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RE: [scrumdevelopment] Effective Rate?

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  • Royer, Paul
    Just because there isn t a direct dollar cost because people are salaried doesn t necessarily mean the project was profitable. Too many occurrences of
    Message 1 of 2 , Mar 23, 2005
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      Just because there isn't a direct dollar cost because people are salaried doesn't necessarily mean the project was profitable.  Too many occurrences of overtime to meet deliverable schedules or whatever can have a long term impact on employee morale and potentially impact future productivity.  So, I suggest they may be right.  Because hopefully next time these overtime occurrence will be factored into the new estimates so project expectations are set realistically.  This could mean that future ROI calculations for projects don't meet the organization's requirements.
      Unpaid human labor still has its costs!

      Paul S. Royer, PMP
      Director of Delivery
      CIBER, Inc.
      (425)284-1316 office
      (360)970-9655 mobile


      From: Todd Hartle [mailto:thartle@...]
      Sent: Wednesday, March 23, 2005 4:38 PM
      To: scrumdevelopment@yahoogroups.com
      Subject: [scrumdevelopment] Effective Rate?

      The organization I work for is going to attempt to compute the
      effective rate (aka pay-daily rate) on projects. So for instance if
      the baseline is $100/hr and a project does not meet that rate then
      project profitability could be impacted. However, they are going to
      include overtime hours of salaried employees when computing this rate.
      This did not make sense to me because (even though I don't condone it)
      if a weekend was worked to make a delivery date then the project is
      not any less profitable. Thoughts?

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