When managing projects, pursuing cost savings is a common goal. However, indiscriminate cost-cutting measures can often undermine the efficacy of a project. After all, if a project fails to deliver its intended benefits, staying within budget becomes irrelevant and a sunk cost. Efficient project completion is not just about trimming project management expenses; it’s about maintaining quality while keeping costs in check. A strategy is required that balances the three critical elements of project management: cost, time, and quality.
1. Systematic Vetting Process
One of the most significant financial drains in project management is initiating projects that should never have started in the first place. To prevent this, consider implementing a systematic vetting process. Engage in portfolio management to identify ill-advised investments before they consume resources.
The key is not to overwhelm your project managers and teams with initiatives unlikely to yield efficiency or benefits. Instead, establish a structured evaluation system for all project ideas. This approach will quickly enhance your portfolio’s overall return on investment (ROI).
2. Comprehensive Documentation of Requirements
At the outset, convene your subject matter experts to discuss the project’s goals, opportunities, and anticipated benefits. Encourage them to brainstorm the essential features and functions to achieve these objectives. Documenting this early conceptualization phase is invaluable. It creates a record of discussions and sets a clear path forward, reducing unnecessary iterations and project duration, which keeps costs low in the long run.
It’s critical to emphasize the importance of defining all requirements for realizing the investment’s return rather than pursuing extreme cost-cutting measures that compromise the project’s viability. Remember, even “lean” projects must fulfill their ultimate mission.
3. Qualitative Scoring of Functional Requirements
Project professionals often find themselves mired in detailed cost-benefit analyses for each component, struggling to prioritize them. A qualitative scoring system can alleviate this burden and ensure stakeholders actively engage in the process.
Create a matrix outlining the fundamental qualities of each project requirement: risk, impact/benefit, cost, and time. Assign each requirement a score of “high,” “medium,” or “low” in each dimension. While this may appear simplistic, a three-tiered scoring system across these four dimensions offers considerable flexibility. It also prevents a single influential stakeholder from dominating the decision-making process, promoting a more equitable approach to budget management.
In reviewing these three steps, a common theme emerges the importance of diligence at the project’s inception. The key to enhancing project completion efficiency is to stay proactive, preventing scope creep and budget overruns.
In project management, it’s crucial to consider the big picture, including the return on investment (ROI). Sometimes, making a slightly more significant initial investment is justified in exchange for more intelligent decisions that yield more impressive, cost-effective benefits in the long run.
By following this three-step approach, you can help your projects remain on track with budget and deliver the expected returns without compromising quality or efficacy.
To learn more about how WiserWulff can help your organization strengthen its portfolio, program, and project management approach to maximizing savings without sacrificing returns, contact us here.
