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Title: Virtual Office Plan for Project Management
By:
Arlene McClain
A Project Management Capstone
Submitted to the Worldwide Campus
In Fulfillment of the Requirements of the Degree of
Masters of Science Degree in Project Management
Embry-Riddle Aeronautical University
Los Angeles Metro Campus
December 2009

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ABSTRACT
Researcher: Arlene K. McClain
Title: Virtual Office Plan for Project Management
Institution: Embry-Riddle Aeronautical University
Degree: Masters of Science in Project Management
The purpose of this paper is to report on the project Virtual Office is term for Telecommuting,
E-commuting, e-work, working at home, or working from home. Virtual Office is a work arrangement
in which employees enjoy the flexibility in working location. In other words, the daily commute to a
work place is replaced by telecommunication internet links. Auto Club started Virtual Office pilot
program to test employees work from Telecommuting eliminates the driving distance restriction.
Telework is a broader term for any form of work-related travel that substitutes telecommunicating. A
motto for telecommuting is that "work is something you do, not something you travel to". A successful
telecommuting program requires a management style based on work related results. If a company
believes in micro-management then this program will not work based on management needing scrutiny
of individual employees. Such tools as virtual private networks, video conferencing, and voice facilitate
long distance telework over IP. It can be efficient and useful for companies as it allows staff and
workers to communicate over a large distance, saving significant amounts of travel time and cost.
Broadband Internet connections are now the common trend. In addition, workers have enough
bandwidth at home to use these tools to link their home to their corporate office.

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Support Resources
The business environment at the Auto Club Corporation is changing. The Auto Club Corporation
needs provide a tool for all employees to be able to act more quickly, more effectively in a
collaborative environment. The Virtual Office methodology is a workplace design that will help Auto
Club become more competitive. The purpose of this Virtual Office Plan is to establish and sustain a
common process for Virtual Office application, determination, and approval for all employees of the
Information Technology Systems (MES) organization as authorized by the Auto Club PROCEDURE
901, Virtual Office Program”. Resources: Company-Wide Virtual Office Program and Virtual Office
Local Core Team.

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CHAPTER I
INITIATIING
Introduction
Telecommuting is an alternative work arrangement for employees to conduct all or some of
their work away from the primary workplace. The work location might be a residence, a telecenter, an
office closer to the employee's residence, or another acceptable location. .Managers and supervisors
are key players in the telecommuting process. They set the parameters of the arrangement and define
the proper work core hours for their organizations. Studies show that clear guidance and direction
increase the chances of success for telecommuting programs.
Background of the Project
The business environment at the Auto Club Corporation is changing. The Auto Club
Corporation will provide a tool for all employees to be able to act more quickly, more effectively in a
collaborative environment. The Virtual Office methodology is a workplace design that will help Auto
Club become more competitive. The purpose of this Virtual Office Plan is to establish and sustain a
common process for Virtual Office application, determination, and approval for all employees of the
Information Technology Systems (MES) organization as authorized by the Auto Club PROCEDURE
901, “Virtual Office Program”.
Guidelines & Selection Criteria
General Guidelines for All: The Virtual Office is a cooperative arrangement between the
manager and the participant, not entitlement. Individuals who are able to provide a good business case
will generally be allowed to participate. Virtual Office participation is situational and may change
depending on business or employee needs. Written arrangements between the manager and the
participant must be renewed at least annually in accordance with Company PROCEDURE 901. A
manager’s decision to deny employee participation or an employee’s choice to participate or not in
virtual office program will not be inferred as punitive action. Company policies and procedures, as

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amended, may supersede this Plan. This Plan will be updated as process improvements or future
enhancements are put in place.
Develop Project Charter
A project charter or project definition is a statement of the scope, objectives, and participants
in a project. It provides a preliminary delineation of roles and responsibilities, outlines the project
objectives, identifies the main stakeholders, and defines the authority of the project manager. It serves
as a reference of authority for the future of the project. The Virtual Office Program has been approved
for use in all Auto Club organizations, including subsidiaries company-wide.
Develop Preliminary Scope Statement
The Expected Benefits for telecommuting will be immediate response to all activities of the Virtual
Office, including telecommuting (or work-at-home), mobile computing, and satellite offices, must make
business sense for the Auto Club Company. The Company-wide Virtual Office Program will collect
the following metrics at a company level: Commute Trip Reduction (CTR) credit and Overall Program
Participation. In deploying a Virtual Office in the Information Technology Systems organization, the
following benefits/outcomes are expected: Increase or maintain employee satisfaction and morale,
Increase or maintain productivity, Increase or maintain customer satisfaction, Retain valued
employees, and Reduce facilities costs. The expected Virtual Office benefits will be tracked by core
team metrics via statistics and surveys of participants, their managers, coworkers and customers,
where appropriate.

