Reason No. 6: Inadequate Financing MPPM7103 – Assignment 1 9
You can see the triumvirate forming before your eyes: a project whose complexity has been underestimated can lead to unrealistic cost estimates and then problems when it comes to financing. And if financing dries up in the middle of a project, it can come to a grinding halt, all of which proves that project management is part art, part science. Guard against this cost overrun having a frank conversation with your lenders about what they can do if you run into financing trouble. Having a back-up plan in place – even if you don't need it – probably won't be cheap, but it could spare you the much bigger expense of a stalled project. Reason No. 7: Project Delays During the course of any project, it's fair to expect at least a few delays. All the moving parts, and people, practically guarantee that something or someone will not perform as planned. But as you surely know, there's a big difference between an isolated incident and a repetitive problem that can trigger some of the most frustrating causes of cost-escalation in project management. Reason No. 8: Lack of Leadership Experience It can be painful to “point fingers,” but sometimes it can't be helped. Small-business owners want, and are entitled to, accountability. So when a project runs off the rails because of a lack of leadership on the part of the project leader, it can be painfully obvious who is responsible. A lack of project management experience can reveal itself in myriad ways: lack of planning, poor communication, insubordination and missed or unenforced deadlines, among them. Guard against this cost overrun by hiring an experienced team leader, who excels at communicating (with you) and who provides regular project updates. Reason No. 9: Lack of Coordination Slightly different from a lack of leadership, a lack of coordination could certainly be a symptom of it. But even experienced project leaders can falter if, as the saying goes, “the right hand doesn't know what the left hand is doing.” Lack of coordination most often results in tasks slipping through the cracks or duplicity of tasks, both of which jeopardize deadlines and virtually guarantee cost overruns and project delays. MPPM7103 – Assignment 1 10
Guard against this cost overrun by ensuring that you have a system in place that can tell you the status of your project at any given time, as well as the next task on the list. The risk here, of course, is that you could find yourself in the position of having to step in and referee. You might be OK with this as a temporary move, and besides: as a small-business owner, you probably have a take-charge personality anyway. But it should help to remember that your project leader is being paid to lead and that he should reassert control over the project on your behalf.
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- Winter '18
- Tonia Walcker
- Project Management, project manager, project leader