Project controlling in project-based organizations - PSB
Project-based business models follow different logic than traditional line organizations.
Revenue, costs, cash flow, and risk do not arise along cost centers—they arise along projects.
Nevertheless, control mechanisms are often adopted from line logic.
This leads to a lack of transparency and mismanagement.
Why traditional cost center logic does not work
Project-based organizations face typical challenges:
Costs are assessed periodically rather than on a project-by-project basis.
Forecasts do not consistently take project progress into account
Cash effects remain isolated when viewed in isolation
Risks are recorded qualitatively, but not in a manner relevant to control.
The result: Finance provides figures—but no management logic.
Project as central control unit
Effective project controlling means:
Integration of cost, progress, and cash logic
consistent forecast models
clear separation between project management and line management
Transparent deviation and impact analyses
The project becomes the central economic unit—not the cost center.
Clearly define roles
In project-based organizations, the following is crucial:
Project management controls operations
Finance ensures economic transparency
PMO structures methodology and governance
Management makes informed decisions
Unclear role definitions lead to duplicate structures or gaps in control.
Control logic instead of number aggregation
Project controlling becomes effective when:
Data is translated into decision-making logic
Forecast deviations are analyzed in a structured manner
Risks are quantitatively integrated
Governance mechanisms consistently effective
It is not the quantity of numbers that matters.
But rather their structure.