Knowledgebase

Communicating Bad Estimates and Overruns Print

  • 0

When something will cost more or take longer.

WHAT TO DO FIRST

Tell them, as soon as you know.

WHY IMMEDIATELY

The value of the warning decreases with every day.

WHAT TO INCLUDE

What has changed The new position Why What you are doing about it What you need from them

WHAT TO AVOID

Presenting the new estimate with no explanation Repeated small revisions Optimistic figures you do not believe

WHY REPEATED REVISIONS ARE WORST

Each one destroys confidence in the next.

WHAT TO DO INSTEAD

Give a figure you are confident of, once.

WHAT THAT MEANS

Including contingency you can defend.

WHAT TO DO ABOUT SCOPE-DRIVEN OVERRUNS

Separate them from estimation errors.

WHY

They are the client's decision, not your mistake.

WHAT TO SHOW

What was in the original scope, and what was added.

WHY THAT REQUIRES RECORDS

You cannot demonstrate it otherwise.

WHAT TO DO ABOUT YOUR OWN ERRORS

Own them plainly.

WHAT TO OFFER

Options: reduce scope, extend time, or increase budget.

WHY OPTIONS

They restore some control to the other party.

WHAT TO CONFIRM

Whichever is chosen, in writing.

WHAT TO DO AFTERWARDS

Establish why the estimate was wrong, for next time.


Was this answer helpful?
Back

Are you happy with your experience? Leave us a review on Trustpilot.


Trustpilot