IT Project management from a finance perspective
Project manager will be somebody who own the project and answerable to all stake holder.
I take two stake holders for it,
Execution happens as planned and as maintained in the SOW Scope of delivery.Consultants has very good idea on the client management and hence limiting.
Project estimate – estimates the project (margin and deliverables) to end before project start and monitor all month end.
Project execution: execute the project and validate against the estimate all month and ytd performance
Alert: alert the management for any action to take
Reporting: Dash Board, Reports to management on where we are now, where we were, where we heads to, what will be the end.
The reports are published and reviewed with top management normally with vertical heads on a monthly and Account Mangers (somewhere its mentioned like Delivery Manager/Delivery heads /Portfolio Managers on a weekly and monthly basis.
Apart from the above, Management will also enforce PM to take up few more actions. One good piece of work which I came across was EBITDA improvement plans. This is basically a finance piece of work but a Management role in Project, One need to know it.
Normal terminology is “11 levers of EBITDA improvement plan”. It varies from company to company. How it works is simple
PM need to plan the project and foresee things such a way that, how the project can be run with most optimal way and more billability to it with control on cost and per estimate. How?
Let me try to give some live examples,
eg1.- there are 14 contractors in the project and first 3 month , we can replace 4 and what will be the impact and 6 month another 2 . This is the plan and make sure its done and accomplished.
eg2. There are 14 Sr. resources under the role of Sol.Architect, Whose cost is too high and another project is there they need 4 resources under same role.
In such cases, PM will make sure, 4 people will be selected who really have the talent and give them training and allocate them to the project and release the Sr. folks to the new project which is on the way.
- Simple to tell but in reality, Its huge task J
- How will a PM know another project is on the way and need the same resources with this role?
- How PM will know , few folks inside the team are talented enough to take up this new role
- Approval mechanism and risk he need to take
To make this happen, He need to connect with Sourcing, other PMs, other Account managers (Delivery/ portfolio Managers) , CoE, QA teams etc. The change need to be approved from the Management side with the pros and cons detailed.
Please give your valuable suggestion and feedback.