Project Financial Management
10 Key Steps to Streamline Your Business
Over the past decade or so we have been constantly bombarded with news about private and public projects that have either delivered scope at well over the expected budget or had to reduce scope to even come near to the original budget. Current thinking within project management methodologies only discuss the financial aspects of a project at a high level, leaving the “student” without any real way of working to greater understand the impact of their decisions on the financial results of the programme. In turn, the business case development is usually given minimal time and is a rushed job in the end. Investing in the correct people and time up front to review feasibility and secondly the business case is a must to ensure the total on target delivery of a project.
In the financial climate we are in, where budgets and costs are being cut, the time is now to ensure that whatever funding a company has available, that they invest it wisely – to do that you need to ensure that the project in the end – budget, costs and benefits are comprehensively reviewed.
With this in mind – using the Pathfinder Project Management Methodology as a basis, below are the 10 key steps to successful project financial management
(1) On new projects – invest time creating accurate feasibility studies and business cases, if this is a rushed job – in the end the results will deliver overspends.
(2) Review your project portfolio – are you carrying out the correct projects, are they nice to haves, are they being done for internal political gain – ensure each business case is robust and adds value to the future of the firm – spend time using previous experienced individuals to review and re-review the business case.
(3) Concentrate reviews just as hard on the benefits as the cost. In 80% of projects, once they are in, nobody wants to go back and review if they delivered as promised. So ensure from the start of the project you continuously check that as well as costs being on budget, that changes to your project have not altered your benefits.
(4) Cost cutting is not always the answer – allocate resource to “added value” projects – in today’s world cutting heads is a an easy short term fix, do not throw out the baby with the bath water and leave the firm with projects in-flight with no experience to deliver them. Instead review your project spend and as in (2) concentrate on adding value.
(5) Workforce development – up-skill their financial management knowledge, develop staff in leadership, health and safety, motivation etc – so when you put a non-finance manager in charge of a large project, is it not about time they were given the financial know-how. Don’t leave financial management to chance – develop your workforce.
(6) Break down the project into financially manageable sections. Too many projects work on the basis of a “pot of cash” – spend it as per the budget and if luck is with them, great! Instead take the “pot” and break it down into manageable sections – mapped to your project structure, that way you can see where budgets are by “workstream” and what ones are over/underspending.
(7) “one point of contact accounting” – too many managers will lead to budget overspend – following on from (6) above – The overall programme manager is responsible for the budget in total, at the same time each head of the projects parts should then be responsible for managing their part of the budget. This leads to one finance manager dealing with one project manager, ensuring a consistent relationship.
(8) Deliver focused and meaningful financial reporting to enable accurate decision-making. More is less – agree on what reporting is required from the project at the start and continuously improve until it is what the project needs to manage the programme of work. Because an accountant can deliver 20 pages of analysis a month to each project manager it does not mean that it’s correct – save the trees – minimise the reporting and improve the decision making.
(9) Communication – have a strong relationship between your project and finance manager. Finance cannot be back office, they need to be part of the project team and be seen to be so, and therefore open and honest communication channels lead to no surprises.
(10) Finance should be made aware of all potential risks / issues and a probable cost – if a problem has or may arise warn finance early, finance will be limited to what they can do to assist “after the event”.
What is Business Sense ?
What is the principal thing you need to succeed in your business
today? Money. Sure, you need it, but it is not the main ingredient for success. People .Of course they are necessary, but having them may not guarantee success. Excellent products or services. Well, this is a must to succeed. But you may have them and still not succeed. Promotions, visibility, marketing. These factors lubricate your business activities for success. So what is the principal thing?
Take this from the book of Proverbs. Wisdom is the principal thing. Therefore get wisdom. And in your getting, get understanding. Riches and honour are with me. Enduring riches and righteousness . Translate this into your business, you get what I call Business Sense. As we progress into year 2005, it is necessary we refresh our minds on what this sense is all about. That is the mission of this article.
So what is Business Sense? How you do your business. Not really. Strategies for doing business. Well you may be correct, but not quite. Doing business with the sixth sense. No you are off the mark for though Business Sense has something to do with feelings, it has more to do with wisdom.
But what exactly is Business Sense? It is the application of wisdom for today s business, or simply put, common sense in business. It is more than knowledge, facts, and figures. It is copious use of ideas especially those that are so simple, ordinary, or basic that they are disregarded. It is insight, the ability to interpret developments and the business environment differently, and to see, discern, and use differently and profitably, what others see but ignore because they look so ordinary or appear foolish. If you put your attention on those simple issues and things about they way you work and live, and use them for business, you are operating with business sense.
Business sense. Two words, So profound, readily available, so simple to learn and apply, yet largely ignored. You can call it common sense. Though it readily abounds, it is not so common in acquisition and application among the professional and managerial class who rule the corporate world.
