课程: Project Management Foundations: Budgets

Solution: Making concessions

课程: Project Management Foundations: Budgets

Solution: Making concessions

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(upbeat music) - Here's how I'd approach this challenge. Based on your preliminary budget estimates, you can only accommodate some of the stakeholders' requirements based on the pre-approved funding. Let's discuss some approaches to handle this situation. Initially, I would communicate to the sponsor and key business stakeholders that we have a conflict of priorities, costs versus scope. But I would also share that I have some ideas to help them determine the best way forward. First, I'd work with the business stakeholders to define the business benefits to be achieved based on the scope they'd like to implement. The sponsor can get more funding if the business benefits are measurable and tangible. I'd also ask the key business stakeholders if they could get some funding to contribute to the project budget. Next, I would carefully review the project labor resources I intend to use. For example, are there internal resources I could leverage instead of consultants? The internal resources would be less expensive. Or, could I assign junior resources, which will be less expensive still? They will take longer to complete a given task, but this could still be less expensive overall and provides a learning opportunity for less experienced personnel. If the project has many materials to purchase, I'll work with the procurement team to determine if there are ways to negotiate a discount. For instance, if multiple business initiatives are happening concurrently, a discount could be applied for a volume purchase. Another option would be to divide the project into phases. The funding for the second phase of the project would have to be obtained later, ensuring the highest priority business benefits would be achieved in phase one. My last resort will be to see if there are ways to reduce the cost of the project solution without significantly reducing quality. Any reduction in quality increases risk, so I'm cautious when taking this approach. It's always challenging to balance conflicting priorities. Negotiation and concessions will be required as you work closely with your stakeholders to find a workable approach. It's a challenge, but when you're successful, it's rewarding.

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