(upbeat music)
- Here's how I'd approach this challenge.
Based on your preliminary budget estimates,
you can only accommodate
some of the stakeholders' requirements
based on the pre-approved funding.
Let's discuss some approaches to handle this situation.
Initially, I would communicate to the sponsor
and key business stakeholders
that we have a conflict of priorities,
costs versus scope.
But I would also share that I have some ideas
to help them determine the best way forward.
First, I'd work with the business stakeholders
to define the business benefits to be achieved
based on the scope they'd like to implement.
The sponsor can get more funding
if the business benefits are measurable and tangible.
I'd also ask the key business stakeholders
if they could get some funding
to contribute to the project budget.
Next, I would carefully review the project labor resources
I intend to use.
For example, are there internal resources I could leverage
instead of consultants?
The internal resources would be less expensive.
Or, could I assign junior resources,
which will be less expensive still?
They will take longer to complete a given task,
but this could still be less expensive overall
and provides a learning opportunity
for less experienced personnel.
If the project has many materials to purchase,
I'll work with the procurement team
to determine if there are ways to negotiate a discount.
For instance,
if multiple business initiatives are happening concurrently,
a discount could be applied for a volume purchase.
Another option would be to divide the project into phases.
The funding for the second phase
of the project would have to be obtained later,
ensuring the highest priority business benefits
would be achieved in phase one.
My last resort will be to see if there are ways
to reduce the cost of the project solution
without significantly reducing quality.
Any reduction in quality increases risk,
so I'm cautious when taking this approach.
It's always challenging to balance conflicting priorities.
Negotiation and concessions will be required
as you work closely with your stakeholders
to find a workable approach.
It's a challenge,
but when you're successful, it's rewarding.