I was just reading this great article on how to keep Projects in Budget. A problem that most of us deal with every day. “Under-promise and over-deliver” is a hallmark of successful service delivery. It’s critical that businesses meet client expectations instead of fixating on the budget, but businesses that consistently go too far above and beyond the scope of work risk damage to their bottom line. To put it in perspective, if projects go over budget by just 10 percent on average, business take a hit of 19.5 percent on their profit margins. Going the extra mile can get expensive and only worsens when larger projects take on a life of their own. I know we have all had experiences with that.
Businesses can fight scope creep, or a project expanding beyond its budgeted objectives, by dissolving silos between disparate operations. To get everyone on the same page, try these methods and ensure a smoother transition from the business win to project completion.
- Connect sales and project management teams during the sales process.
Catch the problem early and better your chances of survival.
Be transparent during the quoting process.