for information)? <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">-Background; What history led to this procurement? <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">-Vendor information. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">-List relevant experience, name, contact information (e-mail, phone number, and address), and associated references of vendors. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">- What is the timeline for responding to the RFI: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">-Guidelines for information <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">-Vendor selection criteria <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">-Requirements <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">- Describe the education, training, and documentation available for your product. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">- Describe the maintenance support available for your product. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">- How much will this cost? (OPTIONAL)

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Request for Proposals (RFP) is used to solicit proposals from prospective sellers. Participating RFP process helps us prevent mistakes in defining real requirements and features we need. Getting more proposals provides competition and helps us get better price. In order to get more proposals we have to write our RFP very well. We have to define our requirements in a way that more sellers can understand and reply to us. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">RFPs are more official than RFIs. It’s important to prepare some form of evaluation criteria, preferably before issuing a formal RFP. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">RFP should give the impression of clarity in defining requirements and fairness in evaluation to potential sellers.

<span style="direction: ltr; display: block; margin-bottom: 0pt; margin-left: 0.38in; margin-top: 7.68pt; text-align: left; text-indent: -0.38in; unicode-bidi: embed; vertical-align: baseline;"> <span style="direction: ltr; display: block; margin-bottom: 0pt; margin-left: 0.38in; margin-top: 7.68pt; text-align: left; text-indent: -0.38in; unicode-bidi: embed; vertical-align: baseline;"><span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Criteria for evaluation <span style="direction: ltr; display: block; margin-bottom: 0pt; margin-left: 0.38in; margin-top: 7.68pt; text-align: left; text-indent: -0.38in; unicode-bidi: embed; vertical-align: baseline;"><span style="color: black; direction: ltr; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0pt; margin-left: 0.38in; margin-top: 7.68pt; text-align: left; text-indent: -0.38in; unicode-bidi: embed; vertical-align: baseline;">•Price•Quality of Solution•Does it meet the intent?•Company History•Time to Deliver•Financial Stability•Guarantees RFIs <span style="direction: ltr; display: block; margin-bottom: 0pt; margin-left: 0.38in; margin-top: 7.68pt; text-align: left; text-indent: -0.38in; unicode-bidi: embed; vertical-align: baseline;">•Informal Document•Determine Interest from Vendors•Get ballpark pricing for Customer•Prepare Vendor for actual RFQ/RFPRFQs, RFPS <span style="direction: ltr; display: block; margin-bottom: 0pt; margin-left: 0.38in; margin-top: 7.68pt; text-align: left; text-indent: -0.38in; unicode-bidi: embed; vertical-align: baseline;">•Formal Document•Officer•Requirements•Timelines•Evaluation Methods•Pricing TemplatesProcess of Conducting Bids<span style="direction: ltr; display: block; margin-bottom: 0pt; margin-left: 0.38in; margin-top: 5.76pt; text-align: left; text-indent: -0.38in; unicode-bidi: embed; vertical-align: baseline;">•Determine Requirements•Develop Request Document•Release Document•Conduct Pre-bid Meeting•Cutoff questions•Receive Proposals•Conduct Vendor Interviews•BAFOs•Award Contract•Negotiate Contract•Contract Signature <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 0.25in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Use a process for evaluating and selecting technologies <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Purchasing process (*) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ RFP <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Statewide bids <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Purchasing sources (7.4) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Getting current information (7.3) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Key evaluation metrics (7.2) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Dealing with vendors (7.1)

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Topics on final. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">RFI’s and RFP’s define them and what they are, why the process is important. You don’t want to seem like your giving your brother the business. Competition, prices. RFI- request for information requirements for the project, discovery documents. Build requirements for your RFP, it gives vendors the chance to prepare and helps you start pricing things you needed. RFP is:

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Step 1 — Compile a team that includes members from various departments, such as financial aid office personnel <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">(including loan coordinators/processors that interact with the students as well as the program providers), <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">business office personnel, bursar, and student body representatives. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Step 2 — Develop your list of questions. Minimum lender features that should always be addressed are: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Customer service – training of new employees, length of e ▪▪ xperience in student loans <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">▪▪ Borrower education or financial literacy <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">▪▪ For-profit or nonprofit status <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">▪▪ Specific loan terms for each loan type: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">○○ Origination fee <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">○○ Default/guarantee fee <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">○○ Interest rate <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">○○ Grace period <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">○○ Deferment/forbearance options <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">○○ Interest capitalization <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">○○ Repayment terms <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">○○ Repayment benefits, how many borrowers actually receive those benefits <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">○○ Loan limits <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Step 3 — Develop an evaluation process. You may find certain elements of the RFI/RFP are more important <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">to your school and should be evaluated with more weight in the decision-making process. You may also decide <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">that some elements are required and some are optional, so they should be weighed differently. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Step 4 — Establish time frames for: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">▪▪ Internal planning <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">▪▪ Lender response deadline – in order for lenders to gather accurate information, they may need to involve <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">multiple individuals or departments. Allow for at least three to four weeks for a response. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">▪▪ Evaluation time <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">▪▪ Confirmation time – if it will be necessary to go back to confirm and/or clarify information provided, be <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">sure to factor in enough time. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">▪▪ Final decision – make the final decision and determine any factors that may impact implementation. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">This includes disclosure language regarding your lender selection process your school will provide to <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">borrowers and how that information will be presented (be sure to include repayment benefit statistics). <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Step 5 — Develop your ongoing follow-up process with lenders. Once you have selected lenders for your <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">lender list, you need to review their terms and rates periodically to keep information current. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Step 6 — Conduct a student/borrower survey. We recommend taking this step to ensure that borrowers understand <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">and are satisfied with the lender selection process

