What is a Cost Management Plan?
A cost management plan is a strategy used to control and monitor project costs. It is designed to help project managers track expenses, budget resources, and allocate funds more effectively. The cost management plan should be tailored to each project, as it outlines specific strategies and goals to help managers monitor project finances and make informed decisions.
What's included in this Cost Management Plan template?
- 3 focus areas
- 6 objectives
- 6 projects
- 6 KPIs
Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.
Who is the Cost Management Plan template for?
This cost management plan template is designed to help project managers and teams in various industries manage project costs and budgeting more effectively. It is a comprehensive template that outlines focus areas, objectives, key performance indicators (KPIs), and specific projects to help managers improve cost control and efficiency.
1. Define clear examples of your focus areas
A focus area is a broad topic or category that serves as the basis of a cost management plan. Some examples of focus areas include cost management, budget administration, and budget allocation. For each focus area, objectives should be outlined that will help guide the project.
2. Think about the objectives that could fall under that focus area
Objectives are specific goals that will help you achieve the focus area. Objectives should be measurable and actionable. For example, a cost management objective could be to reduce expenses, while a budget administration objective could be to monitor project budgets.
3. Set measurable targets (KPIs) to tackle the objective
Key performance indicators (KPIs) are measurable targets that can help you track progress towards achieving an objective. They should be specific and measurable, such as a percentage or dollar value. For example, a KPI for reducing expenses could be to decrease total expenses by 10%.
4. Implement related projects to achieve the KPIs
Projects (or actions) are specific initiatives that must be completed in order to achieve a KPI. For example, an action for reducing expenses could be to cut back on unnecessary costs. It is important to ensure that the project is feasible and can be completed in a timely manner.
5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy
Cascade is a powerful strategy execution platform that helps teams achieve their objectives faster. Cascade's intuitive tools make it easy to define focus areas, objectives, KPIs, and related projects, and track progress in real time. With Cascade, you can monitor progress, adjust strategies, and see results faster.