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Posted by: Penny Pullan 16/02/2010 09:48

In the Gulf recently, I came across 'open budget' projects. This wasn't something I'd heard of before. It seems that, for a few organisations in some Middle Eastern countries, the project budget isn't always a constraint. These projects are known as 'open budget projects'.

Now before you all flock to the Middle East to this project nirvana where money isn't a constraint, listen carefully.

The person who told me about open budget projects was very unhappy about them. 'What could possibly be bad about having enough money to do whatever is needed?' you might ask. When I probed a bit deeper, I heard about projects where the requirements were not understood. Instead, the team would buy an expensive, complex, off the shelf system and, when it didn't work and wasn't used, a new project would kick off. I heard of one or two projects in their third or fourth iteration, without having produced anything useful for their end users.

Perhaps budgets aren't so bad?

 

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Re: The Curse of the Open Budget    By Sian van Es on 24/02/2010 09:43
My husband worked in the Oil Industry as an engineer developing refineries, processing plant, desalination plants etc. as well as in Egypt for the EC. This problem with money is cultural. It is tied in with status, standing in the community and core values.
If someone is "seen" to put a limit on money, that means "losing face" - even when having a new plant means diminishing economic returns, they will insist on continuing, even though it means losing money because the more systems/plant/factories/workers you have the more "successful" and affluent a person is considered. It is about core value systems.

The flip side is, when the money runs out, there is a total denial. In the Middle East there is nothing worse than losing face. Try telling someone they are wrong, or not telling the truth and you have an enemy for life. I'm hoping that with the changes in society all over the world, that values may also be promulgated and that we will move towards a more rational world.

We can hope


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