Complex IT Project Management: 16 Steps to Success

Overview

In this chapter, we will look at the critical elements of managing project dollars, which are:

• How budgets are derived

• What the budget should contain

• Seeking additional funding if required

• Understanding procurement and expense tracking

• How to manage the deltas, or budget versus actual

You may not have participated in the etiology of your project's budget. It pays for you to understand how the number was derived, however, because you will be held responsible for any overage, even if the original number was unrealistic. Project budgets typically have an inferred "must not exceed" characteristic, meaning that if the approved number is, for instance, $5 million, you cannot go back for another penny. Then, of course, there is the implication that failing to deliver the project at or below budget is proof positive of your incompetence. Perhaps, if budgets were in truth anything more than a projection, this career jeopardy might be fair. Because they typically are not, you are well advised to seek out any potential errors in your budget, and prepare to manage the budget as another kind of risk - that is to say, proactively, with a Plan B in place.