Best Practices for Budget Schedule overruns

Change Management Estimating Governance Portfolio Management Using PMI Standards

Mark Avrin Managing Director| True Blue Consulting LLC Lake Worth, Fl, United States

Hi all,

I'm currently on contract at a large shop; multiples PMOs etc. They're current practice is to manage any overruns via a change control process. I can't find supporting documentation from any official sources (PMI/PMBOK) but in all my experience this doesn't seem right. I've always used change management to manage scope changes from the project sponsor, not overruns because of bad estimates or overlooked resources by the PM or performance of other 'internal' IT resources.

Obviously missed estimates have impact on budgets, resource scheduling of future projects etc, so I understand it needs to be handled through some process, I just don't know if change management is the right approach? Can anyone point me to any industry standard best practices, policies, processes etc. on how to deal with this ?

Posted: Jun 11, 2018 1:39 PM

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Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada

Mark -

I don't know of any official references to this, but this is common practice in public sector, financial services companies and others where it is not permitted to have a cost variance from an approved budget. This is to show that there is proper governance over spend...

In such organizations, cost variances will be "approved" via change requests.

I'm not a fan of this practice as it makes it muddies the change waters, but it's a function of funding governance...

Kiron

...

1 reply by Mark Avrin

Jun 11, 2018 9:48 PM

Mark Avrin

...

Thanks for the reply Kiron. I can understand your point but then as you mention the waters are muddy and you lose track of overruns vs. actual changes. I would still really like to find reference to a by-the-book method for this ie. ISO/PMI etc. if it exists

Posted: Jun 11, 2018 5:22 PM

Mark Avrin Managing Director| True Blue Consulting LLC Lake Worth, Fl, United States

Jun 11, 2018 5:22 PM

Replying to Kiron Bondale

...

Posted: Jun 11, 2018 9:48 PM

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Best Practices for Budget Schedule overruns

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