9.7 Handling Prospective Shortfalls

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If, upon a rigorous examination, you uncover a significant prospective shortfall, you must escalate this by taking the following steps:

Document the potential shortfall, providing detail as appropriate.
Describe the impact on your project if funding is not adjusted.
Back up your assertions using industry standards, previous experience, or a detailed analysis. This should be clear, concise, and as brief as possible.
Deliver it with a business-like tone that focuses on the facts. Avoid criticizing the original estimate because you may not know whose political blessing gave this budget its life. In other words, be respectful so as to avoid currying disfavor in unseen or unforeseen places. I like to use phrases such as:
- "Based on a detailed analysis of costs after finalizing the design…"
- "After estimates were originally prepared, new information became available that indicates the original estimate of $X will have to be increased by Y percent because ..."
Have the team lead associated with the budget area under question participate in this escalation process because, in essence, you are going to bat for him or her.

If your project is quite large, chances are that you will find fluff from which you can divert funding for your shortfall, but I would leave that money untouched until you absolutely have to use it. The alleged tasks associated with that $2 million boondoggle I mentioned earlier were ultimately dropped from the project. Around 75 percent of the funds were given back to the corporation, but the project retained and spent that last half million on overtime, and justifiably so. The point is, we did not return the money prematurely and then have to go back to the well for it later when we needed it. No one ever questioned why the other funds were not spent, except, of course, those who had designs on it.

The best case in requesting additional funding is, naturally, that your request is cheerfully granted. The worst-case scenario is that your request is denied. Do not despair if that happens. You have put yourself on record as needing the money. If, or when, it turns out that you were right, management is less likely to hold it against you when reminded that the money you needed 6 months ago now blocks your critical path. This is how the game is played.

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