Agile Project Budgeting

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Hong Sun, Management Consultant, Canada
THE PROBLEM WITH TRADITIONAL PROJECT BUDGETING Traditional project budgeting uses a bottom-up approach that requires a forecast of all involved tasks for the entire project development process and estimates of their corresponding costs and durations, all in the pre-project phase. In today’s fast-paced business world where changes represent the norm and few things are predictable, this approach has resulted in ineffective project budgets. AGILE PROJECT BUDGETING Agile project budgeting is created by combining both a top-down approach and a bottom up approach. A top-down approach is applied by management to set up a budget pocket for each group of projects (i.e. a project category) for a fixed period of time (such as 3 months or 6 months). A bottom-up approach is applied by project teams to detail tasks in their projects for fairly short time boxes (such as 2 weeks per iteration and 2 months per increments) when realistic cost and schedule estimates are possible. As long as the bud (...) Read more? Sign up for free

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  Hong Sun, Management Consultant, Canada
 

The Precision Alignment Approach for Calculating the Budget of an Agile Project

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