[Sigia-l] Project Management Issue

[Listera]

"Casey Malcolm" wrote:

> I'm sure that many of you have been at one time or another been pressured by a
> client to give a fixed project cost prior to any meaningful project scoping.

Nope, that would never happen :-) Here are a few pointers on the financial
side of things, decidedly a New York POV :-)

Before you do anything, if you can, find out if the client is
clueless/incompetent or knowledgeable/sly. For your protection, assume the
latter until you find out otherwise.

1)   Don't ever provide a *single* estimate figure, now matter how many
caveats you may attach to it, you will almost always go beyond that and it's
extremely difficult to un-erase that from the client's mind/expectations.

2)    If you work at hourly rates, give them a monthly figure: "this may
take three months, at our standard $20K/mo, etc."

3)    If you must (and if you can), break down the project into major
processes and itemize. For each heading, provide an estimate. Underneath,
explain that this is derived from similar, previous engagements and list as
many variables as you can think of that can impact the length/cost of the
process. Clearly indicate that any one of these can/will change the
estimate, to be billed at your standard rate of $XXX/hr. Let them figure out
what they can do to lower (their own) costs.

4)    Go through each process and list them, but do *NOT* total them; do not
give a consolidated, bottom-line figure (see #1).

5)    Give them the definite impression that you are being *transparent*
(and you are) and that the whole project will last/cost as much as these
openly listed variables allow. Let them have the impression that they are in
charge, they can pick from available menu of services you provide and,
therefore, in charge of the final tally. In other words, avoid the "there
are no price tags in the store window" syndrome.

6)    In your list of processes provide more items than you think they may
need. Give them the impression that they will be covered should they ever
need it as well as the satisfaction at the end that they only availed
themselves what they thought they needed.

7)    Remember, above all, project management is a dance of expectation
management.

Best,

Ziya