“I’m in a bit of a pickle. My manager just dropped a bombshell on me – project costs are skyrocketing.”
There is a clear frustration in AK’s voice. As he has recently taken the role of leading the project, he is trying to digest some of the parameters that impact the project’s progress.
GK: “It sounds like you’re frustrated due to some unexpected challenges with managing project costs.”
AK: “Exactly. The talent pool was supposed to be a cost-effective solution. Why is it not working out that way?”
GK: “Hmm. Can you elaborate?”
AK: “You know our project has got very stringent deadlines. I have asked for some quick help. So, for a few days, my manager offered additional members to the team from the talent pool.”
GK: “Then?”.
AK: “To meet project priorities, I had to extend their help for a couple more weeks.”
GK: “Okay?”
AK: “I thought it would save us money. What am I missing?”
GK: “Talent pool utilization can be different in companies. I assume the purpose your manager offered additions is mainly to help your project. Not to just engage them or up-skill/cross-skill them. Is it?”
AK: “Correct. To help my project.”.
GK: “This is a classic talent pool trap.”
AK: “Hit me with it.”
GK: “Let me put it this way. Imagine you’re running a movie theatre. Someone walks in and demands a free ticket because there are empty seats. What would you say?”
AK: “I’d probably tell them that just because there are empty seats doesn’t mean they can watch for free. Running the show still costs money.”
GK: “Exactly. The same principle applies here. Just because the talent is available doesn’t mean it’s free. Every seat filled incurs a cost. Every member in the project incurs a cost for the company, whether it’s directly billed to the client or not.”
AK: “Got it. So, tapping into the talent pool doesn’t mean we’re saving money after all.”
GK: “Precisely. It’s important to consider the total cost of utilizing members or other resources, even if they come from a pool.”
AK: “It’s making sense now.” GK: “And remember, managing costs is about more than just using them efficiently. It’s about making strategic decisions to ensure the project stays within budget and to avoid Budget Black Hole.” AK: “I got it now. Thanks for clarifying, GK. I’ll make sure to take a closer look at the overall project costs and make adjustments accordingly.”
GK: “You know, there ain’t no such thing as a free lunch.”
—
Some managers mainly focus on delivering requirements and miss to pay required attention to other crucial ingredients that decide the success of the project and customer satisfaction & retention.
Share your experiences and insights in the comments below to help upcoming leaders like AK navigate the complexities of project finances.
There is a clear frustration in AK’s voice. As he has recently taken the role of leading the project, he is trying to digest some of the parameters that impact the project’s progress.
GK: “It sounds like you’re frustrated due to some unexpected challenges with managing project costs.”
AK: “Exactly. The talent pool was supposed to be a cost-effective solution. Why is it not working out that way?”
GK: “Hmm. Can you elaborate?”
AK: “You know our project has got very stringent deadlines. I have asked for some quick help. So, for a few days, my manager offered additional members to the team from the talent pool.”
GK: “Then?”.
AK: “To meet project priorities, I had to extend their help for a couple more weeks.”
GK: “Okay?”
AK: “I thought it would save us money. What am I missing?”
GK: “Talent pool utilization can be different in companies. I assume the purpose your manager offered additions is mainly to help your project. Not to just engage them or up-skill/cross-skill them. Is it?”
AK: “Correct. To help my project.”.
GK: “This is a classic talent pool trap.”
AK: “Hit me with it.”
GK: “Let me put it this way. Imagine you’re running a movie theatre. Someone walks in and demands a free ticket because there are empty seats. What would you say?”
AK: “I’d probably tell them that just because there are empty seats doesn’t mean they can watch for free. Running the show still costs money.”
GK: “Exactly. The same principle applies here. Just because the talent is available doesn’t mean it’s free. Every seat filled incurs a cost. Every member in the project incurs a cost for the company, whether it’s directly billed to the client or not.”
AK: “Got it. So, tapping into the talent pool doesn’t mean we’re saving money after all.”
GK: “Precisely. It’s important to consider the total cost of utilizing members or other resources, even if they come from a pool.”
AK: “It’s making sense now.” GK: “And remember, managing costs is about more than just using them efficiently. It’s about making strategic decisions to ensure the project stays within budget and to avoid Budget Black Hole.” AK: “I got it now. Thanks for clarifying, GK. I’ll make sure to take a closer look at the overall project costs and make adjustments accordingly.”
GK: “You know, there ain’t no such thing as a free lunch.”
—
Some managers mainly focus on delivering requirements and miss to pay required attention to other crucial ingredients that decide the success of the project and customer satisfaction & retention.
Share your experiences and insights in the comments below to help upcoming leaders like AK navigate the complexities of project finances.
Escaping the Talent Pool Trap: Strategies to Overcome the Budget Black Hole