Have you ever gone to your favorite diner, expecting your usual bacon, eggs, toast and coffee, and the same friendly banter with your favorite waiter, only to discover that they’d changed the menu and she’d up and quit?

This kind of upset is enough to throw off your entire day. We’re creatures of habit, and lean in on the familiar to create routines and structure our lives.

The workplace is no different. Once we’re settled into a software system and become familiar with a group of colleagues and clients, adapting to change feels like pulling a train off its tracks.

Yet, change chugs on relentlessly, particularly in this age of innovation and technology. Just to remain competitive, organizations constantly need to upgrade systems, improve products and adapt new software into its departments.

If you’re spearheading innovation, resistance to change poses the greatest obstacle to achieving growth. A successful rollout strengthens the culture, and means the company reaps the benefit of the change almost immediately, while an ineffective rollout weakens the culture and results in a stagnant state of zero growth.

Are you wondering how to launch change with success? How to cultivate evangelists who propagate and support a launch, and how to convert the saboteurs who work to derail changes in the workplace? A solution is well within reach, and that’s just what we’re coving in this post.

A Definition of Change Management

Let’s start by clarifying just what “change management” means.

According to Project Management PSI, change management is the “process, tools and techniques to manage the people side of change to achieve the required desired business outcome. Change management incorporates the organizational tools that can be utilized to help individuals make successful personal transitions resulting in the adoption of and realization of change.”

At its essence, change management isn’t about rolling out a new system, or moving an office across town. Rather, it’s about achieving the personal transition that empowers people to adopt changes in the workplace. Its focus is on bringing individuals from a current state into a future state.

Changes come in all shapes and sizes. They can be practical, such as moving to a new office or changing office hours. Some changes are technical, such as introducing new software or upgrading systems from manual to automatic. Some changes introduce new product lines and business strategies.

While for some people, a change presents a minor speed bump in the work journey, for others the same change presents a massive, nearly impassable roadblock.

In order to bring individuals past this roadblock, a change cannot be implemented hastily or cursorily. Rather, it needs the full attention of the leadership and a change practitioner. A successful rollout requires strategy and a deliberate plan. Let’s look at some key components to a successful change management plan.

The 5 Stages of a Change Management Plan

When an organization strategizes the rollout of a big change, it’s way more likely to reap the benefits of the change. Rather than fizzle and fall flat, the change empowers individuals and strengthens the company culture.

So what does a strong change management plan entail? Here are the five stages of a successful one.

1. Identify and Communicate the “Why”

Any successful rollout requires buy-in from all the individuals involved. When someone understands the rationale behind a change, and agrees it’s best for the company, he is willing to switch out of autopilot and consciously engage in integrating the change into the company.

How does an organization persuasively communicate the “why”? Generally, a trusted leader plays a pivotal role at this initial stage. Speaking to the audience in their language and articulating how the change benefits them inspires people to get on board.

When determining the approach of these initial communications, consider the culture of the company and its workforce. Are they conformist or individualist? Artistic or technical? Adopting the language to their sensibilities makes the message more receptive.

Also, it can be effective to create buzz in the office around the new tool or innovation several weeks in advance, through hints dropped at meetings or in company emails.

2. Cultivate Desire and Enthusiasm

We’re always telling ourselves a story. And if a change practitioner doesn’t develop and communicate the story behind the change, people create a story, one which may make the change difficult.

The story can make or break the rollout of a change. An aspirational story that invigorates and inspires the team is sure to cultivate evangelists and champions. A confused or muddled story, or one that doesn’t emphasize how the change benefits individuals, is sure to create saboteurs who resist the change.

Disseminating the story not only entails shaping the right message, but also utilizing the right tools. Swag with the story’s key message adds an air of festivity to the change. In a distributed team, tools such as webinars, interactive white boards, meetings and emails all serve to communicate the message.

At this stage, getting upper management on board is key. This allows managers to communicate the benefits of the change directly to employees. Transparency; being clear about the necessity of the change; also increases trust from the team.

3. Train the Team

This is one of the more obvious steps to implementing a change. So clear, in fact, that many change practitioners are inclined to skip the first two stages and jump right to training. However, the first two stages put individuals into the right frame of mind, making them more receptive to training.

During training, people want to understand how their role and responsibilities are impacted by the change. Even a practical transition like moving offices entails significant changes, such as a new key card, a new mailing address, and a new layout to the office.

There are many practicalities to consider with training, including identifying who needs to be trained, developing training resources, gathering the necessary equipment (projectors, whiteboards, screens) and allocating resources for reserving a space.

Reinforcing the learning with interactive quizzes, and singling out “change champions” encourages everyone to excel and helps the leaning “stick.”

4. Implement the Change

Perhaps this stage is self-explanatory. It’s always nice to accompany the implementation of a big change with some fanfare and celebration. This generates enthusiasm and a collaborative spirit that gets people on board.

5. Monitor and Reinforce

A change management plan doesn’t end with the rollout. It’s critical to monitor the change to see how things are going. Establishing feedback loops helps to identify pain points.

Be on the lookout for resistance, and have a plan in place to navigate it, as it’s certain to surface.

In sum, these five steps offer a framework for approaching an institutional change with a strategy and a plan. When executed thoughtfully and diligently, a plan allows for a smooth rollout with few challenges.

4 Tips for Success in Change Management

A change management plan makes the difference between whether or not a software system is adapted, or whether or not employees get on board with a new business strategy. Let’s cover some tips for creating a top-notch plan that’s sure to succeed.

