Do interactive planning sessions and collaboration make or lose money for my business?
There is no question that collaboration will cost you money up front. If you want to get a group of people together in a room to talk about a project, it’s going to cost you money. Even if the people are salaried employees rather than outside consultants, there’s an opportunity cost for each person for each hour they sit in that room. So why spend money on it? The idea is that one spends money up front in order to save money later.
It is a well known fact of project management and project controls professional life that it costs more to make a change later in a project than in the planning phase. In comparison, making changes while you’re sitting in a room together before the project starts, and talking about sequencing of activities or procurement strategies, is relatively free.
Making changes once the design is complete or the project construction has started becomes increasingly expensive.
So, the value of an effective interactive planning session is clear!
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Do we have good data to prove this? Industry-wide data that is generally available indicates that there is tremendous savings in the long run by making an investment up front to do interactive planning and collaboration on a project. However, very few individual organizations do a good job of monitoring these metrics.
And I can understand why! Imagine tracking the hourly rate for each individual sitting in each interactive planning session and the number of hours they spent in that planning session and then offsetting that to… well… what would you offset it to? The money you didn’t spend by not making changes later… that’s a little hard to measure…