Communication is the key responsibility of the project manager. At least that’s what I’ve always contended. And, as the project manager, often your budget and schedule are your best communication tools. They are useful in communicating with both your team members and outside resources – your customer and your executive management – on the status of your project. After all, budget and schedule are two of the three major project success factors (the other being customer satisfaction). Each can be used in a number of ways. Let’s look at those closer…
The project budget as a communication tool
The budget defines the company’s financial commitment and is used to ensure that project expenses are kept in line. If variances do occur, they often anticipate a scheduling problem as well.
The budget also measures the degree of risk involved in your project. Any change in the company is accompanied by risk, and when time and money are spent, the decision to go ahead is based on a judgment of risk. Management will proceed with the project if it is convinced that the risk is acceptable and that future profit potential justifies that risk. So, for example, when you propose a project, you should communicate in terms of risk and likely reward. Approval will be granted as long as you can convince management that there’s a good chance that future profits will recapture this investment within a reasonable period of time.
The project schedule as a communication tool
The schedule defines the project, and, as long as you share it with management, it is a useful tool for ensuring that your definition conforms to theirs. When it’s broken down into phases, with deadlines tied to the final result, management has the opportunity to validate your direction, and you can ensure that your understanding of the project’s goals is correct. At this early stage, you can define exactly what the project should achieve.
You also need to use the schedule during the later phases of your project in conjunction with review meetings to ensure (1) that you are on the right course and (2) that management’s desired outcome has not changed.
Finally, the schedule improves communication with your team and helps avoid delays. By identifying weak links and by communicating with other department managers and outside resources, you will avoid unexpected problems.