Project Management
Memorandum
To : Management of MYH Inc.
From : Information Technology Department
Date : 29 September 2012
1. Company Background
Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of health care services across the globe with more than 20,000 full-time employees and more than 5,000 part-time employees.
2. Strategic Goals
MYH recently updated its strategic plan, which aims to:
• Reduce internal costs
• Increasing cross-selling of products
• Exploiting new Web-based technologies to improve the development and delivery of its health care products and services
3. Strategic & Plan
Below are some ideas from the Information Technology department:
1. Recreation and Wellness Intranet Project
• Phenomenon
- MHY Inc. pays 20% more than the industry average for employee health care premium due to the poor health of its employees
• Objective
- Help improve employee health to reduce internal cost by negotiate lower employee health care premiums
• Benefits
- Estimated saving $30/employee/year for 20,000 full-time employees over next 4 years
$30 × 20,000 = $600,000($0.6 million) for each year
$600,000 × 4 = $2,400,000 ($2.4 million) for 4 years
- Better employee health leads to better performance in daily company operation
- Increase employee motivation and loyalty to company
- Help company built up healthy image to public
2. Health Coverage Costs Business Model
• Phenomenon
- Health care premiums continue to increase and the company has changed insurance carriers several times in the past 10 years
• Objective
- Help company negotiate lower premiums with insurance carriers to reduce company internal cost
• Benefits
- Estimated save up $20/employee/year for 20,000 full-time employee over next 4 years
$20 × 20,000 = $400,000 ($0.4 million) for each year
$400,000 × 4 = $1,600,000 ($1.6 million) for 4 years
- Help tracking and analyzing current and past employee health care expenses and company
To : Management of MYH Inc.
From : Information Technology Department
Date : 29 September 2012
1. Company Background
Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of health care services across the globe with more than 20,000 full-time employees and more than 5,000 part-time employees.
2. Strategic Goals
MYH recently updated its strategic plan, which aims to:
• Reduce internal costs
• Increasing cross-selling of products
• Exploiting new Web-based technologies to improve the development and delivery of its health care products and services
3. Strategic & Plan
Below are some ideas from the Information Technology department:
1. Recreation and Wellness Intranet Project
• Phenomenon
- MHY Inc. pays 20% more than the industry average for employee health care premium due to the poor health of its employees
• Objective
- Help improve employee health to reduce internal cost by negotiate lower employee health care premiums
• Benefits
- Estimated saving $30/employee/year for 20,000 full-time employees over next 4 years
$30 × 20,000 = $600,000($0.6 million) for each year
$600,000 × 4 = $2,400,000 ($2.4 million) for 4 years
- Better employee health leads to better performance in daily company operation
- Increase employee motivation and loyalty to company
- Help company built up healthy image to public
2. Health Coverage Costs Business Model
• Phenomenon
- Health care premiums continue to increase and the company has changed insurance carriers several times in the past 10 years
• Objective
- Help company negotiate lower premiums with insurance carriers to reduce company internal cost
• Benefits
- Estimated save up $20/employee/year for 20,000 full-time employee over next 4 years
$20 × 20,000 = $400,000 ($0.4 million) for each year
$400,000 × 4 = $1,600,000 ($1.6 million) for 4 years
- Help tracking and analyzing current and past employee health care expenses and company