• Predictive Analytics for Improved Cost Management  



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Original Post Date: Tuesday, August 12, 2008 Nothing drives me crazier than the statement I get from many of our clients during that first meeting, "We are really bad at estimating. So what? Why does it matter? Management does not seem to care."  Business leaders have been duped into believing that inaccurate project estimates are not a concern and that they cannot do better - Wrong.  Bad estimates lower profitability and yes, you can do better.  Please consider that projects are prioritized and launched based on their expected costs and benefits, the return-on-investment (ROI).  So you optimize your portfolio ...
Original Post Date: Wednesday, August 6, 2008 Last week the U.S. Senate Committee on Homeland Security and Governmental Affairs held a hearing entitled "Offline and Off-budget: The Dismal State of Information Technology Planning in the Federal Government".  The prepared remarks by those who testified before the committee make good reading.  You can find them here. The committee focused on the many IT projects that are overrunning cost and schedule, giving most Federal Agencies failing grades on their budget management report card.  My experience while working with Fortune 500 companies is that they do not do much better - we just do ...
Original Post Date: Friday, August 1, 2008 If you are a baby-boomer like me and occasionally suffer from symptoms of mid-life crises it is important to answer the question, " What is the purpose of my work, my mission, my raison d'être?" So, I am starting this blog by taking a step away from the challenges on my desk at the moment to look at the big picture. Business leaders agree that reliable shareholder value lies in companies that sustain profitable growth and are "built to last". Hence, leaders focus on improving key performance indicators (KPIs) throughout their companies to ...
Original Post Date: Friday, August 1, 2008 Whether you are pricing a competitive bid, or you are trying to get a new product to market, estimating accuracy will determine your success or failure.  When pricing a competitive bid, you first want to “ghost the competition” to determine a price-to-win.  Parametric estimating models allow you to quickly estimate the cost of recently priced items from your competition to determine their bidding margins and target a likely price-to-win for a new competition.  I recently worked with one of our clients who has an extensive database of competitive bids from which he can determine ...