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CHAPTER II
PLANNING
The project management plan is a document that describes the virtual office plan used by a
project team. The objective of a project management plan is to define the approach of the virtual
office plan. This program is voluntary and will be deployed as an organizational business strategy and a
tool for flexibility; it is not an entitlement. Individuals wanting to participate should follow the process
below outlined in the Telecommuter section of the Virtual Office website. The business environment at
the Auto Club Corporation is changing. The Auto Club Corporation needs provide a tool for all
employees to be able to act more quickly, more effectively in a collaborative environment. The Virtual
Office methodology is a workplace design that will help Auto Club become more competitive. The
purpose of this Virtual Office Plan is to establish and sustain a common process for Virtual Office
application, determination, and approval for all employees of the Information Technology Systems.
The following are instructions for Managers. Managers should use the attributes below to evaluate the
applicant’s ability to participate. Additionally, managers are encouraged to review the Management
section of the Virtual Office website for a complete program description and additional selection
guidance. Individuals wanting to participate should follow the process outlined in the Telecommuter
Checklist. Managers will instruct the Telecommuting Introduction forms. Managers will instruct the
employees the “Telecommuter Self-Assessment”. Individuals will follow the 7-Step process for
becoming a Telecommuter.

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Scope Planning
The project scope management plan is a planning tool describing how the team will define the
project scope, develop the detailed project scope statement, define and develop the work breakdown
structure, verify the project scope, and control the project scope. The project charter is to create a
virtual office work environment for Auto Club. The outline of this project for Virtual Office or
Telecommuting, e-commuting, e-work, working at home, or working from home. Virtual Office is a
work arrangement in which employees enjoy the flexibility in working location. The daily commute to a
work place is replaced by telecommunication internet links. Auto Club started Virtual Office pilot
program to test employees work from home web commuters utilize mobile telecommunications
technology. Telecommuting eliminates the driving distance to work resulting in quick response time for
business related problems. This outlines project plan the project objectives, identifies the main
stakeholders, and defines the authority of the project manager.
The development of the project scope management plan and the detailing of the project scope
begin with the analysis of information contained in the project charter (PMBOK, 2004), the
preliminary project scope statement (PMBOK, 2004), the latest approved version of the project
management plan (PMBOK, 2004), historical information contained in the organizational process
assets (PMBOK, 2004), and any relevant enterprise environmental factors.

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Scope Definition
The business environment at the Auto Club Corporation is changing. The Auto Club
Corporation needs provide a tool for all employees to be able to act more quickly, more effectively in
a collaborative environment. The Virtual Office methodology is a workplace design that will help Auto
Club become more competitive. The purpose of this Virtual Office Plan is to establish and sustain a
common process for Virtual Office application, determination, and approval for all employees of the
Information Technology Systems. The following are instructions for Managers. Managers should use
the attributes below to evaluate the applicant’s ability to participate. Additionally, managers are
encouraged to review the Management section of the Virtual Office website for a complete program
description and additional selection guidance. Individuals wanting to participate should follow the
process outlined in the Telecommuter Checklist. Managers will instruct the Telecommuting
Introduction forms. Managers will instruct the employees the “Telecommuter Self-Assessment”.
Individuals will follow the 7-Step process for becoming a Telecommuter.

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Create Work Breakdown Structure (WBS)
Work Breakdown structure (WBS) is a technique for defining and organizing the total scope
of a project, using a hierarchical tree structure. The first two levels of the WBS define a set of planned
outcomes that collectively and exclusively represent project scope. A well-designed WBS describes
planned outcomes instead of planned actions. Outcomes are the desired ends of the project. Virtual
Office methodology is a workplace design that will help Auto Club become more competitive. The
purpose of this Virtual Office Plan is to establish and sustain a common process for Virtual Office
application, determination, and approval for all employees of the Information Technology Systems.
Schedule Development
The scheduled development process needs to list all resources necessary for supporting the
Virtual Office project. The best support path for participants and managers alike is to follow existing
processes wherever possible first. If those resources do not resolve the specific telecommuting issue, it
would be best to contact the local core team listed below. It is important that participants in the
program be fitted with the tools necessary to perform their tasks and assignments offsite. This may
include computing hardware, software, communication tools such as phones and/or pagers, data
connectivity and other tools and services. Organization Policy on Equipment & Services for
Telecommuters is listed in the procedures below. The Information Technology Systems organization
may supply program participants with computer equipment, software, telecommunications services, or
other provisions.

