Once you have gotten the project status reports into the organizational culture, it is time to move onto the variance reports. Variance reports portray the differences between what was planned and what happened at a particular time-box. Typically variance reports measure the schedule and cost variances, and provide a justification for those variations.
3 reasons why you need a variance reporting process
- Capture deviation trends from the plan early - Let's say in the first two weeks of the project, the spend is up by 10% of what was expected, and the schedule is behind. From a PMO stance, it would be great to know this 2 weeks into the project rather than 12 weeks. Time for some investigation and perhaps a corrective action.
- Soften Fluctuations - If the fluctuations are mimicking the seimic reading of earthquakes on a project, it would be nice to have a heads up. This is an early warning signal of Danger Ranger Robertson!
- Enable Early Corrective Action - As things go awry, it is good to know early so a corrective plan of action can be formed. Look for significant root causes. Drain the swamp and look for the big alligators, not just the little ones that crop up first.
The TakeAway
Early warnings of poorly controlled situation is a key success factor of a PMO. Bad News does not improve with age. The sooner you can address it, the less of an effect or impact the problem will have on your project.If you enjoyed this post you may what to check out these further readings on Taming Chaotic Project Management:
- The Top Ten Characteristics of a Chaotic Project Management Environment
- Find out how many active projects are in flight.
- Establish your organization's current and desired need of Healthcare IT
- Collaborate on Prioritization Decision Criteria
- Have a defined and approved process to accept work.
- How to stop running the daily meeting marathon
- Using the WBS to define deliverables
- How to know when you have a project and when you do not
- 8 Training Tips on how to develop project schedules
- Introduce a Scope Change Management Process
- Introduce a Benefits Management Process
- Top 5 benefits to a project dashboard
- Growing up from a functional to a matrix model
- Stop doing projects which have no benefits
- Develop a project classification scheme
- Establish a Resource Management Process
- Dealing with Changing Priorities
- Seismic Change and the Cowboy
- Stop Quitting and Start Closing Projects
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Welcome to the Healthcare IT Project Management Blog of Elyse Nielsen. This is the place where I share the ideas I have learned, the things I’d like to remember, and my thoughts for a brighter future. Find out more.
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