Budget spend

Project success = "approximately" within budget?

Lexor

Project success = "approximately" within budget?

Why is there always a lack of clarity, and is there often a lot of creativity to be seen, when making the final financial statement for a project? Often people do not even do that settlement in full. Perhaps because it is very difficult to properly document and keep track of all costs. And certainly the hours worked, or personnel costs. It is often "roughly within budget". Where is the problem then?

However, projects are usually measured ...

Projects are built on three pillars: The desired result (deliverables, the return), by when (timing) and at what price (budget). So conscientious project leaders define these factors very precisely before starting a project. The parameters are also very objective and measurable for each of them. The seriousness surrounding these three elements is of course justified if one wants to conduct a profitable project and business.

But not everything is equally measurable ...

Strange thing is that timing is about the only factor that is rarely discussed: On time is on time. Very simple. There can still be some discussion about the motivation to postpone a deadline, which often happens, but in the end it is simple: On time or not.

The result is sometimes more difficult to define in objective parameters, but there is usually consensus about what the result should be. There are usually enough people involved who monitor the result. And often the financial gains emerge as a result (the return of the project).

The difficult measurement work is apparently in the budget. Although there are easy measuring points in that area. For example, incoming invoices for a project are clear. But the more people are involved and contribute to a project, the more difficult it becomes to quantify and monitor that cost. Especially the monitoring often turns out to be a very difficult task. In order to monitor that part of the budget people have to estimate and register their time spent. That is fragile and open to interpretation and usually you cannot monitor it 'online'. The project manager only sees it afterwards. Moreover, not everyone is equally motivated to do this correctly. But it is often the most important item in the project budget. Those who do not keep track of it will certainly be faced with unpleasant surprises.

Automation is a logical answer to the these obstacles in time registration ...

Time registration often still has a “manual” character and allows employees to work based on their memory or estimates. This is to a very large extent “approximately”. Automating that time registration process can have a huge impact on results:

- It can be consulted online by using the right tools. So you can intervene where things go wrong (and before it goes completely wrong).
- There are many ways to check the available data
- It takes no or less effort for the project employees
- It does not depend on the personal motivation of the employees
- It eliminates employee estimates and interpretations
- It eliminates forgetting, as it runs automatically
- And above all: it is correctly, objectively and uniformly registered for all users

So, the message is to get rid of " approximately " by using the right time registration tools.
 

Lexor is such an automated time registration solution for people who use Office 365. It calculates with the existing data from your used software and proven Artificial Intelligence what time was spent by you and your employees. For more info: 

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