Regardless of the size, complexity, or even the number of projects, operational controlling allows for a significant reduction in the risk of ongoing projects. Research shows that on average 70-80% of Polish enterprises use operational controlling in project management, however, nearly half of them believe that the information presented in the reports is too general and does not provide the essential information needed to make accurate business decisions. Why is that?
Preparation and implementation of a project/contract typically consist of the following stages:
Planning of the undertaking.
Preparation of the offer.
Implementation:
Data registration at the project implementation site,
Data registration in the ERP system,
Forecasting.
Control and analysis of deviations.
According to the aforementioned studies, among the positive effects of operational controlling, the following are indicated:
Reduced risk of ongoing projects
Increased operational efficiency
Better flow of information
Faster decision-making
Decreased project implementation costs
Among the mentioned advantages of operational controlling, better flow of information is highlighted. However, the same researchers claim that the information presented in the reports is too general and inadequate. This is because most solutions are based on data from ERP or ERP systems where specialized modules for project management are usually lacking. The lack of detailed quantitative and qualitative data, current (even daily) information about the progress of work, eliminates ERP and ERP systems as the basis for effective operational controlling.
The course of the budgeting process
Contract Budgeting – an example of a managerial dashboard
According to our many years of experience in implementing BI solutions for controlling, data created and utilized at each stage of the project should come from a single source or should be standardized and integrated in such a way that they are consistent for all process participants. The form of data input, storage, and presentation should be tailored to the informational needs of the process participants, minimizing the time needed to obtain them. Such specialized IT solutions for project management allow for the development and implementation of unified project management principles covering all stages of the process from preparing bids to controlling and analyzing deviations. The outcome of a well-developed project budgeting system should include:
Real-time registration of economic events and receiving current information about the cost burden and purchase orders of the project budget.
Accelerated information about the estimated project result monthly and cumulatively from the beginning of the project.
Increased analytical capabilities by increasing the granularity of data.
Integration of IT systems eliminating potential data inconsistencies and bottlenecks related to data access.
Operational planning and project execution management information linked to company results.
Central monitoring of deviations and generation of warning signals.
Increased speed of data access.
Full control at the budget plan and execution level.
Automatic generation of reports and their presentation through dedicated management dashboards, including task managers, enabling quick analysis.
RESEARCH SOURCES:
The text appeared in the magazine „Finanse i Controlling" issue 59/2018
