Reference no: EM131202954
Cost, Budget and Performance
When managing a project, you will constantly need to evaluate cost, budget and performance. This is important in order to be aware of how much the project has already cost the organisation, and how close you are to meeting or exceeding your budget. You will also need to evaluate whether the project and the project team are meeting their expectations. A budget template can help you effectively monitor your project's cost and budget. A budget template is often completed using a spreadsheet such as Microsoft Excel, and helps you organise the finances of your project by monitoring employee compensation, legal fees, professional fees, travel expenses, marketing expenses, office expenses and overhead costs. Using a budget template will help you keep your budget under control and provide financial information to your supervisor or other senior leaders at the organisation.
In your Resources for this unit, you will explore various ways to measure elements of a project. A technique you will explore is the Balanced Scorecard (BSC). The BSC helps measure organisational performance in relation to the organisation's strategic goals, incorporating financial measures as well as business processes. The BSC aims to find balance between internal and external measures; objective measures and subjective measures; and performance results and the drivers of future results. In the media for this unit, you can view a graphic of what a BSC entails. All of these tools and techniques can help a project manager effectively monitor and control projects, resulting in increased potential of project success.
To complete this Shared Activity:
- Review your scenario.
- Develop a budget template for the project in your scenario.
- Develop a BSC which includes your suggested KPIs in the four BSC categories for the project in your scenario.
Launching a New Product Line
You work for a firm that manufactures and distributes haircare products. To this point, your sales have primarily been to retail outlets. The firm has decided to launch a new product line of bulk-packaged hair care products to be sold and distributed to organisations such as hospitals, gyms, schools and universities with residences for students, and similar customers. You are in charge of the team who must present a project plan for the production, sales, and distribution of the new product line to potential investors in order to secure funding to bring the new product to market.