This simple worksheet will help your team calculate and communicate the financial impact to the organization if your project slips by a week or two weeks or more.
What this is
Late Cost Per Week is a simple concept that teams can use to clarify the importance of the time or schedule aspect of a project, by doing a rough "order of magnitude" evaluation of what the actual cost to the company will be if the project completes later than desired. This simple worksheet will help your team uncover and communication a project's "Late Cost Per Week," for use by the team and executives for deciding project scope and tradeoffs.
Why it's useful
Late Cost Per Week (LCPW) is simply a rough number that the project manager and the project sponsor can use to guide project tradeoff decisions among scope, time, cost, resources, risk, and quality. By estimating a rough order of magnitude LCPW, the team can be in a position to make the best decisions among these factors. This ensures the team will not discount the importance of the planned end date and also brings urgency and focused monitoring to key dates, especially handoffs.
The LCPW the team determines can be utilized very powerfully in scope discussions, risk lists, and other decision-making situations. This is also a great conversation piece for reigning in gold-plating designers ("Wouldn't this be a cool feature?") or overeager executives who unthinkingly increase scope ("I saw last week our competitors are including X, so we'd better add that to our scope.") Documented on this LCPW worksheet, the numbers help you counter such well-meaning ideas with objective information that can help you quickly squelch that scope creep or leap -- or ensure that scope is changed with a full understanding of the consequences in mind!
How to use it
Keep the Late Cost Per Week visible during critical team conversations: reviews, scope discussions, customer evaluations, and so on. Create a team norm that LCPW implications automatically get raised if someone requests a scope change. Enlist the team in using this number!
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