Ragak RajPrograms Lead - Transformations| SFL Tech LtdChennai, Tamil Nadu, India
During a Scope change or Scope creep, how does change management inform or communicate to Pre Sales and Sales/Business Development.
What is the best practice?
Should every change be visible to Business Development as an opportunity? Saving Changes...
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Markus KopkoAI Enabler for Project & Program Mgmt | Founder PMotion.ai / The PM
AI Coach| PMotion.aiHamburg, Hamburg, Germany
Dear Ragak,
Effective communication during a scope change or scope creep is crucial in ensuring that all relevant stakeholders, including Pre Sales and Sales/Business Development teams, are aligned and informed. Here's a best practice approach to handle such situations:
1. Establish a Formal Change Management Process:
Documented Procedure: Have a documented change management process that outlines how scope changes are handled, including the communication protocol.
Change Control Board (CCB): Consider establishing a Change Control Board or similar entity that reviews and approves changes. This board should include representatives from key areas, including Pre Sales and Sales/Business Development.
2. Effective Communication Strategy:
Timely Notifications: Inform Pre Sales and Sales/Business Development teams as soon as a potential scope change is identified.
Regular Updates: Provide regular updates as the scope change is reviewed and decisions are made.
3. Involvement of Pre Sales and Sales/Business Development in Decision-Making:
Collaborative Approach: Involve these teams in discussions regarding scope changes. Their insights can be valuable in understanding the market and customer implications of the changes.
Impact Analysis: Work together to analyze the potential impact of the scope change on project costs, timelines, and customer expectations.
4. Transparency and Clarity:
Clear Communication: Ensure that all communications are clear and concise, detailing what the change is, why it’s necessary, and its expected impact.
Open Channels of Communication: Maintain open channels for questions and discussions around the change.
5. Opportunity Assessment:
Selective Visibility: Not every change is an opportunity for additional sales or business development. Assess which changes might lead to new opportunities and focus on communicating these.
Strategic Approach: When a scope change presents a potential business opportunity, develop a strategic approach to communicate this to clients or prospects.
6. Documentation and Records:
Change Orders and Documentation: Keep thorough records of all scope changes, including the rationale behind them and any additional costs or time required.
CRM Updates: Update any relevant customer relationship management (CRM) systems with information about scope changes and potential opportunities.
7. Feedback and Learning:
Post-Change Review: After the implementation of a scope change, conduct a review to assess the outcomes and gather learnings.
Feedback Loop: Use these insights to refine the change management and communication process.
Conclusion:
The best practice in managing scope changes involves having a structured, transparent, and collaborative approach that includes all relevant stakeholders, particularly Pre Sales and Sales/Business Development teams. This approach not only ensures that everyone is on the same page but also allows for the identification and capitalization of potential business opportunities that may arise from scope changes. Additionally, maintaining clear documentation and keeping open lines of communication are crucial for effective change management.
BR,
Markus Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
All changes are welcome, just put clear that the impact will evaluated and the decision about to continue or not will be taken. I know, it´s hard mainly when you work in companies where sales people should live people dream but then other people have to make the dreams comes true. I worked for years in this type of companies being part of the second group.... Saving Changes...
Depends on whether those groups are considered as stakeholders who need to be informed of changes or not, the nature of the contract and so on.
With a firm fixed price contract, scope changes will likely be communicated to your sales folks because they will translate into additional revenue whereas with a time & materials time engagement, they likely wouldn't.
I find it helpful to present a list of potential changes and their costs to the client upfront.
For example on software projects I have worked on, I keep track of common changes and turn them into 'products'. This also helps with assumptions about what is and isn't included.
Saving Changes...
Amit KhedekarConstruction & Engineering Specialist| Fluor Daniel India Pvt. Ltd.Mh, India
Hi Ragak,
In principle, the scope change (not scope creep) should be reported to all the stakeholders through periodic communicating tools (emails, meetings and reports) to keep everyone updated. But, it should be limited to a change which impacts the organizational business goals. All other small scope changes should be managed at the lower level.
For Scope creep, it is not favorable for any organizational business, hence has to be restricted/controlled as far as possible. Saving Changes...
Scope Creep can be and should be identified, monitored, recorded, can be communicated but can never be incorporated or implemented without proper formal documentation, review of technical and other SMEs, authorized signatures and engineering and finally the contracting authority through a contract amendment. Saving Changes...
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