1. Identify Who’s Impacted

Not everyone is impacted similarly with a big change. Some people’s workdays are entirely upended, while others are hardly affected at all. Consider the adoption of new accounting software, for example. The finance and accounting departments are faced with a huge learning curve, while the IT department may not even notice a ripple.

Focus the change management plan on those individuals who are most impacted. Take measures to cushion their transition, to provide them additional support, and to give them allowances during the transition phase.

2. Communicate “What’s in It For Me” (WIFM)

Cultivating desire and enthusiasm behind a change is all about helping people understand how the change benefits them personally.

When people understand that the change isn’t about “achieving growth” in the abstract, but about improving their own work environment and providing them with growth opportunities, they’re far more willing to get past the growing pains and adopt the change into their routines.

3. Plan for Resistance

Individuals impacted by a change generally fall into four categories: the agnostics who don’t care about the change, the evangelists who support it, the dreamers who aren’t aware of it and finally the saboteurs who actively work against the change.

This final category, the saboteur, clearly poses the greatest obstacle to success. A good plan, then, includes strategies for identifying and converting these people.

Listening is key to a “saboteur strategy.” Speaking one-on-one and listening to their concerns, emphatically, creates an open communication channel. Appreciate how the change impacts their workday, and do what you can to ease the pain.

If someone continues to resist the change, it may be necessary to escalate the issue to higher management.

4. Navigate the Transition Phase

A change is about going from a current state into a future state. However, a third state is integral to the process: the “in between” stage.

Rather than simply going live, a successful plan anticipates a transition stage. Some people need quite some time to adapt to a new software system, for example, even after a week of training. Allowing for adjustments and bumps in the road eases people’s struggles with the change.

If you’re a project manager, then you know that estimating the cost is essential to the success of any project.

After all, how can you plan and budget for a project if you don’t have a good sense of how much it’s going to cost?

There are a number of different methods that project managers can use to estimate the cost of a project, but in this blog post, we’re going to focus on one in particular: bottom up estimating.

DEFINED – Bottom Up Estimating

Bottom up estimating is a technique that involves breaking down the work required for a project into smaller, more manageable pieces—known as work packages—and then estimating the cost of each individual work package.

This type of estimate is usually more accurate than other types (such as top-down estimating), but it can be more time-consuming and resource-intensive.

Still, if done correctly, bottom up estimating can give you a much better sense of the true cost of your project—which is why we recommend it.

5 Amazing Benefits of Bottom Up Estimating

Now that we’ve explained the basics of bottom up estimating, let’s take a moment to discuss some of the reasons why you might want to use this type of estimate for your next project.

Benefit #1 – It’s Accurate.

No doubt about it, bottom up estimating is more accurate than top down estimating.

Since you’re breaking the project down into smaller pieces and then estimating the cost of each individual piece, you’re able to account for all the small details and unknowns that can often make top down estimates inaccurate.

Benefit #2 – It Leads to More Efficiency

Another advantage of bottom up estimating is that it often leads to more efficiency. That’s because you’re able to identify inefficiencies early on and then address them before they become a bigger problem.

Benefit #3 – It Forces You To Pay Attention To Detail

As we mentioned before, bottom up estimating is more resource-intensive than top down estimating.

But that’s not necessarily a bad thing. In fact, some people would argue that it’s actually a good thing.

That’s because this type of estimate forces you to pay attention to detail—which can only be a good thing for your project.

Benefit #4 – It Can Help You Make Better Decisions

Bottom up estimating can also help you make better decisions. That’s because you’re able to see the big picture and the small details at the same time.

This type of estimate gives you a complete view of your project—which can be very helpful when it comes time to make decisions.

Benefit #5 – It’s Flexible

Finally, bottom up estimating is flexible. That’s because you can adjust the level of detail (i.e., the number of work packages) to fit your needs.

If you need a more accurate estimate, you can break the project down into more work packages.

Or if you need a quick estimate, you can break the project down into fewer work packages.

The bottom line is that bottom up estimating is a very versatile tool—and one that every project manager should have in their toolkit.

Cons of Bottom Up Estimating

While bottom up estimating has many advantages, it’s not without its drawbacks. In this section, we’ll discuss some of the main drawbacks of using this type of estimate.

CON #1 – It’s Time-Consuming

Do you remember the old adage, “good things come to those who wait?” Well, that’s definitely true when it comes to bottom up estimating.

This type of estimate can be very time-consuming—especially if you’re working on a large project. That’s because you need to take the time to break the project down into smaller work packages and then estimate the cost of each individual work package.

So if you’re working on a tight deadline, bottom up estimating might not be the best option.

CON #2 – It’s Resource-Intensive

As we mentioned before, bottom up estimating is more resource-intensive than top down estimating. That’s because you need to have a good understanding of the project in order to break it down into smaller pieces.

Still, we believe that the benefits of bottom up estimating outweigh the drawbacks. And in the next section, we’ll lay out several benefits in more detail.

CON #3 – It’s Not Always Necessary

Another drawback of bottom up estimating is that it’s not always necessary. In some cases, top down estimating might be just as effective—and a lot less time-consuming.

So before you invest the time and resources into bottom up estimating, make sure it’s really necessary for your project.

When to Use Bottom Up Estimating

Now that we’ve discussed some of the advantages and disadvantages of bottom up estimating, you might be wondering when to use this type of estimate.

In general, we recommend using bottom up estimating when accuracy is more important than speed. That’s because bottom up estimating can be very accurate—but it’s also very time-consuming.

So if you need a quick estimate, top down estimating might be a better option. But if you need a more accurate estimate, bottom up estimating is probably the way to go.

