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SOP 1006: Strategic Planning

Objective: 
The objective of this Standard Operating Procedure (SOP) is to document the strategic planning process.
Scope: 
Strategic Planning is an on going and iterative process managed through project a management methodology.  Major changes in the business environment (internal or external) will lead to a re-assessment of the IT Strategy to ensure that it is fully aligned with the business strategy.
Owner: 
Marketing

Sections:

i Definitions
1 Process Flow Diagrams
2 Roles and Responsibilities
3 Metrics
4 Procedure Activities
5 Forms
6 Exceptions
7 Tools/Software/Technology Used
8 Attachments

Related Standard Operating Procedures:

1000 Program/Project Management
1007 Asset Management

 

SOP 1006 - Strategic Planning Definitions 

Development of a strategy is a very broad exercise.  Thus, the procedure that supports the development framework must be very comprehensive in perspective.  Therefore, as a framework, not every activity is appropriate in every IT Strategic Planning exercise.  Likewise, the spectrum of opportunities and the ever-changing landscape of the Internet that will be considered are not fully represented in this document.  When these opportunities surface this procedure will provide a framework for analysis, but additional steps should be added to the project plan and ultimately to this procedure.

1. Process Flow Diagrams 

 

Strategic Planning Overview

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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2. Roles and Responsibilities

Role Responsibility

Contracting Organization

The Contracting Organization contracts with the performing organization to develop the product using a project discipline.  The Contracting Organization represents two departments: Product and Technical Support.  Product is divided into Sales and Advertising, Marketing and Product, and Strategic Development.  A brief description of each area follows.

  • Sales and Advertising: The area that sells to ISPs, affinity groups, and advertisers, in both the domestic and international markets.

  • Marketing and Product: This area manages the portfolio of features and functionality for outbound marketing.

  • Strategic Development: Research and Development group viewing opportunities in emerging markets and up-selling existing accounts.

  • Technical Support: Technical Support performs two roles in the current environment: Training and customer support.  As the Service Organization they provide customer support to ISP (second level) and end users (first level).  In their role as the Training Organization they provide training to ISP field and service engineers.

Customer

A Customer is the individual or organization who will use the project product.  Note that there is a distinction for SDLC between the true customer and the Contracting Organization that acts as the customer’s representative within SDLC.

Office of the Chief Executive

The Office of the Chief Executive is the executive management team at SDLC.  They establish business strategy and commission projects.

Owner

The Owner oversees the completion of work at a gate.  They may be from the Product, Content, Technical Support, or Development areas depending on the project activities underway.  The Project Sponsor assigns owners at the beginning of a project.

 

Each gate has an Owner who is accountable for tracking the gate requirements, maintaining the status of the gate and taking corrective action to ensure that the gate is met in a timely manner.  The gate owner is also responsible for convening a meeting of the appropriate review board to approve passage of the gate. In the case of gates that have associated management phase reviews (see glossary), the gate owner convenes the review meeting and facilitates the decision making that is required at that gate.  In the event that an exception arises at a gate that does not have any associated management phase review, the owner is responsible for escalating the issue to the appropriate management phase review board for resolution.

Performing Organization

The Performing Organization is generally the Engineering Department.  The Engineering Department consists of Development (Sustaining, Advanced and Strategic), Validation/Quality Assurance, Operations (OCC, Release Engineering, Database Administration, Network and Operations Engineering), Systems Engineering/Architecture and project management.

Program Manager

The Program Manager is the individual who oversees multiple projects that are related by a type of service delivery or by feature and functionality.  The Program Manager is accountable for the program and is empowered by the Office of the Chief Executive to make decisions affecting the successful outcome of the program.

 The Program Manager takes an enterprise view.  The Program Manager is responsible for determining the schedule for deployment of company resources and achieving the objectives of a specific program.  The role includes the following additional responsibilities:

  • Managing project managers

  • Producing milestone progress reports

  • Initiating issue and risk mediation

  • Scheduling and conducting status meetings

  •      Preparing status reports

  •      Ensuring the project is on time, within budget program deliverables.

Program Management Office (PMO)

The Program Management Office (PMO) monitors, supports and reports on SDLC's programs and projects.  Program Managers provide defined periodic updates to the PMO.  The PMO consolidates the efforts of all programs and technology specific projects and delivers these reports to the OCE.

