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You're managing the implementation of a new reporting system

for your organization. As your project progresses, things happen
differently from how you'd planned. You find that you need extra
computer hardware, and some tasks have taken longer to Ê

complete than you originally predicted.

To get the tasks completed on time, you consider recruiting

more contractors. But, to do this, you'd have to take other costs Ê

out of the project's budget. You think about not buying the extra ÊÊ ]earn how to deliver projects within the "iron triangle."
computer hardware that you need, however, this would mean ÊÊ m



changing the project's scope, so that some functionality isn't delivered.

In many projects, the 
, 
and 


are closely linked. Changes to one of these three key
constraints will most likely affect the others, or impact on the quality of the project.

This article examines the relationship between the three constraints of budget, scope and schedule, and
looks at ideas and tools for helping you deal with the issues that can affect this relationship.

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The project mandate and project charter identify the project's objectives. At the core of these documents
is a requirements statement that says what the project needs to deliver. This includes a definition of what
is in and out of scope for the project. It also establishes the project's deadlines and its budget.

These constraints of scope, budget, and schedule are known as the "iron triangle" (see figure 1).
These constraints are considered an iron triangle because you can rarely change one constraint without
also impacting the others. The way that you deliver the project within these constraints impacts the quality
of the project's outcomes, either positively or negatively.

For example, suppose your project mandate is to launch a new standalone IT system. The design phase
has overrun significantly. You could consider several options:

 § 




± Your stakeholders will get the system later than planned, which
may cause issues, and may not be an acceptable solution to them. It will also take longer to
deliver, and therefore will increase labor costs. However, there may not be any negative impact
on the quality of the end product.

 —

 
 
  
 
  


 
  
 
 
 ± This may increase
project risks if areas such as testing and training are not completed in full. Therefore you may not
meet the original quality objectives. This could also increase the cost of the project.

 × 

± You could take elements of scope (functionality, systems, interfaces, processes
automated, or departments supported) out of the project so that it can be delivered within the
agreed timeline and budget. This will not meet the organization's original expectations of
deliverables. Overall costs may also increase if these scope areas are delivered at a later date.

The art of project management is for the project team (not just the project manager) to implement the
project within these constraints of scope, schedule and budget. When you have an issue that must be
resolved, consider which option gives you the best solution ± not necessarily the ideal solution ± for your
particular project.



In project management, there's a saying that, when considering the three factors of ,
,
and , you can only choose two:

 If you deliver the project quickly and cheaply, then it probably won't be very good.
 If you deliver it quickly and well, then it won't be cheap.
 If you deliver the project well and cheaply, you won't get it very quickly.

While this doesn't always happen, there's some truth in these statements. If you have difficult issues to
resolve, make sure you think carefully about the solution, and consider its impact on other parts of your
project.

u
!
"

Œse this framework to help you make decisions about issues that affect the iron triangle.

Before you start, discuss with your sponsor the high-level options appropriate for your project.
Œnderstand any flexibility you may have in your project budget, delivery timelines, scope, and quality
requirements.

 





Y Review your critical path. Are there tasks that you can remove from this?
 Y Re-plan to determine if you can do tasks differently, or in a different sequence, to reduce
your overall delivery timeline. Are there tasks that you can do simultaneously to reduce
the overall time required?

Y Is there contingency time built into the plan in later phases? Can you use this
contingency time now, or would this just delay the problem to a later phase?

Y Is it appropriate to move some scope components into a future project phase so that you
can deliver the current phase on time?

Y Review the tasks included in the plan. Are they all essential to deliver the required project
outcomes? Are any tasks unnecessary?

 



Y Is the change to the scope essential to delivering this project's objectives in this phase?
Would it be more appropriate to a new scope request to a "wish list" to consider later?

Y Can you move some scope areas into a later phase?

Y Is the definition of business requirements strong enough for the project to continue?
Should you suspend the project and review the business requirements?

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To reduce the likelihood of the scope changing during the project, get stakeholder involvementand
approval early on in the business requirements and design phases, so that your project scope definition is
as complete as possible.
Also, make sure that you have a robust scope control process in place, so that you don't make promises
to stakeholders that you can't keep.

 



Y Can you deliver tasks more cheaply? Can you use cheaper components or cheaper
resources? Can you do this without negatively affecting the required levels of quality?

Y Do all of your planned tasks contribute to the project's outcome? Can you stop any
tasks?

Y Can you reduce project team expenses? For example, can you reduce travel costs?

Y Do you have any contingencies that you can use?

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  #
 

# ±This is when you allow many small changes to be made to your
project's scope without thinking carefully about the implications. This can then lead to a set of
changes that you would never have accepted if they had all been presented at once. If you
suspect that this is happening in your project, conduct a project review to help you see the project
as a whole. Then decide how to take things forward.

 —


  




 ± Don't forget about what you're there to deliver. Focus on the
bigger picture when making decisions, and make sure that you're managing benefitsactively.
  Ñ



   ± Make sure that you keep key stakeholders
informed and on board with the status of the project. Communicate serious issues, major risks,
and scope change requests as soon as you can. Steering group members have the advantage of
not being involved in day-to-day delivery, so they can often see things more clearly.

 !   
$ 

 
± For example, it may be possible to re-plan a
project to deliver on schedule by reducing the time allocated to training or support before you
deliver the end-product.

If budget is available, you may be able to adequately make up for this by increasing the level of
post-implementation support and training.

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The challenge of project management is to deliver the project's objectives within the constraints of the
"iron triangle" of budget, schedule, and scope, without affecting overall quality.

There are many tools available to support you during the project lifecycle. As a project manager, you
must make choices based on what's required for the project to achieve its overall objectives. Take
positive action quickly if there are issues to resolve, if there are risks to manage, and if there are
problems to overcome. This is what good project management is all about!
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