How to Do Bottom Up Estimating: A Step-By-Step Guide

Now that we’ve talked about what bottom up estimating is and why it’s so useful, let’s take a look at how to actually do it. Here are the steps you’ll need to follow:

STEP 1 – Break down your project into smaller work packages.

Big chunks of work can be overwhelming—and difficult to estimate. That’s why the first step in bottom up estimating is to break your project down into smaller work packages.

How? Start by identifying all of the tasks that need to be completed in order to finish your project. Then, group these tasks into smaller work packages.

For example, let’s say you’re working on a website redesign. Some of the tasks you’ll need to complete include wireframing, designing, and coding. These could be grouped into three different work packages:

Wireframing: This work package includes all of the tasks related to creating the wireframes for the new website.

Designing: This work package includes all of the tasks related to designing the new website.

Coding: This work package includes all of the tasks related to coding the new website.

STEP 2 – Create a work breakdown structure.

Once you’ve identified all of the work packages for your project, it’s time to create a work breakdown structure (WBS).

A WBS is a tool that helps you to organize and track the progress of your project. It’s basically a hierarchy of all the work that needs to be done, from the highest level (the project itself) down to the lowest level (individual tasks).

EXAMPLE

Here’s an example of what a WBS might look like for our website redesign project:

I. Website Redesign Project
A. Wireframing
1.) Wireframe 1 -> Page 1 – Homepage
2.) Wireframe 2 -> Page 2 – About Us
3.) Wireframe 3 -> Page 3 – Contact Us

B. Designing
1.) Design 1 -> Page 1 – Homepage
2.) Design 2 -> Page 2 – About Us
3.) Design 3 -> Page 3 – Contact Us

C. Coding
1.) Code 1 -> Page 1 – Homepage
2.) Code 2 -> Page 2 – About Us
3.) Code 3 -> Page 3 – Contact Us

As you can see, the WBS is organized into three levels. The first level is the project itself (website redesign). The second level is the work packages (wireframing, designing, and coding). And the third level is the individual tasks (wireframe 1, wireframe 2, etc.).

STEP 3 – Estimate the effort required for each task.

Now that you have your project broken down into smaller work packages, it’s time to start estimating the effort required for each task.

To do this, you’ll need to consult with the people who will be doing the work. Ask them how long they think it will take to complete each task.

For example, if you’re estimating the time required to design a new homepage, you might ask the designer how long it will take them to create the design. They might say it will take 8 hours.

Once you have an estimate for each task, you can then add up all of the estimates to get an estimate for the work package as a whole.

So, using our example from above, if the design work for the homepage will take 8 hours, and the design work for the About Us page will take 6 hours, then the total estimated effort for the Designing work package will be 14 hours.

STEP 4 – Add up all of the estimates to get an estimate for the entire project.

Once you’ve estimated the effort required for each task, you can then add up all of the estimates to get an estimate for the entire project.

Again, using our example from above, if the total estimated effort for the Wireframe work package is 20 hours, and the total estimated effort for the Designing work package is 14 hours, and the total estimated effort for the Coding work package is 10 hours, then the total estimated effort for the entire project will be 44 hours.

STEP 5 – Add a contingency to account for uncertainty.

As with any estimate, there’s always going to be some uncertainty. Things might take longer than expected, or there might be unforeseen problems that arise.

To account for this, you’ll need to add a contingency to your estimate. A contingency is an amount of time (or money) that’s set aside to deal with unexpected problems.

For example, you might decide to add 10% to your total estimated effort as a contingency. So, using our example from above, the total estimated effort for the project would now be 44 hours + 10% contingency, or 48.4 hours.

The amount of contingency you add will depend on the level of uncertainty surrounding the project. If there’s a lot of uncertainty, you might want to add a larger contingency. If there’s relatively little uncertainty, you might be able to get away with a smaller contingency.

Once you’ve added a contingency, you should have a good estimate for the total effort required to complete the project.

Do you ever decide to take a trip, and suddenly find yourself thinking through every detail, right down to where you’re going to eat meals and what toiletries to pack in your suitcase?

It’s easy to get ahead of ourselves sometimes.

As the Birds sang in their #1 Hit back in 1965, “to everything there is a season.” There’s a time to make broad sweeping generalized plans, and a time to get down into the nitty-gritty.

As a project manager, you probably dread giving vague, evasive answers to clients when they ask about timelines and deliverables. It makes you sound mushy and unreliable. You want to be on top of your game, rather, and promise the client certainty around delivery dates and milestones.

The funny thing about projects, however, is that over-planning can actually lead to mediocre outcomes.

Learning to be open to uncertainty, and to answer questions with the phrase “I don’t know yet” is key to reducing risk and improving outcomes in project management.

In fact, project management even has systems developed around this idea. One is known as rolling wave planning. Want to learn more about it and how to apply to your projects? Then stay tuned, cause that’s what we’re covering in this post.

Rolling Wave Planning Defined

Rolling wave planning entails approaching a project in successive stages, from larger to smaller time frames. With each graduation, the planning becomes increasingly detailed and specified.

Here is the definition from the Project Management Body of Knowledge Guide, Sixth Edition:

“Rolling wave planning is an iterative planning technique in which the work to be accomplished in the near term is planned in detail, while work further in the future is planned at a higher level.”

Let’s look at what this definition looks like in real life.

Step 1: The Big Picture

Imagine you’re assigned a big project that’s slated to last 18 months or more. The key information you have at this point is the project objective, timeline and budget.

Before the project begins, your task is to assess the entire project with a broad overview. You may have notes from a similar project from the past to assist in creating benchmarks around project stages and their duration.

The objective, essentially, is to create a big-picture sketch.