The PMO is responsible for issuing standards and guidelines for planning, tracking, and reporting, and for providing project support to individual project teams.  Accountability for project delivery will remain with the individual Project Manager and Program Manager.

Project Manager

The Project Manager is accountable for the project and must be empowered to make decisions affecting the successful outcome of the project responsible for managing a project.  This should not be confused with the project management function that exists within many organizations.

Project Managers are responsible for determining the deployment schedule for their specific project.  This role includes the following additional responsibilities:

  • Reviewing progress reports

  • Taking corrective action in problem solving

  • Scheduling and conducting status meetings

  • Preparing status reports

  • Ensuring that change control procedures are being followed

Review Board

The Review Board is composed of representatives from both the Performing and Contracting Organizations, as well as the Project Sponsor, Project Manager and Program Manager.  Review Boards assess the deliverables at each gate in the System Development Life Cycle to insure that requirements have been met.  Also, the Review Board’s specific knowledge of the project’s goals and status allow it to make informed decisions to which they are held accountable.

Milestone/Gate reviews provide the mechanism for the management of the Performing Organization and the Contracting Organization to make decisions concerning the scope, cost and schedule of the project.  At each review, the members of the Review Board are required to make decisions that are in the best interests of SDLC.  These decisions may involve making tradeoffs to arrive at an optimal decision.  It may be necessary to omit or remove scope in order to satisfy cost and schedule constraints.  Additional cost may be approved to maintain scope and schedule commitments.  A schedule delay may be agreed upon to enable required scope to be delivered within existing budgets.  Each case is unique and must be considered on its specific merits.

Service Organization

The Service Organization is the unit that that provides deployment support services to the Contracting Organization for all SDLC products.  Services include provision and support of deployment tools, software load support, problem resolution, phone support and deployment planning support.  At SDLC the Service Organization is generally Technical Support.

Training Organization

The Training Organization is the organization that provides customer installation and operations training to the Contracting Organization for all SDLC products.   This generally refers to Technical Support.

 

 

3. Metrics

 

Program/Project Management metrics are focused on the measurement of cycle times and defects.  Measurements provide the foundation to quickly identify, isolate and remediate inefficient results from activities that do not meet expected performance levels.

Metric Description

Cycle Time

The number of days or hours it takes to complete requirements for a SDLC Business Gate and/or milestone.

Defects

Instances of failure to pass specific tests or quality measures or to meet specification/acceptance criteria. These are recorded and assessed throughout a project and reported at the end of the project. 

Change Agents

Individuals who analyze a process and recommend ways to improve it, successful or not in its adoption, will be reported to Engineering Department management.  These individuals will receive recognition for their effort to compress cycle times and/or improve quality.

 

 

4. Procedure Activities

 

Role/Activity Description

 

 

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Project Strategy Lock-Down

 

Governance

Governance determines business strategy through the development and analysis of:

  • corporate strategy

  • mission (Form: Mission Characteristics)

  • business structure (Form: Organization Map/Chart)

  • value chain (Form: Business Unit Service Profile)

  • position (market, competitor, suppliers, customers, etc.) (Form: Enterprise Competitors)

Governance

Governance develops the following through an iterative process supported by functional areas:

  • potential changes/ opportunities (Form: Current Information System Support for Business Processes)

  • change drivers /critical success factors (Forms: Enterprise Performance Framework, Business Process Performance Framework, and Process Design List)

  •  strategic alignment (Form: Current Information System Support for Business Processes)

Technical and Product Support

Technical Support and Product support the development of business strategy through competitive analysis and campaigns for new customers and markets.  (Forms: Strategy Characterization: Market Segment Selection, Strategy Characterization: Market Segment Approach, and Market Share/Market Growth Model)

Engineering

Engineering Department supports the development of business strategy through competitive analysis and information on emerging technologies. (Forms: Current Information System Support for Business Processes and Event List)

Governance

Governance defines the initial value proposition by synthesizing data from analysis and forms.

