By Stephen Barker; Rob Cole
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Extra info for Brilliant project management : what brilliant project managers know, say and do
3 Facilities your project needs and has direct responsibility for. For example rented temporary accommodation. 4 Expenses incurred when the fruits of your labours are first handed over. For example training, marketing and one-off deployment costs. 5 Costs your customers will incur to keep what you have delivered operating from day to day. We know it’s not easy to deal with a situation where a realistic budget is out of kilter with expectations. In order to defend what might be seen as an unreasonable proposal, you’ll need to have a clear audit trail of how cost estimates have been arrived at.
There are many ways of doing this, and we’ve seen many impressively sophisticated means of weighting various factors and calculating scores. However, for most projects, the following simple scoring mechanism provides you with a good way of prioritising risks and issues. Risk and issue scoring Risk score ϭ Probability of occurrence ϫ Impact if risk occurs Issue score ϭ Impact of issue There are complex statistical techniques to analyse risk probabilities and to model outcomes. However, we prefer to use the following simple rating system.
Use this acid test to encourage your customers to be reasonable about what’s listed as essential. Agree the relative priority of optional add-ons. Treats aren’t of equal importance and you may have to sacrifice some in favour of others. Help your customers to understand the cost of items that are of marginal benefit. Encourage them to consider dropping anything that’s poor value. Anything included in the fit-for-purpose baseline is non-negotiable. If time or cost pressures become acute, some treats will have to be dropped.