Project management is all about overseeing every part of a project, from conception to launch. It is a discipline that requires focus, quick decision-making and good time management. You have to define the project’s goals, outline the steps that the team needs to take to reach those goals, and identify and allocate all the resources needed. You must also oversee the implementation and execution of the project so that they can deliver everything on time.
Since project management is such a complex field, a project could go wrong in many ways. Every mistake translates into lost time and lost revenue. It is easy for a project to go over budget, even if you have good financial management systems in place.
Why does your project keep going over budget and what can you do to avoid this?
Changes and Delays
It is common for projects to be met with delays. Practically anything may cause a delay — absences of key team members, weather, financing and labour issues are just a few examples. It is also possible for you to underestimate the amount of work needed or you may just miss something crucial.
To avoid delays, you will need to create a methodical breakdown of your project’s structure. It is important that you take into account all of the costs involved and how long it would take to complete each part of the project.
You should also allot a budget for any additional costs needed — you will need to have several backup plans in place in case the original plan does not work.
Always track, review and update your project’s progress so that you can minimise delays caused by unforeseen circumstances.
Ideally, every project should unfold to specification and by the predicted timeline. Unfortunately, 100% streamlining and productivity is unrealistic. However, you can improve the outcomes by making sure that everyone on your team is communicating and coordinating with each other.
You must eliminate inefficiencies and always have precise task lists and deadlines in place. While you should not micro-manage your team, you should be able to follow up with them when you need to.
The best way to make sure that your project does not go over budget is to be open with your team and be sure to collect all possible data available. This way, you can keep costs down and profit from the outcome.