How Project Budgeting and Forecasting Helps Deliver Expected Results
One of the most difficult jobs that project managers have on a daily basis involves expecting the unexpected. No matter how hard you plan or how thorough the development stage of your project was, there will still be certain elements that won’t work out quite the way you thought they would.
One of the keys to determining if your project will deliver the expected results involves keeping up with these variables at all times with project budgeting and forecasting. Remember that the ripple effect is very much in play in the project management field. One small change during “Part 2” of a project can have significant consequences down the road during “Part 4,” “Part 5” and “Part 6.”
Are We Hitting Our Budget Estimates?
One of the best ways to determine if your project will deliver the results that you expect is to take a closer look at how much you’re spending at any given time. During the initial planning phase of the project, budgeting is one of the areas that will monopolize your time for a number of different reasons.
If you’re halfway through a project and find that you’re spending a lot more money than you thought you would, remember that the money isn’t just evaporating into thin air. It’s going somewhere, which is usually a sign of other issues that may not allow you to achieve the results that you were after.
Are We On Time?
Similar to taking a look at the budget, taking a look at your schedule is also one of the best ways to determine if your project will deliver the results that you originally thought it would. If you take a look at your project using enterprise project management tracking software and suddenly realize that you’re a week behind schedule, this is usually a sign that something serious is wrong. Remember that your schedule was developed based on your ability to deliver a finished projected that met your client’s every expectation. If your budget is already out of control, the chances are that the expected results will be, too.
One of the keys to making sure that your project is completed on time and on budget, along with meeting or exceeding your client’s expectations, involves determining if your project will deliver the expected results as early as possible in the process. Change is a delicate thing – it isn’t necessarily a good thing or a bad thing, but it is most certainly something that you’ll have to deal with. This is a large part of the reason why determining if your project will deliver the expected results at multiple points in the process is so important.
- One of the best ways to determine if your project will deliver expected results involves looking at your budget. This will allow you to see signs of problems that will definitely affect your finished project.
- Similar to budget, looking at whether or not you are on time from the perspective of your schedule will also help clue you in on issues that are affecting the finished project.