Step 2: The Stage Planning

During the project, as each stage comes onto the horizon, it’s possible to plan out the details with greater specificity.

This more scrutinized planning may well cause adjustments to things like the timeline, deliverables, and the budget.

Step 3: The Nitty-Gritty

After it’s been determined what’s to be accomplished during one stage of a project, it’s then possible to map things out in even greater detail.

Let’s say one stage is forecasted to last three weeks. As each week approaches, the project manager can create a work breakdown structure to plot the sequence of all the tasks for that week.

Depending on the nature of the work, you may want to break work down even further into daily work plans.

As you can see, with rolling wave planning you don’t create one master plan, then dust off your hands and be done with it. Planning happens throughout. The plan is consistently re-evaluated and updated. These various stages of planning look like a series of rolling waves.

It’s very difficult to plan anything three years in advance. Breaking it down into successively smaller bite sized chunks, and looking just one month out is much easier.

Sometimes the planning levels are referred to as Schedule Levels 1, 2 and 3. You may even have a Schedule Level 4 or 5 if this level of detail makes sense for the project.

This form of planning is very similar to agile, and it’s popular in construction projects, and any project really that requires continual changes and adjustments.

Examples of Rolling Wave Planning

We use rolling wave planning in our lives all the time. At some level, it’s intuitive. Let’s look at three scenarios we might encounter in our lives, and consider the certainties and uncertainties for each of them.

A Short-Term Plan

Let’s say you’re planning a weekend bonfire at your home, and it’s just a few days out.

Certainties: The date, the time, the location, the decorations, and a list of people who plan to come.

Uncertainties: The food each person plans to bring, and the music you’ll play at the party.

A Mid-term Plan

Now, let’s say you have a weekend ski trip planned for the upcoming month.

Certainties: The dates, the ski resort and the place you plan to stay.

Uncertainties: The items in your suitcase and the restaurants you’ll dine at for meals.

A Long-Term Plan

Finally, let’s consider a vacation you have planned six months from now.

Certainties: The location of the vacation spot.

Uncertainties: The duration of the trip, the mode of travel (plane or car), the accommodations, the people who are coming on the vacation with you.

As you can see, rolling wave planning is about looking more closely at a plan as things come into view. With each smaller time frame, the plans become more and more specific.

The Benefits of Rolling Wave Planning

Why do project managers utilize rolling wave planning?

One way to appreciate the benefits of this method is to imagine the alternative.

Take a family vacation that’s eight months out. What if you purchased plane tickets, reserved a hotel room, and packed your suitcase with all of your favorite clothes when the vacation is still a half year away?

It’s not difficult to see that this planning could lead to a headache later on. Your work schedule could change during the upcoming months, forcing you to adjust the dates. And you certainly will find yourself digging into your suitcase for some of your favorite t-shirts and jeans.

All of the initial planning was wasted energy.

This silly example demonstrates that many details simply cannot be determined at the start. If you have an 18-month project, it’s tempting to feign certainty and plot everything out on a gantt chart. But from that far out, granular planning is worthless, as so much is certain to change.

Now, let’s look at three clear benefits of rolling wave planning

Saves Time (No Rework)

If you adopt a “we’ll cross that bridge when we come to it” mantra to project planning, then you do the planning when it’s going to be effective and certain. You can even pull out a gantt chart at this point and it should be reliable.

Whereas if you plan things from too far out, you still don’t know enough about how things are going to roll out to determine the small details.

Reduces Risk

Rolling wave planning increases uncertainty. For example, a project manager using this system openly acknowledges that he or she doesn’t know the details of stage 3 during the middle of stage 1.

However, it reduces risk. A simple definition of risk is that it’s uncertainties that matter. A risk management plan looks at the probability of these uncertainties.

When planning takes place around the actual time these risks might surface, it’s much easier to identify all of the threats and vulnerabilities posed to certain assets, and then put a solid plan in place to either mitigate, avoid, transfer or accept them.

Take a construction project, for example. Inclement weather always poses some level of risk. However, you have no idea of weather patterns at the beginning of an 18-month project. You could find yourself taking all sorts of precautions against something that never happens. Rolling wave planning waits to plan for this risk within a 1-2 week time frame.

Allows for Change

One of the greatest benefits of rolling wave planning is that it allows for changes to occur during a project. Sometimes it’s impossible to know at the onset what a final deliverable may look like, even with a clear set of requirements. Developments during the project, new knowledge and the manifestation of risks serve to alter the final outcome.

When a project manager waits for these bends and curves and is poised to adapt and pivot, it ultimately serves to create a deliverable that solves the client’s problem or meets their needs.

As you can see, rolling wave planning benefits a project in several key ways.

However, the nature of a project determines the level of uncertainty it’s able to assume.

Some projects can have a lot of uncertainty at the beginning, as changes and pivots may not pose a huge risk. However, other projects must lay out clear definite plans at the beginning, as the cost to make changes would be enormous. And so the degree to which a project manager adapts rolling wave planning into a project depends on the nature of the project.

Tools and Methods for Using Rolling Wave Planning

Rolling wave planning means bringing people together at key pivotal moments and creating space to look at all aspects of a project, including risks, issues, constraints, the scope, and any upcoming decisions to make.

Successfully incorporating this method into a project requires a few tools and strategies.

Scrum Ceremonies

The agile method known as scrum has several ceremonies that help to utilize rolling wave planning. They can be adopted by any team.

The first is a sprint planning session. During this session, a team looks at the next small stage (Schedule 3 level), and plots out a specific amount of work for the team to accomplish.

