I’m interested in learning more about your approaches to addressing budget constraints. For instance, I optimize resource allocation and implement cost-saving measures, such as reducing travel to the customer’s site. While I am a big proponent of in-person client interactions, I recognize that virtual meetings can be a solution to staying within budget.
Please share a valuable lesson you have learned that has been effective for you, your clients, and your organizations when dealing with tight project budgets. In addition, is there any (new) way of working you started implementing during the pandemic that you continue to use in today's post-pandemic world?
One key lesson I learned early in my career is when faced with tight or reduced budgets, make reducing contingency reserves your last choice, not your first!
Kiron Saving Changes...
Keith MelvinSumaria Systems, LLCDayton, OH, United States
Maria,
For me, travel also becomes a donor for funds when the budget gets tight.
I consider the following:
1. If the budget is tight, I like to constantly review the planning assumptions used to agree to the tight budget. If your planning assumptions have changed, then it's time to relook at execution.
2. Take a moment to scrutinize overruns and underruns (if you have any). I try to understand why things are going the way they are.
3. If you've compiled information to show you need more funds, present the info to stakeholders and justify your position.
Lastly, it's about trade-off. One aspect of the project has to be most important...by that, if funding is the most important thing, then your trade space resides in performance or schedule.
...
1 reply by Maria Hrabikova
Oct 14, 2024 6:49 PM
Maria Hrabikova
...
Keith,
I like your approach of pausing to reflect on the project's developments. I am a big supporter of Design Thinking, and reframing the problem is a valuable technique for identifying the root cause of the problem.
Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
All related to AI and process automation could help, adding to that virtual teams. Take into account that this type of things that becomes a buzzword today are used from long time ago. For example, some people like me run project meetings talking with telephone bridges. And when I wrote AI I am not referring to generative AI. I am using and implementing this type of things from 1990. The key difference is from some time ago you can do this type of things for free.
...
1 reply by Maria Hrabikova
Oct 14, 2024 6:44 PM
Maria Hrabikova
...
Sergio,
Thank you for sharing your extensive experience working remotely and leveraging advanced technology. Both approaches are solid pillars to build upon when working with budget constraints.
Saving Changes...
Simona DimitrovaHead of Customer Education| PennylaneParis, France
Hey there! Budget is more and more of an issue from where I stand and very often I had to deal with 0-budget projects (startup world!). Here’s what’s worked for me:1. Always check if there’s any spare budget.
Before making cuts, I confirm if the budget is truly fixed. Sometimes, there’s a little extra margin you didn’t know about. It happened that actually leadership was more open to extend the budget when they saw the impossibility of the initial state.
2. Beyond the usual suspects for tools & procurement.
When it comes to tooling / systems / procurement -> there are tons of new startups offering great alternatives at lower costs, whichever industry you are looking into. It’s amazing what you can find if you dig deeper than the big players.
3. Make it a team problem.
When I involve my team into figuring out creative budget cuts, I am actually surprised by the ideas and happy to share the burden.
And yes, virtual meetings are here to stay, but I always try to add face-to-face time when the stakes are high or at the beginning of the relationship. The trick is to cram as much value as possible in as little time as possible. It exhausts you at the end of the day but I found it saved me some headaches down the road as we can't build the same quality relationships over the screen.
(Don't know what's with all these empty lines, sorry about any reading headache:))
...
1 reply by Maria Hrabikova
Oct 14, 2024 7:00 PM
Maria Hrabikova
...
Simona,
Thank you for your excellent recommendations.
I particularly like your suggestion to work with the team to identify budget constraints and mitigate them. Project management is a team sport, and our responsibility as project managers is to motivate and encourage our team members to bring out the best in each other during discussions. Sharing different perspectives can help shape or shift our understanding of the problem.
One of my critical lessons learned from past projects with tight budgets is that when you need to work with many different contributing groups, carefully plan your coordination meetings. The more attendees, the more critical the prep work.
I have seen the tendency for some management to use meetings almost punitively subscribing to the theory that they will drive progress. Sticking everyone in a room and expecting results is not only lazy on the part of the PM but it also drives significant extra time, cost, and rework. Attendance is inadequate, people are not prepared, many are not engaged, and it is just a big waste of money which irritates everyone.
People sometimes lament that we don't have time to do things right but always find time to do them over so avoid that trap. Plan the sequence, agendas, who needs to be in attendance when. Contact teams personally to confirm commitment and ensure pre-work is complete. Get buy-in from senior stakeholders that participation is not optional and elevate no-shows early to make a point.