They have studied in the best schools locally and abroad, acquired the latest technology and skills, and apply the best management methods, but are still struggling with the challenges in the marketplace. It is as if the more degrees, diplomas, and certificates our professionals acquire, the less they make use of common sense in business.
Not so for traders at the Alaba International market in Lagos. What they lack in formal education they make up with a copious supply of business sense. Little wonder, virtually all the banks flock to wherever these traders cluster to set up branches.
No economic sector or concentration of businessmen/women or professionals who exchange value have been able to attract such corporate attention from the financial services sector in Nigeria. These traders thrive while many other sectors are complaining. Do not blame the banks for chasing the traders. They badly need the cash which these traders generate daily. That is why they gravitate towards the traders. No other group maintains such a gravitational pull on a sector as formidable as the banks.
A teenage boy who moves into this market to learn the trade begins from the fundamentals- book keeping, retailing, pricing, and delivery of goods. Within four years, he has polished his negotiation skills and with the dexterity he has acquired, he can sell coal to a tourist form Newcastle in the UK. He is well equipped to deal confidently with consumers who are becoming very articulate and demanding. The hard times has made them to be very price sensitive and value conscious in their purchases. Patriotic messages may not move them anymore to vote for your brands with the dwindling value of their money. Neither will promotional hypes do that anymore.
What business sense tells you is that consumers want more promotional information to guide them in their purchases. Two decades ago, a nursing mother in Nigeria would hardly glance at the nutrition facts on a tin of baby milk. Today, before she buys, she picks up tins of SMA and other brands of baby foods to determine the one that offers the best value for her money. Now you can understand why Nestle Nigeria Plc mounted a promotional campaign to teach consumers Nutrition Facts . That beverage and baby foods maker has caught the vision of business sense.
What about Guinness Nigeria Plc.. Its premium brand Guinness stout says: Guinness brings out the action in you. But what the brewery has failed to do is to explain how the consumption of Guinness will galvanize consumers into action.
Take this from Oceanic International Bank. Its lighted billboards in Lagos metropolis sends the corporate message in two words: Experience peace . Good promo. But in these days of consolidation, banking distress and all, Oceanic Bank will definitely make more impact if it sends out detailed promotional messages on how a relationship with the bank guarantees peace. That is the latest trend in corporate communications, a shift from promotional hypes to information loaded promotions which communication experts call infomercials.
Business sense means that corporate bodies, the professional and managerial class must bend down from their ivory towers; go back to the fundamentals of doing business which we so often ignore, and get connected to the consumer. These fundamentals or common sense are readily available but hardly appreciated or used. Business sense teaches vision, mission, ethics, corporate care, charity, courage, humility and defining your business properly.
Business sense is not taught in the real sense in academic institutions and managerial courses. The approach in these places is more academic that real.. This sense is acquired more through real life experiences, insightful observation, and learning the hard way in the School of Wilderness Experience. That is the essence of this article series, to complement the teachings of these unique business schools , and prompt professionals to use common sense and what almighty God has deposited in them.
Dan Thomas, founder and president of Focus, a management consulting firm in Polo Alto, California, USA, wrote a book titled Business Sense. In the book, he shows how managers can use core management processes he calls Five Freedoms, to achieve success. As Dan s book moves through the offices of corporate America, see how Ken Blanchard, co-author of One Minute Manager, described the book: The biggest problem in business today is that common sense is seldom common practice. This book is all about using common sense in business. If you have any sense, you will read it and share it with others . No need commenting on the common sense remark of Ken. The message is clear.
For you to acquire and apply business sense in your business, you need to humble yourself, have a large heart, be of lowly spirit, keep an eye on business fundamentals, and above all be close to your creator. That put s you in the right frame of mind to recognize and apply common sense. If you are fixated on your academic achievements, total quality management, best practices and all, you will not apply common sense. No one is jettisoning these management methods. They are very necessary. But you need to lubricate their application with common sense. That is what brings lasting results.
You may be agonizing how to deal with that management, production, or marketing problem not knowing that the solution is one common sense application which you have not considered.
As I sign off today, take this classic example of a common sense solution to a big problem from the scriptures which most of you know more than me. The story of David vs Goliath. This giant had instilled morbid fear into the entire army of Israel. The solution for Goliath was readily available, yet no Israeli soldier or General saw it. Even if they did, they must have written it off as some managers in the corporate world are doing now as they confront the many Goliaths in the marketplace today.
The Israeli soldiers who lacked faith in God put all their trust in their spears and other armoury which paled into significance against Goliath s. It took the courage and common sense of a teenage boy, David who trusted almighty God. He dipped his hands into the brook there, picked five smooth stones for his sling and ran towards Goliath. You know the rest of the rest of the story. That was a simple solution for a big problem.
