You are working on a project. Project is in execution phase. Your customer provide you feedback in one of the demo telling some changes. After analyzing the feedback, you came to conclusion that it is a CR. However, the customer is not accepting it as a CR and telling that it was already a part of original scope.
1. How to handle this situation? How you will handle situation?
2. What if the customer is not at all listening even if scope was signed off? May be the project/revenue is at risk due to this scenario?
3. Will you accept the CR? How to manage budget wrt inclusion of CR? Saving Changes...
the first part, I answered earlier.
the second part - if you accept the work without a change, you update your forecast to reflect the impact - budget stay fixed. You will look for options to minimize the impact
If accepted as a change - then you adjust budget and forecast and still look for ways to minimize the impact. Saving Changes...
When CR is concluded as mentioned that drives formal modification to deliverable or baseline in this case. Clearly, Scope baseline is modified that could be as a result of added functionality/performance/specification upgrade/scope enlargement and etc at cost increases.
The issue here is not CR status as this could be validated through Statement of Work/Scope Baseline/Requirement Doc and etc during Initiation or Planning process. Should dispute happened between Buyer & Seller, the focus should on how to adopt amicable approach on conflict resolution to minimise the impact to organisation strategic goal. Revenue could be one of element as you highlighted. Just my little opinion about your brief statement.
PUI Saving Changes...
Rajeev SharmaPrincipal Consultant | Strategy, EA CoE | Digital Transformation, AI and Gen-AI| Tech MahindraGurgaon, Haryana, India
Agree with Sante/Ganesh/Vincente and others - need to show customer contract and requested change difference.
However, some time it becomes tricky for project managers because customer is a key sponsor of project and organization want to handle thier requests diplomatically and strategically. If you are stuck in such a situation bring your senior leadership in loop and ask for taking a decision - if they are willing to handle CR differently from organization standpoint. Herein in CR addressal scope may sponsor by your own organization (due to strategic reasons) !!!
Thanks
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1 reply by Sonali Malu
Dec 30, 2017 2:21 AM
Sonali Malu
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Agree with you... Thank you
Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
The first thing to stay clear is: is a change or not is a change? To decide you have to see the basement of your project, mainly the requirements. If it is a change then you have to perform project change mangement process as defined. If you do not have nothing to put on the table to demostrate your point of view you have to start a negotiation. In my case we use the Hardvard method to negotiate. Saving Changes...
Putting aside the contractual question of who is right & wrong, you'd also want to understand the criticality of this customer to your business, and is winning a contractual point (short-term) is worth jeopardizing a long-term relationship, referencability and future revenue.
Kiron Saving Changes...
Drew CraigSr. Agile & Product Coach| VanguardPhiladelphia, Pa, United States
Sonali - It really depends. How is this project being executed? What expectations were set with the customer? How detailed was the agreed upon/signed off scope? What was out-of-scope? Is there a CCB or contracts group to review?
That in mind, this is where the strong relationship with the customer comes into play; trust and influence. Understand what it is that is making the customer unhappy. Analyze and quantify the 'change'. Is it a scope change, or merely an 'adjustment' of a requirement within scope? Showstopper? Wish-list item?
If an actual scope change, then work with the team to determine the move forward recommendations and impacts; clearly stated and easy to understand.
It is a team effort. The work is for the customer, though you are there to lead the charge and offer recommendations with clear rationale.
Emotion aside, it is down to the facts - a set amount of work was slated for a set amount of time/dollars. Adding work directly affects the them. Saving Changes...
Mansoor MustafaSenior PM| Government DepartmentRawalpindi Punjab, Pakistan
As per my point of view, scope statement( requirement finalized for project) will clear decided what is in scope and what is not. Secondly evaluate change request, its impact and process it through CCB. and still customer is happy negotiate with him Saving Changes...
GORAKHANATH WANKHEDEProject Manager| Bharat Electronics LimitedBengaluru, Karnataka, India
Yes. Many times we need to consider customer requests for changes to scope even if they were not defined as requirements by them initially.
As a PM, once you convince them that it is change request to scope, your first response would be to access its overall impact on cost, schedule, resource, risk. If the scope change is negligible and manageable -(a)without affecting and (b)with very minor impact on - overall project cost/Schedule/quality, you must seek formal approval from project CCB to implement it.If impact is so high that one or more baselines are seriously affected, then CCB might reject the change.
Any of the decisions should be formally communicated to customer, preferably in writing, giving reasoning for that decision. Saving Changes...
Agree with Sante/Ganesh/Vincente and others - need to show customer contract and requested change difference.
However, some time it becomes tricky for project managers because customer is a key sponsor of project and organization want to handle thier requests diplomatically and strategically. If you are stuck in such a situation bring your senior leadership in loop and ask for taking a decision - if they are willing to handle CR differently from organization standpoint. Herein in CR addressal scope may sponsor by your own organization (due to strategic reasons) !!!
