OnPoint, LLC

On time and on budget, but did the business benefit?

The project finished on time and on budget, therefore it was a success. From a project management perspective, it would appear that this is a true statement. As project managers, we are obsessed with reaching milestones. We monitor our project burn rates with greater scrutiny than our personal bank accounts. To a project manager, schedule slippage and cost overruns are signs of poor planning or sloppy management. On the other hand, it may be a sign that the project manager is thinking like a business owner.

When faced with a decision to delay a project implementation until quality concerns can be addressed, a business owner would consider the longer term impacts. A year from now, what would be the impact of a delay? What would be the impact of a flawed implementation? The proper business decision might be a brief delay.

Some projects, particularly new product launches, are inherently risky. Success criteria may not be clearly understood and the initial project approach might require a few corrections. From a project manager’s point of view, it would be preferable to undertake a thorough project planning process until all planning premises are clear and the budget estimates are solid. From a business owner’s point of view, the business benefit of being first to market might outweigh the risk of cost overruns.

The discipline of sticking to deadlines and budgets is critical to effective project management and, in most cases, the business benefits from such discipline. However, when there is a conflict between project management discipline and business benefit, the project manager must think like a business owner and promote the best interest of the business.

Comments are closed.

OnPoint, LLC