I decided to build a house. After a few consultations with the Builder, we signed a contract. The baseline budget for the project was $1M. The construction started. The Site Supervisor suggested some incredible enhancements during the construction. As the house is being built, it was cost-effective to consider the upgrades.
I loved the suggestions and signed up for a variation to the contract. The house now cost me $1.2M, but I valued the Site Supervisor’s advice. Though the project was over the budget by $200K, I am still pleased with the overall experience.
The moral of the story: It is not a terrible thing for Digital projects to go over the baseline budget. When we start these projects, many things are unknown to us. During the development, deciding to invest more is not an unwise decision. For example, improving user interface, security, functional capability etc.
We should start thinking outside the rudimentary Project Management framework. Spending extra on things that add value at the right time is an intelligent decision. So, if the project is over the baseline budget, let us not label it with something terrible! Instead, our focus should be on the value of our investment and its timing!
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