Page 89 - Budgeting for Managers

5

Planning and

Budgeting a

Project

Measure twice, cut once.
—folk saying
nything we do just once is a project. Projects are harder to
Abudget because we can’t really use past figures. Even if we
did something similar in the past, prices have changed, the way
we work has changed, and our goal is different than last time,
too. So we need a budget based on what we plan to do this
time, not based on what we did before. We create our project
plan and budget in three steps:
•We define the project.
•We create the work plan.
•We calculate the cost.

The key issue in project management is this: we want to get
something done and we’ve never done it before. We’re creating
a new product or service and we want it to be good, to be of
high quality. But we want it done soon and we have limited
money. Making the right thing, and making it as good as we can

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