|
|
|
|
|
|
|
examine those systems and processes which prevented the team from meeting its goals. Organizations should learn from experience, and, if they embrace the philosophy that systems and processes constantly need improvement and are the likely reason why the team did not meet its goal, then the next team facing similar challenges might indeed be successful. |
|
|
|
|
|
|
|
|
2.
Budgetary Responsibility |
|
|
|
|
|
|
|
|
The project leader must also create an environment where team members approach their everyday challenges as if they were working for themselves. Team members need to remain focused on doing a quality job in the shortest period of time, and they also must pay particular attention to completing their tasks within an agreed budget or allowed budget variance (i.e., ±5% or ±10%). If a team is to own its project, the team must feel that it has responsibility for and some control over the money that is committed and spent. The team has a fiduciary responsibility and as such also needs to set yearly budget targets against which their performance is measured. Although budget control normally is a responsibility of the line function, the team must play a role in setting budget targets based on planned project activities. The project leader must ensure that the team has the tools available within the organization to appropriately track budget performance and assure that expenditures are proper and that appropriate controlling action is taken when budget variances occur. The project leader should negotiate an allowance with senior management for a reasonable discretionary budget which can be managed and utilized by the team to support unanticipated activities which need to be initiated during the year. In addition, to further support team responsibility and ownership, if there are budget overruns on some project activities, it is appropriate to provide the team with the flexibility to move money around the project themselves without obtaining management approval; this builds project ownership. |
|
|
|
|
|
|
|
|
Budgets are usually developed and managed locally with responsibility under the aegis of department heads who are accountable to their own line management for keeping expenses within an agreed upon target. These managers are often confronted with requests to support a multitude of project team initiatives, i.e., international travel for a team member to visit another site, travel for presentations at symposia, meetings with regulatory authorities at various locations throughout the world, etc., some of which may have been previously planned and some of which arise unexpectedly during the year. To control department expenses which may already be stretched to the limit, particularly toward the end of the budget year, a functional manager often takes the position that his budget cannot support |
|
|
|
|
|