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Cost Estimating
Use the following document, Hardware Standards List, when determining virtual office
requirements for the employee. Employees may use personally owned equipment to Telecommute in
accordance with Computing guidelines. Managers are authorized to provide all participants with
organizationally owned computing equipment (e.g. laptop, desktop or other assets). The
recommended software to support the Virtual Office is that software necessary to accomplish the
participants’ assignments. Participants using Auto Club computing assets will be provided with the
appropriate software. Employees may obtain standard software for home use in accordance with
company licensing agreements. Employees may purchase software for home use in accordance with
company licensing and procurement agreements. Refer to the Home Use Software Program. Project
Managers must authorized and provide participants with individual software licenses for special
software need on a case-by-case basis.
Cost Budgeting
The Telecommunications Services could be standard Dial-up Remote access when
Telecommuting in accordance with Computing, Network and Security policies. On a case-by-case
basis with the managers approval employees are authorized to provide the following
telecommunications services requests to participants who telecommute at least 20 hours per week
with approval: 1) Company-paid cell phone or calling card for voice and team collaboration. 2) The
Auto Club will pay DSL (Digital Subscriber Line) connection. 3) Reimbursement for commercially
available Cable/DSL/Internet Service Provider services in accordance with company policy. 4) The
Auto Club will paid mobile/wireless/cellular phone data. 5) Director-level approval required. 6)
Approval for company DSL service must also be in accordance with service guidelines.

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Quality Planning
Managers have the following responsibilities: Review the Management section of the
Company-wide Virtual Office Program website. Must follow the guidance set forth in this
Implementation Plan understand the guidelines, goals and objectives integral to this organization’s
implementation of the Virtual Office Program. Should review and must comply with the manager
responsibilities and provisions in Virtual Office Policy. Management must approve their direct report’s
Telecommuting Application Package. Confirm customer support for the Virtual Office Program. Keep
the original signed forms in a file folder for future reference. Approve exceptions to the Plan with their
manager and notify the organization’s local core team. Provide information needed for Virtual Office
Program metric reporting and tracking with assistance from the participant. Take Virtual Office
Training for managers if available. Review participant’s backup plans to cover on-site contingencies
while participant is out of the office. Follow the organization’s core staffing days/hours (when all
employees must be present), if required.

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Human Resource Planning
All employees must have the approval from their manager to participate; this plan does not
automatically grant approval to Telecommute. Program participants must follow and complete the
Telecommuter preparation steps defined in the Telecommuter section of the Auto Club Company-
wide Virtual Office Program website. This process includes obtaining management approval,
completing and submitting required forms, training, setup, and registration. The employee must comply
with the participant responsibilities and provisions in Virtual Office Policy. The participant must comply
with applicable Computing, Network, and Security policies. Employees must register as a
Telecommuter on the Virtual Office website. Participants must review organizational Plan to
understand the guidelines, goals, and objectives that are integral to their organization’s implementation
of the Virtual Office Program. The participant’s manager is an integral part of the success of the
telecommuter individually and the implementation of this program.
Communications Planning
The following training class has been identified for employees to complete per the Telecommuter
checklist located on the Virtual Online Training course. This course is required for employees wishing
to telecommute. It is recommended for managers as well who are or have staff working remotely.
Telecommuter Training in offered through the Auto Club University Education and it is available to
take this course anytime, either on or off hours.

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Risk Management Planning
Information and telecommunications technologies make telecommuting an option for many
organizations and workers. Organizations promote telecommuting to allow their employees to work
from home, while on travel, at a client site, or in a telecommuting center. While offering potential
benefits, telecommuting introduces new risks to the organization. This bulletin highlights security issues
related to telecommuting and proposes solutions that may help organizations manage the
telecommuting environment more effectively. Telecommuting is the use of telecommunications to create
an "office" away from the established (physical) office. The telecommuting office can be in an
employee's home, a hotel room or conference center, an employee's travel site, or a telecommuting
center. The telecommuter's office may or may not have the full computer functionality of the
established office. For example, an employee on travel may read email. On the other side of the
spectrum, an employee's home may be equipped with Integrated Services Digital Network access to
provide the employee full computer capability at high speeds.
Risk Identification
One risk is that intruders will be able to access corporate systems any corrupt the environment
so Auto Club has encryption software and highly technical security features. Hackers, electronic
eavesdroppers at conference sites, or shoulder surfers watching employees enter IDs and passwords,
present very real threats. In addition to intruders whose goal may be mischief, hacking is attractive to
people trying to steal or misuse corporate information. Electronic access to records may be difficult to
trace and thus more appealing than trying to bribe employees or gain physical access. Another risk of
telecommuting is that corporate information can be read, and potentially modified, while it is in transit.
Telecommuting also presents organizations with more commonplace risks. These include the risk of
losing corporate information and resources when they are outside the protective shell of the
organization. Auto Club Information Technology system needs to have the proper firewall for wireless
connections. There has been a problem in the past with hackers being able to get into several other
Corporations through the wireless connection. The Federal Bureau of Investigations has issued

