This video examines typical organizational expectations around project budgeting, and the varying levels of information that comes from organizational finance departments. This information can be used as a means of understanding the logical level of detail with which you should plan your project budgeting process.
- Begin with the end in mind,…it's the best way to think…when it comes to a great many things…in the project management world,…as every step you take should get you closer…to achieving your project outcomes.…When it comes to project budgets,…there are two major factors that need to be considered…when building and managing your project budget.…Determining the overall level of detail…you'll be expected to manage,…and how you will track personnel hours…dedicated to your project.…
The level of detail you need to collect…is usually determined by the following factors.…First and foremost, your company culture.…Financial organizations are typically very focused…on their spending patterns and trends.…Research and development organizations usually do not…share the same focus on spending details.…The second factor is the presence of contracts.…As a project manager…you may not always work within a contract.…However, when you determine the contract type…you're working with…that will dictate your budget management behavior.…
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.