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 Project Break Even Analysis  Project Break Even Analysis   Budgets   Budgets

Manage   »   Cost   »   Management of cost


Let us face it; this is the very crux of the Toolkit. Maybe oddly though, we do not expect you will do a lot of managing costs. Yes, this seems paradoxical but cool down and bear with it.

We are not trying to go back on our responsibilities. On the contrary, this Toolkit has a set of comprehensive techniques which ensure that good estimates become your actual costs. We do not suggest for one moment that the days of actual cost and budget cost are ended. It is often a very powerful message to demonstrate your almost warrior like command of costs by showing your actual costs and budget costs being precisely numerically equal every time you choose to deliver a project. At the very least, this very adroit habit of yours leaves a few observers and commentators open-mouthed and inquisitively perplexed. It is a clever trick.

Let us explain this a little further without labouring it. You will have a project plan. This shows the start date and end date for your delivery. This shows a series of shipments, with start dates and end dates for each shipment. There will be no work performed outside of this plan. Everything that will be done on this project will be done inside this plan. Anything that will be done on this project will be done to deliver something that is part of a shipment and nothing else. We do not add resources, and so no extra costs, to the project when something does not fit the shipment timebox. We simply agree the scope seep with business agreement.

Therefore, if our estimates for the delivery of these shipments are correct, we are going to complete the delivery within the planned estimates. It is the tight management of resources, scope and risks inside the shipments, day after day, which ensures we deliver shipments inside a planned estimate. Once we deliver individual shipments inside a planned estimate, we complete the delivery and therefore project, to budget. There is logically no other way.

It seems fundamental but sounds too easy. However, it is not. The Toolkit provides the agile governance. It is the management of time and the coaching of people that are the fundamental principles. Now we look at how we budget for that process.
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Management of cost






   


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