management alpha 10 Minute Guide to Project Management PHẦN 6 docx

having to use plants and equipment to the max.

● In some organizations the most careful and comprehensive project budgets end up being

slashed by some senior managers or executives who are operating based on some

agenda to which you are not privy. In his book The New Project Management, author J.D.

Frame says, "Political meddling in cost and schedule estimating is an everyday occurrence

in some organizations." The best antidote against such meddling, says the author, is "the

establishment of objective, clearly defined procedures for project selection …" which

should be set up so that no one, "no matter how powerful, can unilaterally impose their will

on the selection process."

The issues raised in this lesson point to the ever present need for project managers to build an

appropriate degree of slack into their estimates. This is not to say that you are being dishonest or

disloyal to your organization, but rather acknowledging the ruthless rules of project management

reality—you hardly ever get the funds you need, and even then, stuff happens!

The 30-Second Recap

● Because of irrational exuberance, too often the monetary resources allocated to a project

(perhaps even before you stepped aboard) have been underestimated.

● In most organizations, no matter how much you ask for, you can count on not getting it all.

● Perhaps the most effective approach to budgeting combines the top-down and bottom-up

techniques.

● Build an appropriate degree of slack into your estimates!