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Managing Money and Resources in Project Management

Jul 13, 2008
As the term itself implies, project management involves the management of a proposed project. It is however, also a complicated task.

At the outset, it involves the proper formulation of a plan, and the appropriate organizing efforts in order to implement that plan.

Two of the factors to be considered involve money and resources:

Money

Projects cost money. There are expenses to be considered, even when no profits or income are coming in. Hence, given the scope and duration of the project, the amount allotted has to be sufficient and commensurate to the target goal.

Once the proper budget has been allotted, the next step would be to implement an appropriate fiscal strategy for checking expenses and spending patterns.

If you find that you are dipping into your emergency funds more often than is healthy, perhaps you better recheck your initial allotment in the first place. Were you trying to work on a shoe-string budget for what is actually a very expensive process? Are there leaks or loopholes in your accounting and auditing system so that your project is actually leaking money? Are you getting the best value for your money or are you actually spending more in areas where you can reasonably cut costs without sacrificing too much in the way of good quality?

Resources

Resources, particularly people, equipment and material are already akin to investments.

Hence, first off, see to it that your investments are taken care of and that they are not depreciating any more than they need to. Try to see if there are ways to maximize their efficiency without unduly taxing the limits of their capabilities.

The best way of dealing with resources is by matching the expected output with the effort and skill put in. Now, for machines and equipment ,most materials come to us with a predetermined use. Hence, as a basic example, we buy pens in order to write and paper to write on - not vice versa.

It is not so easy when dealing with individuals, however. While we may hire individuals based on certain expectations and according to the skills that they can contribute, it would also do us well to observe people and address "mismatches" so to speak.

Perhaps you might find that one person is more suited to performing a particular task. Although it might not be the position you hired them for, you should probably consider aligning their skills with what they actually excel at. Not only can this afford them a greater level of success and accomplishment, their contribution to the organization's growth can be valuable.

Next, make sure that the people are clear in their tasks. Ensure a good level of communication among all levels so that instructions can properly be relayed to the right persons, and conversely, so that valid grievances or questions can also travel up to the management team where they can be sufficiently addressed.

Hence, successful project management involves a successful balancing act between your resources - people, materials and equipment, and the money available to defray the cost of your expenses.
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Benedict Smythe recommends PDL Courses for training in most professional skills including assertiveness skills and Supervisory Management skills
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