Here's the challenge: On your project, can you spend $1M in a month?
Take a minute and think about it.
Consider:
- If you've got 100 people with an annual payroll of $15M, then yes, it's possible, even likely
- If you've got 20 people with an annual payroll of $3M, then maybe, with overtime and some material charges.
Got your answer?
Good!
Then here's another challenge: If you can spend $1M in a month, can you do a $1M project in a month? Are they one and the same thing?
Consider:
- It's hard to get 100 people up and moving coherently to start and finish something in a month (that $1M may disappear into "start-up" inefficiencies)
- It's not too hard to get 20 people moving, but you might have to really work on motivation if you think you're going to spend $1M on people, but there may be tools, training, facilities, etc that will absorb funds.
So, having thought about it, maybe if you really need your 100-person team, 2 months and $2M is a better thing to have;
And, if you only need your 20-person team, even with overtime, you will be hard pressed to spend as much as $1M
What does all this mean?
You've just made some 'estimates' (gasp! that dreaded word)
Perhaps a bit crude and rude, but at least the 'breadbox' is somewhat defined
Never let it be said that nearly every minute of the day we are not making estimates:
- How long to get to the computer (home or office)
- How long for that meeting
- How much time to spend on email
- How much to spend on a car, hotel, or even a cruise
- On, and on, estimating!
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