CHAPTER THREE
Developing a Rock-Solid Budget
Insanity Begins at the Top
It has been my experience that top managers determine project budgets and schedules nearly 80 percent of the time. Mission-critical projects happen with no more effort to determine a budget than executives making a guess.
The correct time for management to provide ROM (rough order of magnitude) estimates is during strategic planning when strategic objective concepts are floated and high-level costs and benefits are evaluated to determine the future direction of the organization. Even at that point, you’ve seen precisely why companies shouldn’t use ROM estimates. The problems with these figures being used for the project include:
• ROM estimates are considered by PMBOK ...
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