Organizational Cost Planning
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Senior management establishes organizational goals and budgets, functional management creates budgets for their units and selects projects that fit those budgets, and project management creates detailed cost estimates for projects that must be approved by functional and senior management and balanced against organizational goals and budgets.
Organizational Cost Planning
- 2. Organizational Cost Planning Organization Level Responsibility Senior Management Set organizational goals, establish organizational investment Budget Functional Management Establish budget for a functional unit Project Management Create detailed cost estimate for projects Functional Management Select projects for functional unit, manage project investment versus functional budget Senior Management Ratify project selection, balance overall project investment to organizational budget and goals