5 Misconceptions About the Project Budget

Brad Egeland

Budget management is a critical task of the project manager and one that can weigh heavily on the success or failure of any engagement. One cannot simply create a project budget and leave it alone, hoping that everything will end well.

Budget 103

Kingspan Insulation Enables Growth with Successful Product Portfolio Governance

Arras People

If your organisation does not have effective product portfolio governance, growth can quickly become overwhelming and lead you into making inaccurate decisions. Struggling to manage resources and budgets across time zones, they faced an out-of-control product portfolio, which lead to pulling a product from the market the same week as its release—after two years of development. Risks can then be more closely monitored by senior management and stakeholders trust the data.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Kingspan Insulation Enables Growth with Successful Product Portfolio Governance

Arras People

If your organisation does not have effective product portfolio governance, growth can quickly become overwhelming and lead you into making inaccurate decisions. Struggling to manage resources and budgets across time zones, they faced an out-of-control product portfolio, which lead to pulling a product from the market the same week as its release—after two years of development. Risks can then be more closely monitored by senior management and stakeholders trust the data.

Project Governance: Establishing an Effective Steering Committee

Strategy Execution | PMO Perspectives

Within the project management community, the concept of governance is seen as a fundamental project control, which is easy to grasp in principle. Getting the governance piece right requires insight and at times a few honest conversations about roles and responsibilities. Unfortunately, it’s not uncommon that I see projects with one of the following dysfunctions in the governance area: It’s unclear to the project manager who the sponsor is.

Vendor Showcase Recap: Triskell Software for Enterprise Governance

MPUG

Please find below a transcription of the audio portion of Rich Murphy’s showcase session, Triskell Software for Enterprise Governance, being provided by MPUG for the convenience of our members. So you can do your corporate budgeting, for example. So, I can have a budget.

Vendor Showcase Recap: Triskell Software for Enterprise Governance

MPUG

Please find below a transcription of the audio portion of Rich Murphy’s showcase session, Triskell Software for Enterprise Governance, being provided by MPUG for the convenience of our members. So you can do your corporate budgeting, for example. So, I can have a budget.

Tailoring project management for a home move (part 2)

Kiron Bondale

As such, a number of constraints were set before this project got underway, including the moving day milestone, the ceiling budget on home renovations, and available floor space to accommodate our furniture and any renovations we were planning.

2021 190

Project Cost Management – The Essential Things to Know and Do

Online PM Courses

But there’s little your project sponsor, your client, or their Finance Director care about more than your budget and how closely you can stick to it. Instead, you must act with determination to understand project cost management and implement all the tools at your disposal to control costs and bring in your expenditure on budget. What is not negotiable is the budget. The governance considerations for project cost management. Determine Budget.

Rogue Project Sponsor: What to Do when Sponsorship goes Bad

Online PM Courses

So the counter to this is to set and agree clear expectations for progress, budget, and delivery of outcomes right at the start. Show them how close to the bone you are in achieving your outcomes. At its simplest, I’ll set a: Planned, or baseline, set of outcomes, budget, and progress rate. Stretch set of outcomes, budget, and progress rate. Or maybe you’ll need to make the choices yourself, and take the governance risk on your own shoulders.

2018 134

Compendium of Works to Increase Probability of Project Success

Herding Cats

Governance (#Governance). Six Business System Rule - defines the assessment of the integrated business systems for Federal procurement and their integrity in providing information to the Government contracting office. . Managing Government Grant Projects at Arizona Public Service - APS management process for Department of Energy grant for algae CO2 capture project. Open Loop / Closed Loop Project Controls - project management is a closed loop control system.

2015 37

The Commercial Project Manager

Strategy Execution | PMO Perspectives

With only a 8% margin in the original budget, this soon became a loss-making project. As it was December 20 th the consultant delayed completing their internal close-out report until December 28 th and raised an invoice for the customer first thing in the New Year. Contractor working within UK Government IT support: ‘one of the first things we are taught is to get a signed Variation Order if the client asks us for any work outside of our standard instructions, however small.’.

Why the Stage Gate Process will Make You a Better Project Manager

Online PM Courses

It is an important part of project governance that looks both backwards and forwards. Let’s set aside the very important governance imperative. But what if governance were unimportant to you… or your organization? And of course, it isn’t just you who will be studying this evidence closely. ’ PRINCE2 and the UK Government refer to Gate 0 – Strategic Assessment. PRINCE2 and the UK Government refer to Gate 1 – Business Justification.

Project Management: Agile and Waterfall Explained

International Institute for Learning

A phase usually ends before the next one starts, and the sequence is traditionally 5 Phases: Initiation, Planning, Implementation, Controlling, and Closing. Planning : Creating the technical drawings, 3D renderings, detailed budget, and schedule that will enable the project’s realization.

