Visualising the budget flows of your IT projects and products
IT teams in an agile organization can easily become a black-box for management, where money goes in and hopefully a working product comes out. The more flexible the approach, the more it makes it harder to track budget flows, especially in relation to what is being delivered or is expected.
When budget flows are visualised, it’s much easier to understand how much money is going towards the delivery of value, lost value and what the cost of poor quality is. At Lean Vertical, we aim provide our clients a clear visualisation of how a budget is being spend. By leveraging readily available data, we determine if you’re getting a bang for your buck or if your budget is being drained due to poor design and/or bad quality.
Not everything a team does delivers direct business value. Some of their activities are non-value adding activities which are necessary to deliver a project/product. Nonetheless, a team’s output needs to be maximized towards valuable output, while driving the lost value and cost of poor quality down as much as possible.
Having a clear view on a team’s delivery will generate confidence that the majority of the budget is going towards value adding activities.
Every project has a percentage of contingency factored into the budget. But at what point is that contingency being consumed? In most cases at the end of a project it’s clear that contingency was consumed, but by what? It could have been very early on in the project because of setup or very late due to unplanned activities or scope creep. It might as well be continuous, through underestimating, uncontrollable dependencies and other unforeseen circumstances.
If it’s visible what’s eating the calculated contingency, actions can be taken to tackle the cause. Freeing up budget to deliver more value.
The bitterness of poor quality remains long after the sweetness of low price is forgotten. Software development isn’t different in this regard. Poor quality will not affect you budgets during development, it also has a grave impact after delivery. That’s why it’s important to get the cost of poor quality under control and try and limit it as much as possible.
Through a clear visualisation of where exactly these costs originate, a set of actions can be taken to remediate the root cause. Avoiding unpleasant surprises and costs in the long run.Contact us
My passion is all about helping people, teams and organisations figure out where they are, where they want to be, and then helping them get there.