  • value of benefit

  • cost factors of the solution

  • high level cost benefit analysis

Governance

Governance prepares first cut vision of opportunities and direction

  • criteria for decision making

  • prioritized potential opportunities

  • assumptions, issues, and constraints

  • opportunities for further investigation

Project Manager

The Project Manager establishes project controls and monitors completion of work for management review prior to moving forward.

  • project plan management

  • document control

  • risk and issues management process

Requirements Scope Lock-Down

 

Governance

Governance conducts a market evaluation (evaluates market attractiveness) establishing performance measures and targets for decision making (Form: Enterprise Competitors)

Governance

Governance identifies relative strengths and weaknesses (SWOT [strengths, weaknesses, opportunities and threats])

Technical and Product Support

Technical Support and Product support the market evaluation and SWOT by preparing appropriate analysis (Forms: Enterprise Customers, Customer Requirements, Weighted Requirements Ranking, and Application Development Strategy)

Engineering

The Engineering Department receives the SWOT analysis and provides to Governance “information” for Systems Diagnostic,” including, but not limited to the areas of Configuration Management, Capacity Management, and Site Monitoring. (Forms: Application Development Strategy, Equipment Facility Requirements, IT Infrastructure to Information Cross Reference, and IT Component Costs)

Engineering

The Engineering Department conducts an IT Infrastructure Diagnostic (Forms: Process Dependency Diagram and Current Infrastructure Strengths and Weaknesses)

Governance

Governance consolidates and analyzes the Information Systems Diagnostic (Form: Information Systems Strategic Grid)

Governance

Governance analyses the IT Infrastructure Diagnostic, the output of which includes:

  • issues and opportunities  (Form: Current Infrastructure Strengths and Weaknesses)

  • assessment of current state (Form: Information Systems Strategic Grid)

  • improvement goals (Form: Information System Audit Grid)

  • process evaluation (Form: Relationship Matrix)

Governance

Governance prepares situation assessment, expectations and requirements:

  • prioritized customer requirements (Forms: Customer Requirements and Weighted Requirements Ranking)

  • qualitative customer research

  • critical performance matrix (Form: Critical Performance Matrix)

Project Manager

The Project Manager updates the plan and monitors completion of work for management review prior to moving forward.

  • project plan management

  • document control

  • risk and issues management process

 

 

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Preliminary Strategic Options

 

Governance

Governance creates a preliminary strategic options document

Governance

Governance determines customer and product profitability

  • product line

  • channel

  • etc.

Governance

Governance assess competitive intensity:

  • entry/exit cost

  • competitor financial position

Technical and Product Support

Technical Support and Product Support the Profitability Analysis and assessment of competitive intensity (Forms – Updated/Revised: Strategy Characterization: Market Segment, Strategy Characterization: Market Approach, Market Share/Market Growth Model, Enterprise Customers, Weighted Requirements Ranking and Application Development Strategy)

Engineering

The Engineering Department supports the Profitability Analysis, assessment of competitive intensity and develops preliminary strategic options (Forms: - Created/Updated: Application Development Strategy, Current Information System Description, IT Component Inventory, IT Component Costs, and Equipment Improvement Matrix)

Project Manager

The Project Manager updates the plan and monitors completion of work for management review prior to moving forward.

  • project plan management

  • document control

  • risk and issues management process

System Requirements Definition

 

Product and Technical Support

Product and Technical Support subject matter experts support assessments and analysis.

Engineering Department

Engineering Department management and functional areas support information needs and provide experts to research and recommend options.  Also, functional subject matter experts consider configuration, capacity, monitoring, etc. issues and opportunities throughout the strategic planning process.

Governance

Governance evaluates strategic options

Governance

Governance synthesizes market attractiveness by

  • assessing market factors

  • evaluating the profitability of key market segments (Forms: Strategy Characterization: Market Segment and Strategy Characterization: Market Approach)

  • preparing market share / market growth models (Form: Market Share/Market Growth Model)

  • identifying issues and opportunities (Forms: Market Share / Market Growth Model, and Potential Target Application Benefits and Risks)

  • preparing a competitive environment assessment (Form: Enterprise Competitors and Business Unit Incentive/Reward Profile)

Engineering

The Engineering Department assesses existing and potential vendors/partners (Form: Enterprise Suppliers)

Governance

Governance assesses

  • supplier / partner relationships (Form: Enterprise Suppliers)

