登录查看更多内容

What are the most effective methods for measuring budget alignment and integration?

由人工智能和领英社区提供技术支持

As a project leader, you need to ensure that your project budget is aligned with the strategic goals and priorities of your organization, and that it is integrated with the other aspects of your project management, such as scope, schedule, quality, and risk. Budget alignment and integration can help you optimize your resources, avoid cost overruns, and deliver value to your stakeholders. But how can you measure them effectively? In this article, we will explore some of the most effective methods for measuring budget alignment and integration, and how they can help you improve your project performance and outcomes.

此文章中的业界达人

由社区从 7 条内容中精选。了解更多

Alok Kumar, B.Tech. MBA PMP?

Engineering Manager (ADNOC Onshore) | Ex Tecnimont| L&T | Simon Carves (Punj Lloyd Group) | Woods | Reliance
Hakan Gümü?, PMP?, PSM I

Senior Project Manager at Sennheiser | Driving Innovation in Audio Excellence | R&D Leadership | Expert in Project…
Kaunda Manjolo

Construction | Projects | Leadership

1 Method 1: Earned Value Management

Earned value management (EVM) is a widely used method for measuring the performance and progress of a project based on its budget, schedule, and scope. EVM compares the planned value (PV), which is the budgeted cost of the work scheduled, with the earned value (EV), which is the budgeted cost of the work completed, and the actual cost (AC), which is the actual cost of the work performed. By using EVM, you can calculate key indicators, such as cost variance (CV), schedule variance (SV), cost performance index (CPI), and schedule performance index (SPI), that can help you assess the budget alignment and integration of your project. For example, a positive CV and CPI indicate that your project is under budget and performing well, while a negative SV and SPI indicate that your project is behind schedule and not delivering the expected value.

添加您的观点

Alok Kumar, B.Tech. MBA PMP?

Engineering Manager (ADNOC Onshore) | Ex Tecnimont| L&T | Simon Carves (Punj Lloyd Group) | Woods | Reliance
举报内容
Key to successful Earned Value Mangemnet lies in regular monitoring of the variance and the productivity index and identifying the reason behind the deviation. These reasons may vary from case to case basis but key lies in identifying it timely and taking corrective actions. Mazor reasons for deviations from schedule or budget are scope creep, poor interface management, slow decision making, idling resources and many more.

已翻译

赞
Hakan Gümü?, PMP?, PSM I

Senior Project Manager at Sennheiser | Driving Innovation in Audio Excellence | R&D Leadership | Expert in Project Management
举报内容
?? EVM is a useful tool for your budget management however it should be tailored accordingly to your needs. You can not relay on it fully, there are some inputs that not really can be quantified as a number.

已翻译

赞
Kaunda Manjolo

Construction | Projects | Leadership
举报内容
1. Develop key performance indicators (KPIs): Identify and define relevant KPIs that can be used to measure budget alignment and integration, such as budget variance, resource allocation, and strategic alignment. 2. Use budgeting software and tools: Implement budgeting software and tools that can provide real-time visibility into budget alignment and integration, as well as automate the measurement process.

已翻译

赞
Will Lopes

Customer XP & Activation | Digital & Martech | Global Mindset | Pharma
举报内容
EVM is a method for project performance measurement, offering a comprehensive view of budget alignment and integration. By comparing planned value (PV), earned value (EV), and actual cost (AC), EVM provides key indicators like cost variance (CV), schedule variance (SV), cost performance index (CPI), and schedule performance index (SPI). A positive CV and CPI signal cost efficiency, indicating the project is under budget, while a negative SV and SPI suggest schedule delays. These metrics enable real-time tracking, helping orgs gauge how well the project aligns with its budgeted objectives. Its ability to assess project health and predict future performance enhances its value in ensuring optimal budget integration and alignment with goals.

已翻译

赞
Naresh Chandra

Project Controls Manager,Project Manager
举报内容
The above represents for post construction or Epcc; but the underlying is the effective and cost sensitive budget based on location and type of contract.

已翻译

赞

2 Method 2: Benefit-Cost Ratio

Benefit-cost ratio (BCR) is a method for measuring the economic feasibility and efficiency of a project based on its benefits and costs. BCR compares the present value (PV) of the benefits, which are the positive outcomes or impacts of the project, with the present value (PV) of the costs, which are the negative outcomes or expenses of the project. By using BCR, you can calculate the ratio of benefits to costs, which can help you measure the budget alignment and integration of your project. For example, a BCR greater than 1 indicates that your project has more benefits than costs and is worth pursuing, while a BCR less than 1 indicates that your project has more costs than benefits and is not viable.

添加您的观点

3 Method 3: Balanced Scorecard

Balanced scorecard (BSC) is a method for measuring the strategic performance and alignment of a project based on four perspectives: financial, customer, internal process, and learning and growth. BSC identifies the objectives, measures, targets, and initiatives for each perspective, and links them to the vision and mission of the organization. By using BSC, you can monitor and evaluate the budget alignment and integration of your project from different angles, and ensure that your project contributes to the overall success of your organization. For example, a BSC can help you measure how your project affects the financial results, customer satisfaction, operational efficiency, and innovation and improvement of your organization.

添加您的观点

4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Bhooshan Maindan CSM?, CSPO?

Senior Business Analyst at Dukhan Bank Digital Transformation || Quality Assurance Analyst || Process Improvement || Project Coordination and Management || Certified Scrum Master? || Certified Scrum Product Owner?
举报内容
In a project, effective methods for measuring budget alignment and integration include establishing clear KPIs aligned with project goals. Regularly review actual spending against the budget, identifying any variances. Seek feedback from project stakeholders to ensure alignment with organizational objectives. Utilize financial reports and analytics tools for a detailed analysis. This comprehensive approach ensures a robust measurement of budget alignment and integration in the project context.

已翻译

赞
Dr.Rahul Maniyar

Program Officer Outreach
举报内容
The KPI in a budget can also be termed as expenditure heads which need to be monitored regularly, cross verified with the actual qualitative indicator and outputs. These indicators and outputs have to be customized as per the actual project objectives. Revisiting and Reconciling as per need is a key.

已翻译

赞

Project Leadership

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

What are the most effective methods for measuring budget alignment and integration?

1

2

3

4

1 Method 1: Earned Value Management

2 Method 2: Benefit-Cost Ratio

3 Method 3: Balanced Scorecard

4 Here’s what else to consider

Project Leadership

给文章评分

感谢您的反馈

更多Project Leadership相关文章

更多相关阅读内容

What are the most effective methods for measuring budget alignment and integration?

1

2

3

4

1 Method 1: Earned Value Management

2 Method 2: Benefit-Cost Ratio

3 Method 3: Balanced Scorecard

4 Here’s what else to consider

Project Leadership

给文章评分

感谢您的反馈

查看其他技能