Dear Joseph, very interesting post and observation on cost containment and cost management. I suspect many organizations use these two terms interchangeably, but you have pointed out quite well their differences. For many organizations, budgets are set and pushed downward with the resulting measurement system not being a system that is conducive to "cost management". In an operational environment, the resulting "cost containment" is almost inevitable. One could make a case, however, that in a project environment such as a PMO (project, program, or portfolio), a focus on "cost management" and optimization of the project triangle, even at the project level, should be an encouraged endeavor. No doubt, most project management methodologies already have in place controlling processes for such things as budget update proposals to the project budget. The challenge is to use these project processes in the context of optimization of the project triangle and not just for project accounting. Great post, I hope we hear and learn from others!
