We discuss our top tips to help you manage your budgets effectively in projects.

Grayce Analyst, Tom Grice has drawn on his experience working with FTSE100 organisations to share his tips for keeping project finances in check.

1. Agree and sign off the scope of the project

The number one cause for finishing a project over budget is due to not clearly outlining the scope of deliverables for a project before it starts. Therefore, ensure everything in (and out!) of scope is clearly defined, documented, communicated and signed off prior to launching the project. Once this scope has been agreed upon you can then effectively manage scope creep, by clearly defining the process for approving scope changes and ensure only the project sponsor (or senior stakeholders) can sign off changes.

2. Use collaboration tools and leverage effective communication methods

Leveraging the current technological innovations in collaboration and communication methods can help deliver huge cost savings in travel and expenses and also open up new talent pool opportunities in emerging markets. These innovations include Internet forums, online chat, video conferencing, web conferencing, application sharing, electronic calendars, project management systems and workflow systems. Check out solutions such as Skype, JIRA, Yammer, Slack and more here.

3. Build a ‘liquid’ project team

Accenture’s TechVision 2017 research highlights the trend towards an increasingly ‘liquid’ workforce. 85% of Chief Executives expect to increase their use of non-permanent employees in the coming years. Leading organisations are also looking at how they use new technologies such as Upwork to move to more Agile and less bureaucratic resourcing models. These technologies enable them to assemble project teams quickly and with the right blend of skills.

4. Plan your resource intelligently

Many organisations have become over-reliant on expensive contract resource. This massively impacts their own change budgets, sustainability and knowledge retention. One of the most effective ways to ensure your resourcing costs stay within budget is to build highly flexible and adaptive project teams that include resources who can take on hybrid roles across different capabilities.

5. Leverage the millennial workforce

A recent EY workplace survey identified that Generation Y (aka millennials) employees are viewed as the best at being tech-savvy. And social media opportunists who leverage social media beyond marketing (70%). They also outscored boomers for being the best at collaboration, adaptability and being entrepreneurial.

Leveraging the millennial workforce will not only provide fresh ideas, increased collaboration, adaptability and entrepreneurial ability. It will also come at a significantly lower cost than Generation X contractors helping to make your project budget go further than before. At Grayce, our clients have realised the potential of the millennial generation first hand.

Find out more about what our clients think here