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">__3. Budget:__ <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">//difference between capital expense and operational expense.// <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">// difference between capital expense and operational expense. //

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">//Budgets:// <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: -0.25in;">//· Capital vs operational expense// <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: -0.25in;">//· Stuff included in budget//

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Capital expenditure is made for an item that will have a useful life of several years. Hardware, software, furniture may be considered as capital expenditure. They are generally inventoried and depreciated by time. Defining a dollar amount limit top define an expenditure as a capital one is helpful to avoid unnecessary procedures and costs of inventorying. A computer mouse or an office clock can be used for many years but it is not reasonable to consider them as capital items since inventory costs may exceed their value in the end. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Operational expenditure is the cost of resources used to run the business or support the ongoing operations in an organization. If the value of an item is gone in a short time it should be considered as an operational cost. Operational costs recur periodically; in a month or quarter or year. Salaries, electricity, water, maintenance and services for telephone/internet are examples of operational costs. Operational costs are generally the biggest portion of the budget in organizations and the salaries are the biggest in operational costs. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">__Below are main components of a budget:__ <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Salaries <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Benefits <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Fringe Benefits <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Training <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Tuition <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Equipment (Depreciable, over a certain dollar amount) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Servers <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Routers <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Switches <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Vehicle <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Furniture <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Telecommunications <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Internet <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Telephones <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Cell phones <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Softrware/Licenses <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Contracted Services <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Consultants <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Service/Maintenance Contracts <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Copiers <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Leases / Interest on Mortgages <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Utilities <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Electric <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Gas <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Oil <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Water <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Sewage <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Trash <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Insurance <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Vehicle <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Professional <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Legal <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Building <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Intellectual Property <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Supplies <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Pencils <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Toilet Paper <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Cleaning Suppllies <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Paper <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Cartridges <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Coffee Cups <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Maintenance <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Snow removal <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Building repairs <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Plumbing <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Marketing/PR/Advertising <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Legal/Accounting <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Travel <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Dues/Subscriptions

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 0.25in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Create a budget for a technology team <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o PA State School Codes for expenditures (*) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Capital expenditures vs. operating expense items (6.2) capital is a major expense made one, operational it is a recurring one. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Revenue vs Expense vs Profit – Payroll, compensation is the biggest amount. Look at the budget time on the moodle you will be alright. Acceptable use policy. Make sure you know the important components.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o The Budgeting Process (6.1) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Usually done on a fiscal yearly basis. Usually the process begins 2 to 3 months before the start of the fiscal year. Base it on the past years spending. You should find out what other departments needs and projects are. You may also want to include key partners, clients, suppliers, and customers. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Items that can be tracked are on page 162-164. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Reviewers for your budget-It should be your vice president or the director. You want as many eyes and minds involved with your budget as possible. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Estimating (and Overestimating) your numbers <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Overestimating <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Gives you more room to cut if upper management asked to reduce spending. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· It gives you room for those unanticipated expenses that invariably crop up. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· It increases the likelihood that you’ll be within budget for the year, which could be a critical factor in determining your bonus or merit increases. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Getting Approval <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Summaries are a general practice and give a high level overview of your budget to your superiors using more words than numbers talk about how any cuts would cause the problems. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Track and Revising the budget <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Budgeted amount <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Actual amount for the month <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Actual amount year-to-date <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 2in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Variance against budget (an over/under amount indicating how well you are doing compared to the expected amount based on your original budget). <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Revising the budget <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Include projects that weren’t expected during the initial budgeting process. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Eliminate or reduce costs for projects that were cancelled or scaled down since the initial budget was proposed. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Update e

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Lease versus buy: which one is better (6.3) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Other budgeting factors to consider (6.4)

