I suggested ways to think about more agile budgeting in part 1. I didn’t tell you why. How do you budget your own money and time? If you’re like me, you have a plan for the year. I evaluate the plan—my products, services, and clients—on a regular basis. I always evaluate monthly. Sometimes, I evaluate […]
Too often, organizations want to budget for an entire year. The managers run around for two or three months in advance of that fiscal year, attempting to predict a ton of things: Estimates for not-well-defined projects or features, Capital equipment or tool needs, “Headcount” aka, people needed. Then, the organization doesn’t finalize the budget until
I’m not a fan of using schedule or cost estimate as a way to value the projects in your project portfolio. If you do, you are likely to miss the potentially transformative projects or programs. In Manage Your Project Portfolio, I have an entire chapter devoted to ways to evaluate your project portfolio: business value
I read Sayonara Sony: How Industrial, MBA-Style Leadership Killed a Once Great Company, and was struck by how the company appeared to make decisions—what will make us the most money now? If you make your project portfolio decisions based on money, estimated cost, you too will have Sony’s problems. This is why cost is the
I’m giving a talk at Agile 2012, entitled “How Much Will This Project Cost?” It doesn’t seem to matter what life cycle your project has, someone wants you to predict the cost. The problem is, it’s the wrong question. But, that won’t stop people from asking it anyway. People want to know the cost so
I prepare for my speaking and workshop engagements. This year, I’ve been all over the world. I’ve had a great time, and my clients and audiences have had a great time, too. Well, except for this past week at my session, “The Budgeting Black Hole: Predicting the Unpredictable” at Agile 2011. There, I bombed. I
You’ve got a ton of projects. You can’t do them all at once because you don’t have the people to do them. You know better than to ask people to multitask on more than one project—no one will get anything done. One tactic is to organize the projects into a portfolio and rank them by