A Manager’s Guide to Project Management: Learn How to Apply Best Practices

8. Project Cost Management

I begin Part III, “Project Management Oversight,” by introducing project cost management. A sound project cost management system is a strategic tool for the executive manager for three reasons:

1. It helps manage projects as investments.

2. It helps evaluate project management at the organizational level.

3. It offers tools that aid in strategic outsourcing.

For the first objective, the link between cost management and investment management is obvious: We want to maximize our investments by minimizing costs. The second benefit is less obvious. Successful project management involves many issues beyond cost (such as staff efficiency and process improvement). However, formal project cost management offers tools to track ...