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Budgeting <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0in;">// Chapter 6 notes // <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in;">The Budgeting Process <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in;">Assigns specific amounts of money to specific departments within a company for a single period of time called a fiscal year. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Review Previous Years Budget <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Track Items <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Personnel <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Staff Compensation (Salary, bonus, overtime, etc) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Benefits <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Recruiting(AGENCIES, ADS, ETC) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Bonuses/Training <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Education/training <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Consultants/temporary help <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Hardware <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Upgrades <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Maintenance and Support <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ New Equipment <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Leases/Rentals <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Replacement Components <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Software <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ New Software (applications, operating system, <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial;">utilities, etc) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Maintenance and Support <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Upgrades <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ License renewals <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Telecommunication services <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Dial up services <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Service fees (for handled devices and cell phones) <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Leased Lines <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Frame Relay <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ ISP services <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Supplies <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Printer consumables (paper toner) <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Backup tapes <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Miscellaneous cables <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Basic office supplies <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Travel and Entertainment <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Conferences <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Off site travel to branch offices and new sites <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Miscellaneous <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Books and subscriptions <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Membership dues for professional organizations <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Postage <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Duplication <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Depreciation <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Hardware <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Software <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Physical plant <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Data services center (cabinets, raised-floor, hvac, electrical) <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Cabling (fiber and copper) <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Furniture <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Outside services <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Disaster recovery <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Off site tape storage <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Service bureaus <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Consultants <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Overhead <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Telephone <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Rent <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Utilities <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Reviewers for Budget <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o By Upper Management <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o By IT Staff <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Overestimate budget by a certain degree <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Gives room to cut if you need to reduce spending <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Gives room for unanticipated expenses <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Increases likelihood that you will be in budget by end of year (great for bonus structure) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Defending budget approval <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Explain why needing something will help achieve objective and that the objective is important <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Steer clear from tech talk <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Explain the consequences for budget rejections <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Tracking and Revising Budget <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Check monthly report for accuracy and errors <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Categories on Monthly Report <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Budgeted amount <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Actual amount for the month <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Actual amount year to date <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Variance against budget (over/under) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Variance against last year <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Revising Budget (Updates) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o One or two opportunities during the year (not always) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Include projects that weren’t expected during the initial budgeting process <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Eliminate or reduce cost for budget that were scaled down <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Update estimates based on other changes (vendor prices, expansion, size of project, etc) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Demonstrate anticipated cost reduction <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in;">The Difference between Capital Expenditures versus Operating Expense Items <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Capital Expenditure <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Useful life of several years <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Hardware, software or non tech items like furniture <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o May be depreciated over a few years <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Operating Expense <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Value is gone in a short amount of time <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Often a recurring expense like an electric bill <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Software agreements, equipment rentals, lease items, salaries, etc. <span style="background-attachment: initial; background-clip: initial; background-color: yellow; background-image: initial; background-origin: initial; color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in;">What is the difference between expense items and recurring costs? Pg. 169 <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Gray areas <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Capital assets are generally tangible items <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Company culture (sensitivity to capital or operating expenses) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Some services may be bundled with sale of hardware if purchased at the same time. (Capital assets) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Systems development and integration (capital assets) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Planning operations, implementation costs of internally developed software. (operating expense) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Cables, paper clips, (Operating expenses) Large purchase of cables (like $25,000 can sometimes be considered a capital asset) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in;">Lease Vs Buy: Which one is Better <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Operating lease usually has the same value (like office space) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Capital Lease depreciates and acts more like a purchase with a built in loan <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Lease transfers ownership to lessee at the end of the lease term <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Contains option to purchase the property at a bargain price <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Lease is equal to or greater than 75 % of estimated life <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Present value of rental and lease payments exceeds 90% of fair value <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Pros <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Can terminate lease at the end of contract, extend it or purchase the property <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Predictable payments can ease budget projection <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Allows companies with limited cash flow to obtain expensive equipment <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Allows for planning on predictable equipment turnover <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Business may discover they don’t really need to own the equipment <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Tax benefits on depreciation and interest <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Cons <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Paperwork can get complicated <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Upgrades can get complicated <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Inventory tracking for bulk leased quantities <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Packing and shipping at the end of lease

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in;">Other budgeting factors to consider <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Growth of department workload <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Technological change (fascinating and frustrating) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Staff turnover <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Software maintenance <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Hardware maintenance <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Days and hours required to maintain <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Response times <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Spare parts <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Technician certification <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Pricing <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Financial penalties do to failed services by third party vendors <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Time and Material Contracts <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Alternative to maintenance contract <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Similar to getting your car repaired at the mechanics <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Can be risky and costly <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Vendors give greater priority calls to those with the maintenance <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Understand vendor policies <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Hourly rates, overtime <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Minimum time charges <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Travel charges <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Credit for defective parts <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Availability of parts <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Warrenties <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Last choice for hardware support <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ May take a long time <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Consider how high priority the equipment is

=<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">4. Organizational structure, = =<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">WHAT ARE THE BENEFITS OF CIO REPORTING TO CEO? From the CEO’s perspective. = = = <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Why should I report to the CEO - Know the opposite-the top down! =<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Organizational structure of an organization defines the hierarchy, communicational limits, personnel relations and the way of business in the organization. Well defined and structured organizations can be more efficient with high potential for developing the business. Organizations are living organisms with many organs used to perform functions. = <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Importance of information technologies can be better understood and enhanced among the members of the organization. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Decision makers of the organization can be better oriented at understanding marketplace and the demands with the information provided them by CIO. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">According to surveys most of the IT projects are failing because of lack of administrative support. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; margin-left: 31.5pt; text-indent: -0.25in;">1. Define organizational structure and list/explain three reasons that the CIO/technology director should report directly to the CEO. (25 points) 25 <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; margin-left: 0.25in;"> An organizational structure is used to organize the actions of individuals and departments in the organizations. Organizations generally have hierarchical structure to function better. Structure depends on the organizational needs
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Be closer to the operating side of the company
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Through technology I can improve the production of tasks
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">I can drive pre-mediated incentives. New types of strategies I will have more involvement with
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Having a chance to report to the strongest manager, will help me enhance my skills to produce better skills in my career
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Being able to produce skills about making better decisions. I can make changes, cultural even and will support you and show how important IT is in this company.
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">My position becomes more credible tech users are a part of operations
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Prepares me to become a CEO to further my career, I need to be able to be prepared to become a CEO

