Scope of Work Means Money in Your Pocket
The Scope of Work is where the money is. It is the aspect of a proposal that has the potential to break the bank. Many managers place the majority of their sales attention on the proposal. After all, the proposal lays out the scoped plan of action. What they don’t consider is that a poorly defined Scope of Work leads to scope creep. Scope creep occurs when a project runs over either because of ill-defined time requirements, misunderstandings of what was being provided by each party, or the project grows or changes without review or recourse. When a project runs over who do you think pays for it? Not the customer. That overage comes out of your bottom line. Scope creep leads to margin erosion along with a deterioration of the relationship you’ve cultivated.
Click to read how to avoid The Attack of the Scope Creep
And the real gold at the end of the tunnel is the fact that a well-written Scope of Work could easily set you apart from your competition. It should be branded and consistent, showcasing your expertise and demonstrating that you know how to get the job done in a timely fashion with no overages. This means you have to set clear expectations, reducing or eliminating confusion with a scope of work that details:
- How your implementation team will work with the customer
- The customer “rules of engagement”
- Who’s responsible for what
Scope of Work Effectiveness
A scope of work not only benefits your customer and creates a long-lasting relationship, it also benefits sales and operations in numerous instances:
Sales
- Sets and confirms expectations
- Differentiates your company
- Demonstrates professionalism
- A happy customer generates repeat business and referrals
- Potential up-selling with options
Operations
- Accelerates hand-off from sales to operations
- Prevents scope creep and margin erosion
- Defines the project roadmap
- Increases customer satisfaction
- Reduces stress through greater certainty
- Reduces buyer/seller disagreements
Scope of Work vs. a Statement of Work
A scope of work is one section of an all-encompassing Statement of Work (SOW). Many in the industry use the term “Scope of Work” and “Statement of Work” interchangeably. However, according to SmartSheet, a SOW is a document used in project and contract management covering the working agreement between two parties. The document states things such as objectives of the project, the scope of the project, the requirements and tasks, deliverables, timeline, etc. The SOW covers the WHAT of the project while the Scope covers the HOW. The Scope section will describe the project outcomes and the work to be done to achieve those outcomes.