Variance Reporting
Variance reporting is the explanation layer between planned cost and realized cost.
What Variance Reporting Should Answer
Section titled “What Variance Reporting Should Answer”- where did the budget move
- which systems or subsystems changed
- which costs exceeded expectations
- whether the cause was market, design, logic, or execution
Why It Matters
Section titled “Why It Matters”Variance reporting is not only control. It is learning.
When used well, it improves:
- future module quality
- pricing decisions
- assumptions
- project planning discipline
Best Practices
Section titled “Best Practices”- analyze variance by meaningful business group, not only by total
- tie variance analysis back to its likely cause
- use findings to evolve Cost DNA over time