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- The Problem of Scope Creep
I love the Web Development space a lot.
Right now, I am in the middle of getting my website developed.
(which should come out by the end of this month)
But because of this, my number of connections in this space has grown A LOT.
And as some of you might know, I like to start a conversation.
And through that conversation, I like to understand the problems businesses face.
What things scare them the most in running a business, and...
Most importantly - what headaches do their clients give them?
So in today's newsletter and case study, we talk about 1 such headache for Web Development Companies.
But this issue applies to anyone in the Service Sector!
Our client was running a web development agency.
They had grown considerably huge in the past few years.
But as their client base grew, so did their problems in the projects they took.
And one such problem was "scope creep", which they wanted to seek our advisory to resolve for any future projects.
Problems:
1) Requested Changes Beyond Agreed Scope:
Their clients frequently made changes and additions requests beyond the agreed scope.
It starts off simple, as a page or two.
And then goes into logo making, graphic designing, and the investment of extra hours.
2) Impact on Costs and Timelines:
These requests in turn impacted their out-of-pocket cost and timelines.
Because they had employees on payroll, or independent contractors working for them per hour.
3) Disagreement on Revised Fees:
Their clients were hesitant to agree to revised fee amounts for additional work beyond the original scope.
Solutions:
1) Reviewed Current Agreement
The first thing we found out was the use of a template for their projects, which of course was very generic.
So our first step was to revise the agreement to make it more clear and certain.
We mainly focused on project scopes, limitations on revisions, and procedures for scope-altering requests.
2) Project Monitoring and Revisions
We advised them to establish a project monitoring system to track progress and changes effectively.
We also advised them on incorporating clauses related to project milestones, revisions, and change requests within the contractual framework.
3) Milestone Approval Procedure
We helped them in developing a structured milestone approval process tied to the project timeline.
This included clauses for client acceptance criteria, facilitating a smoother approval and payment release mechanism.
The last thing we did was add a provision for “deemed acceptance”.
As they repeatedly faced clients ghosting them mid-way, causing a delay in the project, and cash flow.
With the help of these 3 steps, our client had:
1) A way better and customized agreement that fits their business needs and quality
2) A proper project monitoring system to ensure any changes were tracked
3) A system in place to tackle clients repeatedly ghosting them mid-way, causing a delay in the project, and cash flow.
Now they were ready to expand more and get bigger clients!
Sometimes, in the service industry, a client will give you headaches.
And if you choose to ignore it the first time, then chances are you will face the same situation in the future.
Maybe with a different client next time.
And as a business owner, you can't be making the same mistakes over and over again.
So if you have ever been in a situation where a client gave you similar problems, then I have a solution for you.
Book a call here and let's discuss what annoyance your clients have given you:
And in that call, we can discuss steps to prevent those annoyances from happening in the future!
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