Over the last week or so our blog series has identified the importance of three core skills that your teams need when managing projects, programmes and portfolios. In this blog, we’re going to look at the impact that ineffective budget management may have.
Budget management is a core part of doing more with less. It includes estimating, allocating and tracking costs throughout the project lifecycle. Which helps teams to stay on top of project expenses, avoid cost overruns and make informed decisions about where to allocate resources.
As well as the issue of wasting public money and then needing to secure additional funding, going over budget has other negative effects, such as:
When you’re working with constrained financial resources, it is critical to not run out halfway through the project, programme or portfolio that you are managing. Which is why budget management is key, as it enables you to create accurate budgets based on reliable projections, and monitor expenses to avoid cost overrun.
Budget management will also ensure that you allocate financial resources appropriately, help you identify potential cost savings, and plan for unforeseen challenges or issues that could arise, such as increasing supplier costs – all of which can help your budget stretch further.
Finally, it is the key to enhancing stakeholder confidence and trust. If you can prove the benefits, value, and potential ROI of their investment, they’re more likely to release their limited funds and resources to your project.
Here are some potential signs to look out for:
Our Learning Hub is a complete digital learning solution for all your project, programme, and portfolio management training needs. Watch our webinar ‘Maximising Efficiency Key project management skills to help you do more with less’ to learn more about the importance of time management, and how the ILX Learning Hub can support you and your team.