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; margin-left: 0.25in;"> Organizational structure allows the allocation of responsibilities for different functions and processes to different entities such as the <span style="background-attachment: initial; background-clip: initial; background-color: initial; background-origin: initial; background-position: 100% 50%; background-repeat: no-repeat no-repeat; padding-right: 10px; text-decoration: none;">[|branch], <span style="background-attachment: initial; background-clip: initial; background-color: initial; background-origin: initial; background-position: 100% 50%; background-repeat: no-repeat no-repeat; padding-right: 10px; text-decoration: none;">[|department] ,<span style="background-attachment: initial; background-clip: initial; background-color: initial; background-origin: initial; background-position: 100% 50%; background-repeat: no-repeat no-repeat; padding-right: 10px; text-decoration: none;">[|workgroup] and <span style="background-attachment: initial; background-clip: initial; background-color: initial; background-origin: initial; background-position: 100% 50%; background-repeat: no-repeat no-repeat; padding-right: 10px; text-decoration: none;">[|individual].

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; margin-left: 0.25in;"> Generally organizations have a CEO as the head of the organization. CEOs have department under them. Department managers directly reports to CEO as CIO, COO, and COF. Departments have sections or work groups under them. Section or work groups consist of individuals. A reliable and a sustainable structure are basic to the success of the organization. CEO needs to be fed with correct, reliable and up to date information in a timely manner. If the structure is not suitable for good information flow than the brain-CEO cannot get data needed to make correct decision. In today’s world there is no time to make wrong decision so; it can cost the failure of the organization. Generally it is not easy to make corrections on the structure if there are mistakes due to the unhealthy flow of information. If you are not reporting directly to a CEO then it is hard to reach him and inform him about the mistakes.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; margin-left: 0.25in;"> Technology has an indispensible role in the organizations. It may provide competitive advantageous or cause failures depending on the importance attained by the organization. So, CIO should be directly reporting to CEO to keep up the organization with the technological developments in the market.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; margin-left: 0.25in;"> Reporting directly to the CEO carries a valuable massage to our rivals, and our employees and other stakeholders. It shows that our organization gives importance to the technology. Other C level managers may be more careful on their plans and execution of their plans that they can ask our opinions regarding technology issues. Coordination quality in the organization improves by reporting directly to CEO.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; margin-left: 0.25in;"> It provides a seat on the table for CIO at the high level. So, top management can be informed better and decision can be made better. CIO can be included in decision making process.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Organizational Structure <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">This kind of structure is a building blocked concept with beginning and an end that every one involved needs to discuss and meet about. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">The meeting needs to involve all top managers to discuss the company and any other types of competition. Discuss the good and the bad with this organizational structure. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">The mission should be state and should be the driving force behind what you provide or service and who your aim is on in terms of who you provide this service to. List your goals and mission and maek sure they are in line with each other. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">You must know all of the top people are in the organization, CIO-CEO and supervisors of all the departments and know their qualifications. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">You must list all of the day to day functions. Must include how the mission is carried out and focused upon daily. People who present products and who you decide to buy from. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">The money that comes in and goes out. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Analyze anyone who is in the same type of business as you, and show how you are not the same whether better or show how you can improve because Other businesses in you category are doing better. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">A plan to manage how you will keep a collaborative relationship with people you serve. Make it all like chart.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; text-indent: -0.25in;"> 1. Define organizational structure and list/explain three reasons that the CIO/technology director should report directly to the CEO. (25 points)17, organizational structure is the reporting structure of an organization. Who manages who. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-left: 0.25in;"> Organizational structure has several elements. Vision and mission describe the company business; it's goals and objectives and the manner in which it differentiates itself from the competition. Objectives and Goals illustrate a company's ability to articulate what it wants to accomplish, how it will do it, and when it will be achieved. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 0.25in; margin-right: 0in; margin-top: 0in;"> A second key organizational strategy is external and internal assessments. External objectives reflect an organization's approach to gathering and analyzing essential market data. Internal assessment is the key strategy element that reflects the company's ability to objectively evaluate its own strengths and weaknesses. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-left: 0.25in;"> Finally, strategy implementation such as action planning, translates broad objectives into a number of specific work assignments. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-left: 0.25in;"> An IT manager should report directly to the CEO in order to reduce the number of communication errors. She should strive to get a seat at the executive table so she can more effectively align the technology strategy plan to the organizational strategy plan. An effective manager will pitch for funding on the technologies that are to be supported by the company’s objectives and goals.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"> Two types of IT <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 0.5in; margin-right: 0in; margin-top: 0in; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: -0.25in; vertical-align: baseline;"> • Application Developers provide Services for the Business vs. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 0.5in; margin-right: 0in; margin-top: 0in; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: -0.25in; vertical-align: baseline;"> • Technical Operation side provides the Infrastructure to Keep the Business Running

