Budgeting Best Practices Part 2 of 6

Part 2: Define Scope


Determining your project budget has been discussed several times on this website. The reason is that many projects experience budget overruns. Many project managers are still having problems determining a good project budget. Based on these facts, I decided to run a series on budgeting best practices for the rest of this year.


If you are interested in knowing more about budgeting best practices,  SIGN UP on this blog (to the right, if you have not already done so)  to have all the blog posts of this series delivered to your inbox.

Step 1: Define Scope

As mentioned in part 1 of this series, determining you project budget is a four step process:

project scope to budget
From Project Scope to Project Budget

The first step is to define your scope. Can you get a good budget if you do not have a good scope?

Defining your scope does not consist of collecting requirements alone. A very important part of defining your scope is verifying you scope with ALL stakeholders.

Who are ALL stakeholders?

When identifying stakeholders look at your project sponsor, the end user(s) and all that could be effected by the execution of the project. Collect requirements from all your stakeholders, include the requirements in your scope and then go back to the stake holders to verify your scope. I know, this can be a lengthy and repetitive process, but it has to be done. If not, you run the risk of creating a product or service that will be rejected.

A Practical Tip

In real project life you sometimes have end users who give their input while you defining your scope, and during the execution of the project they have additional wishes (gold plating)

Other end users see the execution phase as the time to give input, not the scoping phase.

The way to handle these end users during the execution phase is to use judgment (interest of the sponsor and interest of the end user) and assertiveness (know when and how to say no). For more on how to handle these end users see

Next Step

Only after you have verified your scope, you are ready to proceed to the next step: Create WBS.

Related References

Budgeting Best Practices Part 1 of 6

Determining Your Project Budget

Scope Control Best Practices

Project Management Quick Start


Leave a Reply

Your email address will not be published. Required fields are marked *