Another is a retrospective. This takes place at the end of a sprint. At a retrospective, the team reflects on the sprint and how everyone worked together, and identifies any improvements to make for the next go-around.

Finally, a daily scrum meeting allows the team to air concerns, identify any significant changes or risks as they surface.

Taken together, these three processes create a system of communication that allows for the on-going planning that’s integral to rolling wave planning.

Gantt Charts

Oftentimes gantt charts get a bad rap, since they’re usually ineffective in long-term planning.

However, when a team has a relatively small stage of work, somewhere between two and six weeks, a gantt chart serves to clearly break down each task, and when it’s to be completed alongside the other tasks.

In the short-term, a gantt chart makes it easy to identify when it’s time to do things like order supplies and recruit staff.

Network Diagrams

A network diagram is another effective way to visually lay out the workflow during a project stage. It quickly identifies potential bottlenecks, and clarifies each task in its relations to other tasks.

In sum, rolling wave planning provides key benefits to a project, but it won’t “just happen.” The right tools and practices allow teams to effectively and thoroughly plan each stage of work at the right time.

You might be thinking, what is a project scope document? And do I really need one?

The short answer is: a project scope document is essential to the success of any project, and yes, you definitely need one.

A project scope document is a living document that outlines the scope of a project. It defines what a project is, what it will accomplish, and what deliverables you can expect at the end.

A well-crafted scope document can mean the difference between a project that comes in on time and on budget and one that spirals out of control.

In this post, we’ll take a close look at what a project scope document is, why it matters, and how you can create one for your next project.

Project Scope Document defined…

A project scope document is essentially a roadmap for your project.

It outlines what you’ll be working on, what deliverables you’ll be expected to produce, and what milestones need to be met along the way. In short, it sets expectations for everyone involved in the project so that there are no surprises down the road.

5 Benefits of a Project Scope Document

There are plenty of good reasons to create a scope document for your project, but here are five of the most important benefits:

1. A project scope document can help you win over stakeholders.

If you’re trying to get buy-in for your project from upper management or other key stakeholders, a well-crafted scope document can be a powerful tool.

By clearly outlining the goals, deliverables, and timeline for your project, you can show decision-makers that you’ve thought through every aspect of the project and that you’re confident you can deliver on your promises.

2. A project scope document can keep your team focused.

When you’re working on a large project with multiple team members, it can be easy to get off track.

A good scope document can help keep everyone focused on the task at hand by clearly defining what needs to be done and when it needs to be done.

3. A project scope document can help you avoid scope creep.

One of the most common problems faced by project managers is scope creep, which is when the scope of a project gradually expands beyond its original boundaries.

A well-defined scope document can help prevent scope creep by setting clear boundaries for what can and cannot be included in the project.

4. A project scope document can help you manage expectations.

If you’re working with an external client or partner, a scope document can be a helpful way to manage expectations.

By outlining the specific deliverables you’ll be responsible for, you can avoid misunderstandings down the road.

5. A project scope document can save you time and money.

By clearly defining the goals, deliverables, and timeline for your project, you can avoid wasting time and money on activities that are outside the scope of the project.

In other words, a good scope document can help you stay focused and on budget.

Project Scope Vs. Statement of Work

Let’s take a moment to clear up any confusion about the difference between a project scope and a Statement of Work (SOW).

A project scope is a high-level overview of the work that needs to be done. It’s typically created at the beginning of a project and serves as a roadmap for the project manager and team.

A Statement of Work, on the other hand, is a more detailed document that outlines the specific deliverables, milestones, and timeline for a project. It’s typically created after the project scope has been approved and serves as a contract between the client and the vendor.

Now that we’ve clarified the difference between a project scope and a Statement of Work, let’s take a look at how to create a project scope document.

What to Include in Your Project Scope Document

Now that we’ve discussed the benefits of creating a scope document, let’s take a look at what you need to include in yours.

Every project is different, so there’s no one-size-fits-all template for creating a scope document. However, there are certain elements that should be included in every scope document.

Here are some of the most important things to include:

1. Problem Statement

It’s not an overstatement to say that every project exists to solve a problem. Whether you’re developing a new product or launching a marketing campaign, your project should be focused on solving a specific problem.

Your scope document should begin with a clear statement of the problem you’re trying to solve. This is often called the “business case.” Essentially, you need to articulate why this project is necessary and what benefits it will bring.

2. Goals and Objectives

After you’ve stated the problem that your project will solve, you need to define the goals and objectives of the project. What are you hoping to achieve? What are your specific goals?

Be as specific as possible when defining the goals and objectives of your project. This will make it easier to measure the success of the project later on.

3. Deliverables

Next, you’ll need to identify the specific deliverables for your project.

A deliverable is any tangible output that your project produces. It could be a digital product, like a new software application, or it could be an intangible service, like a marketing campaign, or even something physical, like a new piece of equipment.

The important thing is that your deliverables are specific and measurable. This will make it easier to assess whether or not your project was successful.

PRO-TIP: For each deliverable, you should include a brief description, as well as any associated deadlines.

4. Timeline

In addition to identifying the deliverables for your project, you’ll also need to establish a timeline for completing those deliverables.

Your timeline should include specific milestones for each stage of the project, as well as target dates for completing each deliverable. Remember to be realistic when creating your timeline. Otherwise, you risk setting yourself up for failure.

5. Budget

This is obvious, but you’ll need to establish a budget for your project.

Your budget should include all of the costs associated with completing the project, including labor, materials, and overhead.

Once again, it’s important to be realistic when creating your budget. Otherwise, you could find yourself in financial trouble down the road.