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Organizational structure is the framework within an organization that defines its lines of authority and the responsibilities within the organization. It often describes levels of management and determines how information flows through the organization.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.5in;">Decision-making power is based upon organizational structure and for this reason it is imperative for the CIO to report directly to the CEO if a company is to be competitive in today’s technology driven markets. Organizations that aspire to be leaders in their fields must diligent in pursuing the creative use of innovative technology. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Maintaining this competitive edge requires a level of strategic planning that can only be achieved by a close partnership of the IT department and the highest level of management, the CEO. With a seat at the executive table, the CIO will have ongoing first-hand knowledge of the organization and can be pro-active in resource utilization and strategic planning. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-left: 0.5in;">In addition, having a CIO report to the CEO is the current industry trend. A recent Forrest Research survey detailed the reporting structure of industry CIOs. According to the survey, the number of CIOs reporting to CFOs has been decreasing over recent years and currently stands at 18% while CIOs reporting to CEOs are now the largest group at 34%. //(I know this is right out of my homework assignment, but it’s a really important point).//

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 31.5pt; text-indent: -0.25in;">1. List and describe the four main roles of a technology director or CIO. Also explain why each of them is important. (20 points)20 <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">a. Drive technology vision for organization <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">As the major advisor to the top level management on technological issues and developments, technology managers should be aware of developments and competencies available in the market. They should act proactively by inferring from the new developments or applications since the technology changes quickly. Technology managers should be able to define the technological needs and goals of the organization. They should have direct influence on the strategic direction of the company related with the technology. One of the means to drive technology vision of the organization is making a reliable technology plan and contributing to strategy plan of the company in regards to IT issues. Nowadays, organizations are highly depended on technology that forces technology managers to keep up with the latest changes in the technology. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">b. Get funding/creating value <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">Technology managers should be able to create convincing projects that can be approved by top managers for funding. Good projects that are compatible with market needs can be funded. Technology managers can add value to the business by executing projects well and accomplishing results. Technology managers should also get enough funding for IT operations as maintenance and subscription costs to add value to organization. IT is one of the main areas that provide cutting edge competencies to organizations in today’s marketplace. Technology managers can get enough funding if they can keep up with the IT developments, so they can add value to the organization. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; text-indent: 0.25in;">c. Leading staff and contractors <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">Technology managers should lead their team by knowing their abilities and their weak and powerful sides. Technology managers should have an exemplary attitude towards the business issues and staff. Technology managers should lead the contractors by approaching them as part of their team. Monitoring and controlling works of contractors with available means are jobs for Technology managers. Technology managers should be able to get help from his capable team members to control contractors better. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">We can use walk-in method to monitor and control our team. Meetings are another way of controlling and leading IT team. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">Keeping technology team valuable is also one of the most important roles of Technology manager. Technology managers should be in the table whenever required. Technology managers should prove themselves and technology team by doing a diligent work.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">d. Manage customer support <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">Customers for technology managers may be more diverse than thought including other employees, suppliers, consumers, or other businesses. Technology managers should be able to supply their demands in a timely manner. So, he needs to organize his team accordingly. One of the key elements in supporting our customers is help desk. Technology managers should be aware of the needs and problem areas regarding technology issues to serve better to the customers. Technology managers should use Under Promise – Over Deliver rule that requires approaching problems and issues carefully. Under Promise – Over Deliver can be executed by Analyze Problems, Realistic Timelines, Finding the Key Meetings, Return emails and voice-mails, The “Fresh Perspective”. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">Technology managers should be aware of the needs of other departments and should align their work with other departments. Joining meetings is useful for managing customer expectations.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">IT Managers Roles <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Hints:Technology director roles <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Definition:assembling resources to reach a mutually agreed upon objective <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">2 styles: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; text-indent: -0.25in;">· Command and Control (Authoritarian) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0in; text-indent: -0.25in;"> · Collaboration <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;"> o Micro-manager (paralysis by analysis) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;"> o Distant manager (no feedback, little communication)

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">// IT Goals: //// May be measured in the same terms as the business unit you support: reduce per unit costs of the divisions products and increase the capacity and throughput of business processes. // <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">There is a reason for our existence, what are they and why are they important. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Drive technology vision for organization <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">IT should be regarded as a strategic resource to help the business get more out of its people. Technology dept. should be aligned with the companies direct profit and loss requirements and central to operations. Remind staff of vision statement if they get off track.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Develop a strategy: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; text-indent: -0.25in; vertical-align: baseline;">· Assess assets: Staff, Customers, Customers needs <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; text-indent: -0.25in; vertical-align: baseline;">· Assess importance of IT to company

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Get funding/creating value <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">o Get a seat at the table <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">o Most important role of IT manager <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">o Make technology work for business <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">o Lots of risks and rewards <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">o Technical directions can sometimes appear as opposition w/ market forces <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">o Win some; lose some

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Leading staff and contractors <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">//Communicate with team// <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">o Explain how you envision the timelines of your goals <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">o Identify objectives and goals <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">o Encourage questions and input <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">o Listen carefully & Meet regularly

