M3 Playbook > Phase 1: Readiness > 1.5 Develop Life Cycle Cost in the Business Case
1.4 Establish Customer Risk Processes
1.6 Define Target Performance Metrics
1.5 : Develop Life Cycle Cost in the Business Case
Program Management
Objective
Develop the estimated costs of a migration based on the customer Scope of Services requirements to manage and plan budgetary needs.
View Lessons LearnedRecommended Best Practices
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Customer
Develop Life Cycle Cost Estimate w/data from past activities (similar requirements, acquisitions, risk mitigation, service scope); Ensure accuracy / affordability
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Customer
Develop LCCE for all future phases
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Customer
Compare actual spending with budget and adjust LCCE as needed
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Customer
Report cost/spending changes in leadership meetings and thru Reports/Dashboards
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Customer
Update the Project Business Case
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Customer
Populate the Investment Readiness Checklist
1.5 Lessons Learned
- Prepare multi-year budget projections using LCCE aligned w/planned scope and operational impacts
- Detail LCCE at the Work Breakdown Structure (WBS) level, differentiating recurring (e.g., operations and maintenance) and non-recurring (e.g., implementation) costs
- Ensure alignment of LCCE with investment documents (such as E300) and secure Executive Sponsor approval
- LCCE examples are available on the M3 Example MAX Page
Stakeholders
Recommended stakeholders, inputs, & outputs may vary by implementation; however, agencies that contributed to this Playbook reported these factors as increasing the likelihood of success.Customer
- Executive Sponsor
- Program Manager
- PMO Lead
- PMO Team
- Budget or Financial Analyst (as needed)
- Risk Manager
Inputs
- Project Business Case
- Scope of Services
Outputs
- Life Cycle Cost Estimate (LCCE)
- Status Reports/Dashboards
