A Warning to Project Managers

If you think your organization or enterprise is 'too big to fail' or that the seemingly infinite resource of money your organization has is a project safety net, you're deluding yourself, your team, and your organization.

Project cost overruns can happen for a number of reasons, but few organizations fail to address the root cause and, instead, opt to simply throw more money at the issue hoping that it'll go away. Looking at the chart above, we can surmise that this just doesn't happen. Much of this is a result of poor understanding of project management competencies and an unwillingness to include new data and concepts into what we think of as traditional project management methods.

For instance, schedule delays can be seen from many different angles. Most see it as scope creep when customers decide to add on additional features not originally planned for. For example, a senior #leader asks for a separate VIP dining area to be included into a communal cafeteria expansion project just before a project's completion. This causes scope creep, schedule delays, and increased cost. However, they believe that the added value (from a personal perspective) is worth it because the organization can afford it.

The issue here isn't whether the organization can afford it, but whether there is value added in the process. When we extend the duration of the critical path, it is imperative that we view potential #changerequests through the lens of #ROI as it pertains to critical path drag (see work done by Stephen Devaux ). Does it REALLY add value to the project, the project team, and the #organization in the end? Maybe it does and maybe it doesn't.

However, there will come a time where the mounting cost of #project changes outstrips the ROI...and, in some cases, cost lives. If you can shorten the critical path, you can reduce critical path drag which will, in turn, reduce cost, limit team member burn out, and in the end cultivate a stronger, more resilient organization focused on delivering value.