The Role of a Project Manager Has Changed
In the past, the role of a project manager would have been defined as, quite simply, someone who can deliver a project on time and on budget. Today the role of project managers is more fluid and encompasses a broad range of skills and sub-roles which have subsequently meant that project managers are now required to be far more financially knowledgeable. Project managers in many cases tend to be heavily involved in the financial running and success of the business, which in turn has caused there to be a shift in the definition of their job role. When it comes to finances and project management, becoming acquainted with PRINCE2 Foundation and PRINCE2 Practitioner courses can go a long way in developing the broad range of skills needed to become as successful as possible in this field.
Here are some of the ways in which a project manager such as yourself can manage the finances of your projects successfully:
Map out a plan
Take the time to lay out a plan and estimate the costs at every stage of the process- this will help to ensure that you keep track of your spending as the project flows from stage to stage. This will help to reduce the chance of there being any significant overspends.
Allocate resources appropriately
Cost cutting is never an option of you are focused on investing in your clients/ the project at hand/ your reputation etc., so it is important to allocate resources appropriately and in a way that ensures that the right amount of money is used in the project in the appropriate areas. Allocating money should help to add value to what you are working on.
Understand the importance of contingency funds
Take the early part of the project as a chance to negotiate a contingency fund. This can be achieved through establishing any potential pitfalls and risks that could arise along the way. A contingency plan should be used for emergency trouble-shooting situations and can come in handy when dealing with the financial aspects of a project in a positive manner.
Work force management
Effective project management involves being able to balance the skills of those working on the project at hand. Similarly the workforce must have an understanding of how the project is financed to ensure the smooth running of a project. Developing the skills of your workforce can go a long way in ensuring no problems arise when it comes to seeing a project through financially.
Take direct control
Having multiple project managers in charge of running a single project can be one of the leading reasons why said project does not run smoothly and this is particularly evident when it comes to finance management. In order to achieve the best and expected expectation with a project, it is important to put one person in charge of managing the finances of a project ideally.
Efficient and proactive project management is one of the key elements when it comes to seeing a project through initial planning pages all the way to the execution and very end of the project. As project manager you should be aware of the financial problems that can occur and be able to formulate strong solutions should problems arise.