Costs

e People participating in the project will work a standard eight-hour day.

e A flat cost rate has been applied to all internal resources. e A flat cost rate plus a margin of 30% has been applied to all external resources. e 20 days' holiday per person have been included. e No activity is expected during the 14-day Christmas and New Year period.

Selected option: benefits realisation plan

This section describes how the intended benefits will be measured, tracked and delivered. This is discussed in detail in Chapter 12.

Selected option: management by objectives

The last section of the business case recognises that most people need some form of incentive to achieve demanding targets. The business case itself is a series of targets including dates, budgets and "profits", and those engaged in delivering the project may be encouraged if their remuneration is linked to its success.

It is not unusual for the project steering group, and the sponsor in particular, to have their personal reward packages linked to the project delivering payback on the planned date. However, the eventual profitability of the outcome is only partly in the project manager's control, so it is unusual to reward the project manager if the project achieves payback. Rather, project managers should be rewarded on their ability to manage change. They should be offered incentives to apply an effective change control process, maintain the plan against which changes will be measured and apply management by exception so that the right people take the right decisions at the right time.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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