Free Trial

Safari Books Online is a digital library providing on-demand subscription access to thousands of learning resources.

  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Part II: Preproduction > Budget to the Board

Chapter 8. Budget to the Board

Budgeting is often done backwards on technology projects. Managers use deadline dates to backtrack durations, then expense resources over that time frame, and perhaps factor in some known ancillary cost; from there, a budget is born. Upper-level management will often evaluate this budget not on its reflection of scope but on its compatibility with the deadlines and the organization’s spending thresholds. If it falls within those bounds, it’s deemed worthy. In fact, however, budgets created this way are likely to be significantly over- or understated, with understating the more likely of the two. One reason why technology projects commonly overshoot spending projections is that this backwards approach to the budgeting process is encouraged from the outset. A far more realistic approach is to base budgets on data that have been derived from a careful analysis of requirements. This sequencing has proved itself useful across any number of industries. In Hollywood, it’s unheard of to establish a production budget any other way. Why, then, do technology shops often opt for a different approach? And how might they do it better? These are the issues explored in this chapter. These considerations follow logically from Chapter 4, “Invest in a Solid Script,” which looked at the value of investing in a solid script (the requirements); from Chapter 5, “Time Box the Projects,” where the production life cycle was set; from Chapter 6, “Strip Board the Script,” which looked at basing the shape of the schedule on the demands of the script; and from Chapter 7, “Staff to the Genre,” which accounted for staffing requirements. Now we turn to a final planning parameter: deriving the budget.


  

You are currently reading a PREVIEW of this book.

                                                                                                                    

Get instant access to over $1 million worth of books and videos.

  

Start a Free 10-Day Trial


  
  • Safari Books Online
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint