Scope, Scope Creep & its impact on Project Delivery

Project Management and Project Delivery seemingly harmless words; but can run businesses to the ground when gone wrong. It is not as simple as moving from one point to the other or setting a goal and distributing the activities among a set of people and arriving at it happily. If you are one of those Project Managers who thinks things are this simple – you are lucky!

Projects are complex endeavors with 100s of moving parts. Pick any project from your experiences so far and analyze. You will find elements like resources, time, budget, milestones, defined deliverables, company direction, change of stakeholders, change of stakeholder requirements, market conditions, competition, acts of nature etc. that need to be assessed and planned for.

You miss to account for one of them & if it skews in an unwanted direction your entire project runs the risk of crumbling like a house of cards.

Agreed that we cannot humanely control all of these elements but definitely a few of them and mainly the critical ones –

Scope, Timelines & Budget!

The most interesting thing about these three elements is that the same people often control, change, and manipulate them.

  • Existing or New Stakeholders
  • Change in stakeholder requirements
  • Business demands
  • Company direction etc.

Let us see how any unplanned changes to these elements impact our deliverables and their quality.

The root of all troubles for any project lies in Scope changes or Scope Creep as commonly referred in a purely project management terminology.

Understanding Scope & Scope Creep

Defining and understanding Scope of a project is the most important activity in the project management life cycle. Simply, because Scope or the statement of work [SOW] is the very basis and the bible that guides your project from start to finish

The “single source of truth” that pervades and resolves all conflicts!

At the onset of a project, being a Project Manager you must spend a fair amount of time to understand:

  • The requirements
  • Ask more and more questions till you are sure you understand your client and stakeholders expectations.
  • What are the business drivers of the project
  • What is the fundamental need of the project
  • Why the project is being funded and prioritized as it is

Once you have all the above answers, you must proceed with documenting them, circulating them among the stakeholders, decision makers to ensure they understand, agree and sign-off.

A point worth noting here is the documentation is to ensure everyone involved with the project knows very clearly as

  • What WILL be delivered
  • What WILL NOT be delivered

In addition, to this allow for a few days for your clients and executives to review and request any modifications. But at the same time do assign an “offer expires by date” to add the much needed attention & focus to this binding document.

The expiry date triggers a very helpful chain reaction where all stakeholders become keen to ensure ‘their objectives’ are part of the project scope. Thereby, there is increased participation, debate and Q&A to further refine the end objective and project goals.

Do note that the increased participation also means greater stakeholder alignment which is one of the critical success factors for successful project delivery.

Having performed the above due-diligence, ensures that everyone understands the deliverables, the time, efforts and cost required to meet the overarching project goal.

So far so good! You have done everything a good project manager MUST do.

Now, let’s get to the devil that lies in actual practice and implementation – say hello to Scope Creep!

Scope Creep, simply put is adding new features, altering existing requirements or changing the pre-agreed project goals. They can appear at any time and disrupt your project strategy because they demand additional resources, time, and cost that you didn’t account for initially.

Project Delivery

Scope creep often starts as minor requests but can snowball into major changes, shifting the project away from its original intent.

And suddenly, delays occur, teams miss milestones, planned costs rise, quality drops, and customers become increasingly dissatisfied.

Hence, it is important to understand that no project is free of Scope Creep! They are bound to find their way in to your project. But it is also important to understand WHY?

Why do I have Scope Creep?

Though there are a lot of reasons that lead to Scope Creep, the most important one is:

Not having a well-defined Scope Baseline

Project Delivery

As stated earlier, if you don’t devote enough effort and focus to baseline your scope, you set yourself up for definite failure. However despite of the due diligence there are other factors that contribute to a lack of proper Scope e.g.

  • Lack of enough clarity or information on requirements
  • Unavailability of the right stakeholders
  • Conflicting ideas and opinions
  • Lack of proper and time bound feedback mechanism
  • Promising the moon
  • Bid to outdo the competition
  • PM with poor leadership

Understanding the Impact of Scope Creep on Time and Budget

Project Delivery

We now have a fair understanding of what is scope creep & what contributes to it. So let us rightly move to explore its impact on our project, project team and reputation of our organization.

Consider a relevant hypothetical example: a new iPhone launch. At the start of the year, the team decides the next iPhone will have a larger screen and a new exterior. We all know Apple launches its products every September at WWDC without fail.

Hence all project execution and planning is done with that date in mind. Now the project kicks-off everything goes fine and suddenly there is a buzz around removing the standard headphone jack or adding a dual sim slot!

What do you think is the impact of these 2 feature changes? These “features” as we refer to bring with them a whole range of research, additional planning and overhauls the execution. Almost everything stops until the exterior frame is finalized. Do not forget the manufacturer involved in making these phones.

So the new plan goes like this – research and build ability for the iPhone to host and run the 2nd sim, remove the headphone jack and replace – replace with what??? You get the drill!

Think of this – the WWDC CANNOT be shifted; what all is at stake – Money, lots of it! Reputation – one that is hard to earn so easily and must be protected at all costs. So again – Money! Bound to meet the WWDC deadline so add resources, more and more resources.

