Improve Outcomes: “Fitting Program Leader® In” to your Work and Workplace: Part 2
This post discusses how PMBOK* Cost Management is implemented in Program Leader. Following the text is a decision chart used as the design foundation of financials in Program Leader. It’s shown to illustrate the formality inherent in the offering.
First, the project manager documents the budget for all scope items and provides allowances for estimating error, scope error, development during implementation, and perhaps client contingency. Then, Program Leader can aid with cost control. It allows the monitoring and controlling of project costs and potential impacts. Each activity record has a financial component that allows the project manager to record the financial impact at the activity level, then view summary impact of a set of activities via Program Leader’s Financial and Metric reports.
Program Leader’s change control methods were complemented by a senior V.P. of a major pharmaceutical engineering company. The Financial Panel and Table offers a comprehensive set of entry fields to facilitate tight cost control. Financial impact can be categorized as budgetary, risk-related, or commitment (i. e. change order). The impact can be assigned to project contingency, client contingency, the booked budget, other categories that the PM can add. The impact can be assigned a cost code. The manner in which the impact was advised, who approved it and how communicated, and when, can be entered.
At any time, and as long as Program Leader is used to document all activities with financial impact, it will allow the manager to view the summary financial impact according to a project, program, employee, subcontractor, internal division, supervisor, WBS Element, or payee. Entities that have done a good job staying within budget can be praised. Entities that are posing the most impact can be identified and corrected.
Pending decisions should be entered as activities in Program Leader. The impact of those decisions should be budgeted and assigned the qualifier “Estimated.”
The project risk log (or register) can be maintained in Program Leader as well. Enter the budget with the impact the risk would happen if it would materialize. Categorize the quality of the budgetary figure as “Risk” then assign a risk percentage. These will sum on the Financial Reports, and will reflect in the change to Estimate at Completion. The budgetary figure multiplied by the risk percentage is expressed as the budget in the many activity reports, and highlighted in red.
*PMBOK® Cost Planning, Fifth Edition (Project Management Body of Knowledge), published by Project Management Institute