The best version of a project plan is the one on the project completion date.
The most accurate version of a budget is the one on the last day of the fiscal year.
Project managers, management teams planning budgets and other planners often find it hard to put a label “final” or “v1.0” to a plan and publish it.
It’s puzzling sometimes.
A plan is a plan, not a holy truth carved in stone.
The English word “plan” comes from the French noun plan, meaning “a sketch, diagram, drawing” etc.
Publish a plan to the best of one’s knowledge. If there are uncertainties in the plan, and there always are (!), call them out. List the underlying assumptions in the plan and make stakeholders aware.
You can also work with scenarios, e.g.: best case, worst case, likely case. This provides the top end and bottom end of a forecast and enables (gray) planning.
For outsourcing service providers it is difficult to navigate without a published plan.
Service providers need to be able to work with forecasts to allocate workload, manage the workforce, project and report on the deal economics, etc.
That’s why outsourcing deals also require an adequate demand management process. See further details below.
Work with 12, 6 and 3 months rolling forecasts in addition to a fiscal year plan. The 12 months plan is grayish. The 6 months plan is a lot clearer. And the 3 months plan is as accurate as possible.
New techniques like data analytics that enables predictive analysis should make forecasting a lot easier than before.
This accuracy allows both outsourcing clients and service providers for example to hire or reallocate the workforce in line with the workload forecast.
Especially clients find it hard to plan ahead. And it’s true that it’s difficult to make predictions, especially about the future.
But frankly in outsourcing projects there is no excuse for it, lest you want your counterpart to throw this at you: poor planning on your end, doesn’t mean stress on my end.
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Extras
Note: the quote in the title is attributed to many, frequently referred to as a Danish proverb. Please check this site for a full review: https://quoteinvestigator.com/2013/10/20/no-predict/
The picture was published earlier on LinkedIn by Marc Rosenmayr.
Here are key aspects of demand management in an IT outsourcing context:
Service Demand Forecasting: In IT outsourcing, understanding the demand for specific IT services is essential. This includes forecasting the need for services such as software development, infrastructure management, helpdesk support, and more. Accurate forecasting is crucial for resource allocation and capacity planning.
Scope and Service Level Agreement (SLA) Management: Managing the scope of IT outsourcing services and SLAs is a fundamental aspect. Demand management ensures that the scope and SLAs are well-defined, realistic, and align with the client's business objectives.
Resource Allocation: This involves allocating the right IT resources, including skilled personnel, hardware, and software, to meet the outsourcing requirements. Demand management ensures that resources are available when needed and that they match the skillsets required.
Service Catalog Management: Creating and maintaining a catalog of IT services offered is essential. Demand management helps in defining, documenting, and regularly updating the service catalog, making it transparent to the client.
Change Management: IT outsourcing often involves changes in technology, processes, or systems. Demand management oversees change requests and ensures that any changes align with the overall outsourcing strategy and that they are adequately planned and executed.
Capacity Planning: IT outsourcing service providers need to manage their IT infrastructure and resources effectively. Demand management includes capacity planning to ensure that the infrastructure can support the expected demand for services.
Financial Management: Budgeting and financial planning are integral to IT outsourcing. Demand management helps in estimating the costs associated with delivering IT services and ensures that the budget aligns with the expected demand.
Demand Variability: IT demand can be highly variable, depending on factors like business seasonality, technology trends, and client-specific requirements. Demand management should address these variations and ensure scalability to meet peak demands.
Client Communication: Effective communication with the client is vital. Demand management includes regular client meetings to discuss demand patterns, service performance, and any changes or enhancements required.
Service Continuity and Disaster Recovery Planning: Demand management should also consider how to maintain service continuity in the face of disruptions or disasters. It involves developing and testing disaster recovery and business continuity plans.
In the IT outsourcing context, effective demand management is crucial for building and maintaining successful client relationships, delivering high-quality services, and ensuring that the outsourced IT solutions align with the client's evolving needs and business goals.
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