Management
Reserve
You and your project team will no doubt be tempted during
the creation of each task to overstate the estimated amount of time for it to be
completed. Don’t yield to this temptation. Always reflect the accurate amount of
time it should take to complete a task. You can use PERT’s optimistic,
pessimistic, and most likely approach if you’d like, but don’t inflate the time
required for each task to allow for a mistakes, rework, and late activities
within the project.
The reason is explained in Parkinson’s Law. Parkinson’s Law states
that work will expand to the fill amount of time allotted to it. In other words,
if your project team says an activity will take them 24 hours to complete, but
they know the work will probably only take 16 hours to complete, it’ll magically
take 24 hours. Really, it’s no magic. When people overestimate their time to
account for expected troubles, just-in-case scenarios, and other time-munching
issues, they rarely take advantage of the time they’ve created for themselves.
They’ll find other work to complete or simply wait until the time they’ve
reserved for issues has passed and then hop into the work and hope for
perfection.
Think of your own experiences. How many times have you had some
small task to complete but spent hours cleaning your desk, organizing your
materials, and researching the best mode of attack rather than just hopping in
and completing the assignment? But how do you work on the day before your
vacation? You are able to complete considerably more work on that particular day
because the tasks must be completed before you’re able to escape.
The same experience will be transferred to your team if you allow
them two generous weeks for a task that should typically only require one. Your
team will quickly discover that it will take every moment of the two weeks to
complete the task you’ve assigned them.
Instead, what you should do is use management reserve. Management reserve is an artificial task that is added at the
end of the project. The time allotted to the reserve is typically 10 to 15
percent of the total amount of time to complete all the tasks in a project. When
a task runs over its allotted time, the overrun is applied to the management
reserve at the end of the critical path rather than on each lagging task. Figure 7-10 demonstrates the
benefit of using management reserve.
Management reserve allows a project manager to use
percentages to see how the overall project is coming along. For example, if the
project is only 40 percent complete but the management reserve is 65 percent
used, then the project is in trouble if the remaining tasks follow the trend of
the project thus far. You’ll learn more about maintaining management reserve and
dealing with late projects in Chapter 8.