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Two types of IT <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 0.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Application Developers provide Services for the Business vs. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 0.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Technical Operation side provides the Infrastructure to Keep the Business Running

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Manage customer support <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Customers may not really be retail customers <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Might be different departments <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Find out the customers needs <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Set up meetings and ask questions

=<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">5.//Projects and project plan. Scope? Scope is bubble covering project.// = =<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">//Why scope suffers or defined wrong? Because of lack of communication among stakeholders and leadership problems.// = =<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">//What does Project champion do?// =

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">A project is “a temporary endeavor undertaken to create a unique product, service, or result” (PMBOK® Guide, Fourth Edition, 2008, p. 5). ‘Operations’ is work done to sustain the business. Projects end when their objectives have been reached or the project has been terminated. Projects can be large or small and take a short or long time to complete <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Project plan: The main purpose of project planning is to //guide execution.// It is a formal approved document that defines how the project is executed, monitored, and controlled. It may be a summary or detailed and may be composed of one or more subsidiary management plans and other planning documents such as communications plan and risk register. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Some projects have a senior manager called a champion who acts as a key proponent for a project. Champions should be skilled on people relations. They should have good relations with stakeholders of a project. They should have the capability to affect people and get their support to the project. Champions are generally well known and experienced members of an organization. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Scope refers to //all// the work involved in creating the products of the project and the processes used to create them. It looks like a bubble covering project. Scope defines the borders or limits of project. Defining scope well and realistic is vital for the success of project. Once the scope is defined project leadership should monitor and control the scope very closely. Changes to scope should be approved by project sponsor and changes to plan in terms of resources should be made. Any change effecting scope should be processed very carefully from the beginning to the end. Stakeholders should avoid asking for anything that is not included in the scope of a project. Asking for features or deliverables beyond the limits of project can cause project creep that can fail the project in the end. A deliverable is a product produced as part of a project, such as hardware or software, planning documents, or meeting minutes. Project scope management includes the processes involved in defining and controlling what is or is not included in a project. At the beginning of projects, scope may be vague since the projects are temporary endeavors undertaken to create a unique product, service, or result. Project scope is generally unclear at the initiating and planning phases of a project. As time progresses, the scope of a project should become more clear and specific. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">A well defined scope requires a good leadership with high communications skills. Many projects fail since their scopes are not well defined. Successful and experienced project managers devote more than 80% percent of their work times to communication with stakeholders to define, and monitor and control project scope. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">It is very difficult to create a good scope statement and WBS for a project. It is even more difficult to verify project scope and minimize scope changes. Scope verification involves formal acceptance of the completed project scope by the stakeholders. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Scope control involves controlling changes to the project scope. Goals of scope control are to:
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Influence the factors that cause scope changes
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Assure changes are processed according to procedures developed as part of integrated change control
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Manage changes when they occur

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Pg 99 Main components of Project Plan <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Communication Policy
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Scope of the project – If the scope changes then it may have been wrong and can slow the project down. Customers, stakeholders, communication issues. Inability of the project manager to accurately define the scope. It’s the bubble that surrounds the project. It needs to go through a change order process, customers try to sneak in changes to the requirements and deliverables. Leadership problems.
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">The project champion is a person who is selected because they have monetary or political influence, is dynamic and has contacts.
 * Clearly defined
 * Agreed upon by the important people related to it
 * Documented
 * Measurable
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Develop a Project PlanTime-Determine how much time it will take
 * Time to install a server, but for many units
 * Money to see what if only 1 person does it
 * Resources to what if you have people but not enough money
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Money-Discuss how much you need list on Pg 109
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Resources-Account for all your costs
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Launch it
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Launch options
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Kick off meeting-Get your boss to show the value
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Track the Progress – Use Microsoft project. Enter the progress. Receive alerts. Gantt charts and timelines
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Meeting Milestones
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Summary Pg 118
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Close out the Project- Use documents
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Close out the Project- Use documents
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Phone calls-Don’t make calls on weekends. Closing time or near lunch. Best time is Tuesday, Wednesday, or Thursday right after lunch.
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Texting – Be clear and brief. Stick to plain English that get right to the point. Can be good for marketing.
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Email – Bulk emails for special offers, updates for software or when critical issues come about
 * <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Instant Messaging-Use skype if working on a project simultaneously. Doing it through laptops in the same building.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Project plan-SCOPE creep <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Define scope: if scope changes- cost increases; why could scope change- lack of comm. Between different factions OR inability of project manager to properly define the scope; customers try to change the project plan – requirements or deliverables <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Project champion- makes project credible; influence, contacts, enthusiasm; has influence over intangible parts of project

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Main Components of Project Management <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in;">//A project is a series of work tasks that achieves an objective or a set of objectives.// //Projects can be simple to highly complex.// <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• 5 Phases of Project Management <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Decision Making Techniques <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Project Getting Off Track <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Funding Projects <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Multiple Projects <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Non-IT Departments on Projects

