How do you benchmark and compare project variances across different projects or departments?

1 Why communicate project variances?

Project variances can provide stakeholders with valuable information about the status, progress, and performance of a project. Communicating project variances is essential for keeping stakeholders informed and engaged, highlighting the achievements and challenges of the project team, demonstrating accountability and transparency for the project outcomes, soliciting feedback and input to improve the project, managing expectations to avoid surprises or conflicts, and aligning the project goals and priorities with stakeholder needs and interests.

2 How to communicate project variances?

The way you communicate project variances depends on the type, magnitude, and impact of the variance, as well as the stakeholder preferences and expectations. Generally, you should identify the sources and causes of the variance, analyze the effects and implications of the variance, decide on the appropriate actions or recommendations to address it, and prepare a concise report or presentation that summarizes the variance. Additionally, consider which format and channel will be best for communicating the variance - such as email, dashboard, meeting, or webinar - and deliver your message with confidence and honesty. Invite questions and feedback from stakeholders to ensure understanding.

3 How to benchmark and compare project variances?

Benchmarking and comparing project variances can help you evaluate the performance and efficiency of your projects, as well as identify best practices and areas for improvement. To do this, you should define the criteria and metrics to measure and compare the project variances, such as budget variance, schedule variance, scope variance, or quality variance. Additionally, you should collect and organize data from different projects or departments to ensure its accuracy and consistency. Utilizing appropriate tools and techniques to analyze and visualize the data, such as charts, graphs, tables, or formulas, can help you interpret the results and identify patterns, trends, gaps, or outliers. Finally, draw conclusions and recommendations based on the findings and share them with stakeholders.

4 How to handle negative project variances?

Negative project variances, such as being behind schedule, over budget, out of scope, or below quality standards, can be challenging for a project. To handle them effectively, it’s important to acknowledge and accept the reality of the variance, and communicate it to stakeholders with an explanation of the consequences. Involve stakeholders in finding solutions and alternatives, and implement corrective actions promptly. Additionally, make sure to monitor the results of corrective actions and learn from the experience to prevent or minimize future negative variances.

5 How to leverage positive project variances?

Positive project variances can create opportunities and benefits for your project, which deserve recognition and appreciation. To leverage these variances, you should celebrate and acknowledge the achievements and contributions of the project team and stakeholders. Communicate the variance to stakeholders to highlight the value and impact of the project. Additionally, you can use the surplus time, money, or resources to enhance or expand the project scope or quality, or to support other projects or initiatives. Documenting and sharing the best practices and lessons learned from the project is also important in order to maintain momentum and motivation of the project team and stakeholders.