How to avoid Rusher's Gap

April 28, 2005, 12:13am PDT | Length: 00:01:44
The potential for budget disaster can be high if you don't embrace the fudge factor.

Transcript

How to avoid Rusher's Gap

We're talking about a potential budget disaster thatiscalled "Rusher's Gap." Here's how it works. Let's say you'rebuilding a swimming pool. It's easier to talk about a swimming pool, but thishappens for every IT project. You say, I'm going to build a pool. You callsomeone out, he gives you an estimate, very detailed, comes in, $65,000 and yousay to yourself, "You know what? It never comes in on budget." I'mgoing to in my head in finance and go to the bank, I'm going to make sure thatI have enough money for $90,000 because I'm going build it a $25,000 extracushion because I know it's going to cost more than this. Rusher's Gap is thedifference between what you budgeted, this extra overflow, what the contactorsays and what the actual cost of the project is, which might come in at a $110,000.And the point that Bill Rusher was trying to get across was not only are thingsmore expensive than your contractor tells you they are, they are more expensivethan you could even possibly imagine when you sit there at the beginning of thebudget.

The point is when you have a large IT project, you're goingto have an estimate from the contractor, you're going to come in behind thatestimate, you're going to try to tear it apart. You're going to look and seewhere could it go north of that? What are the problems that you could run into,and you're going to build in this fudge factor. But if you don't do a good jobhere and you end up in this area, all you can do is start throwing featuresover the side or pushing out the implementation so it takes longer so that youcan get more money in an extra budget period.

So the lesson is, when you're building this taking an extrastep because otherwise you're going to end up in Rusher's Gap and you're goingto end up with a project that's not giving you all that you want when you needit.

How to secure your data

How to secure your data

Parts of the corporate network, such as disk drives and servers, can be at risk of intrusion...

Information fingerprinting

Information fingerprinting

Data protection solutions have typically filtered content by matching patterns and keywords....

Compliance: A business challenge

Compliance: A business challenge

Defining an effective compliance policy is no easy task. But Anne Bonapart of MailFrontier says...

Fine-Tune Your Messaging

Fine-Tune Your Messaging

In a follow-up video to 'The B2B marketing challenge,' TechRepublic's Peter Spande drills down...

The B2B Marketing Challenge

The B2B Marketing Challenge

Peter Spande of TechRepublic explains why marketing to business professionals is a challenge and...

The B2B Marketing Sweetspot

The B2B Marketing Sweetspot

BNET Director Jay Gulick explains why B2B marketers should provide customers with resources such...

Analyzing Your Competitors

Analyzing Your Competitors

Use the strategic group map technique to determine where your competitors are in the market,...

Gresham's Law

Gresham's Law

How does e-mail relate to economics? Bob Artner explains that just as bad currency drives out...

Talkback - Tell Us What You Think

Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]

The best of ZDNet, delivered

ZDNet Newsletters

Get the best of ZDNet delivered straight to your inbox

White Papers, Webcasts, & Resources

Facebook Activity