Now, do note that we all are not Apple Inc. and consider what havoc a Scope Creep can cause to our bottom-line, company’s reputation and most importantly the confidence and moral of the project team. Demotivated soldiers have never won a war!

This is as seen on the surface. Just drill down a bit and imagine how a real workplace with such an activity in progress would look!

  • Continuous firefighting
  • Conflicting interests & priorities
  • Overloaded and overworked resources
  • Rising expenses & investments
  • Dissatisfied Stakeholders
  • Demotivated & battered employees

How to protect your Project from Scope Creep?

With the insights shared so far it is pretty evident of what must be done to ‘prevent’ scope creep. But what about when you are already into it?

Let us take a quick look at some best practices or guidelines followed by project teams across the globe to contain scope creeps and yet maintain a high client satisfaction and project success rate.

Invoke the Scope Baseline or SOW

The project Scope is a Project Manager’s best friend! Even the smallest activities that might deviate from the agreed plan are referred to the Scope Baseline by the most diligent PMs.

The healthy practice of consulting the baseline proves an effective strategy in holding off pushy clients. In other words, it also reminds them of what they signed up for and puts the extra onus on them to be judicious with their requests

Communication and Feedback

Too much communication has never proved harmful! Make sure your clients, decision makers and each individual who has a significant stake in the project and can alter its course are fed a steady stream of progress information.

Define a clear communication criteria in terms of frequency of updates, means of updates (reports, meetings) and timing of these updates. This keeps your clients updated with actual status and helps ease any anxiety plus helps build their confidence and trust.

Also, when they know they have the right platform & tools to voice their feedback or concerns they would be more vocal and mindful of the timing too to not derail steady progress.

Thus any conflicting or contentious issues can be proactively identified and addressed to prevent Scope Creep.

Assess & Estimate

Project Delivery

We all know an outright rejection or denial of a client’s request isn’t advisable. And most of the times you may not be even aware of what does a scope change request entails. It might be a fairly simple ask and not impact the scope.

The best thing to do upon receiving an unexpected request is to respond with – “Let me assess and estimate the time and cost implications of the requested change”.

Use these words – assess and estimate—to quickly ward off any client personnel who aren’t serious or committed to the project.

If serious, they’ll review your assessment, decide to proceed, and give you a chance to generate revenue and implement change management.

Thus, we are all happy!

Build a strong Change Control Culture

Project Delivery

We cannot emphasise enough the significance of a robust Change Control process. You should NEVER have a contract without a Change Process clause!

When someone requests a change, the team triggers a series of approvals, giving the requested changes the attention and focus needed to decide if they are necessary.

Well, it will curb scope creep is one aspect but the important thing is it leads to a good review of the original plan and assessment of

  • What will the impact
  • Are we ready to accept the impact – delays, costs, etc.
  • Is there enough cost and time bandwidth
  • Lastly, will it enhance or significantly support the fundamental goal of the project

Change Control culture allows you to maintain the required transparency & puts you in control! Additionally it demonstrates your forward thinking and professionalism thereby a positive impact on your company’s reputation. Win-Win! Isn’t it?

Penalties – The Silver Bullet

Clients and service providers deploy penalties as an aggressive approach to ensure both sides hold their end of the bargain.

With penalties baked into a contract ensures both parties are always diligent and never lose sight of the goal. Penalties trigger a competition, fierce at times where both strive to achieve the same goal.

And it goes without saying, all unwanted and impulsive requests are out of the door right away.

Why so?

Because the primary reason for undertaking a project is to make money not lose it!

Avoid penalties because they signal distrust, hurt morale, stifle innovation, and can cause conflicts.

Therefore, professionals do not consider them appropriate.

To that effect, let us deploy the right tools as illustrated above and at our disposal to ensure that things never come this far in our projects!

Introduction to Project Management terminologies

Project Management Terminologies

Project management is becoming increasingly important. In the past, project management consisted mainly of collecting metrics and project data for evaluation, then making adjustments in order to increase productivity and efficiency.

Project managers were also responsible for managing human capital (making sure that a project had enough “people” to get all tasks completed).

With the rapid proliferation of technology, the importance of project management has increased exponentially in terms of the tasks required of a project manager, as well as the knowledge necessary to perform these tasks.

What is a Project?

Projects exist in every enterprise. A project is run with an objective to deliver unique products, services, or events, and also contribute to bring about major organizational changes or recovery from natural or man-made disasters.

Projects have starting and ending points in time and progress through a number of life cycle phases.

Project Management Terminologies

According to Wikipedia, a project is an individual or collaborative enterprise, possibly involving research or design, which is carefully planned, usually by a project team, to achieve a particular aim.

A project may also be a set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

What is Project Management and how is it different from Operational management?

A project in any organization is a collaborative effort across departments to achieve a single well-defined goal. The process of planning, organizing and managing resources to achieve the organizational objective is called project management.

