The sponsor asks for a ten-percent cut. Where should we start?
Undifferentiated budget reductionEvaluate outcomes, scope, and risk rather than cutting every work package equally. Protect mandatory requirements and present choices that explain what value or capability would be removed.
What to do now
- Confirm the required funding reduction
- Identify discretionary scope and alternatives
- Assess consequences for outcomes and risk
- Obtain an authorized revised commitment
When to escalate
Escalate when
The cut makes the essential outcome infeasible or unsafe.
Who decides
The budget owner and authorized finance representative
Example
A project defers an optional module rather than reducing all work packages indiscriminately.
Mistake to avoid
Reducing testing and contingency automatically because they look expendable.
Prevent a repeat
Review remaining cost and commitments, not only money already spent; reconcile with the authorized finance source.
Related cases
- How do we control project contingency without hiding it?Opaque contingency management
- A change request has no budget impact listed. Is zero credible?Incomplete change impact
- We have data, but nobody trusts it. Where should we start?Unreliable reporting foundations
- A sponsor approves scope but not the extra budget. What should we do?Unfunded change approval