A very serious disconnect
A project's financial analysis is a vital component of the overall project approval process, and the foundation of any project financial analysis is a cash flow chart. This article explores the disconnect when there is no recognition that the figures on a project cash flow chart represent actual people who must exist somewhere in the future if the full benefit of a project is to be realized. It explains the cash flow chart and the importance of reviewing the chart. It reveals that many organizations are successful at developing cash flow charts but there is no meaningful connection between the downstream headcount and staffing obligation introduced by approved projects and enterprise-wide planning sources. It then cites an example in an IT project management office (PMO). The effect of the disconnect is also discussed.