1. Resource Management
Technical vs. Financial –
Making the Connection
Sharyl Butler Kenesha Starling
Technical Manager Financial Manager

2. Introduction
 Projects begin as a box of puzzle pieces with several team
members using their expertise to fit the pieces together
 Two of the most critical pieces are the technical
requirements and the resources needed to meet those
requirements
 Traditionally, the link between the Technical and Financial
manager is not very strong
 Changes to traditional
behaviors are needed to
strengthen this link
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3. Behaviors (Traditional)
Technical Manager
 Provides work requirements
 Determines skill mix required to meet requirements
 Determines work done by contractor vs. civil servant
 Manages travel requirements
 Manages performance of contractor/civil servant
 Major focus is on technical requirements
 Fully dependent on Financial Manager for financials
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4. Behaviors (Traditional)
Financial Manager
 Manages all phases of budget; formulation and implementation
 Recommends resource allocations based on funding, priorities and
needs
 Designs, develops and interprets financial statements for Technical
Managers
 Interprets agency and center financial regulations and policies
 Assures that financial accounting practices are maintained
 Major focus is on funding requirements
 Fully dependent on Technical Manager for task knowledge
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5. Why change what we are doing today?
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6. Shortcomings of Traditional Behaviors:
Problems Encountered
 Scenario A: Technical Manager (TM) directs COTR to
authorize additional hours for contract X in order to
incorporate additional high priority requirements from program
Y but fails to communicate this to the Financial Manager (FM)
Problem: Contract overruns because TM failed to
communicate new requirements to FM and no additional
funding was available
Problem: Unplanned workforce reductions and other
planned tasks were cut in order to get the task back on
plan
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7. Shortcomings of Traditional Behaviors:
Problems Encountered
 Scenario B: Program Y informs the TM that the schedule for
task Z slipped to the right because of necessary redesigns.
Therefore, the TM tells the COTR to direct contractor X to
focus on several other high priority task for program Y
causing them to burn available hours and overtime thus
increasing costs. On the other hand, the FM asks the COTR
to direct contractor X’ s business manager that the slip is
unfortunate but timely because of overrun trends so they
should use this time to focus on other areas.
Problem: Because there was a lack of communication
between the FM and TM and conflicting/inconsistent
direction given either an unplanned request for additional
funds will be needed or unplanned layoffs will be
necessary. 7

8. Shortcomings of Traditional Behaviors:
Problems Encountered
 Scenario C: FM receives monthly financial statement for
contract X and notices they have been burning at a higher
hourly rate than planned. The FM decides they will observe
this a few months longer before bringing it to the attention of
the TM. Six months go by and the FM finally mentions this to
the TM.
Problem: In order to complete tasks originally agreed
upon, the TM must make an unplanned request for
funding increases because of the FM’s lack of
communication about financial issues and forecasting
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9. Shortcomings of Traditional Behaviors:
Problems Encountered
 Scenario D: During a technical, cost and schedule review (TCSR)
the TM recommends to Program Manager Y that additional funds be
provided to cover costs for additional hours needed to complete task
X on time. Program manager Y questions the TM because earlier
that morning, the FM briefed him that task X was under running and
if no additional tasks were needed $100K would be returned to the
program.
Problem: Because the TM and FM didn’t tag-up prior to the
TCSR, Program Manager Y begins to question the integrity of the
data received from both because of the inconsistency. They are
sent away to create a cohesive story and provide a combined
recommendation in a week. This leads to conflict between the
TM and FM as they both feel the other “threw them under the
bus”.
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10. These are serious problems!
How do we overcome them?
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11. Changes to Traditional
Behaviors That Work
 Transparent and timely communication between Technical and Financial
manager is required
 Develop a trusting relationship between technical and financial managers
Open dialogue
Sharing of confidential information
 Technical manager shares technical requirements and priorities with
Financial manager
 Financial manager analyzes cost impacts and recommends options to
maintain funding levels
 Both managers assure that approved changes to the
baseline requirements are reviewed and assessed for
budgetary impacts
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12. Changes to Traditional
Behaviors That Work (con’t)
 Managers work together to develop options for addressing
budget and resource issues
Research cost saving methods
Use “yes, if…” terminology, instead of “no”
 Joint development of regular project Technical, Cost and
Schedule Reviews
 Basic knowledge transfer
Terminology (NOA, WADs, etc.)
Schedules (PPBE, milestones, etc)
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13. Final Words
 The link between Technical and Financial management is
critical to a project’s success
 Frequent communication between the Technical and
Financial manager is crucial throughout the project’s
lifecycle as technical and funding requirements are often
dynamic
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14. Suggested Training
 Crossing Department Lines
 Finance for Non-Financial Managers
 Essentials of Project Management for non-Project Managers
 Project Control: Fundamentals of Overhead and Other Indirect Cost
 Appropriations Law
 Business Education Program
 JSC CFO University courses
 Mentoring from technical/financial experts
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