Projects behave differently from routine activities. This is also necessary because projects are expected to achieve a unique one-time result. Effectiveness (result oriented) is here dominant over efficiency. Does this mean that projects should not be effective? No, but space must be created to deal with uncertainty and risk. This must be translated into a project management approach.
Project managers have a difficult task. Their method is the orderly elimination of risks and uncertainties, on the way to a tangible result, which is agreed upon with their clients.
guidance and accountability
Thus, project managers – more than, say, department managers – are results-oriented and focused on the future, after all, it is still possible to modify (modify) it. On the other hand, the normal P&C cycle has to do with accounting for the past. Think of one of the most important “products”, the annual accounts. This is a necessary evil for project managers.
Project management, on the one hand, must create frameworks so that the project aligns with the frameworks of normal business processes, planning, and control, and on the other hand, leave room for project managers to accomplish their tasks. Take inventory in advance – along with project managers – as projects deviate from normal business processes and the rules and frameworks that apply in the organization. Understanding the initial business case together, in which the outcome to be delivered with resources is described, in the framework of time (planning) and quality is an important step in coordinating project management and control and organization (normal planning and control cycle).
Projects have different stages compared to the regular annual cycle of the organization. When the organization knows its periodic reports, which are always delivered in “calendar moments”, the project will have its own phases. This leads to unnecessary mismatches and tuning differences.
Avoid this mismatch by using the stage documents (or progress reports) that were recently delivered by the project. These are usually sufficient, unless substantial changes occur after the completion of this project report. So these must appear additionally. Using existing project information and coordination in this way prevents an extra moment of coordination between the Company and the project.
Learn about project management
For consoles who are a bit far from projects or who are introduced to (the need to) project management for the first time, it’s important not to dive straight into the depths of systems and methodologies and maybe – perhaps – get lost in them. Take the time to understand the core issue of management and oversight for such a complex project. You can use the feasibility study or project plan for this purpose, if available. In this documentation you will find a list of project risks. You already know the stage of the stages, which in itself provides useful information: which stage takes the most time? why? Do I understand? You can now assign listed risks to project phases. This gives you an initial link between “time” (staging) and risk.
To understand the issue of project management, it is also helpful to know what the project expenditures will look like. At what stage and possibly at what time does the project spend the most resources? This way you can plan the so-called “burn-in rate” of the project and you can take timely measures regarding the availability and/or accountability of financial resources. Again, you can use Project Phases here. Suppose in the example above that you have a total budget of 240,000 euros and that you estimate the distribution (expenditure) of the budget over the phases as follows:
The first phase initiative 5% = 12,000 euros
Phase II Design 10% = 24,000 euros
Preparation of the third stage 35% = 84,000 euros
Implementation of the fourth stage 50% = 120,000 euros
The focus in managing the finances of the project is on phases 3 and 4, after all 85 percent of the budget is spent here. Ask yourself about the behavior of these expenses. Are there line expenses or are there big moments (purchases, bids)? Are the resources available on time? How is it ensured that procurement rules are followed, does the project have sufficient knowledge of this or is support required? Are the powers of attorney/delegation of the project manager adequately arranged in order to be able to act effectively? Questions that can be discussed with the project manager on the basis of this simple examination.
With these simple guidelines, you, as the controller, can get a better feel for the project and the specific control that is needed. It does not take much time and stimulates cooperation with the “project”, when it is discussed together and in due course how the project is given space in the framework of the organization. The (project) console builds a framework for more detail project management by linking time (staging), money (budgeting) and risks at an early stage, which can be laid out in more detail at a later stage..and recorded in systems (planning, project management). risk database).
Author: Eric Kemperman is PCO Kennis Director, Project Monitoring Expert, Supervisor, Director, Manager, Trainer, Trainer, and Author.
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