Project Management Terminologies

On the other hand, Operations Management is an ongoing organizational function that performs activities to produce products or supply services. For an instance, production operations, manufacturing, IT service management, and accounting operations.

Furthermore, operations are permanent endeavors that produce repetitive outputs. Resources are assigned to do the same tasks according to operating procedures and policy.

In contrast, projects are temporary and help the business to meet organizational goals and to respond quickly and easily to the external environment. Organizations use projects to change operations, products and services to meet business need, gain competitive advantage and respond to new markets.

Here are the quick differences between operation and project management

Role assigned to manager Project manager Operation Manager
Duration in the role Role ends with project Routine
Team Temporary team Stable organization
Work type Work not done before Work repeatable
Factor depends on Time, cost and scope constraints Annual planning cycle
Budget time estimate Difficult to estimate time and budget Budgets set and fixed events

Popular Project Management Terminologies

Before we move into the details of project management, we need to understand some common project management terminologies.

Project Scope

Project scope is the part of project planning that involves determining and documenting a list of specific project goals, deliverables, features, functions, tasks, deadlines, and ultimately costs.

In other words, it is what needs to be achieved and the work that must be done to deliver a project.

Requirements

Requirements describe how a product or service should act or perform. They generally refer to the features and functions of the deliverables you build in your project.

Project Management Communication Plan

A project communication plan that will guide the messages to the stakeholders is a critical part of any project. How well you communicate throughout the life cycle of your project can make the difference between success and failure.

Task

In project management, a task is an activity that needs to be accomplished within a defined period of time or by a deadline to work towards work-related goals. A task can be broken down into assignments which should also have a defined start and end date or a deadline for completion.

Resource

In project management terminology, resources are required to carry out the project tasks. They can be people, equipment, facilities, funding, or anything else capable of definition (usually other than labor) required for the completion of a project activity. The lack of a resource will therefore be a constraint on the completion of the project activity. Resources may be storable or non-storable. Storable resources remain available unless depleted by usage, and may be replenished by project tasks which produce them. Non-storable resources must be renewed for each time period, even if not utilized in previous time periods.

Stakeholders

Stakeholders are those with any interest in your project’s outcome. They are the members of a project team, project managers, sponsors, customers, and users. They are people who are invested in the project and who will be affected by your project at any point along the way, and their input can directly impact the outcome of your project.

Sponsor (executive sponsor and project sponsor)

Sponsor is the person who is responsible for funding of the project. The executive sponsor provides project funding, resolves issues and scope changes, approves major deliverables, and provides high-level direction. The project sponsor represents the executive sponsor on a day-to-day basis and makes most of the decisions requiring sponsor approval. If the decision is large enough, the project sponsor will take it to the executive sponsor.

RACI matrix

RACI organizes your project so that everyone knows what’s happening. With the RACI, map out who is Responsible, is Accountable, must be Consulted with, and shall stay Informed.

Let’s break it down further. Here is what your project delegation looks like with RACI.

Responsible –Person responsible for completing the task.

Accountable –Decision makers and person responsible to taking actions on the task(s).

Consulted –– Person to be communicated with regarding decisions and tasks

Informed –Person to be updated on decisions and actions during the project

Project Scheduling

Project scheduling is a mechanism to communicate what tasks need to get done and which organizational resources will be allocated to complete those tasks in what timeframe. A project schedule is a document collecting all the work needed to deliver the project on time.

Critical path

The critical path is the longest sequence of activities in a project plan which must be completed on time for the project to complete on due date. An activity on the critical path cannot be started until its predecessor activity is complete; if it is delayed for a day, the entire project will be delayed for a day unless the activity following the delayed activity is completed a day earlier.

Project Management Terminologies

Estimating Project Duration and Costs

The duration of a project can only be estimated once you know what resources are available.

For example, if a project is estimated to require 1000 hours of effort and only one person is available to work on it, it may take six months or more. However, if three people are available, it may be possible to complete the project in two months.

Costs are normally split into labor costs and non-labor costs.

The labor cost can be determined by examining the number of hours of effort required and the cost per hour.

If you are using external labor, e.g., contractors or consultants, the costs should be estimated and budgeted in advance.

This is straightforward if you already know your exact requirements, but if the final staffing requirements are not yet known you may need to make some assumptions based on the general type of staff required, e.g. use standard hourly cost for accountants, programmers, office administrators.

Non-labor costs include everything not directly related to salary or contractor costs. Some of these, such as training and team-building costs are employee-related, but they are not regarded as labor costs as they do not relate directly to employee salary or contractor costs.

Every project manager should be familiar with the accounting rules in his or her own company to ensure that labor and non-labor costs are allocated correctly.

Project Risk

Project risk is an uncertain event that, if it occurs, has an effect on at least one project objective. There are no risk-free projects because there are an infinite number of events that can have a negative effect on the project. Risk management is not about eliminating risk but about identifying, assessing, and managing risk. We will talk more about it in the Risk management module.

In the next article, we are going to see how to kick start projects effectively and set them for success!