That takes a lot of time and effort on behalf of the PM team but every hour spent on a large project will typically reduce more than that for each team involved which adds up very quickly.
...
1 reply by Maria Hrabikova
Oct 14, 2024 7:07 PM
Maria Hrabikova
...
Keith,
Thank you for your valuable observation on utilizing time and carefully planning and coordinating meetings, which is a double-edged sword at the end of the day. Even with good intentions, we can end up using our hours inefficiently.
All related to AI and process automation could help, adding to that virtual teams. Take into account that this type of things that becomes a buzzword today are used from long time ago. For example, some people like me run project meetings talking with telephone bridges. And when I wrote AI I am not referring to generative AI. I am using and implementing this type of things from 1990. The key difference is from some time ago you can do this type of things for free.
Sergio,
Thank you for sharing your extensive experience working remotely and leveraging advanced technology. Both approaches are solid pillars to build upon when working with budget constraints. Saving Changes...
Maria,
For me, travel also becomes a donor for funds when the budget gets tight.
I consider the following:
1. If the budget is tight, I like to constantly review the planning assumptions used to agree to the tight budget. If your planning assumptions have changed, then it's time to relook at execution.
2. Take a moment to scrutinize overruns and underruns (if you have any). I try to understand why things are going the way they are.
3. If you've compiled information to show you need more funds, present the info to stakeholders and justify your position.
Lastly, it's about trade-off. One aspect of the project has to be most important...by that, if funding is the most important thing, then your trade space resides in performance or schedule.
Keith,
I like your approach of pausing to reflect on the project's developments. I am a big supporter of Design Thinking, and reframing the problem is a valuable technique for identifying the root cause of the problem. Saving Changes...
Budget issues are always a reality—don't ask me why! From my point of view, being creative is key. This ‘on time, on budget’ rarely happens, so we need to embrace flexibility. My tip: focus on prioritizing deliverables and negotiate scope early. It’s all about balancing and managing expectations. Saving Changes...
Hey there! Budget is more and more of an issue from where I stand and very often I had to deal with 0-budget projects (startup world!). Here’s what’s worked for me:1. Always check if there’s any spare budget.
Before making cuts, I confirm if the budget is truly fixed. Sometimes, there’s a little extra margin you didn’t know about. It happened that actually leadership was more open to extend the budget when they saw the impossibility of the initial state.
2. Beyond the usual suspects for tools & procurement.
When it comes to tooling / systems / procurement -> there are tons of new startups offering great alternatives at lower costs, whichever industry you are looking into. It’s amazing what you can find if you dig deeper than the big players.
3. Make it a team problem.
When I involve my team into figuring out creative budget cuts, I am actually surprised by the ideas and happy to share the burden.
And yes, virtual meetings are here to stay, but I always try to add face-to-face time when the stakes are high or at the beginning of the relationship. The trick is to cram as much value as possible in as little time as possible. It exhausts you at the end of the day but I found it saved me some headaches down the road as we can't build the same quality relationships over the screen.
(Don't know what's with all these empty lines, sorry about any reading headache:))
Simona,
Thank you for your excellent recommendations.
I particularly like your suggestion to work with the team to identify budget constraints and mitigate them. Project management is a team sport, and our responsibility as project managers is to motivate and encourage our team members to bring out the best in each other during discussions. Sharing different perspectives can help shape or shift our understanding of the problem. Saving Changes...
One of my critical lessons learned from past projects with tight budgets is that when you need to work with many different contributing groups, carefully plan your coordination meetings. The more attendees, the more critical the prep work.
I have seen the tendency for some management to use meetings almost punitively subscribing to the theory that they will drive progress. Sticking everyone in a room and expecting results is not only lazy on the part of the PM but it also drives significant extra time, cost, and rework. Attendance is inadequate, people are not prepared, many are not engaged, and it is just a big waste of money which irritates everyone.
People sometimes lament that we don't have time to do things right but always find time to do them over so avoid that trap. Plan the sequence, agendas, who needs to be in attendance when. Contact teams personally to confirm commitment and ensure pre-work is complete. Get buy-in from senior stakeholders that participation is not optional and elevate no-shows early to make a point.
That takes a lot of time and effort on behalf of the PM team but every hour spent on a large project will typically reduce more than that for each team involved which adds up very quickly.
Keith,
Thank you for your valuable observation on utilizing time and carefully planning and coordinating meetings, which is a double-edged sword at the end of the day. Even with good intentions, we can end up using our hours inefficiently. Saving Changes...
Community Champion
