Project managers… are they really necessary?
Project management is taking up heaps of my budget. Should I be concerned?
It’s normal to feel a bit concerned when you see the Project Manager figure on a CRM project proposal. However, it’s crucial to understand that effective project management can actually save you money in the long run by streamlining processes, reducing waste, holding team members accountable for deliverables, and effectively managing risk.
Before you dive in, take a closer look at what those project management costs entail. Break down the expenses into categories like meeting attendance, report preparation, escalation, and personnel management. Understand what interaction you will have with them at different phases of the project.
As you move forward, make sure you get detailed status reports from your project manager. These reports should clearly outline progress, potential roadblocks, and strategies to keep the project on track. Also, don’t hesitate to ask how risks will be managed. Understanding these details upfront will help you ensure that the project management costs are justified and that the project runs smoothly, keeping you informed and in control from the start.
So how much is too much?
For many CRM projects, a starting point will be approximately 20-30% of the budget being spent on project management and related services (which might include vendor sponsorship, partner engagement, or other similar involvement). Once you have a more structured project plan in place this should be able to be rationalised to a certain number of hours or days per week for the duration of the project.
Keep in mind that project management is typically billed on an "as used" basis. This means that if your project timeline is extended you will likely have to increase your project manager budget to cover the additional days, weeks, or months they are required to work.
Once the project starts, make sure that you work with the project manager and don't try to keep them out of your way. If you aren't seeing value from your CRM partner's project manager, it's time to escalate. Speak to their nominated sponsor or manager to articulate your concerns and form a position for how to move forward.
So was the quote for project management too high? Most likely not! But it never hurts to ask.
Posted on Sun 30 June 2024
Your CRM Coach are a small consultancy empowering organisations to do a better job of putting in CRM projects. The industry is full of cowboys and snake oil salesmen, and Your CRM Coach are here to help share our experience to avoid common pitfalls. Learn more about What Your CRM Coach do, organisations we have helped before, or get in touch to understand more.