Every Project Manager needs to deliver on time and under budget. But how do you measure your progress against budget to know if you're on track?
A "project" by definition will always have a limited timeframe and a fixed budget. The "budget" is the amount of money that the Project Sponsor is willing to spend to achieve the project objectives. So here are some tips and hints on setting your budget and measuring progress against it.
Don't fix it in concrete
Your first job as a Project Manager is to ask your Sponsor "So how long have I got and what's the budget?". Your next job is often to ask for more time and money to boost your chances in succeeding.
You can do this by writing a Business Case, Feasibility Study, Project Charter to show your Project Sponsor that you will need more money than that identified to date, to meet the project objectives. When you have agreed on an amount that you believe is adequate, ask them to "fix this amount as a budget, but make available another 10-20% as contingency". That way, your budget isn't fixed in concrete. Yes it's an agreed amount but at least you have contingency.
Planning ahead
Right at the outset, create a Financial Plan so that you have a detailed view of all of the expenses that are going to arise and when they will be incurred. And if you haven't done it already, complete a Project Plan so that you know the cost of every task to be completed.
In this way, you know for every week in the project the amount of money that will be consumed. Make sure that the amounts in your Financial Plan and Project Plan align with the budget set. That way, you know that you have a good chance of delivering within budget from the outset.
Setting out
From the minute you’ve set the budget, you need to start recording the actual cost of the project. This includes the actual cost of your time, your staff, contractors, equipment and materials. If you're using internal staff, then assign a standard rate to the hourly cost of these resources and ask them to complete a Timesheet so you know how many hours they are spending on the project.
If you don't have a financial system, then use a spreadsheet to record the daily cost of the project. And if you want to get specific, then also record the costs against the tasks in your project plan. By accurately recording the project costs throughout the entire project, you will be able to ensure you keep on track.
Keeping on track
To check whether you're on track, monitor your actual costs vs. your planned costs, and identify any deviations. If you're always under your planned weekly cost, then you're likely to deliver your project under budget. It's that simple!
Thursday, July 17, 2008
Friday, July 4, 2008
5 tips for Improving your Time Management
On projects, time is the most sacred resource. It's limited, that's why it's a "project" as opposed to "operational" work which is on-going. So it's imperative that you have good time management skills to cope with the volume of work ahead. Here are 5 tips to help you manage your time better than before:
Tip 1: Get rid of the clutter
There’s an old saying and it goes like this: "a busy desk makes a busy mind". As a project manager, you don’t want a busy mind. You want a clear mind that remains sharp throughout the day. So start clearing your mind by clearing your desk and office space. Make it paperless if possible. You will feel refreshed, focused and sharper than before.
Tip 2: Bin the Post-its!
Do you have tons of post-it notes that are constant reminders of things to be done? And when they're important, you stick them to your monitor? Many people do it, but it's not good time management. The reason why is that it's pretty hard to prioritize 20 post-it notes, so you end up only working on the ones that are in front of you rather than the ones that are the most critical to the success of your project.
Collate all of the post-it notes from your desk, car and pockets and create a single "To Do" list in Microsoft Excel. Then bin the post it notes. You will end up with a clear desk and a single list of things to do. That’s a great start towards proper time management.
Tip 3: Who shouts loudest
People with poor time management skills adopt the "who shouts loudest" principle. Those who shout loudest get their work done first. But if you have a single To-Do list and you've prioritized your work accordingly, then you'll always follow the priorities in your list, and not those coming from people in emails, phone calls and text messages. Suddenly you're the one who determines what gets done and when, not others.
Tip 4: Create a work schedule
Now you have a clean desk and a single To-Do list. You're now ready to create a work schedule. Look at the month ahead and plan your time carefully. Make sure that the important items are scheduled to be done first. Never fill your calendar more than 80%, so that you're available when unexpected tasks crop up.
Tip 5: Stick to it
It's hard, but stick to it. Keep your desk clear. Keep a single To-Do list and update it daily. And if you have more than 5 post-it notes on your desk, then you know you're getting back into clutter. Keep a focused mind and work smart using these simple but effective time management tips.
Tip 1: Get rid of the clutter
There’s an old saying and it goes like this: "a busy desk makes a busy mind". As a project manager, you don’t want a busy mind. You want a clear mind that remains sharp throughout the day. So start clearing your mind by clearing your desk and office space. Make it paperless if possible. You will feel refreshed, focused and sharper than before.
Tip 2: Bin the Post-its!
Do you have tons of post-it notes that are constant reminders of things to be done? And when they're important, you stick them to your monitor? Many people do it, but it's not good time management. The reason why is that it's pretty hard to prioritize 20 post-it notes, so you end up only working on the ones that are in front of you rather than the ones that are the most critical to the success of your project.
Collate all of the post-it notes from your desk, car and pockets and create a single "To Do" list in Microsoft Excel. Then bin the post it notes. You will end up with a clear desk and a single list of things to do. That’s a great start towards proper time management.
Tip 3: Who shouts loudest
People with poor time management skills adopt the "who shouts loudest" principle. Those who shout loudest get their work done first. But if you have a single To-Do list and you've prioritized your work accordingly, then you'll always follow the priorities in your list, and not those coming from people in emails, phone calls and text messages. Suddenly you're the one who determines what gets done and when, not others.
Tip 4: Create a work schedule
Now you have a clean desk and a single To-Do list. You're now ready to create a work schedule. Look at the month ahead and plan your time carefully. Make sure that the important items are scheduled to be done first. Never fill your calendar more than 80%, so that you're available when unexpected tasks crop up.
Tip 5: Stick to it
It's hard, but stick to it. Keep your desk clear. Keep a single To-Do list and update it daily. And if you have more than 5 post-it notes on your desk, then you know you're getting back into clutter. Keep a focused mind and work smart using these simple but effective time management tips.
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