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#2 Cause of Project Failure
Scope Creep and Unrealistic Expectations
Last month we discussed the #1 Cause of Project Failure: Lack of Leadership. The number 2 spot on our top 3 causes of project failure is Scope Creep and Unrealistic Expectations.
Often times a company will hire a business such as yours to implement a project for them. Whether large or small, visionary or consistent, a company with the right partners, and the right vision can succeed with this process. A common cause of failure happens when a project is planned with foresight of the end goal, but lacks the right amount of vision, or experience on how to get there. The end result is a project completed after its original time and/or beyond its financial budget, often with large doses of frustration for everyone involved. Unrealistic expectations of project, for example, how long it will take, unrealistic budget constraints, or poorly positioned progress reports lead to either project failure or significant disappointments damaging the business relation.
Based on our 25 years of experience from a team of certified and experienced consultants, we believe there are 3 actions that will largely eliminate or mitigate scope creep.
- Define the Needs and Requirements Early
At the onset of a project, adequate time must be spent defining the needs and the requirements. Confirming this information with a specifications document that has reviewed and agreed upon by all the parties of interest validates a mutual understanding of what the project purposes are. This document ensures that the plan aligns with the end goal of the client, with an adequate amount of time and resource devoted. - Provide Progress Reports
There needs to be agreed upon bench marks all along the way. If a project has a clear finish line, along with specific benchmarks, it is possible to move forward with greater precision and efficiency. Communication is a must, between partnering companies, as well, within the organization, so everyone involved knows what has taken place, what to expect, and how the part they play ultimately contributes to the end goal. - Protect the Client and Your Company
As with any large scale project, the original plan and budget should be the guideline for the company requesting and the company providing the project services. Any optional or incremental funding for work not within the original specification document needs to be authorized and in some cases supported by a separate ROI analysis which documents an adequate return on investment. Controls need to be put in place to change the scope of the project. This will ultimately protect the company and ensure that the project can be finished on time, and on budget.
At Premier Computing we specialize in helping companies select, design and implement professional services automation software. This software helps to capture billing time with minimal effort while providing alerts and reports to help professionals manage their projects.
Premier is located in the heart of Salt Lake City, Utah and has helped over 250 companies through the process of implementing ERP and CRM systems. Our experience and products assist small and medium sized businesses across various industries including manufacturing, distribution, professional services, technology providers and health care. Please visit our website at www.premiercomputing.com or call us at 800-458-2948 for more information.
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