In his book Project Portfolio Management, Harvey Levine states that "Almost everything written about measurements of project success dwells on the four pillars of success: scope, time, cost, and quality. We have been taught to identify the goals for success in each of these areas and then to create plans that balance these objectives. Then we implement practices and use computer-based tools to measure how well we are accomplishing these objectives. When we meet these objectives and satisfy the project stakeholders, we consider the project to have been successful".

Harvey goes on to explain that while the four pillars are all important measurements, the executives really only care about two things: when the project will be completed and how much it’s going to cost. If the project isn’t completed on time or is over budget then, in their minds, the project is a failure.

Will the Project Be Completed on Time?

Most projects can be broken down into a number of tasks or steps that need to be performed. As a project manager prepares the project schedule, he/she needs to identify each task, calculate how long the tasks will take to complete, understand which resources the tasks will require, and then order the tasks based on priority and dependencies.

As soon as the project schedule in place, it is the role of the project manager to make sure that his/her team sticks to that schedule. Of course, planning the project is only half the battle. New tasks are identified, problems arise, resources are unavailable, or perhaps, the project schedule was unrealistic from the beginning. All of these items get in the way of a project succeeding and if not controlled, could cause the project to fail.

Fortunately for executives and project managers, we have robust project management tools that help manage tasks, align resources, create project plans, and otherwise ensure that the project will be completed on time. By creating a solid and realistic project schedule and then sticking to it, project managers can happily report to executives that the project will be completed on time.

How Much Will the Project Cost?

Getting the project completed on time is only half the battle. The other half has to do with getting the project completed on budget. Each project task has a cost and therefore each task needs to be taken into consideration when creating the budget for the project. Often projects are over budget simply because the costs of the project were underestimated or unrealistic from the get go. Getting the budget right the first time will help save valuable time, money, and resources. As a tip, slightly overestimate your budget and then work hard to save money on every single task. Chances are you’ll come out about even.

Once the budget is determined, it is the job of the project manager to stay within or preferably, under the budget. Because prices are often unpredictable, the project manager should review the budget on a daily basis and identify potential problems before they occur. As a general rule of thumb, if the project is on schedule, then chances are that it will be on budget as well. While meeting the project schedule won’t guarantee a balanced budget, it will significantly increase your chances.

In Summary

Project managers should focus on the two most important success factors in project management – cost and time. By creating a well thought-out project schedule and a realistic budget, project managers can increase their chances of having a successful project.