According to the PMBOK® Guide, specifically in the introduction to the Project Cost Management knowledge area, the project manager is responsible for tailoring the processes to fit the unique needs of the project. This is because each project is different, and the rigor of cost management should be commensurate with the project ' s size, complexity, and importance.
One of the key considerations for tailoring identified by PMI for Cost Management is Knowledge Management. The project manager should consider:
Organizational Knowledge: Does the organization have a formal knowledge management and financial database that the project manager is required to use and that is readily accessible?
Lessons Learned: How will the project ' s cost data and financial outcomes be captured and shared to benefit future projects?
Tools and Software: What specific cost-tracking tools or knowledge repositories are available to manage and report on financial performance?
Other Tailoring Considerations for Cost Management include:
Estimating and Budgeting: Does the organization have formal or informal cost estimating and budgeting-related policies, procedures, and guidelines?
Earned Value Management (EVM): Will EVM be used to measure performance?
Governance: What are the specific audit and reporting requirements for the project?
Analysis of other options:
A. Diversity background: While diversity and inclusion are important for team management and leadership, they are not listed as a specific tailoring consideration for the technical process of Cost Management.
B. Stakeholder ' s relationships: While stakeholder engagement is a knowledge area, the formal tailoring of " Cost Management " focuses more on financial systems and governance rather than the personal relationships between stakeholders.
C. Technical expertise: Technical expertise is generally a requirement for the project team members but is not a defined " consideration " for how to tailor the cost management methodology itself.
Per PMI standards, tailoring ensures that the approach to managing costs is efficient and aligned with the Knowledge Management practices of the performing organization.