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warnings regarding wireless connections. There may be yet another way bad people could get into a
company’s computer system, one that the company may have noticed.
Risk Response Monitor and Control Planning
Telecommuting employees who directly access internal systems should be authenticated using
encryption software and should be routed to specific computer systems. The combination of
authentication using encryption software and routing increases security significantly and reduces costs
associated with authentication by limiting it to employees with the greatest access.
Plan Purchases and Acquisitions and Plan Contracting
In addition to risks to internal corporate systems and data in transit, telecommuting from home
raises other concerns related to whether employees are using their own computers or using computers
supplied to them by the organization. The company will purchase a desktop or laptop computer for
the employee that telecommutes at least 20 hours per week. The Company will pay for cell phone or
calling card for voice and team collaboration. The company will pay for DSL (Digital Subscriber Line)
connection. The companies will reimbursement for commercially available Cable/DSL/Internet Service
Provider services in accordance with company policy. The company will pay for a
mobile/wireless/cellular phone data. The approval for this virtual office team will need to be Director-
level approval for company DSL service in accordance with service guidelines.

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CHAPTER III
EXECUTING
Direct and Manage Project Execution
The objectives of this step will determine where we stand against the project plan. This step will
analyze and evaluate reasons for variance and validate the project plan. Progress reporting is the
process of objectively evaluating and reporting the status of a project. What process has been started,
completed, and accepted will be determined at these meetings. What problems exist that have or may
influence the ability to perform the project plan? What can be done to resolve them?
Perform Quality Assurance
The project manager will be responsible for some levels of performance review reporting. The
project manager must maintain some records of the individual’s performance. This can be done by
keeping regular notes. It is important to be objective about absences, late deliverables tardiness at
meetings, people problems, poor performance, as well as accomplishments.
Acquire Project Team and Development Project Team
The Core Team of members will be listed after they have been approved. Team and Focal
information is also available in the Team Information section of the Virtual Office website. Everyone on
the team must have a clear understanding of his or her roles and responsibilities. Get the right people
involved so they are an important member of a winning team and the project will give them many
opportunities for succeeding.

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Name Role EMP # Phone
Bob Brown Primary Focal 5356 385-
9877
Jackie Crane Primary Focal 5908 385-
7822
Mike Jackson Primary Focal 5305 385-
6883
Steve Carlson Primary Focal 5933 385-
9085
Ellen Marx Core Team Member 5921 385-
1243
Avery McCann Core Team Member 5945 385-
4749
Adam Connelly Core Team Member 5310 385-
8022
John Ames Core Team Member 5342 385-
6569
Paula Johnson Core Team Member 5367 385-
9943

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Information Distribution
This step is the collection of all the information necessary to determine status. This will include the
project plan, memos written or received, project status, estimates to complete, Changes to the scope
either approved or pending, acceptances received, acceptances rejected, and acceptances pending.
This step will explain progress reporting and how often the progress needs to be reported. Progress
status reporting is designed to help all team members become accomplished in self-management as
well as to communicate ongoing project status to management. The overall purpose of weekly project
reporting is to accomplish the following: 1) Identify problems for management resolution 2) Discuss
scheduling 3) Identify changes to the project 4) Communicate accomplishments to the project 5)
Document project activity for future review purposes. Performance information is designed in a way
that shows how these information items contribute to the achievement of the output of this project for
the Auto Club virtual office project.

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CHAPTER IV
MONITORING AND CONTROLLING
Monitor and Control Project Work
The project Control process must be maintained on a weekly basis in conjunction with progress
reporting. The contents of project monitor and control are the contract, the project management plan,
the project deliverables log, project status forms, and task progress reporting. The projects updates
that will be changed weekly are: the posted project plan, the posted deliverables log, the posted
project status form, the posted status summary forms, management status report, team status report,
time sheets, and expenses.
Integrated Change Control

