Project Financial Management – 10 key steps to help streamline your business

In the last ten years we have been constantly with news about private and public projects that have either supplied significantly reduce the scope of the anticipated budget, or had to scale to even come close to bombing of the initial budget. The current status of project management methodologies only on the financial aspects of a project at a high level, so that working "students" with no real way to learn to understand the impact of their decisions on the financialResults of the program. In return, the business case development given in the shortest time and is usually a job rushed in the end. Invest in the right people and the time ahead to verify the feasibility and make the business case is a must to ensure the overall objective to deliver a project.

In the financial situation we are, where budgets are being cut down costs and the time is now to make sure that everything that is financing a company to provide that they do, it makes sense to invest – for that you needensure that the project at the end – Budget, costs and benefits are fully verified.

In this sense – the Pathfinder project management methodology as a basis, below the 10 key steps to successful project management will be

(1) On new projects – you invest time creating more feasibility studies and business cases, if it is a rushed job – at the end the results will provide overspends.

(2) Check your project portfolio – you areImplementing the right projects, they are nice to haves will have made it for internal political gain – ensuring that each business case is robust and provides added value for the company's future – spend time with former experienced individuals to review and to re Review the business case.

(3) Concentrate you look at how hard the benefits, since the cost. Wishes in 80% of the projects when they are, nobody go back and check to see if they delivered as promised. To ensure from the beginning of the projectCheck continuously, and the cost will be about the budget, changes to your project will not change your benefits.

(4) cost is not always the answer – the allocation of the resource "value added" projects – in today's world of cutting heads is an easy fix in the short term, do not throw the baby out with the bathwater and left the company, with projects in flight yet no experience with them to deliver. Instead, spend reviewing your project and, as in (2) focus on value creation.

(5)Development of the workforce – up-ability of their financial management knowledge to develop employees in management, health and safety, motivation, etc. – so when you put a non-financial managers responsible for a large project, it not about time they got the financial know-how. Let financial opportunity – the development of your employees.

(6) Divide the project into financially manageable sections. Too many projects to work on the basis of a "pot of cash" – they spend asper household and if luck is with them, great! Instead, take the "pot" and break it into manageable chunks structure – to your project, you can see where budgets of "workstream" and what are those pictured above / under-spending.

(7) "one point of contact records – too many managers implement the budget overrun – following (6) above – is the entire program manager with overall responsibility for the household, then at the same time each head part of the projects shouldresponsible for managing their part of the budget. This leads to a financial manager with a project manager to a single relationship.

To enable (8) aligned Deliver accurate and meaningful financial decisions. Less is more – agree on what is the reporting required by the project at the beginning and continually increasing, until they, what needs to manage the project for the program of work. As an accountant can provide 20 pages of analysis per month for eachProject that does not mean that it is correct – except the trees – to minimize the reporting and improve decision-making.

(9) Communications – have a close relationship between your project and financial manager. Money can not back office, they must become part of the project team and from that perspective, and therefore open and honest communication channels with no surprises.

(10) finances should be made aware of all potential risks / problems and likely costs – if a problemhas or may arise to finance early warning to fund what they can do to help to "be limited after the event."

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