Part 1: Introduction
Here I am after a good summer vacation. As promised in July, after my vacation I would start our “Back-to-Work” series discussing budgeting good practices.
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.
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Ok, let’s get started.
A Four Step Process
When asked to make a budget, many people start by making a budget, only to find out further down the road, that what they budgeted is not what the client wanted. Can you make a budget if you do not know what is needed?
Another often heard scenario is that “I have so much money to do this project”. Do you really know what is needed in this case?
Budgeting is not a stand alone activity. Budgeting is actually a four step process as shown here.
In this series we will discuss best practices of each of the steps needed to get a good project budget.