We are now on to Part 2 of this
In Part 2 of this three-part series on increasing project profitability, we’ll examine the role of effective resource management in keeping project budgets on track. Equipment, third party vendors, and data center charges – among other things – get expensed to our project budgets. But far and away the biggest drain on project dollars is the efforts of project team members being charged against the project budget. These are the individuals charging probably anywhere from 20% to 100% of their time on a daily basis to our projects and they aren’t likely billing at cheap rates. Mostly likely they are
To keep the project financials as healthy as possible in terms of resource usage and management, I’ve concluded that the PM should follow these three concepts…
When the project manager and business analyst are working closely with the customer team to finalize project requirements during the planning phase, there’s no need to have the technical lead already assigned to the project with little, if any, need for work. Plan out when resources will come on the project and look for ‘down’ times when they can be released for other work. That way you can both maximize their productivity on your project tasks and minimize needless charges to your project budget.
Use the right software to manage tasks.We’re going to be using some sort of software to manage the projects and the tasks that we’re delegating to the project team members. But it’s more than just that task management issue. The information needs to go well beyond just the project manager’s eyes. The customer will want to see it as well, but if the project team also has constant insight into the overall project view and tasks as well as how and where their efforts fit in, they’ll have more ownership of those tasks. Keep them informed and focused on their tasks, give them revised schedules every week showing current assignments and task completion percentages, and hold them accountable to that information as part of your weekly status reporting and meetings. Team members who see where they fit into the overall plan and are consistently aware of your expectations of them will be more focused and more productive.
Use internal meetings to connect with the team.We meet with the customer regularly – hopefully weekly. But just having
Accountability is critical as most project team members are likely assigned to other concurrent projects in the organization. These internal discussions keep the team focused on your project’s priorities and help keep everyone productive. And productive team members who are being held to a high level of accountability for their efforts will help your project budget stay on track.
In Part 3 of this series, we’ll examine the role that change control and change management can play in the project’s revenue stream and profitability.
Meanwhile, I have to ask - have you tried the new TeamPulse? Sign up for a free 30-day trial now.
A Business Solution Designer and IT/PM consultant and author with over 25 years of software development, management, and project management experience leading initiatives in Manufacturing, Government Contracting, Gaming and Hospitality, Retail Operations, Aviation and Airline, Pharmaceutical, Start-ups, Healthcare, Higher Education, Non-profit, High-Tech, Engineering and general IT. Brad is married, a father of 9, and living in sunny Las Vegas, NV.
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