RE: [scrumdevelopment] Effective Rate?
- 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
PRoyer@CIBER.comThe organization I work for is going to attempt to compute the
From: Todd Hartle [mailto:thartle@...]
Sent: Wednesday, March 23, 2005 4:38 PM
Subject: [scrumdevelopment] Effective Rate?
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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