Irrespective of our industry and business size, we are all involved in different types of projects. And we know that projects sometimes fail. Or most of the time—per some studies, 70% of all projects fail. When it comes to IT projects, a whopping 65-80% of IT projects fail to meet their objectives, run late, or cost far more than planned, as reported by ClickUp.
Delivering projects on time and within budget is indeed a challenge many companies struggle to meet. Delays and overspending can damage a company’s reputation, cause financial loss, and erode trust with stakeholders. However, with effective strategies and planning, these pitfalls can be avoided. In this article, we’ll discuss some practical tips that will help your projects stay on track and within budget.
Let’s go!
Tips for Delivering Projects on Time and Within Budget
Listed below are some workable tips that project managers (and everyone else involved in the project) can implement for better project delivery.
1. Effective Planning and Project Management
42% of project managers don’t follow a defined project management methodology, which makes their projects 15% less likely to meet goals and stay within budget and 16% less likely to get done on time. That is why effective planning is one of the most important aspects of successful project delivery. If done the right way, a solid plan lays the foundation for everything that follows—teams know exactly what is required, when it’s due, and how it will be accomplished.
Here’s how you can create a solid plan.
- Create a comprehensive project plan—a project plan should outline key deliverables, project scope, deadlines, milestones, resources needed, and potential risks. You have to engage all stakeholders when developing this plan so that every aspect of the project is accounted for and included in the plan.
- Avoid unrealistic expectations—overly ambitious goals or timelines can cause major setbacks. In fact, 31% of projects fail due to unrealistic deadlines. To avoid this, set achievable deadlines and ensure the workload aligns with available resources. Breaking down the project into manageable phases and setting milestones can help track progress and keep the team on task without getting overwhelmed.
- Use project management software—using project management software can significantly improve planning, organization, and collaboration. Tools like Trello, Asana, Jira, and Microsoft Project enable you to assign tasks, monitor deadlines, and track progress in real time, in addition to facilitating better communication within the team.
- Monitor progress—no matter how well the project is planned, if it is not monitored, you may risk going away from your goals. Use performance metrics and key performance indicators (KPIs) to evaluate progress and update your milestones as you move along.
2. Resource Allocation and Management
Successful project delivery depends not just on good planning but also on how efficiently you allocate your resources. Resources like time, money, and personnel must be allocated wisely to ensure smooth progress.
In my interactions with successful project managers, I have gathered the following about resource allocation:
- Allocate resources strategically—lots of resources available do not mean successful delivery if they are not utilized strategically. What you can do is to identify the key resources required to complete the project and allocate them where they will have the greatest impact. Consider the unique skills and capabilities of team members and assign tasks based on their strengths. Do not over-allocate resources to certain areas while under-utilizing others—that will create an imbalance.
- Dealing with limited resources—working with limited resources is a common challenge. When resources are scarce, you have to prioritize the most impactful aspects of the project. Focus on high-priority tasks that will move the project forward and be prepared to make trade-offs where necessary. In some cases, you may need to request additional resources or negotiate deadlines to accommodate the limitations.
- Avoid scope creep—according to a study by the Project Management Institute, 50% of projects experience scope creep, which is one of the most common reasons for budget overruns and delays. To avoid this, clearly define the project scope from the beginning and stick to it. Implement a formal change management process so any potential adjustments to the scope are carefully reviewed and approved by all stakeholders.
3. Communication and Collaboration
Effective communication and collaboration are crucial for project success. In a KPMG Survey, when asked about the top skills required for driving change in the organization, 35% of executives and PMs mentioned communication. When team members, stakeholders, and managers are on the same page, projects are more likely to be delivered better and smoothly.
Here’s how to do it:
- Establish clear communication channels—from the very start, establish clear communication protocols. All stakeholders should know which communication channels to use, meeting schedules, and points of contact. Ensure that all team members have easy access to project details, updates, and feedback.
- Foster positive relationships with stakeholders and team members—building and maintaining strong relationships within the team and with stakeholders can go a long way in making the project a success. Trust and collaboration are essential for addressing challenges, making decisions, and keeping the project on track. Also, do not forget to encourage open dialogue—it allows team members to voice concerns and offer solutions early, which can help to prevent issues from escalating.
- Resolve conflicts proactively—disagreements and conflicts are inevitable in projects of any size and scale. But the key to minimizing their impact is to handle them proactively and constructively. As a project manager, you should encourage open communication and create an environment where differences of opinion can be discussed respectfully. When conflicts arise, focus on finding common ground and ensuring the project’s goals are prioritized above individual disagreements.
4. Risk Management and Contingency Planning
Every project comes with risks, whether it’s issues from the client’s side, unforeseen technical challenges, or changes in market conditions. But risks are most often manageable and can be handled with a workable risk management strategy. Per a study, risk management is the second most valuable PM process at 40%, after stakeholder engagement, which stands at 50%
To go about it, you need to:
- Identify common risks—the first step is to identify potential risks early in the project. These can include technical failures, resource shortages, budget constraints, and external factors like changes in regulations or economic conditions.
- Develop contingency plans—even with the best planning, unexpected challenges can still arise. That is where your contingency plans step in. For example, if a key resource is unavailable, a backup plan can prevent delays. Or, going for alternative tools and working around technical issues can help maintain project momentum.
- Mitigate risks and minimize impact—once risks have been identified, it’s important to develop strategies to mitigate them. This can include diversifying suppliers to reduce dependency on one source, increasing the project timeline to allow for delays, or setting aside part of the budget as a contingency fund. Regularly reviewing risks and updating mitigation strategies ensures you’re prepared for any developments.
5. Continuous Improvement and Learning
Project management is not just about delivering individual projects on time and within budget; on the contrary, it’s a continuous learning process that involves improving processes over time. To achieve this, conducting post-project reviews is essential. These evaluations provide valuable insights into the strengths and weaknesses of your project management processes, helping to refine them for future endeavors.
Every project, regardless of its outcome, offers lessons to be learned. When you analyze data such as timeline adherence, budget usage, and team performance, you can uncover opportunities for improvement. The key to long-term success lies in incorporating these lessons into your project management framework.
Final Thoughts
Delivering projects on time and within budget is achievable with the right approach and tools. The tips discussed above—effective planning, resource management, communication, risk management, and continuous learning—provide strategies that can help you deliver excellent projects.
At DevEngine, we understand the importance of having the right team in place to deliver projects successfully. As a nearshore staff augmentation company, we specialize in providing top talent from Latin America to North American businesses. If you’re looking to streamline your project management process and ensure your projects are delivered on time and within budget, we can help.
Get in touch with us and let us find the best project management talent for your team.