  • organizational impacts (Form: Business Unit Budget, Target Application Support for Business Processes, Potential Target Application Benefits and Risks, Job Definition, and Business Unit Service Profile)

  • engineering process impacts (Form: Data Entity Usage by Location / Target Application, Job Definition, Process Dependency Diagram, and Business Unit Service Profile

  • security

  • SWOT

Governance

Governance determines information needs and derives IS opportunities

  • effectiveness  (Form: Information System Audit Grid, Information System Strategic Grid and Information System Strengths and Weaknesses )

  • support for MIS  (Form: Target Environment Definition Summary)

  • process support  (Forms: Target Application Support for Business Processes, Process Design List, and Process Dependency Diagram)

  • assumptions and constraints  (Form: Information System Strengths and Weaknesses )

  • IS opportunities   (Forms: IT Infrastructure to Information System Cross Reference, IT Component Costs, IT Component Inventory, and Current Information System Strengths and Weaknesses, )

Project Manager

The Project Manager updates the plan and monitors completion of work for management review prior to moving forward.

  • project plan management

  • document control

  • risk and issues management process

Estimate Lock-Down

 

Product and Technical Support

Product and Technical Support subject matter experts support assessments and analysis.

Engineering

Engineering Department management and functional areas support information needs and provide experts to research and recommend options.  Also, functional subject matter experts consider configuration, capacity, monitoring, etc. issues and opportunities throughout the strategic planning process.

Governance

Governance envisions the changed organization

  • defines the changed organization (Forms: Enterprise Performance Framework, Organization Map/Chart, Envisioned Cultural Elements)

  • considers alternative structures (Form: Organization Map/Chart)

  • defines roles and responsibilities (Forms: Business Unit Service Profiles, Job to Task Cross-reference, Business

  • defines performance measures and targets for each business unit (Forms: Business Unit Budget, Business Unit Incentive / Reward Profile, Business Process Performance Framework, Event List, Process Design List, and Vision / Performance Measures, Targets)

  • identifies issues and opportunities (Forms: Process Elimination List, and Infrastructure Strengths and Weaknesses)

  • prepares organizational design approach

Governance

Governance develops the business system architecture

  • reviews IS issues and opportunities for improvement (Form: Current Infrastructure Strengths and Weaknesses)

  • develops initial business architecture (Forms: Target Application Support for Business Processes and Preliminary Functional Requirements)

  • refines business architecture

Technical Support

Technical Support supports the development of the proposed Business System Architecture (Forms: Target Application Support for Business Processes, Cost Summary Matrix, Target Application Estimated Costs, Application Development Strategy, Process Design List, and Facility Improvement Matrix)

Governance

Governance builds the business case

  • assesses options - Build vs. Buy (Approaches: Discounted Cash Flow, Net Present Value, Opportunity Cost, Internal Rate of Return, etc.)

  • summarizes business benefits, issues opportunities, cost, market intelligence, etc. (Forms: Gap Analysis, Target Application Support for Business Processes, Cost Summary Matrix, Target Application Estimated Costs, Application Development Strategy, Process Design List, Customer Requirements and Facility Improvement Matrix)

Project Manager

The Project Manager updates the plan and monitors completion of work for management review prior to moving forward.

  • project plan management

  • document control

  • risk and issues management process

Strategy Selected

 

Product and Technical Support

Product and Technical Support subject matter experts support assessments and analysis.

Engineering

Engineering Department management and functional areas support information needs and provide experts to research and recommend options.  Also, functional subject matter experts consider configuration, capacity, monitoring, etc. issues and opportunities throughout the strategic planning process.

