Executives Cause Chaos – Management Silent
Yes…I said it. For some reason, nobody else will. Is it arrogance or ignorance? Why does it take so long to approve capital projects? I have spent the last twenty-four years of my career advising customers on capital projects. There are three critical responsibilities for a capital project manager.
1. Manage the Budget – We all understand the key to successful capital investment is Return on Capital. There are other reasons to invest but the main reason is to generate more cash for the business. This requires prudence to ensure maximum ROC.
2. Be on Time – When the capital is late, the ROC is delayed because revenue can’t be generated. The sooner the capital is in place, the sooner it can begin generating revenue. In some cases, having it in place allows for ample debug or run time on the equipment, ensuring...
As a project manager, one of the highest responsibilities to your organization is minimizing risk and alerting the organization of risks that jeopardize the project objectives. In my experience, the areas with the greatest risk are as follows:
1. Vendor selection – Companies focused on price versus competence struggle with every stage of the capital project. Having a well thought out selection process is imperative for choosing the right vendor.
2. Funding approval – If your company’s management lacks a sense of urgency in approving your funding request, the timeline gets compressed because of their delay. Clearly articulating the consequences of their delayed approval is your responsibility. I have seen too many project managers bear the cross of train wreck management. This is avoidable by being proactive in communicating consequences in a non-threatening manner....
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