This Focused Performance Weblog is a "business management blog" containing links and commentary related primarily to organizational effectiveness with a "Theory of Constraints" perspective. TOC is noted for its applications in Project Management and Multi-Project Management (Critical Chain) and Operations Management (Drum-Buffer-Rope), as well as in Marketing, Strategic Planning and Change Management (TOC Thinking Processes). If you are on an archive page, current postings are found here.
Wednesday, June 08, 2005
Cost of Project Delay -- Over on the Newgrange discussion list, in a thread on this topic, Ron Jeffries wrote...
I would suggest that the cost of delay is not measured in the cost of the work not done, but in the loss of value of the results of the project. If the value of the project does not greatly exceed its cost, we ought not do it.
That's worth repeating, loud and wide from the rooftops!
In the project management world, as in the management of most commercial endeavors, there is too much emphasis on the cost of delivery of a project (or product) relative to the value of its completion (and sale)...unless, of course, there is no real value associated with the effort.
But no one here has ever worked on something of questionable value, have you?
Fortunately, my current world is one in which my projects are set-ups and implementations of services we (www.digitalgrit.com) have sold, for which client benefits (website traffic and conversions like sales and lead generation), not to mention our management fees, start accruing upon completion of the implementation.
There's nothing like living in a world of clarity of purpose.
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