Almost two years ago, Con Edison’s Director of Business Improvement Services, Frank La Rocca, instituted a ‘sweep process’ to allow for dynamic budget reallocation. “It allows project managers to release funds dynamically during the year and we can secure those funds for other projects. Once we know a project is not going to use that money, we take it, we sweep it away and we invest it strategically in another project,” Frank explains. He says that allowed the utility to increase its utilization though it required a culture change early on. “The sweep process is really where we get a lot of bang for our buck and if I were to describe the process, it’s really breaking the annual budgeting planning mold. We had so many project managers say ‘that estimate you’re holding me accountable for , we did that so early on when we didn’t really know a lot about the project yet, now that the project is executing, you’re still holding me accountable and that’s not fair.’ What we allow them to do is literally reforecast on a quarterly basis and give up money that we can use for other projects.”
Learn more about how to institute a ‘sweep process’ to maximize your PPM ROI. View Frank La Rocca’s webinar on dynamically reallocating funds to optimize capital spend. Click here to view the recording and also to learn more about how incorporating Portfolio Financial Intelligence has helped Frank and his team more successfully manage their project portfolio.