Devin explained how money is often the measurement of success, so keeping the cash flow controlled and within your stated prospectus is just one more feather in your cap as a project manager.
While there’s no magic bullet to eradicate over spending, there are fundamental things you can do to manage and control your budget.
Set your budget up correctly from the start
Get good estimates
Monitor and manage your budget throughout the project
Have accountability from the entire team
Weekly status reporting to insure you’re on budget
Remember, this is the bare minimum you should be doing to keep your project coming in under budget. But following these tips will help you control and manage your budget, which is an important, maybe the most important to your stakeholders, aspect of your job.
Pro-Tip: If you’re doing the basics, then you have the leeway to get a bit fancy. That means doing earned value calculations, budgeted costs of the work scheduled against the actual cost of the work produced and performed, making sure you calculate schedule variance, cost variance, schedule a variance index and cost index to show how you’re tracking to achieve your budget goals. You can never be too diligent when it comes to the budget.
To help expand your view of budget, here the Harvard Business Review offers you tips on better budget building.
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