2021 80

The #NoEstimates Paradigm and Response

Herding Cats

When we hear a suggestion about a process that inverts the logic of normal business activities based on a governance framework - say Microeconomics of Software Development, we need to ask who benefits? It is likely those paying us have some sort of governance process in place for managing the spend of that money. Governance is about decision rights. Management is a closed loop process. Another No Estimates advocate claims NE is closed loop control.

2016 49

Deconstructing the Hertz and Accenture Debacle

Herding Cats

We play this role in ERP acquisitions for commercial and government clients . A mentor taught me a nice phrase when we were helping a large government nuclear and conventional power general agency acquire large document management and design system (about the same dollar size as this). This is a foundational principle of program planning and controls just as it is a principle of closed-loop control systems.

Two Parallel Processes of Project Success - Both Value and Delivery are Needed

Herding Cats

Showing up late and over budget does not produce the needed Value. Underestimating software development costs could result in management approving proposed systems that potentially exceed budget allocations, or underdeveloped functions with poor quality, or a failure to complete a project on time. NoEstimates Estimating Fallacy of the Week Governance Performance-Based Project Management® Principles

2018 39

DDSTOP The Saga Continues

Herding Cats

We were one of the first users of eXtreme Programming, long before Scrum was around and presented that early work in 2003, " Making Agile Development Work in a Government Contracting Environment, Measuring velocity with Earned Value." . In our software-intensive system of systems domain, we develop proposals with 80% confidence of completing on time and on budget at the time of submission. Work performed using the budget for the Reducible uncertainties that create the risk.

2019 37

Project Management System: The Basics

Clarizen

The project team structure subsystem governs how project teams are organized into hierarchies. government agencies). The project planning subsystem governs all aspects of project planning across the portfolio. What is a Project Management System?

2020 124

Fallacy of the Day

Herding Cats

In the Project Controls paradigm, Value is a measurable attribute of the project controls process - a Closed Loop Control measure. Measures of Effectiveness - are operational measures of success that are closely related to the achievements of the mission or operational objectives evaluated in the operational environment, under a specific set of conditions. Each of these measures participates in the Closed Loop Control Systems. This is the basis of Closed Loop Control.

2017 34

Cost Management Basics

ProjectManager.com

Cost management is the process by which one plans and manages the budget of a business or project. In the case of a project, it helps the project manager estimate what the project will cost and set in place controls by which they can reduce the chance of the project going over budget.

2019 300

7 Ways to Sell Agile to Project Stakeholders

LiquidPlanner

COO attention = budget. For example, the United States federal government adopting Agile has meant a rise in job openings requiring Agile project management expertise. Bring it all together to close the Agile project management deal.

2018 537

Physical Percent Complete: Knowing When You Are Done

Herding Cats

Each control account is assigned a budget and then, in a traditional EVM sense, the process begins of building the performance measurement baseline. . Thus, the work package for preliminary design cannot be “closed” (closure conditions satisfied) until the document and the TPM conditions are met. Architecture Capabilities Decision Making Earned Value Estimating Governance IMP/IMS Management Performance-Based Project Management® Principles Project Management Scheduling

2018 38

Project Contingency: The Ultimate Guide

Girl's Guide to PM

You wouldn’t believe the number of project managers I speak to on mentoring calls who struggle to get their budget approved. If you’re wondering what budget contingency is, then you have come to the right place. No organization wants a cost overrun to scupper their budget.

2021 275

Economics of Software Development

Herding Cats

Underestimating software engineering costs could result in management approving proposed systems that potentially exceed budget allocations, or underdeveloped functions with poor quality, or a failure to complete a project on time. Managing in the presence of uncertainty requires a Closed Loop Control process. NoEstimates Economics Estimating Governance Mathematics Principles

2017 36

Connecting "What" with "How" - and the Failure to Understand the Principles of Systems Engineering and Systems Management

Herding Cats

This is a serious mistake for any non-trivial project or product that operates in the presence of uncertainty, deadlines, not-t-exceed budgets, and mandatory sets of capabilities that are produced in exchange for money. This physical percent complete is measured as compliance with the Technical Performance Measures of the outcomes of the work efforts, that consume the budget for that work. It's been said by an agile voice that. Progress and value delivery are not the same thing.

Innovation Project Management

International Institute for Learning

As seen by the contractors, the bulk of the contracts were traditional or operational activities with well-defined statements of work, minimal risks, and an agreed upon budget and schedule. By Harold Kerzner, Ph.D. Senior Executive Director, International Institute for Learning (IIL).

