Information Technology Reference
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Only the latter is of importance here. One has to take care that the cost relevant
part of the project report should be formatted in such a way that a simple transfer to
the budget report is made possible. By appropriate consolidations this may lead
directly to a proper management report.
11.5 Controlling
Concerning project controlling the following aspects should be taken into account.
They comprise:
• Project progression and clearances
• Risks
• Advantage/disadvantage considerations.
Project progression depends of course—besides on technical requirements—on
the financial resources still available. The multi-step clearance procedure serves to
avoid overruns. This may lead to conflicts of interest and re-prioritisation, when
several requesters have access to the same budgetary items. At this stage a clear
budget structure becomes important.
Even long before a pressing clearance decision a target-performance-compari-
son will show the financial risks concerning project progress. It is the controllers
duty to intervene anticipatory and in time and point out emerging bottlenecks. Then
it is still time to organise new resources or reallocate some. Against this backdrop
there exists the possibility for a reasonable evaluation of the total financial risk to a
project. If warning comes too late, decisions have to be taken under duress,
sometimes meaning a shortcoming of rational considerations.