Project Management Budgets Can Go a Long Way

As an outdoor enthusiast who has encountered several life threatening situations, I understand the importance of having the right equipment. However, not everyone knows this. When I worked as a salesman for a gear shop, I talked to a lot of people who refused to get the gear they really needed in order to stay alive.

One time, for example, a man was planning an excursion to Mount Everest and would not get what I recommended. He skipped out on things like crampons - the spikes that clip to boots for traction. On mountains like Everest, crampons make the difference between moving forward to summit and slipping backwards a thousand feet into a deep icy crevice. He even disregarded the shopping list he had received from his guides (who were actually experienced Nepalese Sherpas). The man explained that he was tight on money because he had already paid for himself and his two sons, buying three plane tickets at $4,000 each and three fees of $2,000 for the guided trip.

So, he was spending a total of $18,000 just to travel to Everest, but he couldn’t spend an extra $300 to keep himself from dying.

This man reminds me of the project manager (or team member) who tries to do everything by himself and in the process neglects the basics of project management. This person is ready to spend the entire budget and climb the tallest projects without equipping the proper gear. Then, when there is little financial backing left, this person simply waves off the small, yet fundamental, spending matters.

The obvious solution to this problem is to implement a budgeting plan before the project even begins. At both the project level and the portfolio level, every successful business selects and prioritizes the main areas where money needs to be spent. Money spent on resources and tools can’t wait until the end.

If the budget will not efficiently support a project, I would give the project manager the same advice I’d give to the man going to Everest: don’t do it. Wait for another day.

However, if the project is in this type of financial situation, this is my suggestion: face the facts and pay the price. That might mean admitting that mistakes were made in order to request additional funds, or it might mean spending a little extra time working over the weekend; the point is to push a project to the end. For the Everest trip, when considering the overall cost of $18,000 already spent, a few hundred dollars is a small amount of money (only 1.5% of total costs) for a huge ROI. A little extra stress / costs is much better than an abandoned (or dead) project.