| Over the past decade or so we have been | | | | in-flight with no experience to deliver them. |
| constantly bombarded with news about private | | | | Instead review your project spend and as in (2) |
| and public projects that have either delivered | | | | concentrate on adding value. |
| scope at well over the expected budget or had | | | | (5) Workforce development - up-skill their financial |
| to reduce scope to even come near to the | | | | management knowledge, develop staff in |
| original budget. Current thinking within project | | | | leadership, health and safety, motivation etc - so |
| management methodologies only discuss the | | | | when you put a non-finance manager in charge of |
| financial aspects of a project at a high level, | | | | a large project, is it not about time they were |
| leaving the "student" without any real way of | | | | given the financial know-how. Don't leave financial |
| working to greater understand the impact of their | | | | management to chance - develop your |
| decisions on the financial results of the | | | | workforce. |
| programme. In turn, the business case | | | | (6) Break down the project into financially |
| development is usually given minimal time and is a | | | | manageable sections. Too many projects work on |
| rushed job in the end. Investing in the correct | | | | the basis of a "pot of cash" - spend it as per the |
| people and time up front to review feasibility and | | | | budget and if luck is with them, great! Instead |
| secondly the business case is a must to ensure | | | | take the "pot" and break it down into manageable |
| the total on target delivery of a project. | | | | sections - mapped to your project structure, that |
| In the financial climate we are in, where budgets | | | | way you can see where budgets are by |
| and costs are being cut, the time is now to | | | | "workstream" and what ones are over |
| ensure that whatever funding a company has | | | | underspending. |
| available, that they invest it wisely - to do that | | | | (7) "one point of contact accounting" - too many |
| you need to ensure that the project in the end - | | | | managers will lead to budget overspend - following |
| budget, costs and benefits are comprehensively | | | | on from (6) above - The overall programme |
| reviewed. | | | | manager is responsible for the budget in total, at |
| With this in mind - using the Pathfinder Project | | | | the same time each head of the projects parts |
| Management Methodology as a basis, below are | | | | should then be responsible for managing their part |
| the 10 key steps to successful project financial | | | | of the budget. This leads to one finance manager |
| management | | | | dealing with one project manager, ensuring a |
| (1) On new projects - invest time creating | | | | consistent relationship. |
| accurate feasibility studies and business cases, if | | | | (8) Deliver focused and meaningful financial |
| this is a rushed job - in the end the results will | | | | reporting to enable accurate decision-making. More |
| deliver overspends. | | | | is less - agree on what reporting is required from |
| (2) Review your project portfolio - are you | | | | the project at the start and continuously improve |
| carrying out the correct projects, are they nice | | | | until it is what the project needs to manage the |
| to haves, are they being done for internal political | | | | programme of work. Because an accountant can |
| gain - ensure each business case is robust and | | | | deliver 20 pages of analysis a month to each |
| adds value to the future of the firm - spend time | | | | project manager it does not mean that it's |
| using previous experienced individuals to review | | | | correct - save the trees - minimise the reporting |
| and re-review the business case. | | | | and improve the decision making. |
| (3) Concentrate reviews just as hard on the | | | | (9) Communication - have a strong relationship |
| benefits as the cost. In 80% of projects, once | | | | between your project and finance manager. |
| they are in, nobody wants to go back and review | | | | Finance cannot be back office, they need to be |
| if they delivered as promised. So ensure from the | | | | part of the project team and be seen to be so, |
| start of the project you continuously check that | | | | and therefore open and honest communication |
| as well as costs being on budget, that changes to | | | | channels lead to no surprises. |
| your project have not altered your benefits. | | | | (10) Finance should be made aware of all potential |
| (4) Cost cutting is not always the answer - | | | | risks / issues and a probable cost - if a problem |
| allocate resource to "added value" projects - in | | | | has or may arise warn finance early, finance will |
| today's world cutting heads is a an easy short | | | | be limited to what they can do to assist "after |
| term fix, do not throw out the baby with the | | | | the event". |
| bath water and leave the firm with projects | | | | |