1. Time Effect on Project Planning and Budgeting ‘Jide Onademuren

2. Project Planning and Budgeting  A project is identified, resources allocated and work happens  Project moves through a time process from requirements, design, development, testing to deployment  What happens during this “time process” makes a project looks like a success or failure 2

3. Planning and Budgeting; Effect of Time  Uncertainty  Planning Fallacy  Expert Opinion  Trust  Information Flow 3

4.  Planning and budgeting outlines how much a project will cost and how much effort will be required for delivery  Planning and budgeting are subject to predictable amounts of uncertainty  This occurs at various stages and time of project lifecycle  When the number of decisions about planning and budgeting over time increases, uncertainty level is reduced and accuracy increases  Uncertainty 4

5. The Cone of Uncertainty 5

6.  It is the tendency to underestimate how long or time required to complete a task even when there is experience of similar tasks  Individuals or organizations can be affected  Most times planning fallacy is about personal interests  The project manager/organization believes that planning and budgeting should be set in a way too hard to achieve  There is the belief that it will bring better productivity or completion of project fast enough  Planning Fallacy 6

7.  Team members can also be pessimist  Afraid to plan and budget  They also have the fear of failure or inefficiency  When new, neutral and additional resources who have no personal interests are brought in, planning fallacy is eliminated  This action also enforces independent and consensus-oriented planning and budgeting  Planning Fallacy (Cont’d) 7

8.  The opinion of an expert can be required when it comes to determining how long a project might take  The expert relies on his intuition or gut feel and provides an estimate  Typically, he reads project details, ask one or two clarifying questions and then gives an estimate  However, from agile project planning and budgeting deals with functionalities(user stories)  These user stories require a variety of skills normally performed by more than one person  Expert Opinion 8

9.  This makes it difficult to find a suitable expert who can assess these skills across all disciplines  On the traditional approach, planning and budgeting is associated with a task which is performed by one person  A nice benefit of planning and budgeting by expert opinion is that it usually doesn’t take long  Studies have shown that planning and budgeting is more accurate by expert opinion than other approaches  Expert Opinion (Cont’d) 9

10.  The frequency of reliable delivery of promised estimates builds trust between project owners and managers in planning and budgeting  Project owners are reluctant to make important decisions early in a project unless estimates in the past have proved trustworthy  Trust helps to make important prioritization and tradeoff decisions on time  Trust helps to decide how much of a feature to be developed  Reliable planning and budgeting allows work at a sustainable pace and less time is spent on highly unpredictable tasks  Trust 10

11.  Planning and budgeting conveys and describes one possibility of what may come to pass in the life of a project  They communicate and establish a set of baseline expectations  Far too often, a project is reduced to a single date and all assumptions and expectations that lead to the date are forgotten  Without additional information there is no way of determining the sufficiency and realistic status of planning and budgeting  Information Flow 11

12.  Time helps to describe what task will be completed at what period  Documents key assumptions  Establishes an approach for how it will have collaborative measurable progress  When a continuous information flow is established the confidence and conclusion that can be drawn from planning and budgeting is influenced  Information Flow (Cont’d) 12

13. Thank You 13