The common sense approach is even more real for today s marketplace. Dear professional, this is my call to you today: begin to apply wisdom in your business today. In subsequent articles, I will share my thoughts and the insights of other professionals like you on common sense in business. Apply them and it shall be well with you.
Time Management for MBA Students
Student Time Management
Are you a hardworking student but feel overwhelmed? Student time management can help you succeed in juggling your academic life with work and other extra-curricular activities, so that you can get the most out of being a college student.
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Our free student time management course will deliver time management lessons that put you back in control of your time, giving you the power to focus your energy and transform your life.
| My Story as a Student |
As a student, I often found myself in a situation in which I was confronted with too much work and not enough time to do it in. Does this sound familiar?
This left me with some pretty stark options of lengthening my day (usually by sleeping less), reducing my workload, or becoming more efficient in my habits.
Through trial and error, and commitment to change, I chose the latter option. Now as an academic, psychologist, and time management consultant, I find myself often helping well-intentioned students with their student time management.
| College Time Management Tip 1 – Plan Your Work and then Work Your Plan |
By planning your work and then working your plan, you will avoid the trap of last minute cramming sessions and stressful write-ups of assignments the night before – not only will time management reduce your stress it will also increase the quality of your study and improve your grade.
Furthermore time management is a transferable skill that is valued by employers.
So how do you set up a time management plan?
Plan your time for the semester
Draw up a semester timetable and plan your semester.
In the timetable put your assignment due dates and any other assessment dates. Also put your exam dates and a timetable of your lessons.
This should give you an overview of your commitments for the semester. It will also highlight bottle necks of intense periods of assignments and assessments, when all hands should be on deck.
Funnel your semester plan into a weekly plan
Developing a weekly plan of your work and then working your plan is essential for student success.
Download your free weekly planner and start today!
| College Time Management Tip 2 – Instill Daily Habits of Success |
Whether you are an elite athlete, a top business professional or great student – any success initially started with small steps, and building on those habits.
Daily habits of success are an important building block of any student time management system.
One way that you can start today is to develop a prioritized to-do list that you can use on a daily basis.
This is probably one of the easiest methods to increase personal effectiveness.
Here we give you three important steps that you need to take to maximize your chances of student success.
| College Time Management Tip 3 – What is Your Goal as a Student |
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Do you want good grades?
Are you a student who believes that anything higher than a pass is wasted effort?
Are you a student who wants to genuinely learn their art, and good grades are just a byproduct.
In essence – what drives you as a student?
By having a vision of what you want to achieve, whether it is good grades or a dream job, and knowing how you will achieve your vision is the essence of smart goal setting.
Student goal setting will keep you motivated, give you confidence and help you to persist when the last thing you want to do is to sit at the desk and study.
| College Time Management Tip 4 – How do you Spend Your Time? |
Often students feel stressed and overwhelmed with the amount of work they need to do. This is often a good indication that time management can help.
But often the question is where do I start?
There are a couple of options here. You can either take the time management quiz and see how good your time management is, and tweak those areas that could be improved.
Another spot to start is with a time management log that objectively assesses how you spend your time.
Once you know how you spend your time – you can then work on eliminating time wasters and becoming more effective.
| College Time Management Tip 5 – Students are good jugglers…but the best are great at prioritizing |
Part of student life is juggling the many demands on your time – work, academic study and social life to name a few.
….but knowing which tasks to do first is critical for college students who don’t have enough time.
Often these tasks need to be ordered in terms of priority.
I find that the students that I see really like the time management matrix to organize their priorities and time.
| College Time Management Tip 6 – Conquer Procrastination |
Facebook….Internet…even washing up dirty dishes…has been used as a form of procrastination.
I know that whenever I used to have exams coming up – it was uncanny how eager I was to help out around the house.
Be aware of the tendency to do things that you enjoy and put off what you don’t like.
Procrastination is a war that we all fight between a habit of ease and the discipline of action.
Conquer procrastination with these procrastination busters.
| College Time Management Tip 7 – Become an Effective Studier |
Studying effectively is not an all-night cram session the day before the exam. Nor is it chaining yourself to a desk for 12 hours straight.
Being a student involves readings, attending lectures and tutorials and juggling a social life.
One important student time management tip is being able to plan and manage the information. This involves keeping up-to-date with readings and being an active contributor to your learning experience.
Use these study skills to manage your time as a student effectively.
| College Time Management Tip 8 – Try to Read Actively |
One part of academic performance is being able you connect and relate facts with larger patterns of knowledge, and then communicating them in your own words.
Raise your academic performance will show you how to keep your mind optimally relaxed when taking information in.
Furthermore, reading in a passive way is not as effective as reading actively. Use the active method of reading to learn the content of your textbook in a more effective manner.
| Summary |
By using these student time management tips, the pressure of an exam deadline or the all night cramming is a thing of the past.