6. Stakeholders

You’ll also need to identify all of the stakeholders for your project. A stakeholder is any individual or organization that has a vested interest in the success or failure of your project.

Some common examples of project stakeholders include:

• The client or customer
• The sponsor
• The project manager
• The project team
• The executive sponsor
• External vendors

It’s important to identify all of the stakeholders for your project because they will all need to be kept up-to-date on the progress of the project. In addition, you may need their input at various stages of the project.

7. Assumptions and risks

Also, you’ll need to identify any assumptions or risks associated with your project.

An assumption is something that is taken for granted. For example, you may assume that the project team will have the necessary skills to complete the project.

A risk is anything that could potentially jeopardize the success of your project. For example, you may be at risk of going over budget if the project takes longer than expected to complete.

By identifying the assumptions and risks associated with your project, you can develop contingency plans to mitigate those risks.

8. Approval Process

Last but not least, you’ll need to establish an approval process for your project.

This is the process that will be used to approve or reject changes to the scope of your project. It’s important to have a well-defined approval process in place to avoid scope creep.

The approval process should include the following steps:

• Submit a change request: Anytime someone wants to make a change to the scope of the project, they must submit a change request.
• Review the change request: The change request will then be reviewed by the project manager and other relevant stakeholders.
• Approve or reject the change request: Once the change request has been reviewed, it will be either approved or rejected.
• Update the project scope document: If the change request is approved, the project scope document will be updated to reflect the changes.

Now that we’ve gone over what should be included in your scope document, let’s take a look at how you can put it all together.

Putting Your Scope Document Together

The best way to put together your scope document is to use a modular approach.

Modular = dividing the work into manageable parts or modules.

This approach will allow you to break down the scope of your project into smaller, more manageable pieces. As a result, it will be easier to make changes to your scope document as the project progresses.

Start by writing each section of your scope—problem statement, goals and objectives, deliverables, etc.—as its own standalone section .

Then, once you have all of your individual sections written out, start putting them together into a cohesive whole.

Here’s an overview of how each section should flow together:

1. Introduction
2. Problem statement
3. Goals and objectives
4. Deliverables
5. Budget
6. Stakeholders
7. Assumptions and risks
8. Approval process
9. Conclusion
10. Appendix (optional)

When writing your individual sections, be sure to use clear and concise language.

Remember, the goal of your scope document is to communicate the key details of your project to your team and stakeholders. Therefore, it’s important that everyone is on the same page from the start.

Take a step back and ask yourself if the data you’re including is really essential to the project.

If it’s not, then leave it out. The last thing you want is for your scope document to be so long and detailed that no one bothers to read it.

Every project manager knows that “things” are going to happen, regardless.

A project consists of many moving parts. It’s about building something new, or establishing a new process, and operates within the constraints of time, money, and resources. Plus, it requires coordinating a checkerboard of activities.

And so snafus, unforeseen occurrences, problems, issues, and even disasters are bound to occur.

From time to time, this may feel discouraging to project managers. It’s as though their job is about facing inevitable storms head on, day-in and day-out.

Wouldn’t it be lovely, rather, to breeze through issues and storm clouds at a nice clip, with the wind at your back?

Believe it or not, there is a way. It’s all about taking the right approach to risks and issues.

Want to understand how? In this post, we’re taking a careful look at risks and issues, and exploring how managing both is key to navigating all of a project’s moving parts with ease.

What’s the Difference Between a Risk and an Issue?

Risks and issues sound almost like the same thing. While in fact, they differ significantly. Let’s define each term, then look at some examples.

Risk: A Definition

A risk is an event that hasn’t taken place.

The standard project management definition says: “A risk is the probability of occurrence of a specific event that affects the pursuit of objectives. Risks are not negative by definition. In project management, opportunities are also considered risks.”

With a risk, the specific event may or may not take place. The event’s impact and the probability of it occurring, however, is significant enough that it merits attention. The event would impact the project’s constraints, or the deliverable, either for better or for worse.

Simply put, a risk is uncertainty that matters.

Examples of Risks

Risks vary depending on the nature of the project. Every project faces the risk of losing skilled team members. In a cybersecurity company, viruses pose a serious risk. In construction, inclement weather that stalls a project would significantly impact the timeline. 

On the flip side, projects face positive risks as well. These risks might include the development of a new technology that would save the project time and money, or the addition of a skilled expert to assist with creating deliverables. 

Issue: A Definition

An issue is a risk that has occurred, which the team is dealing with in the present.

Here is the standard project management definition for issue: “Anything that can cause problems for a project. The term typically refers to major problems that cannot be tackled by the project team on their own.”

Issues are exclusively a manifestation of negative risks. In order to resolve or mitigate issues, they require immediate action.

Simply put, issues are certainties that matter.

Examples of Issues

Issues vary depending on the project. Every project may face the issue of employees quitting during the project’s execution. An issue faced by a cybersecurity company may be a virus attacking one of its servers. An issue faced by a construction project might be the delay of materials that forces a project to stop mid-track.

Similarities and Differences Between Issues and Risks

Both risks and issues impact the timeline, cost, scope and quality of a project. Their significance depends on how they impact a project’s constraints.

However, issues have already occurred, and risks may or may not occur. Additionally, issues always impact the project negatively, while risks may impact the project both negatively and positively.

How to Mitigate Issues with a Risk Management Plan

Every project faces issues, as discussed. Anticipating issues lessens their severity and may even avert some altogether. This “anticipation” is known as a risk management plan.