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The objective of establishing a change procedure is to monitor changes that have a major impact
on delivery dates and costs. There are two general types of major changes and they are design
changes and non-compliance changes. Change criteria must be determined for each project to
understand the impact of change. Design changes are opportunities to improve the system. With this
type of project there needs to be a lost time log and a system-tracking log to manage changes. A
change request form must be completed, documented, and approved by the project development
team including the majority of the team members.
Scope and Schedule Control
All of the scheduled changes will be implemented by gathering the necessary authorization to
proceed. Appropriate project management personnel must formally approve this process. Without
formal approval, the project manager proceeds “at risk”. Without formal approval, critical decisions
are considered “defaulted”. Formal approval prevents repetitive submissions for changes. Formal
approval results in formal rejection.
Cost Control
The managers will use the Cost Control Matrix Spreadsheet to compute cost per employee.
Part of the Cost Matrix is to compare the cost per employee “group as is” and “group to be”. The
summary will be complete and filled after each status meeting. The decision to provide tools/services
described above or otherwise, will generally be made by the participant’s manager and should be
based upon business case, organizational budget, and participant has assigned tasks and requirements
as a Telecommuter.
Perform Quality Control
Quality control and quality engineering are involved in developing systems to ensure products or
services are designed and produced to meet or exceed customer requirements. These systems are
often developed in conjunction with other business and engineering disciplines using a cross-functional
approach.

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Manage Project Team
A project manager must manage the project team by developing leadership, human relations,
decision-making, and problem solving skills from inception through successful conclusion. Project
team members have a considerable impact on the success of the project so the project manager must
build cohesive, high performance teams and resolve conflicts. Effectively delegate project tasks and
monitoring your team progress will determine the level of success of a project.
Performance Reporting
These performance management principles are endorsed by Auto Club and are intended as an
on performance reporting and its uses for both external and internal purposes. External reporting
focuses on performance for a year through company accomplishments annual reports. Internal
reporting is more frequent for management purposes, including monitoring performance of outputs
within year. The Auto Club measures are aligned with employees' performance agreements, the
performance measures provide feedback to staff on their contribution to the management of outputs
and administered items. Its purpose is to assist stakeholders and management to draw well-informed
conclusions about performance in published and internal documentation, and to contribute to sound
decision-making.
Manage Stakeholders

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Production Information Technology Systems will sponsor and direct the implementation of the
Information Technology Systems Virtual Office Program. The most important part of stakeholder
management is to secure management support for project teams. Communication with team members
and stakeholders is important for a successful project result, so formulate and manage cross-functional
teams.
Risk Monitoring and Control
The Individual project team members identify the risks at follow up status meetings. Risk
reported immediately has a good result of tem project team doing something about it. The Auto Club’s
approach to risk management is instilled within its risk management plan. The risk management plan
depicts the basic functions of managing risks: identify, analyze, plan, track, control, and communicate.

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CHAPTER V
CLOSING
Close Project
If the employee is transitioning to virtual office, then it is the manager’s responsibility to
implement a virtual office transition and exit plan for their employees. Employees who are currently
telecommuting and specific equipment requirements should prioritize the manager transition plan. Use
the Exit Plan Checklist as part of your transition to virtual office. Closing a project is not as easy as it
seems. There is the need to ensure that the project closure criterion has been fully satisfied and that
there are no outstanding items remaining. Then there is a need to identify a release plan for the project
deliverables and documentation for the virtual office. Finally, the need you to initiate a communication
plan to inform all project stakeholders that the project has now been closed.
Conclusion & Recommendations
The conclusion and recommendations include the documents for project closure processes
needed to close out a project. The 'Project Closure Report' will help you handover the deliverables
and documentation. The 'Post Implementation Review' will help you to determine the level of project
success and identify lessons learned for future projects.

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References:
PMI (2004). Guide to the Project Management Body of Knowledge (3rd
ed.). Newtown Square, PA: Project
Management Institute, Inc.
Render, B., Stair, R., & Hanna, M. (2006). Quantitative Analysis for Management (9th
ed.). Upper Saddle
River, NJ: Pearson Prentice Hall.
Rothman, J. (1997), Quality Driven Project Management, Retrieved November 7, 2007:
http://www.jrothman.com/Papers/ASM97.html
Auto Club PROCEDURE 901 “Virtual Office Program”, dated January 13, 2006.
Auto Club Virtual Office Program web page http://virtualoffice.Auto Club.com
Website: (http://virtualoffice.Auto Club.com/Reporting/ViewTeamDetails.asp)
Website: http:/aaa.socal.com.Auto Club.com/mes/
Website: http://telecommunications.Auto Club.com/
Telecommuters Home Page: http://virtualoffice.Auto Club.com/index.asp
Website: http://vo2.Auto Club.com/Reporting/ViewTeamDetails.asp