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">5 Phases of Project Management <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Phase One: Scope the Project <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Define objectives within companies overall goal <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Get proper sponsorship for the project <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify stakeholders impacted by project <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify constraints, interdependencies, risks or project limitations <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Compare similar past projects <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Develop a charter and get historical perspective <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Phase Two: Develop the Project Plan (time, cost, quality. . .can’t have all three) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify time constraints and estimate as a group <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify costs associated with the project <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify internal and external resources required <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Quality <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Phase Three: Launch the Project <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify launch options <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Stage a “Kick-Off Meeting” <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1.5in; text-indent: -0.25in;">§ Introduction <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1.5in; text-indent: -0.25in;">§ Rules <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1.5in; text-indent: -0.25in;">§ Goals <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Phase Four: Track the Project’s Progress <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in;">Using a project management tool like Microsoft Project may be pivotal for project tracking as it enables the project manager to input the data into graphic representations for task analysis. Easily readable organizational visuals, such as Gantt and Pert charts, are commonly used.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in;">Gantt charts break down the specific tasks required to meet the project objectives. The Gantt charts convenient timeline displays project participant roles, interdependencies and deadlines.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in;">Pert charts define critical paths. Critical paths are the minimum amount of time that a project can be achieved. It factors interdependencies and overlapping tasks. Both Gantt and Pert charts incorporate project milestones along the way enable projects to be tracked along a timeline. Project management tools make it convenient to provide updates for the management team.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Phase Five: Close Out the Project <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Write a closeout report (project purpose) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o List additional accommodations <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Summarize progress <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify follow up activities <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Decision Making Techniques <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Majority wins (most amount of time) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Subcommittee <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Team input <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Make decision yourself (least amount of time)

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Projects off Track <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Projects are different then daily operation procedures in that it has a beginning and an end. A project plan is an integral part of any project. It provides a framework for the project outline. A project plan identifies the project conception, funding, stakeholders, resources and time constraints. Project plans keep the project organized and track the project’s progress

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; vertical-align: baseline;">Project Management Techniques <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• War Room (if have space) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Conference room <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 0.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Project Meetings <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 0.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Estimating Costs (High) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 0.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Multiple Projects <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Managing time <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• priorities <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 0.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Non-IT Staff

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Project Plans <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in;">Project plans help you systematically organize your project objectives, and determine the best approach to provide solutions. A project plan will help you accomplish this task, by determining: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; text-indent: -0.25in;">1. Who is going to work on it? <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; text-indent: -0.25in;">2. How much it is going to cost? <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; text-indent: -0.25in;">3. When it is going to be done?. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 19px; margin-bottom: 0in;"> Project Plans <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; text-indent: -0.25in;">· List why having a project plan is important <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; text-indent: -0.25in;">· Project planning, concepts, important parts, why we do it, conceptual and bookish but your own perspective. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; text-indent: -0.25in;">· Project plans have start and end date <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; text-indent: -0.25in;">· Be sure to break down the plans <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; text-indent: -0.25in;">· give three reasons. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in;">A project is a work task that achieves an objective or a set of objectives. Projects are different then daily operation procedures in that it has a beginning and an end. Projects can be simple to highly complex.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in;">Project plans help you systematically organize your project objectives, and determine the best approach to provide solutions. A project plan will help you accomplish this task, by determining: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; text-indent: -0.25in;">1. Who is going to work on it? <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; text-indent: -0.25in;">2. How much it is going to cost? <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; text-indent: -0.25in;">3. When it is going to be done?

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">A project plan is an integral part of any project. It provides a framework for the project outline. A project plan identifies the project conception, funding, stakeholders, resources and time constraints. Project plans keep the project organized and track the project’s progress. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in;">Microsoft Project may be an excellent tool for project planning as it enables the project manager to input the data onto easily readable organizational visuals such as Gantt and Pert charts. Gantt charts break down the specific tasks required to meet the project objectives. The Gantt charts convenient timeline displays project participant roles, interdependencies and deadlines.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in;">Pert charts define critical paths. Critical paths are the minimum amount of time that a project can be achieved. It factors interdependencies and overlapping tasks. Both Gantt and Pert charts incorporate project milestones along the way enable projects to be tracked along a timeline.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Project Plan Components <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Phase One: Scope the Project <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Define objectives within companies overall goal <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Get proper sponsorship for the project <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify stakeholders impacted by project <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify constraints or project limitations <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Compose a project charter document <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Compare similar past projects <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Phase Two: Develop the Project Plan <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify time constraints and estimate as a group <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify costs associated with the project <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify internal and external resources required <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Phase Three: Launch the Project <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify launch options <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Stage a “Kick-Off Meeting” <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Phase Four: Track the Project’s Progress <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Utilize a project management tool <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Incorporate Gantt charts and time lines <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Use graphic representations for task analysis <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify project milestones <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Provide updates to the management team <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Phase Five: Close Out the Project <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Write a closeout report <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o List additional accommodations <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Summarize progress <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">o Identify follow up needs

=<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">6. @Education: = =<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Why it is important for students to be able to experience latest technologies for their improvement? For their career and professional development perspective. =

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Importance in your own workplace why it’s important for learners to experience the latest technologies while they are learning- as a way to help them learn – how does that help them in their careers- technologically literate- this is related to professional development

