New Year’s Resolution- know which projects are profitable and which are not
New Year is the best time to plan for your projects to become more profitable. We live in an industry which we all call the “commodity trap”. It’s essential to remember that every client wants and has the right to the best value. However, the project manager wants to solve profit-eating operational challenges as well as avoid hidden over-servicing costs. Achieving the balance between long-term relationship with clients while delivering profitable projects – is a constant challenge for most.
The biggest challenge is – time constraints in project managing. Make sure you (project manager) allow your team to do their best performance. Educate your team about the growth and focus on the bigger picture of increased profitability, improved cash flow and overall resource management. Consequently, practice good communication and set clear boundaries and instruction for both, internal teams and the clients for desirable results.
It’s not as easy as it sounds. There are limited number of levers that project managers can pull. However, let’s be positive and remember that communication is the key to successful project management. You can notify your clients when project is fully complete. Therefore, it’s important to be in the centre of communication on the projects, projecting an overview and managing its performance.
Certain tools can play a big role in maximizing projects’ effectiveness and profitability. Undoubtedly, the most important components for success are time tracking tools. Project managers need to know at any given time how many hours are allocated towards the project, and how many hours are left in the allocated budget. Without that knowledge there’s no way that project managers can deliver on budget and time. And that’s important regardless of whether a project is fixed price or not, as well as tracking and monitoring to ensure your teams are running efficiently. A consistent and accurate tracking of the hours accumulated on a project will show whether your team is being over utilized. This method will empower you to do a more accurate assessing of projects profitability.
For more information on how 1Time Tracking can help you track your hours try our free 30-day trial on 1Time Tracking. You can choose from any user base package with no credit card requirements. Try it today!