Delivering to budget is an important skill for a Project Manager. As a result, most organisations require their Project Managers to update the projects’ forecast cost each month and compare this to the original budget. The intent of updating the forecast each month is to ensure that the organisation has the most up to date information available regarding the financial performance of the project. This allows early warning if the project is having problems, allowing the Project Manager to signal a potential budget overrun as soon as information comes to hand.
The problem in practice is that most Project Managers do not like to give bad news, so when things start going wrong they continue to report that things are doing fine. Continue reading