As Project Sponsors and executives, we aim to ensure that technology projects are completed within the agreed budget. To achieve this, it’s vital for the Project Manager to properly define the work scope and add a contingency (say 30% to the budget estimate). In addition, close monitoring of the project budget throughout the implementation.
While completing a project within the approved budget is essential, it’s just one aspect of measuring project success. It’s equally important to evaluate and report on the tangible and intangible benefits of the project, as these will help us understand the return on investment for the project. For instance, even if the project exceeds its budget by 20%, if it delivers double the initial expected value, we can still consider it a successful project. Therefore, we must be mindful of the project’s financial and non-financial impacts.