A risk management plan requires buy-in. To many project managers, it doesn’t make sense to spend time planning for events that may not occur. They’d just as soon deal with each issue as it transpires. Once a project manager appreciates that anticipating issues ultimately saves time, money and resources, they are ready to create a risk management plan.

A risk management plan analyzes a project at the onset, and anticipates all possible occurrences, both positive and negative. The plan also considers the likelihood of each occurrence. For example, a winter construction project would anticipate inclement weather, and place a high probability on this occurrence.

Here are a few components of a comprehensive risk management plan.

Know Your Environment

A project’s risks are determined by its environment. And so identifying all of a project’s assets, stakeholders, deliverables and constraints is the first step in a risk management plan.

This stage is about answering the question: “What stands to be lost here?” and then identifying the threats and vulnerabilities of each asset.

Measure Your Risk Appetite

An organization also looks to its culture and mission statement to determine how to handle risk. Depending on its level of tolerance, some companies take on a lot of risk, while others choose to transfer risk elsewhere.

Put a Plan in Place

When the vulnerabilities and threats for each asset have been identified, the next step is to determine how to handle them. Risks can either be avoided, transferred, accepted, or mitigated.

Avoiding risks means you eliminate any chance of facing the risk altogether. This is rarely a feasible solution for most projects. For example, in cybersecurity, disconnecting from the internet would avoid key risks, but it would also preclude daily business operations.

Transferring means moving the risk to another organization or company. For example, a company might transfer the risk of theft to a security company.

Accepting is when the organization faces the risk head-on. When a company has the capability, this is an ideal way to handle a risk.

Mitigating risk is a process of decreasing the severity of an occurrence. A company might mitigate the risk of exceeding the budget by setting aside a portion for unexpected expenses.

Run Mock Issues

For any risk the organization accepts, running a mock issue ensures that everything is in place, should the event transpire.

A mock issue is essentially a dry run or a fire drill. For example, a cybersecurity company might run a recovery plan for the disaster of losing all company data. The drill in this instance would involve moving everything over to another data center.

Although running mock issues isn’t feasible in every scenario, it’s a helpful exercise whenever possible.

These are some key areas to cover with a risk management plan. Carefully considering all anticipated risks means the project is more likely to stay within its constraints when the issues occur.

How to Manage Issues

A risk management plan ensures you have a proactive and not reactive approach to issues when they surface. It’s about developing a process for handling these issues. Rather than playing a game of whack-a-mole to resolve them, this plan ensures issues are prioritized and then managed effectively.

Here is what to include in an issue management plan:

• A Problem Statement: A problem statement puts an issue or problem into writing. This serves to focus and direct the group’s energy toward solving it.
• An Impact Assessment: An impact assessment considers the significance of issues, and how they affect the project’s overall objective. This is a key step toward prioritizing issues.
• A Log: Recording issues into a log helps determine which issues to handle, and in what order.

In sum, risk and issue management plans, taken together, create a strong shield against all the risks and issues a project faces.

Have you ever had clients who fret and fuss over every detail? Just so you can sleep at night, you probably find yourself tending to their every need.

Or have you ever dealt with the fallout of a disappointed client?

None of this is ever any fun.

In order to avoid these scenarios, every seasoned project manager develops a compulsion to overcompensate.

The problem with going above and beyond, however, is that it leads to another danger zone, known as gold plating. Because in the world of project management, perfection means methodically punching away at a project, and delivering just what the clients requests. Nothing more and nothing less.

At first blush, this doesn’t make a lot of sense. How could striving to exceed customer expectations lead to more problems?

That’s what we’re going to cover in this post. As it turns out, everything that’s golden is not glittery. So if you want to improve your approach to project management, let’s take a look at the ins and outs of gold plating, as well as strategies for avoiding it.

Gold Plating: A Definition With Examples

Traditionally, gold plating is the practice of covering a less precious metal with a thin layer of gold. A pair of gold plated rings may look like they’re made from gold, but scratching below the surface reveals they consist mostly of copper.

Gold plating, then, is also a metaphor for presenting a shiny exterior in order to conceal something less desirable beneath the surface. A company may present a gold plated earnings report, when in fact its books are in disarray and it’s on the brink of bankruptcy.

Gold Plating Definition

In project management, gold plating means adding something to a deliverable that’s outside the original scope of the project. Here’s the standard project management definition:

Gold plating: The practice of incorporating features and improvements that go beyond a product’s agreed-upon characteristics. This is generally done to boost customer satisfaction.

It’s easy to envision how gold plating is desirable. At the beginning of a project, the expectations are laid out, and everyone understands the requirements and deliverables. However, the execution of a project gives rise to a variety of scenarios and conflicts. Maybe a team member becomes exuberant about a certain feature, and all on his own decides to embellish and add onto it. Or maybe the project isn’t proceeding so well, and the team wants to conceal poor workmanship with a few add-ons.

However, this practice of gold plating opens the door to new problems: additional risks, increased time and cost or a befuddled customer who doesn’t like the changes.

Examples of Gold Plating

Let’s look at a few examples of gold plating to get an idea of what it looks like in a project.

Take a bathroom remodel, for example. Maybe the original plan was to include one niche for soap in the shower. A contractor, concerned about pleasing the client, might decide to add an extra niche for shampoo bottles. However, the client may well be upset about this change, as it wasn’t in the original agreement. It could lead to an expensive scenario of having to re-do an entire wall of tiling.

Or in a software project, a team might decide to add a tutorial video to the log-in page. The client may be so pleased with the video that she wants a tutorial video on every page. Since this wasn’t in the original contract, the team is then pressured to perform this extra work at no pay.

Rather than exceeding customer expectations, gold plating is about being psychic and anticipating expectations the customer never even articulated. This can easily lead to misunderstandings and additional work.