Preparing your work and working your plan is a way to maximize the chances of student success.
These easy to implement student time management tips will guide you to success as a student.
Importantly, the skills that you learn here are transferable into many other aspects of your life, and will be valued by any employer.
Tips for MBA Student
Improve Memory
Keeping our brains active can help improve memory performance. While the old tried and tested method of repetition is still an important part of memory techniques, we also need a bit of novelty to keep our minds awake and to stimulate our brains.
We all have times when we’d love to be able to improve memory – for school tests, college exams, business presentations or even just in our day to day lives. Pregnant women are particularly prone to memory loss, and often seek ways to improve memory. Age is also a consideration; as we get older, our ability to remember things slows down and we find ourselves misplacing things or forgetting appointments.
By learning new information, we can help improve memory in the long-term. The part of our brain that produces the chemical dopamine responds better to fresh images, ideas and experiences, and can improve memory retention more effectively that simply repeating the same information over and over again. To improve memory techniques, there are plenty of things we can do in our day to day lives:
Improve memory – with word games.
By simply doing the crossword or word game in your daily or Sunday newspaper, you’ll help improve memory by learning new words or phrases. Each day will bring a new challenge so you will be stimulating your brain regularly.
Improve memory – with number challenges.
Sudoku is a popular number game, but there are many other number puzzles you can try to help your quest to improve memory. Again, you will be keeping your brain active and opening up your mind to new challenges on a regular basis.
Improve memory – learn a language.
Exposing your brain to anything new will help improve memory function, but learning a language can be a particularly rewarding experience. You don’t need to go as far as taking classes, simply watch some of the foreign language learning programs on TV or learn a few words of Spanish or French, for example, each day.
Improve memory – play an instrument.
This is another fun way to get round the problem of increasing memory loss. Picking up a guitar or sitting for an hour or two at a keyboard could be a great way to improve memory performance. You’ll be stimulating your brain function by practising new chords or melodies!
Of course, many of us lead very busy lives and don’t always have the time to take up a new hobby or pastime. We can still improve memory techniques in our day to day lives, simply by paying attention to the things around us. Instead of walking or driving home in a daze, we can help improve our memory just by looking around!
by: Mike Paetzold
Richest Man in The World
The World’s Billionaires
#1 William Gates III
03.11.09, 06:00 PM EST
Software visionary regains title as the world’s richest man despite losing $18 billion in the past 12 months.
 AP Photo/Kevin P. Casey |
Fortune:self made
Source:Microsoft
Age:53
Country Of Citizenship:United States
Residence:Medina, Washington
Industry:Software
Education:Harvard University, Drop Out,
Marital Status:married, 3 children
Havard Case Study Book -
Keeping Strategy on Track:
Product Description
See how leading experts on strategy weigh in on these and other crucial questions and find answers to your toughest challenges in this collection of the most popular Harvard Business Review cases.
About the Author
The HBR Case Studies series
Every day, managers face challenges that put them to the test. When it comes to the thorniest dilemmas, there’s never just one right answer. Get the guidance you need from our new HBR Case Studies series. Straight from the pages of the Harvard Business Review, each book breaks down your most familiar–and formidable–business problems.
SUCCESS
10 WAYS TO MAKE YOUR BUSINESS A SUCCESS
1. The experience and skills of the top managers.
Over half of business failures are directly related to managerial incompetence.
2. The energy, persistence and resourcefulness (the will to make the business succeed) of the top managers.
Many business owners have failed or come close several times before their “instant” success. Don’t give up.
3. A product that is at least a cut above the competition and service that doesn’t get in the way of people buying.
There must be a compelling reason to buy; the product is great, the people love to provide service, and the buying experience is easy and fun.
4. The ability to create a “buzz” around the product with aggressive and strategic marketing.
Make scarce marketing resources count. Do as much homework about your customers and their choices as you can before investing your marketing dollars.
5. Deal-making skills to sell the product at the highest possible price given your market.
It comes down to your customers’ perception of the value of your product and sometimes the power of your personality.
6. The ability to keep developing new products to retain and build a customer base.
Consider gradual product development based on improvements to the current product line and sold to the current customer base.
7. Deal-making skills to work with resource suppliers to keep costs low.
Keeping costs lower than competitors’ and continuing to look for cost reductions even when the business is profitable is key.
8. The maturity to treat employees, suppliers and partners fairly and respectfully.
Trust and respect result in productivity increases in ways that may be difficult to see and quantify.
9. Superior location and/or promotion creating a connection between your product and where it can be obtained.
Studies have shown it can take seeing your product or name seven times before a customer is ready to buy.
10. A steady source of business during both good economic times and downturns.
Over the long term, develop a product mix that will include winners during good economic times and other winners when times are tough.