Governance

Governance determines usage and business support

  • determines process and target application systems (Form: Target Application Support for Business Processes)

  • prepares unit usage matrix (Form: Relationship Matrix)

  • determines usage by location/system (Form: Data Entity Usage by Location / Target Application)

  • assesses strategic impact of target applications (Form: Target Applications to IT Component Cross Reference)

Governance

Governance finalizes functional requirements

  • develops detailed functional requirements (Form: Preliminary Functional Requirements [with detailed functional specifications attached supporting this top level presentation])

  • prioritizes and classifies functional requirements (Form: Weighted Requirements Ranking)

  • reviews requirements dimensions

 

 

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Governance

Governance determines IT Infrastructure Requirements using data and analysis collected throughout the project and related to the following:

  • processing

  • data

  • deployment

  • interfaces

  • connectivity

  • security

  • contingency/

  • recovery

  • physical

  • management

  • operations

  • support

Governance

Governance achieves consensus on the vision

  • finalizes organizational definition (Forms: Organization Map / Chart, Envisioned Cultural Elements, Vision / Performance Measures, Targets, and Business Unit Incentive / Reward Profile)

  • defines roles and responsibilities (Forms: Business Unit Performance Framework, Job to Task Cross-reference, Job Definitions)

  • creates reporting structure (Form: Business Unit Service Profile)

  • develops business architecture (Forms: Business Unit Budget, Preliminary Functional Requirements,

  • reviews business case (Forms: Mission Characteristics, Strategy Characterization: Market Segment Selection, Strategy Characterization: Market Segment Approach, Weighted Requirements Ranking, Customer Requirements, Critical Performance Matrix, Business Process Performance Framework, Information System Audit Grid, Information system Strategic Grid, Information System Strengths and Weaknesses, Process Elimination List, Target Application Support for CSFs [Critical Success Factors], Cost Summary Matrix, and Gap Analysis)

Governance

Governance selects optimal strategy

Project Manager

The Project Manager updates the plan and monitors completion of work for management review prior to moving forward.

·        project plan management

·        document control

·        risk and issues management process

Vendor Evaluation

 

Product and Technical Support

Product and Technical Support subject matter experts support assessments and analysis.

Engineering

The Engineering Department management and functional areas support information needs and provide experts to research and recommend options.  Also, functional subject matter experts consider configuration, capacity, monitoring, etc. issues and opportunities throughout the strategic planning process.

Governance

Governance determine and prioritize requirements and evaluation criteria

Governance

Governance develops weights and scoring system

  • assigns weights to requirements  (Forms: Weighted Requirements Ranking, Customer Requirements, Critical Performance Matrix, Target Application Support for CSFs [Critical Success Factors], Cost Summary Matrix, Vendor Selection Summary and Gap Analysis)

  • defines scoring system

  • validates weights and scores tables

Governance

Governance identifies potential vendors / partners

  • conducts survey of potential vendors / partners

  • develops short list

Governance

Governance produces a Request for Proposal (RFP)

  • develops RFP

  • distributes to vendors / partners on short list

Governance

Governance evaluates responses

  • conducts preliminary evaluation

  • develops detailed technical evaluation (Form: Vendor Selection Summary, Target Application Estimated Costs, and Cost Summary Matrix)

  • assesses suitability

  • conducts site visit and evaluates (Form: Site Visit Worksheet)

  • prepares recommendation

  • creates bill of materials (Form: IT Component Costs)

Project Manager

The Project Manager updates the plan and monitors completion of work for management review prior to moving forward.

  • project plan management

  • document control

  • risk and issues management process

Portfolio Implementation Analysis (Development)

 

Product and Technical Support

Product and Technical Support subject matter experts support assessments and analysis.

Engineering

Engineering Department management and functional areas support information needs and provide experts to research and recommend options.  Also, functional subject matter experts consider configuration, capacity, monitoring, etc. issues and opportunities throughout the strategic planning process.

Governance

Governance Commits to a Strategic Solution through analysis of data collected to data.

Governance

Governance Conducts Portfolio Implementation Analysis

  • develops a risk analysis (Forms: Current Infrastructure Strengths and Weaknesses, IT Infrastructure to Information System Cross Reference, and Potential Target Application Benefits and Risks) Using data from forms, market intelligence, organizational SWOT, etc.

  • assesses automation boundaries

 

 

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IT Infrastructure Architecture Selected (Validation)

 

Product and Technical Support

Product and Technical Support subject matter experts support assessments and analysis.

