Bad project estimates lower profitability. Despite this fact many business leaders don’t invest in improving their estimating capability, buying into the fatalistic myth that this is as good as it gets. This is patently wrong. Project portfolios are prioritized based on the total expected Return on Investment (ROI) of projects. Investments in the wrong project based on bad estimates could lead to lost revenue or delay of net benefit.
All around us we see reports of software projects which are over budget, delivered late or cancelled because they are taking too much time and money. This very fact makes it easier for business leaders to throw up their hands and accept bad estimates instead of proactively looking to improve their estimating capability and their profitability. It doesn’t have to be this way. Any organization can turn this around with careful analysis of their own history combined with analysis of relevant industry benchmarks. TruePlanning® by PRICE Systems contains the methodology and cost estimating software to help business leaders utilize history to improve project planning and avoid making bad decisions.