Addressing Concerns about IT Project Budgets in a Large Project-Driven Enterprise

Effective Strategies for Managing IT Project Budgets

Question

The IT director of a large project-driven enterprise is concerned that all recently completed IT projects have exceeded their budgets.

Which of the following would be the BEST way to address this concern?

Answers

Explanations

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A. B. C. D.

B.

The IT director of a large project-driven enterprise is concerned that all recently completed IT projects have exceeded their budgets. The director needs to identify the root cause of this issue and address it to ensure that future IT projects stay within budget.

A. Implement portfolio management: This option involves creating a centralized system for managing all IT projects within the organization. This system will provide visibility into all projects, their budgets, timelines, and resource allocation. This approach will allow the IT director to prioritize projects and allocate resources more efficiently. However, it may not address the root cause of the budget overruns.

B. Require monitoring of budget utilization: This option involves implementing a system for monitoring and tracking the utilization of project budgets. This approach will provide visibility into the actual expenditure of each project, making it easier to identify budget overruns and take corrective action. However, it may not address the underlying causes of the budget overruns.

C. Assign business sponsors to active projects: This option involves assigning business sponsors to each IT project to oversee its budget, timeline, and scope. This approach will help ensure that projects stay aligned with business objectives, and the business sponsors can provide ongoing oversight to prevent budget overruns. However, this approach may not be practical for large organizations with many IT projects.

D. Implement agile project methodology: This option involves implementing an agile project methodology, which is an iterative and incremental approach to project management. Agile methodology focuses on delivering small, incremental releases of the project, allowing for frequent reviews and adjustments to scope and budget. This approach can help ensure that the project stays within budget by continuously monitoring and adjusting scope and budget as needed.

In conclusion, the BEST way to address the concern of budget overruns would be to implement agile project methodology (Option D). This approach will help the IT director continuously monitor and adjust the scope and budget of the project as needed to ensure that it stays within budget.