MONEY- this is the word that rings first when any task has to be accomplished.
Often, organisations allocate budget for projects that are considered as business enablers or enforced as mandatory changes to be implemented for that year. It’s a dream for the management that there is more money allocated to the project than what is required to achieve the project outcome. Such dreams comes true when the board realises there is money that is not yet spent for the financial year and authorise the additional money to be spent for any projects or initiatives.
It sounds easy to spend money but it’s always a challenge to spend additional money constructively to bring in positive outcomes. Spending additional budget is yet another project which requires evaluation of options, estimation, good planning and successful execution.
While additional budget is available, we also need to be mindful that it has to be spent to the benefit of the sponsor. At the same time, all stakeholders would expect the fund to be spent wisely and effectively. While there are numerous options to constructively spend additional budget, there are few options which benefits project, team and sponsors equally.
1. Invest on activities that benefit the sponsor such as Process Improvement
There is always a room for improvement in any organisation. We identify a list of improvements and in most cases, those initiatives don’t get mobilised either due to lack of funding or due to other high priority activities in the pipeline. When money is available for initiatives, it’s good to start implementing those improvements that would benefit the organisation. On implementing improvements, the organisation would realise the benefits in near future or upcoming projects and would result in a satisfactory outcome both for the sponsors and the project and eventually it would be a good learning experience for the team.
2. Identify potential future projects and invest the fund to do the initial assessment for the potential projects
Most of the projects limit their scope to what can be achieved with the allocated funding and within the expected timeframe. The tasks that are deferred for the future eventually become the scope for the a new project. Additional budget available in the current project can be used to do the initial assessment of those deferred tasks which serves as the key input to initiate the next phase.
3. Onboard additional staff and invest on up-skilling the team members and at the same time the team can contribute to the project outcome
Knowledge of a business process and technology is an asset for any organisation. On-boarding additional resources and up-skilling them during the project journey has a two fold benefit; the new member can contribute to the project and at the same time the resource can be trained in the business process which can be leveraged in the future projects.
4. Allocate some fund for rewards and recognitions
A motivated team brings in remarkable results and timely recognition and rewards ensures that the team is motivated to continue to do their good work. Some of the additional budget can be spent for rewards and recognitions while will keep up the morale within the team.
5. Organise team building activities
Teamwork is one of the top soft skills that is required to have a healthy and positive working environment. Team collaboration helps to achieve the project objectives efficiently. Team events provide an environment for the staff to interact and socialise with their colleagues out of their daily work. This helps to build a more friendly work environment, which eventually results in better project outcomes.
6. To retain skilled resources until start of next assignment.
To spend the additional funding inline with the project objectives is a tricky challenge in a scenario where you may already have enough funds to meet the project commitments. If there is a possibility to carry forward the remaining fund to the next phase of the project then the fund can be utilised to continue the core skilled team members if there is a visibility of any upcoming projects where their skills are required. This in-between time, while the next phase is yet to start, can be a good reason for the team to document their learning and prepare knowledge artefacts that can be used to train new members in future.
Ideas to spend money are never ending but at the end of the day, the money has to be spent constructively and wisely. The key success to spending money is to first get the ideas open to the stakeholders and get the buy-in from everyone involved on the option chosen to spend the additional budget. The task doesn’t end in just finalising the option. The challenge is to execute the budget plan successfully, monitoring and tracking throughout the journey and to achieve a positive closure by accomplishing the expected outcome within the budget. Also ROI and benefits has to be evaluated before starting the budget plan.
Money and business are in a cycle, spend money to improve business and improved business gives back the money. It sounds easy, isn’t it? But we all know its not in reality. So Spend Smart!
Gayathri Ramamoorthy – Gayathri is a Project Manager who joined IMA recently and has over 14 years of experience in IT industry. She has been working in IT projects in diverse domains, which includes Manufacturing, Telecom, Chemical and Food Process Industry, Financial Services. She spends her leisure time with her daughter playing interesting kids games. She has now started to explore the experience of blogging and this is her first attempt towards the blog journey.