As a professional services firm we need to be aware of the cost of over delivering. That’s different to exceeding our clients expectations, which we always want to do.
Over delivering is about doing work that is not included in the agreement. For us, this could be completing and correcting the bookkeeping when the fixed price only covers preparing year-end accounts and tax returns.
Over delivering is often referred to as scope creep and can occur when a project is not well defined, documented and/or controlled. The route problem could be:
- Low levels of confidence so feeling the need to just do what the client asks
- Poor communication in the sales and engagement process
- Weak management of the client and project
- Poor workflow processes and controls
If you suffer from scope creep, here are some suggestions:
- Seek to better understand the client’s desired outcome and always keep this in mind
- Be proactive and constructively challenge your client’s ideas, work WITH them not for them
- Clearly define the scope of the work and ensure clients understand what’s NOT included
- Ensure the client has the budget
- Get a signed agreement
If you’d like any help developing your pricing strategy get in touch.