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 Best PracticesTask Activities
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Customer
Develop Life Cycle Cost Estimate (LCCE) based on information gained in previous activities (e.g., requirements gathering, acquisition decisions, risk mitigation, scope of services) and reasonableness and 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 changes to program costs and actual spending in governance meetings and Status Reports/Dashboards
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Customer
Update the Project Business Case
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Customer
Populate the Investment Readiness Checklist
1.5 Best Practices
- Plan multi-year budget requests through life cycle cost analyses based on expected scope and operational impacts of releases
- Provide LCCE at the work breakdown structure (WBS) product or activity level, breakout costs as recurring/non-recurring (e.g., migration and Operations and Maintenance costs), align budget estimates and other required investment documentation (e.g., E300) to the LCCE, and receive final approval from the Executive Sponsor
- LCCE examples are available on the M3 Example MAX Page
Stakeholders
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