In Contrast with Scope Creep

Gold plating may sound a lot like scope creep. Both are similar in that they involve making changes to a project, and both lead to undesirable outcomes.

Notice, however, that gold plating is only about making one change to a project. However, scope creep refers to changes that affect all aspects of a project.

Here’s the project management definition of scope creep:

Scope creep refers to gradual changes in project scope that occur without a formal scope change procedure. Scope creep is considered negative since unapproved changes in scope affect cost and schedule but do not allow complementary revisions to cost and schedule estimates.

Although gold plating isn’t the same as scope creep, it can easily lead to it.

Let’s look at the bathroom remodel again. In order to spruce things up, say the designer decides to flank the bathroom mirror with sconces. Then, it turns out the homeowners like them so much, they want sconces added to other areas of the remodel as well, even though it was never part of the original agreement.

Adding the sconces started with just one change (gold plating), but it led to changes that increased the scope of the entire project, affecting its time and budget (scope creep).

The Problem with Gold Plating

Ideally, managing a project means meeting clearly defined requirements within agreed upon constraints, including a time frame and budget. Any changes to the requirements or scope follows a standard methodical procedure.

Gold plating ignores these processes and agreements, and in doing so introduces an assortment of problems into a project. Here’s a few of the possible effects of gold plating:

Introduces New Risks

At the beginning of a project, the team looks at all risks and develops a risk management plan that includes things like mitigating controls and a succession plan.

However, when a team makes an entirely unanticipated change, it assumes risks never before considered, with no plan to protect against them.

Requires Additional Time, Money and Resources

A project works within agreed-upon constraints, including time, money, risk and resources. Gold plating assumes additional time and resources that aren’t in the budget. For example, adding a functionality in a software project requires additional testing, time and costs. This means that another area of the project is neglected, or else the project exceeds its constraints.

Confuses the Team

When a project is poised for success, everyone, more or less, is working toward the same North Star. However, introducing random changes alters the focus of some team members. It becomes unclear where to place energy, and the team’s output and efforts become muddled.

Misleads the Client

Gold plating, even with the best intentions, gives the client something he never asked for. It means ignoring the contract and direct requirements and charting a new course. At its core, then, gold plating is dishonest. The client expects to receive what was agreed upon; altering this course is unethical and may well lead to legal snafus.

Leads to More Work

Even if an add-on looks simple, it may well lead to something else entirely. For example, say a team adds a feature that ends up not working. The team then has to spend time providing support–for a feature that wasn’t even required!
In sum, the best approach to a project is to reject the exuberance of an eager-beaver. Adopting a slow and steady approach wins the day.

The Allure of Gold Plating

If gold plating introduces so many problems, then why are teams enticed to engage in it? Here are a few of the perceived benefits of gold plating.

Meeting and Exceeding Expectations

This is the objective of every project manager, right? All too often “exceeding” sounds synonymous with providing a little extra. This line of thinking, as we see, gets teams into trouble. It can seem like an improvement to add a bonus, when in fact it introduces a host of problems.

In reality, meeting and exceeding expectations means taking an even keel approach. Providing honest work and consistent communication is the surest way to keep the client satisfied.

Creating a Glittering Distraction

Sometimes in a challenging project, the deliverable doesn’t look as “presentable” as the team might like. In order to conceal the rough edges, it’s tempting to fancy it up with a few extras.

But ultimately, the client understands what’s going on. Gold plating in the end comes across as an effort to conceal shoddy work. And that isn’t a recipe for developing a good business reputation or repeat service.

Gold plating is a little bit like dipping into a giant tub of french fries: on its surface it feels like a good idea. But before long it reveals itself to be nothing but a stomach ache.

Strategies to Avoid Gold Plating

Fortunately, gold plating can easily be avoided with these strategies.

Keep Teams Small

Gold plating is more likely to happen within large teams. A “design-by-committee” approach to a project leads to scenarios where no one is in charge and people make changes without following any procedures.

Ideally, a team never exceeds seven to nine members. When it becomes as large as ten, splitting the team into two ensures a commitment to excellence and quality.

Within a small team, only one or two people make decisions, and it’s easier to discuss potential changes with everyone.

Create a Strong Scope Document

A scope document lays out the parameters of a project. It includes its requirements, the deliverables and constraints around time, money, risk and resources. The scope document also discusses what won’t be included in the project, and assumptions around who is able to work and for how long.

Laying out expectations for everyone to see creates a strong antidote to gold plating.

Communicate Consistently

When teams communicate daily at a scrum meeting, and bi-weekly for retrospectives or wrap-ups, it allows everyone to air concerns and ideas. This way, everyone is abreast of new movements, and together the team discusses possible changes.

Follow a Change Management Process

Rather than gold plating changes into a project, following a procedure ensures that changes are carefully considered and beneficial. The objective of a change process is to make sure that the appropriate people oversee and approve the changes.

With a good procedure, the team communicates the change to a team lead or scrum master. Next, the leader submits the change request to the project manager, outlining the benefits, reason, cost, description and impact. The project manager is then responsible for assessing new risks and scope.

A Solid Gold Approach

It really is ironic that trying too hard sometimes impedes your efforts.
Rather than “improve” a project through random add-ons, the best thing you can do for a customer is to deliver what they ask for. A team exceeds expectations through its quality of communication and service, not by adding “freebies” and “extras.”

Clear communication between the team and the client are key to minimizing incidences of gold plating.

If you’re managing a remote team, be sure to check out Teamly. This project management software makes it easy for teams to communicate continually, every single day.