Project Management

Pareto's Principle (Part 3)

Richard L. Diamond & Jennifer S. Diamond

(continued from Part 2 of Pareto's Principle)

 

To facilitate the discussion about the two options, IT also provides an increment list, showing what each additional requirement between "The 80/20 Design" and "The Ideal Design" provides and costs in time, development and other costs. Remember, those costs may include customization, which adds a hit to ongoing maintenance. The full costs of that final vision needs to be captured and IT does it here.

 

Now, IT works with the users and business sponsors to decide on the final scenario, or "The Approved Design." IT isn't the heavy here. The IT team simply provides the costs of the design choices, and the users work with sponsors to sell the business case for the benefit and arrive at an approved and funded design. How this looks in the management summary is shown below:

 

Major Project Scope Drivers

80/20 Design ($K)

Ideal Design (100% Scope)

($K)

Approved Design

($K)

Standard ERP Installation

$3,000

$3,000

$3,000

Reporting:

 

 

 

Standard Reporting

$100

 

 

Custom Reporting

 

$500

$500

Consolidation

 

 

 

Standard Financial Consolidation

incl

 

Incl


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"We should be careful to get out of an experience only the wisdom that is in it - and stop there; lest we be like the cat that sits down on a hot stove-lid. She will never sit down on a hot stove-lid again, and that is well; but also she will never sit down on a cold one anymore."

- Mark Twain