Financial dependency network

SUB-CONTRACTOR PROJECT

PSG: F Street, E Baines, C Underwood Project manager: B Billingham

SUB-CONTRACTOR PROJECT

PSG: F Street, E Baines, C Underwood Project manager: B Billingham

Code Item

Cost

Income

X345b1 XXXPro'jPhl

11,822

49,322

X345b2 XXXProjPh2

12,000

X345b3 XXXProjPh3

15,500

X345b4 XXXProjPh4

10,000

49,322

49,322

0

PSG: Alex Brown, S Saunton, A Hall Project manager: R Huppert

Code Item Cost Income

X523 XXXProject 1,643,214 1,643,214 y 1,643,214 1,643,214 0

PSG: Alex Brown, S Saunton, A Hall Project manager: R Huppert

Code Item Cost Income

X523 XXXProject 1,643,214 1,643,214 y 1,643,214 1,643,214 0

BUSINESS PROGRAMME

PSG: G Bennet, E Smith, G Painton Project manager: K Gordon

BUSINESS PROGRAMME

PSG: G Bennet, E Smith, G Painton Project manager: K Gordon

Code

Item

Cost Income

BAU

2,286,214

X345

IT

99,322 7,300,000

X523

Property

1,643,214

4,028,750 7,300,000

3,271,250

spread across a combination of business-as-usual activity and two projects (it and property). For this investment, the programme forecasts income of $7,300,000. On balance, this suggests a "profit" of $3,271,250.

The it and property projects are breaking even, as is the subcontractor project on the left. These projects are expected to deliver benefits that outweigh the investment being made in them, but these benefits are identified at programme level. Thus a different approach is needed to provide incentives for people involved in these sorts of projects. Rather than rewarding them when the benefits are achieved (which, in the case of a programme, might be in many years' time), it may be more effective to reward their ability to contain costs or produce quality deliverables on time. The programme must take care of the benefits management, not the projects themselves.

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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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