Engineering

Engineering Department prepares a transition plan addressing:

  • implementation strategy

  • systems transition strategy

  • infrastructure transition strategy

  • training approach

  • workforce transition strategy

  • process transition strategy

Engineering

Engineering Department conducts risk and contingency analysis and planning

Governance

Governance constructs the Implementation Architecture

  • determines high level drivers and constraints  (Target Environment Definition Summary, Gap Analysis, Mission Characteristics, Enterprise Performance Framework, Strategy Implementation Plan, Weighted Requirements Ranking and Information System Component Cost, Cost Summary Matrix and Customer Requirements)

  • determines system distribution strategy

  • develops training plan

Governance

Governance constructs IT Infrastructure Architecture Alternative (Target Environment Definition Summary, Gap Analysis, Mission Characteristics, Enterprise Performance Framework, Strategy Implementation Plan, Weighted Requirements Ranking and Information System Component Cost, Cost Summary Matrix and Customer Requirements)

Governance

Governance selects optimal IT Infrastructure Architecture Alternative for organization

Project Manager

Project Manager updates plan and monitors completion of work for management review prior to moving forward.

  • project plan management

  • document control

  • risk and issues management process

Funding and Change Management

 

Product and Technical Support

Product and Technical Support subject matter experts support assessments and analysis.

Engineering

Engineering Department refines transition plan addressing:

  • implementation strategy

  • systems transition strategy

  • infrastructure transition strategy

  • training approach

  • workforce transition strategy

  • process transition strategy

Governance

Governance publishes IT Strategy (for Funding)

Governance

Governance obtains funding approval (Capital Allocation Request (CAR))

 

Governance

Governance establishes a change management program (Form: Strategic Implementation Plan, Target Application Support for CSFs, Gap Analysis, Change Action Summary, and Continuous Improvement Framework)

Procurement Procedure (SOP 1004)

Evaluate the Procurement Procedure to Acquire Approved Materials

Project Manager

The Project Manager updates the plan and monitors completion of work for management review prior to moving forward.

  • project plan management

  • document control

  • risk and issues management process

Strategy Execution

 

Asset Management (SOP 1007)

Evaluate the Asset Management Procedure to record receipt, acceptance and installation

Project Manager

Project Manager updates plan and monitors completion of work for management review prior to moving forward.

  • project plan management

  • document control

  • risk and issues management process

  • lessons learned

  • document library maintenance

 

 

5. Forms

Form Description

Application Development Strategy

 

Business Process Performance Framework

 

Business Unit Budget

 

Business Unit Incentive / Reward Profile

 

Business Unit Performance Framework

 

Business Unit Service Profile

 

Change Action Summary

 

Conceptual Data Model CDM

 

Continuous Improvement Framework

 

Cost Summary Matrix

 

Cost/Benefit Analysis

 

Critical Performance Matrix

 

Current Information System Description

 

Current Information System Support for Business Operations

 

Current Information System Support for Business Processes

 

Current Infrastructure Strengths and Weaknesses

 

Customer Requirements

 

Customer Requirements

 

Data Entity Usage by Location / Target Application

 

Enterprise Competitors

 

Enterprise Customers

 

Enterprise Performance Framework

 

Enterprise Suppliers

 

Envisioned Cultural Elements

 

Equipment Facility Requirements

 

Equipment Improvement Matrix

 

Event List

 

Facilities Improvement Matrix

 

Functional Decomposition Model

 

Gap Analysis

 

Information System Audit Grid

 

Information System Strategic Grid

Information System Strengths and Weaknesses

IT Component Costs

IT Component Inventory

IT Infrastructure to Information System Cross Reference

Job Definition

Job to Task Cross-reference

Market Share / Market Growth Model

Organization Map / Chart

Package Comparison Matrix

Potential Target Application Benefits and Risks

 

Preliminary Functional Requirements List

 

Process Dependency Diagram

 

Process Design List

 

Process Elimination List

 

Relationship Matrix

 

Site Visit Worksheet

 

Strategic Characterization: Market Segment Approach

Strategic Characterization: Market Segment Selection

Strategic Implementation Plan

Target Application Estimated Costs

Target Application Support for Business Processes

Target Application Support for CSFs

Target Application to IT Component Cross Reference

Target Environment Definition Summary

Vendor Selection Summary

Vision / Performance Measure, Targets
Weighted Requirements Ranking

 

 

 

6. Exceptions

  • None at this time

 

 

7. Tools/Software/Technology Used

 
Tool Description

MS Word

 

MS Excel  

 

 

8. Attachments

  • None at this time

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