Are you out of touch with your project’s spending?
Do you need to get firm with your finances?
Then let us set you up with a framework of finance fundamentals to improve forecasting, monitoring and payment.
- Gather information on approved project budgets, actual costs, orders raised, work undertaken and therefore money owed to each supplier.
- Build a model to track budgets, forecasts, orders raised, expenses incurred against each purchase order, and therefore committed amount remaining on each purchase order.
- Ascertain who is interested in what, and identify each stakeholder’s monitoring ‘envelope’ (for example the Sponsor is probably interested in the entire business case, Procurement is probably interested in contract sums with key suppliers, Finance is probably interested in the net spend for each financial year, etc.).
- (Optionally) increase transparency of costs composition by creating a Venn diagram showing the budget pots in each monitoring envelope, with live figures for budget and forecast at completion fed from the cost tracker.
- Update the cost tracker with actual incurred expenditure, revised forecasts, enabling us to report Actuals to date, Estimate to complete, and Estimate at completion.
- Approve invoices for payment, and monitor progress through Accounts Payable to ensure that suppliers get paid.
This approach will give you:
- Increased transparency of effort and costs, improved financial control and predictability in delivery
- Increased planning and forecasting efficiency and effectiveness, having the right capabilities and capacity to deliver
- Improved credibility with and confidence from the business and Finance function
Timelines depend on priorities, and any other services being delivered concurrently for the same client.
“When Pragmatic PMO was engaged, some of the suppliers had no purchase orders in place and had been working on (steadily diminishing!) good faith for months.
Pragmatic PMO raised purchase orders and made sure that suppliers were paid up to date (including one who had been owed more than £300k for more than 8 months). They designed and built a programme cost tracker that gives me an overview of how >£85m was being spent against budgets across >200 suppliers and >50 projects, and identified a looming >£1m cash flow crisis that we resolved through a change of approach.
Pragmatic PMO implemented just enough project management fundamentals and discipline to enable the programme to robustly deliver some fantastic outcomes for the client. If you are looking for strategic programme delivery support services that you can actually lean on, Pragmatic PMO should be at the top of your list.”Mark Ferguson, Programme Director
If you want to get firm on your finances…
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