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Technology is changing fast and IT is changing even faster. Data storage and transfer devices, operating systems and applications are improving and following each other in change. Floppy discs that were used by many people are not seen in the office environment anymore. Windows NT was a very popular operating system once. Nobody uses it today. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Keeping up with technology in educational or training environment is highly advised to gain demanding skills. Considering the goal of professional development or education as to increase the skills, experience, knowledge and qualifications, it is better to train students or trainees with latest technology available since they are going to be asked to use the latest technology available. Otherwise training can be waste of time and valuable resources such as time and money. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Using latest technology in training enhances self esteem of trainees. They can meet market demands with high confidence if they are familiar with the technology used in the marketplace. Prominent organizations generally use latest technology.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">Employee training motivates our employees since they can gain new capabilities and certifications. So, it enhances employee morale as a source of motivation. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">Training provides fresh input from outside world to our organization and it can be helpful to improve our vision and set our goals better. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">We can gain a skillful employee that we can count on. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">Trained employee can teach his new skills to other employees if needed. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">Training is valuable in a changing world of technology since the market needs changes continuously. Training helps organization/department keep up with the developments in the market. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">Contractors may have more diverse experience especially the ones we need. They can be more specialized and qualified on the area of work. They are not locked to one desk and to one organization. So, they have the opportunity to work on more diverse issues and learn more about market needs. They can learn more by working on different projects and to different companies on similar topics that can contribute their experience and level of knowledge. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">Due to the contractors' varied experience they usually don't require training. They generally need short orientation training at the beginning. So, you can obtain the results you wanted in a relatively short time. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">Contractors don't add to the "head count". Companies don't need to add their staff. The financial tie with the contractor will be over as soon as the contract requirements are met. Even it looks expensive at the beginning; it can be cheaper in the end since the company will not pay to the contractors any more as in hiring. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-left: 0.25in;">Contractors usually focus on the topic mentioned on the contract while full time employees may have many responsibilities. It makes contractors faster regarding the goal.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Professional Development <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Goal is to increase the skills, experience, knowledge, qualifications of staff. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">In House Training: Consultancy, Contracting, Own Staff (assign a staff on a specific topic), <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Computer Based Training: mostly technical issues <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Outsourcing: <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal;">Lunch and Learn: For attracting people for training, meeting etc. Training can be scheduled around lunch time.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Professional Development <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Knowledge, skills, training, education, <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">How do we plan for a professional training aspect from the course <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Increase knowledge skills, methods <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">How: options for contracting a trainer. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Can do in-house or outsource for training <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Training can be done <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">In house, staff, subcontract <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Least effective in to make someone do a professional development course <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">CBT or in house <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">If your introducing the new equipment, you make it exciting and show them all the new features. Get them excited by first sending them a new marketing plan before they are going to use it. Get the IT trained first. Set up a lab with the new phones. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">1:46 Bring food to get people interested in training. Hold the department managers accountable if employees don’t show up for training. <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Lunch and learn is best 11:00 to 1:00 can hold four training sessions. Give them specifics during the training. Doc cam looks like an overhead. Put the equipment out in a small test area (pilot group) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">Take the model for a test drive. Use it for other training approaches.

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 0.25in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Support 21st Century Learning and Assessment with technology decisions <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o 21st Skills <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Creativity and Innovation <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Critical Thinking and Problem Solving <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Communication and Collaboration <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Information Literacy <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Media Literacy <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ ICT Literacy <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1.5in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">§ Life and Career Skills <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Tools (web 2.0 tools, mobile, games, video) <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 14.15pt; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">o Activities (off-site access, mobile, peer-to-peer)

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;">Employee discussions on training <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 0.5in; margin-right: 0in; margin-top: 0in; vertical-align: baseline;">Cost <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">· Cost of training itself <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">· Cost of employee being away from their job <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;"> Need <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">· Short and long term value, be clear <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">· Is there one? <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;"> Employee morale <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· Training is a reward, <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;"> · Motivation <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;"> Schedule demands <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">· can cause issues with co-workers <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">· Sacrifices on Both sides

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%;"> How do you know when your employees need training? <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">· They tell you <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">· Your customers tell you <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">· You find out on your own <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; text-indent: 0.5in;">Certification <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; text-indent: 0.5in;">Typically a reward to the employee <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Payment for exams <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Certification Requirements <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Value of Certifications <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: normal; margin-bottom: 0in; margin-left: 63.35pt; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;">• Non-technical, is it valuable?

<span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 0.5in;">What if the new employee takes a training class and uses it to find another job? <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 0.5in;">Check with HR if they can sign an agreement <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 0.5in;">Non Technical Training <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">· Is it valuable? <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">· Time management <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">· Business writing <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">· Presentation skills <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 1in; text-indent: -0.25in;">· Interpersonal skills <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-left: 0.5in;">Maximizing the value of training <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in;">Formal-Have employees give a report on training, <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in;">Informal-Brown bag lunch session with co-workers <span style="color: black; font-family: Arial,Helvetica,sans-serif; font-size: 14pt; line-height: 115%; margin-bottom: 0in; margin-left: 1in; margin-right: 0in; margin-top: 0in;">Consider on-sight training as more contextual