Originally posted on the ProjExc Project Excellence Blog on 26-Jul-13
As project management consultants, we’re often asked by potential clients what they would need to invest in our services.
Of course there is a cost involved in providing the service and clearly our success to date is based on our clients seeing the excellent value in what we do for them.
We are often surprised though at how the value of the difference we will make in their
business is grossly underestimated, specifically in terms of saving ongoing costs
already being incurred.
business is grossly underestimated, specifically in terms of saving ongoing costs
already being incurred.
A few basic questions often help:
What is the cost to the business of not delivering projects on time?
- cost of customer dis-satisfaction/loss
- cost of knock-on delays to other projects/work
- cost of creation of resource peaks and inefficiencies
- cost of delayed realisation of market opportunity or lost sales
- cost of loss of stakeholder/investor confidence
What is the cost to the business of not delivering projects within budget?
- cost of reduced profitability
- cost of cash flow/need to divert resources
- cost of loss of stakeholder confidence
- cost of selecting the wrong project
What is the cost to the business of not delivering the full scope of the project?
- cost of not providing the capability anticipated
- cost of lost opportunities
- cost of giving competitive advantage to others
- cost of ineffective change and reputation
What is the potential cost to the business of insufficient insight and governance?
It can be painful thinking about what the cost of project failure is today in your business,
but the feelings often become easier when thinking about your strategy for reducing
those costs. Some low hanging fruit is always nice, but your long term success will
often depend on dealing with some of those “thornier” issues. Once dealt with you can
focus your efforts fully on managing a much more profitable organisation, and we all
know that success breeds success!
ProjExc PM Consultants 