A bridge is a way of displaying financial information in visual format. You might also know it is as a waterfall chart, or ‘the one with the flying bricks that looks like something from Mario’. It’s just a way of showing how an initial position has been affected by subsequent changes, so you can see why that would be useful for a company’s financial position. It can show changes that are positive and changes that are negative, and ends up with the new cumulative position as you can see in this diagram.
This picture shows a completely made up scenario, but I think it illustrates a point. In September, the starting position for this department was $75,000. This could represent value, profit or anything else. Then there were some things that changed. These are illustrated by the small floating boxes: the first change that happened was a positive improvement of $16,000. Then there were some other criteria, inputs and changes that also increased the situation positively.
Now we come to the black boxes. These on my chart represent money out, so let’s say this department spent $2,000 on some new software licences and $1,000 on a big party for everyone. This has had an impact on the net position so if my maths is right, the closing position on the graph, the situation in October, is now $100,000.
Great. But how is this relevant to projects?
Typically this type of bridge is used to represent financial information and you have financial information on your project, don’t you? I think it is a great way to present the impact of changes on your project budget to stakeholders. It’s useful because it’s a good visual representation of how you got from there to here and where the money went.
So you could use it to show the financial changes on your project, but there is nothing to stop you using the same layout to display other sorts of changes. Take this version, for example.
This shows you the situation in September in terms of project days. There are 150 days allocated to this project. Then there are a number of changes put forward. The green boxes show what would happen if you add those changes – the number of days spent on the project goes up (it’s not rocket science really). There are also some changes that save you time on the project. Let’s say that the big one, the 20 day time saving, is because the project sponsor has decided that the overseas office isn’t going to be included in this initiative after all, so there is no need to train those team members and you can save a whole lot of time. Another little change knocks 3 days off your project total.
If all these changes are approved, your project will now take 152 days.
When you are looking at individual changes at the change board, some stakeholders might find it hard to keep approving changes that add time. Two changes that add 10 days each? That’s huge. But when they see all the changes on the table that month laid out like this they can see that approving them all only adds 2 days to the project overall. That’s a very different story.
Of course, you might not want all those changes approved – there might be some stupid suggestions in there or functionality that would be better pushed off to a Phase 2. But using this bridge diagram gives you a new way to present the same data to stakeholders and help them decide on the impact overall.
I hope you find it useful!