Escalation

Term Definition

The dictionary defines an escalation as an increase in intensity or extent, or an increase to counteract a perceived discrepancy. Escalation in project management is an anticipated rise in uncommitted costs of resources (labor, material, equipment) over time, due to reduced purchasing power of money. The allowance for escalation is a component within the anticipated award cost of a cost class. Escalation can also refer to the process for resolving problems or issues.

The Project Manager is the person responsible for ensuring that the project team members meet milestones, and complete the project. The Project Manager develops the Project Plan with the team and manages the team’s performance of project tasks. It is also the responsibility of the Project Manager to secure acceptance and approval of deliverables from the Project Sponsor and Stakeholders. The Project Manager is responsible for communication, including status reporting, risk management, escalation of issues that cannot be resolved in the team, and, in general, making sure the project is delivered in budget, on schedule, and within scope. Project plans may include policies and guidelines, for the issuance of an escalation, to ensure that deadlines are not missed and goals are met.

All projects carry risk. One of the most frequently cited reasons for project failure is the failure to actively manage project risk. Project managers must be equipped to systematically manage the uncertainty or risk inherent in every project. It is a skillful balance to minimize threats, without crippling opportunities, but a balance that project managers must master. Project managers may employ risk management software or systematic processes, which enable them to identify and respond to project risks that occur throughout the project life cycle. Project budgets will also account for known and unknown project risks. Especially with complex projects, a formal escalation policy is needed to ensure timely resolution of tasks, issues and decisions, which involve negotiable or debatable viewpoints. It is typically included as an attachment to the scope of work.

Area of Application
Project Management