Real world project management: acquisition management

Projects usually need things: servers, software, experts in the field, pizza, etc. And to buy all these things, you must go through the procurement processes. That's just an elegant way to say that you need to follow some rules and procedures within your organization to get the things you need to complete your project. Well, duh.

In some organizations where I've consulted, project managers can spend up to $ 10,000 on any purchase they need. In other less fun organizations, project managers can not buy a soft drink without the permission of an accountant.

So where are you? Do you have the opportunity to buy, buy, buy or each purchase is considered, weigh and meditate before someone reaches the wallet? In any of the stores, there are some guidelines you should consider. Actually, there are

Planning What to buy

All purchases require some level of planning. The intensity of the planning is relevant to the purchase that is being made. You already do this, right? If you are about to install a new piece of hardware, take into account all the functions that the hardware should have, look for prices a bit and then you will see how much your project or organization can spend (or is willing to spend). ).

Planning for the acquisition includes more than the purchase of windows. Think of the way, back to the start of any project that requires acquisitions. At the beginning of the project planning, it was easy to identify those things or services that needed to be purchased in order for the project to be successful. As the project progressed, "emergencies" appeared that required him to buy more things: cables, software, additional hardware, tools, training, spaghetti sauce, whatever. So, how did you do to get all these things? Did he go to the management, with his hat in his hand, and defended his case for his much-needed spaghetti sauce, or did he invest in a contingency fund for projects?

The way to make the purchase depends on the structure of your organization. It is difficult, if not impossible, to define a universal approach to procurement. All, all organizations, have a specific focus for purchases. The moral of the story? Follow the rules. Once you know the rules of how to get them, you can play the game.

Arriving at the obtaining

I know many people who like to go shopping. A person (who will remain nameless, but his initials are Lisa) plans his vacation based on the shopping centers in the vicinity of his hotel. She buys an extra seat for the flight home, just to carry all her new shoes and elegant outfits.

As a project manager, you can not go shopping for projects just because the shoes are on sale. While sales are good, they do not always help the project acquire the things it needs to achieve project closure.

But keep that "duh" for a moment. Three specific conditions affect the amount you pay for the things your project needs:

Single source In this condition, you are likely to pay a lot of money. Unique source means that there is only one qualified seller in the market. This is supply and demand at its best. If your project needs a Cisco CCIE certified consultant who also needs to know how to program in COBOL, speak Spanish and cook spaghetti for up to forty people, and must live locally for your company, these are some of the most important requirements. You have to pay a dollar higher for this expert than for your average piracy to cook spaghetti.

Single source You are in love. When there is a single source provider, your organization prefers to work with this provider even if other providers are less expensive or more qualified. The danger is that your provider from a single source can know your attachment and take advantage of the situation. Or relax in your commitment to quality. Or close the business. (Or not.)

Oligopoly It's fun to say this. Try it: Oh-lig-AH-polly (sounds like a monopoly). This market condition means that there are so few suppliers of the particular good or service that the events, actions or circumstances of a vendor affect the events, actions or circumstances of the other vendors. Examples: air fares; oil prices; hardware costs; or possibly the availability of spaghetti cooking, COBOL programming CCIEs that live in your neighborhood.

The cash and the law of diminishing returns

One of my favorite economic laws is the Law of Decreasing Returns. It's basic at first glance, but you can really chase a project manager if you're not careful. I know you're familiar with the Law of Decreasing Returns, but that kind of Sheboygan is also reading, so let me help you.

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