In past I was assigned with a project where as replacement project manager and one my first task was to inform the client that (In simple words) my team has messed up in estimates (about 20% lss on cost) and we were unable to deliver looking at the over all deal value and company apetite.
I had few choice:
1) Pay damages and back out - Loss would be cost incurred, reputation loss, and legal battle.
2) Invest additional cost and deliver and gain client confidence for future business - Loss would be - High risk if client does not give any future business, Convincing management to invest more, de-motivation of team due to mess happened.
I took below action:
- Freezed scope as per contract
- Fast track some tangible deliverables to build confidence
- Convinced my top management to invest to deliver full contracted scope.
- Used Internal expertise to jot down add value on product to create new opportunity.
- Convinced stake holder to add additional features.
- Formally informed client that due to some internal assumption we had done wrong estimates (this was informed post negotiation of new business as I did not want to impact future business deal)
Ultimately used Influencing relationship in getting more business before closure ensuring moral booster for organization/team to get work done. Able to revive potentially problematic project.
I am not sure I did right thing, but based on situation and our judgement we were able to deliver successfully.
Any advise or comment would help for future.
Thank you, Saving Changes...
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Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
Sounds like you did the right thing, Mohammed. There is a time to go to the client to ask for more and there is a time when you go to your own organization to ask for more. It sounds like you struck the right balance between the two. Saving Changes...
yassine nazzalDirector| Transformative SaudiRiyadh, Saudi Arabia
I agree with stephane. Saving Changes...
MAEN QADDOURAHProject Director| AJ SAUDIJeddah, Saudi Arabia
Agree with Stephane Saving Changes...
Chintan Jariwala, PMP, CSMProject Manager, IT Business Analyst| Sailfin Technologies India Pvt LtdSurat, Gujarat, India
Looks you did the right thing. We should focus to eliminate / mitigate long term huge loss then encasing short term small profit. Saving Changes...
