Project Financials Review, Overrun Levels, and Lessons Learned

This assignment solution addresses key aspects of project management, focusing on the importance of frequent financial reviews and re-forecasting to maintain budgetary control. It establishes an acceptable overrun threshold of 10%, beyond which projects risk losing control. The solution emphasizes the significance of documenting lessons learned from projects, both during and after completion, to capture valuable insights and prevent recurring mistakes. It identifies project managers as primarily responsible for providing input into these lessons and highlights the need to collect, review, and revise project lesson information for future reference, fostering transparency and continuous improvement in project execution. Desklib provides access to this and other solved assignments to aid students.

DIPLOMA OF BUSINESS ADMINISTRATION
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1. Project financials are quite crucial for the success of the project and so does its re-
forecasting. Both the project financials and re-forecasting need to be reviewed on a
weekly basis. It is because frequent review of the project financials enable to correct the
budget procedure as it seems generally a budget for the project overruns by 10% (Project
Smart, 2015). So such sort of reviewing would be quite suitable in reviewing the project
financials and make the changes as per the business convenience. Budgeting is of a great
concern for the stakeholders and so it would be favourable for the project managers to
review the project financials to avoid unnecessary expenses and save costs as much as
possible. Therefore a weekly checking of the project financials and its re-forecasting
would save the day for those involved with the projects directly and contemplate the
same successfully.
2. It seems that for the purpose of the project a 10% of budget overrun is manageable as it
would tend to have the situation in control and pave for the requisite corrections (Cox &
Fardon, 2007). The situation strives to get out of control once the overrun level reaches to
30% as such sort of business conditions would call for a financial upheaval and
jeopardise the business intent. So it is quite clear that in the project scope a 10% of
overrun is admissible as the same could be controlled while overrun by 30% tends to lose
the grip.
3. It would be quite purposeful to document the lessons learnt from the projects as it gets
completed. This is because the experience from the past projects would be useful for the
project manager to comprehend his exercise favourably (Fleming & Koppelman, 2016).
The documentation would make him aware of the sorts of mistakes made in the earlier
projects so that those mistakes could not be repeated again. Again the documentation
process tends the project manager as part archivist and part historian providing useful
feed for the upcoming project mangers the appropriate techniques to contemplate the
projects successfully (Heagney, 2016).
4. The best time to capture the lessons learnt from the project while the project has been
continuing. It is because it strives to be the ideal moment for the purpose as the project
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nooks and corner stay afresh in the minds of the project managers (Project Smart, 2014).
It is seen if they keep it for a later date chances are higher that they would forget its
intricacies, so it would be appropriate for them to document the same out of their busy
schedule (Kerzner & Kerzner, 2017). Therefore in an ideal scenario the project managers
would document their learnings while the project is on as it would bring forth a true
reflection of their deeds rather than a vivid imagination. If by chance it is not possible to
jot down the intricacies during the project, it would be suitable to have the process once it
gets over.
5. The project managers remain helm of the project and so it would be the primary
responsibility of them to provide the right inputs for the lessons learned in the process
(Projectsmart, 2019). It tends to be a concerted effort to strive success by going through
the insights form the projects. It is the utmost responsibility of the project managers to
record the lessons derived from the project periodically say weekly and monthly
(Fleming & Koppelman, 2016). In the beginning it might be little difficult but with the
passage of time it becomes an effective exercise to be followed duly by the managers.
6. The project lesson information need to be collected, reviewed and revised for the purpose
and presented to the users and those taking active interest in it. The phenomenon is quite
significant as it enables the business to take vivid assumptions and real-life scenario for
planning their next project. It would be helpful for them not to repeat the same mistake
and contemplate the matter successfully (Larson & Gray, 2015). The project lesson
information stored has the probability to possess both positive and negative implications.
It would be very much effective as it tends for a transparency scenario in the business
process showing the rightful execution of the project (Heagney, 2016). In this way the
project lesson information stored would pave avenues for the upcoming project managers
to learn from the past mistakes and strive for a meaningful way to make the project
successful undertaking suitable means.
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REFERENCES
Cox, D. & Fardon, M., 2007. Management of finance: a guide to business finance for the non-
specialist. London: Sage.
Fleming, Q. & Koppelman, J., 2016. Earned value project management. December ed. London:
Project Management Institute.
Heagney, J., 2016. Fundamentals of project management. Perth: Amacom.
Kerzner, H. & Kerzner, H., 2017. Project management: a systems approach to planning,
scheduling, and controlling. New York: John Wiley & Sons.
Larson, E. & Gray, C., 2015. A Guide to the Project Management Body of Knowledge: PMBOK
(®) Guide. Sydney: Project Management Institute.
Project Smart, 2014. Documenting Lessons Learned: What Have You Learned?. [Online]
Available at: https://www.projectsmart.co.uk/documenting-lessons-learned-what-have-you-
learned.php
[Accessed 07 March 2019].
Project Smart, 2015. Has Your Project Jumped the Shark?. [Online]
Available at: https://www.projectsmart.co.uk/has-your-project-jumped-the-shark.php
[Accessed 07 March 2019].
Projectsmart, 2019. Lessons Learned. [Online]
Available at: https://www.projectsmart.co.uk/lessons-learned.php
[Accessed 07 March 2019].
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