Cone of Uncertainty - Part Cinq

Herding Cats

The planned value, the upper and lower control limits, the measures of actual values form a Close Loop Control System - a measurement based feedback process to improve the effectiveness and efficiency of the project management processes by [1]. This is a closed loop control system for managing the program with a T echnical Performance Measure (TPM). The Cone of Uncertanty, is the signaling boundaries of the Closed Loop Control system used to manage the project to success.

2017 33

Concept of Operations

Herding Cats

Office of Management and Budget, December 5, 1994, Operational Concept Description (OCD) , Data Item Description DI-IPSC-81430. Measures of Effectiveness - Operational measures of success that are closely related to the achievements of the mission or operational objectives evaluated in the operational environment, under a specific set of conditions. In the agile community, there is always some comment or opinion about how hard it is to define what the requirements are.

2017 32

Misinterpretations of the Cone of Uncertainty

Herding Cats

Closed Loop Stochastic Adaptive control in the presence of Evolving Uncertainty. Management of this reduction work and measurement of the progress is a Close Loop Control System paradigm. Closed Loop Control, has a goal, an action, a measurement, and a corrective action. If the parameter of interest is not being reduced as needed, go find out why and fix it, or you'll be late, over budget, and the technical outcome unacceptable.

2017 32

Cone of Uncertainty

Herding Cats

When you hear I have data that shows the uncertainty doesn't reduce , then that project is out of control and will be late, over budget, and likely not perform to the needed effectiveness and performance parameters. Definiing the planned and needed varaince levels at planned points in the project creates the basis of a closed loop control system to increase the probability of success. Estimating Governance Management Planning Risk Root Cause Analysis

Cone of Uncertainty - Part Cinq (Updated)

Herding Cats

This is the basis of Closed Loop Project Control Estimates of the needed reduction of uncertanty, estimates of the possisble reduction of uncertainty, and estimates of the effectiveness of these reduction efforts are the basis of the Close Loop Project Control System. This is a closed loop control system for managing the program with a T echnical Performance Measure (TPM). 6] " Open Loop / Close Loop Project Controls ". [7]

2017 30

Project Management Fast Tracking: How to Fast Track a Schedule

ProjectManager.com

Therefore, both can help you make up for lost time, but fast-tracking is not likely to impact your budget, while project crashing will require additional costs. Does the project have governance, oversight and problem management?

2021 255

Cone of Uncertainty - Part Trois

Herding Cats

The planned value, the upper and lower control limits, the measures of actual values form a Close Loop Control System - a measurement based feedback process to improve the effectiveness and efficiency of the project management processes by [1]. This is a closed loop control system for managing the program with a T echnical Performance Measure (TPM). The Cone of Uncertanty, is the signaling boundaries of the Closed Loop Control system used to manage the project to success.

2017 28

Cone of Uncertainty - Part Deux

Herding Cats

This is a closed loop control system for managing the program with a T echnical Performance Measure (TPM). When you hear I have data that shows the uncertainty (or any other needed attribute) doesn't reduce , then that project is out of control and will be late, over budget, and likely not perform to the needed effectiveness and performance parameters. Estimating Governance Management Planning Risk Root Cause Analysis

2017 30

What Is a Project Sponsor? Defining This PM Role

ProjectManager.com

For example, a government project is going to have a state official as project sponsor who will work with the construction company’s project manager. According to the Project Management Institute (PMI), the project sponsor role can be broken into three parts: vision, governance and value or benefits realization. Governance. Closing Duties. They can be government regulatory agencies, landowners, etc.

Why are people leaving project management?

Girl's Guide to PM

Frustrating, disheartened, disillusioned doesn’t come close and honestly if it wasn’t for the pandemic I would have left some time ago.

2021 372

Top 11 Cities for Project Management

Girl's Guide to PM

The 2020 Tokyo Olympics ( budget : US$5.9bn) were postponed as a result of the global pandemic, but investment in infrastructure and megaprojects continues. The Australian government has granted two initiatives close to Brisbane major project status.

2020 374

Project Decision-Making: A Process Guide For How To Do It Better

Girl's Guide to PM

All of them are part of the project governance framework. Ideally, you’ll have documented the decision-making process in the project management plan because it’s relevant to project governance and quality, so hopefully you can look back at that for some guidance on how to keep things moving.

2021 367

What is a Statement of Work? Definition & Examples

ProjectManager.com

Using effective project planning tools and a thorough and well-written statement of work (SOW) will set you up to successfully lead a project over the finish line on schedule and within budget. Here are some that are closely related to a statement of work.

2021 328

My designation is not Project Manager – AM I eligible for PMP® Certification?

iZenBridge

Plan and manage the budget, monitor project budget variations and work with the governance process to adjust as necessary. Establish project governance structure and define escalation paths & thresholds.

2021 83