5 tips for managing scope changes

When you start a project, you think you know exactly what you need to deliver, but then along comes a change. It can be hard to say no to a senior manager, and often the changes suggested are great improvements that you should really incorporate into the project.

So how do you manage the impact on the project scope, the team, the budget and the schedule? That's a lot of things to consider for one change! Here are 5 tips for successfully managing changes to scope on your project.

Tip 1: Record all the changes
First, regardless of where the change comes from, it should be recorded somewhere. Use software (or else use excel) to make this job easier as it helps you prepare a consolidated list of all submitted changes and what happens to them afterwards.

Tip 2: Assess changes
Assess all the changes that have been submitted. Some will be great ideas and some won't be! Work out what impact they will have on the project and the benefits, and then you can put forward your considered recommendation to the project sponsor about whether to incorporate them into the project or not. The sponsor will make the final decision, but will be looking to you for that recommendation to approve or reject the change.

Tip 3: Prioritize changes
Assuming the change is approved, you will have to work out what sort of priority it needs. Is it something that you should drop everything for and work on now? Or can it wait a bit longer? Your team can help with this, and you'll also get a view from your project sponsor. Prioritizing is really useful if you have a number of changes as it will help you plan the work in the right order.

Tip 4: Review your plan accordingly
It is rare that you can incorporate a change without changing anything else on the project. Changes will have an impact on the project budget, schedule, resource plan and even the risks and issues log. Go through your entire project and work out what needs to be updated as a result.

Remember to share all the changes with your project team so they are also aware of anything different that they have to do now.

Tip 5: Don't agree to everything!
Don't say yes to anyone who suggests a change until it has been properly analyzed! Otherwise you could promise to deliver something that turns out to be really difficult or not something the sponsor will agree to. And you don't have to agree with your sponsor either. While they have the final say, if you don't agree with a change you can record this in the issues log but you will have to incorporate the change into the project.

Terms of the Week-Business Dictionary (Part I)

Marketing mix
A planned mix of the controllable elements of a product's marketing plan commonly termed as 4Ps: product, price, place, and promotion. These four elements are adjusted until the right combination is found that serves the needs of the product's customers, while generating optimum income. Sometimes the first P (Product) is substituted by presentation.

Marketing concept
Management philosophy according to which a firm's goals can be best achieved through identification and satisfaction of the customers' stated and unstated needs and wants.

Market segmentation
The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment. Few companies are big enough to supply the needs of an entire market; most must breakdown the total demand into segments and choose those that the company is best equipped to handle. Four basic factors that affect market segmentation are (1) clear identification of the segment, (2) measurability of its effective size, (3) its accessibility through promotional efforts, and (4) its appropriateness to the policies and resources of the company. The four basic market segmentation-strategies are based on (a) behavioral (b) demographic, (c) psychographic, and (d) geographical differences.

Globalization
The worldwide movement toward economic, financial, trade, and communications integration. Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. However, it does not include unhindered movement of labor and, as suggested by some economists, may hurt smaller or fragile economies if applied indiscriminately.

Procurement
The act of obtaining or buying goods and services. The process includes preparation and processing of a demand as well as the end receipt and approval of payment. It often involves (1) purchase planning, (2) standards determination, (3) specifications development, (4) supplier research and selection, (5) value analysis, (6) financing, (7) price negotiation, (8) making the purchase, (9) supply contract administration, (10) inventory control and stores, and (11) disposals and other related functions. The process of procurement is often part of a company's strategy because the ability to purchase certain materials will determine if operations will continue. A business will not be able to survive if it's price of procurement is more than the profit it makes on selling the actual product.

Objective
A specific result that a person or system aims to achieve within a time frame and with available resources. In general, objectives are more specific and easier to measure than goals. Objectives are basic tools that underlie all planning and strategic activities. They serve as the basis for creating policy and evaluating performance. Some examples of business objectives include minimizing expenses, expanding internationally, or making a profit. Neutral (bias free), relating to, or based on verifiable evidence or facts instead of on attitude, belief, or opinion. Opposite of subjective.

Gap analysis
A technique that businesses use to determine what steps need to be taken in order to move from its current state to its desired, future state. Also called need-gap analysis, needs analysis, and needs assessment. Gap analysis consists of (1) listing of characteristic factors (such as attributes, competencies, performance levels) of the present situation ("what is"), (2) listing factors needed to achieve future objectives ("what should be"), and then (3) highlighting the gaps that exist and need to be filled. Gap analysis forces a company to reflect on who it is and ask who they want to be in the future.

Labor market
The nominal market in which workers find paying work, employers find willing workers, and wage rates are determined. Labor markets may be local or national (even international) in their scope and are made up of smaller, interacting labor markets for different qualifications, skills, and geographical locations. They depend on exchange of information between employers and job seekers about wage rates, conditions of employment, level of competition, and job location.

Cycle time
The period required to complete one cycle of an operation; or to complete a function, job, or task from start to finish. Cycle time is used in differentiating total duration of a process from its run time.

Socialization
Process by which individuals acquire the knowledge, language, social skills, and value to conform to the norms and roles required for integration into a group or community. It is a combination of both self-imposed (because the individual wants to conform) and externally-imposed rules, and the expectations of the others. In an organizational setting, socialization refers to the process through which a new employee 'learns the ropes,' by becoming sensitive to the formal and informal power structure and the explicit and implicit rules of behavior. See also organizational culture and orientation.