Cost of indirect resources are always covered in the estimates and costing. If this has not been considered then it is a disaster and should be corrected immediately.
The management sells the quality of the service provided by the project team as part of the proposal/company image... Thus, the salaries are an intrinsic part of the project's cost. If it was considered as a burden by the management, then its conception of the business is
biased.
Also, at the end of the day, someone has to do the job and that is definitely not the management.
Yassine, thank you for your feedback yes many management like that they do exist Saving Changes...
In the IT field, human resources are considered your most important resource. You get what you pay for. If they try to find cheaper resources, then the quality of the work may not be there and the project will not be able to succeed.
Dinah, I agree totally with you and with cheaper staff or materials absolutely the quality will suffer or even the success of the project Saving Changes...
Anish, well it is not only the healthcare IT any other high end employees in different sector are good assets for the company and they do good job to execute the process of business yet their salaries in the eyes of management are burdens. Saving Changes...
I see your point In large engineering firms for one, many people that don't contribute to project execution but their salary is financed by the projects.
I think it is time for a reorganization!!!
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1 reply by Riyadh Salih
Dec 16, 2018 9:19 PM
Riyadh Salih
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Vincent, Thanks for your feedback I am glad to read your comment that you also have seen it in few large firms they do have lots of staff with less contribution to the project direct or indirect.
Saving Changes...
Drew CraigSr. Agile & Product Coach| VanguardPhiladelphia, Pa, United States
Interesting, how else will the work get done. But, yes, I have seen a shift to 'less expensive' assets. We can guess how that went. Regardless, money is spent to complete the initiative successfully. With less expensive, less experienced assets, longer duration, decreased quality - in the end, the money is spent. How shall it be spent, productively, or counter-intuitive? Short-sightedness never adds value in the long-term. Saving Changes...
I see your point In large engineering firms for one, many people that don't contribute to project execution but their salary is financed by the projects.
I think it is time for a reorganization!!!
Vincent, Thanks for your feedback I am glad to read your comment that you also have seen it in few large firms they do have lots of staff with less contribution to the project direct or indirect. Saving Changes...
Andrew, thanks for your comment, it is true though like you mentioned and it is sad at the same time that some management looks at it that way, even few don't see any added value.
but the reality it makes big difference when you pay more first but then you get the job done with high grade & quality no rework. Saving Changes...
Mark StewardDirector| Arrow Zee AustraliaSydney, Nsw, Australia
I would say that in organisations where project management is new or where there is a low level of PM maturity it can be seen as a burden (as the value may not be fully understood or realised). In organisations where PM practices are well established and delivering value, then is it not viewed differently to any other labour overhead in the business. Saving Changes...
Ganesh KumarProgram ManagerBangalore., Karnataka, India
Hi Riyadh,
That’s the truth. If PM and any staff are not directly generating revenue for the project, then it’s a burden. Just watch the annual budget allocated for engineering and the staff, however much value is added to the project, the budgets are way short of engineering. Also if you see the hiring budget for staff – there is a mark difference.
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1 reply by Riyadh Salih
Jan 14, 2019 9:15 PM
Riyadh Salih
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Ganesh, yes you are right about that sometimes PM and staff generate intangible value but they lack to see it, so one day they would realize and change culture
