Budgets are significantly affected by marketplace factors, your competitors' activities, regulatory factors if they are applicable, and the change appetite of your business. In this video, the instructor discusses preparing your project budget in light of these circumstances.
- It would be awesome if we could run projects…with no distractions.…No need to worry about business issues,…other projects, political posturing,…economic trends, or what your competitors are doing.…Unfortunately, that isn't realistic.…There are several factors that will influence…your company's behavior, and need to be considered…when building a viable, acceptable project budget.…The Project Management Institute calls these…enterprise environmental factors.…
Let's start with two common internal factors.…First, the culture of your organization…will determine how your budget will be reviewed.…The expectations for your budget's level of detail,…and when you'll have to plan for…and engage in competitive bidding…for vendor products is important to know.…These are examples of things that are determined…by the culture of your organization.…Second, budgeting cycles can have…a substantial influence on your budget,…and the running of your project.…
For example, I ran a large multi-year project…for a government organization.…
Note: This course follows the latest guidance from Project Management Institute, Inc., as outlined the PMBOK® 6 Guide.
- Recall best practices for project budgeting and estimation.
- Distinguish common estimation approaches used to build project budgets, and understand when to use them.
- Identify best practices for budget expectation management, while utilizing sound budget refinement techniques.
- Describe and explore agile project budgeting techniques.
- Review various approaches for correcting project budget overruns.
- Review sound budget reporting approaches, including how they can be used to report project status.
- Recognize the issues and changes that can put a project budget in jeopardy.