Project Management

Get Your Project Team Funded

Tom's latest eBook has been released on Amazon: "The 7 Myths of IT Integrations". Tom is also a Program Director for a large Midwest corporation and has been an adjunct faculty member at Walsh College. He has managed global web initiatives, data center moves and large multi-million dollar programs.

Creating a budget for a project is sometimes a challenge (okay, most times). As a project manager approaching a new project, you may want to dispel some of the murkiness around what a project will cost before itemizing out a more formal, detailed project materials bill. To get that first level of clarity usually relies upon techniques of varying levels of difficulty.
Hardware cost, for example, may be gleaned from a vendor’s website, and the same is sometimes true for the software. When we get to our human resource cost estimates for a project, there tends to be just as many ways of getting there as there PMs who do it. The following technique is what I have used for several years on my projects.
Budgetary Resource Estimates
The key point to understand is that I am looking for a budgetary figure. “Budgetary” does not mean “exact”. It means it is a first pass at adding some level of form to something that I previously knew nothing about. I need the additional clarity to continue communicating and negotiating with my stakeholders. No need to be quantum physics precise just yet. It’s not necessary, but I do need to be in the ballpark.
I have found that the right level of detail starts at a full-time equivalent (FTE) level or some portion of an FTE. Basically I ask myself, “How much of a given resource do I …

Please log in or sign up below to read the rest of the article.


Continue reading...

Log In
Sign Up

"Love your enemies just in case your friends turn out to be a bunch of bastards."

- R.A. Dickson