The Importance of Scope Management to Delivering Projects on time and on budget

However, having seen programmes of work budget overruns, project scope creep, execution risks, and business frustration throughout 2024, and against a backdrop of tight commercial budgets, cost saving initiatives and talent shortages, Steve Corbett, Client Solutions Director SOW, explores the key factors to successfully delivering projects and outsourced work packages within allocated budgets. 

Due to companies having to keep at the forefront of digital change and transformation to stay competitive, or even relevant, in today’s market, business leaders have looked for more efficient and measurable services, that deliver work, outcomes and projects. This has seen a rise in SOW, or Statement of Work based services. 

Establishing the right scope of work is a fundamental initial step for the success of any SOW project. It sets the parameters within which the project will function and acts as a framework for all subsequent tasks. 

A clear and comprehensive scope of work establishes a shared understanding among all stakeholders by outlining the project's: 

This foundational document not only guides the project team but also helps manage expectations and mitigate risks.  

A well-defined scope of work is instrumental in driving project success and ensuring that all efforts are aligned with the desired outcomes. A loosely defined scope of work leads to projects deviating significantly from their initial plans, resulting in increased costs, budget overruns and missed delivery deadlines. This problem is prevalent in many industries and often stems from a lack of ownership and constant monitoring of the scope milestones. 

Think of the potential risk of poor scope management like building a house.... 

Think of it like buying a plot of land to build a house on. The Architect, Lead Builder, Owner 1, and Owner 2 all get together and establish what the house should contain, look like, and cost. Everyone has the plan, and they go to work. 

At one point, Owner 2 mentions to the builder they would like an additional feature (“scope creep”). The builder assumes this has been agreed upon by all stakeholders and so buys the materials and adapts their work. This is all done with informal calls and messages, as everyone is busy with their day-to-day tasks. 

The date the house should be built by arrives, but the house isn’t ready. Owner 1 asks ‘why?’ They are told of the additional feature and given a new completion date for 3 months' time. 

The project is finally complete, and the owners are given a bill. It is much higher than they were expecting from the cost estimates at the start of the project, with extra materials, time and labour costs for this additional feature. 

The Owners dispute the bill with the Architect and Lead Builder. The Architect states this was never part of their plan and therefore was never factored into their cost projection. The Lead Builder states they had assumed this had been discussed with the Architect and that the Owners would know the approximate additional cost. Owner 1 didn’t even know about the additional feature until 3 months ago, whereas Owner 2 did - but had never been told of additional costs and so had assumed there weren’t any. 

In short, it’s a mess. But this mess would not have occurred had one person been accountable for ownership of the entire project, following the scope without deviation. 

This is the same in business projects of all sizes, whether it’s software migrations, technology transformations, technical delivery programmes, engineering projects or clinical R&D and vaccine development. 

Where the scope isn’t being monitored or ‘owned,’ it is often only at the end of a project that it becomes clear that it isn’t going to be complete on time, that there have been additional costs due to the scope changing without all stakeholders being made aware, or the project requires more resources. In some cases, the project (and costs) just rolls on and on unchallenged. 

These budget overruns and project/programme timeframes delivery risks can act as a handbrake on growth, with organisation's similarly left ‘in a mess.’ This mess could mean incomplete technology transformations where systems don’t function as expected or don’t integrate into existing infrastructure, depreciating fixed asset values, or at a competitive disadvantage when developing a new drug, 

The key to success in scope management 

For scope management to be successful, all relevant stakeholders must outline what needs to be done, why, how, and the timelines and resources required. If these requirements change, the person owning the project needs to bring together these stakeholders again to make sure everyone is aware of what this means in terms of time and cost. 

Agility is important. ‘Agile working’ is a well-used term these days, but a scope document should remain a living document - accessible and referenced throughout the project's duration. Not just thrown in a drawer, never to be seen again! 

This prevents it from becoming a neglected contract and ensures continuous alignment with the project's goals, with the scope document (or Statement of Work) constantly revisited and confirmed with all parties involved. 

While technology, including AI, can aid in managing project scope, I cannot stress enough the irreplaceable value of human interaction. There is no substitute for face-to-face discussions where stakeholders can collaboratively map out the project details, even if this is done via Teams or Zoom. 

This human approach ensures clarity and mutual understanding, which are vital for maintaining adherence to the agreed scope. 

The Role of an SOW Delivery Partner 

This is where you can see SOW delivery project management services really shine. An SOW project delivery services organisation will provide expertise in scoping, project management, and governance, ensuring that projects are delivered on time and within the forecast budget. 

Their ability to say no to out-of-scope requests and manage changes transparently is key to delivering efficient and measurable outcomes. 

An example from my work with Impellam Group is from a recent project involving a European specialist insurance business who had a data migration programme in progress.  

The project's scope initially ‘grew legs’ in a significant way, leading to concerns about budget overruns and failure to deliver on time. It was only with the intervention of a small Impellam team of consultants, with a project owner, that it was brought back under control. Ultimately, this project was completed successfully within three months. 

In conclusion, a meticulously defined and rigorously monitored scope of work is the bedrock of any successful project. It aligns all stakeholders, mitigates risks of scope creep, and ensures that projects are completed on time and within budget. 

The integration of technology can enhance this process, but it is the human element—collaborative discussions, clear communication, and dedicated stewardship—that truly drives project success and gets work done. 

If you had a programme of work or project that overran, a project that delivered outcomes you weren’t happy with last year, or you’d like help creating a scope of work for an upcoming project, please reach out to me for more information.