December 30, 2010

Profit Points #2 - Handling Scope Creep

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Profit Point # 2 - Handling Scope Creep
During this great recession it has never been more important to manage client expectations.

Remember you get to set your fees.

Unfortunately out of scope work very often becomes a negotiation with the client when it should be a simple change order.

Change the wording in your engagement letters
from “If any matters come to our attention that will increase the scope of our work…”
to “When we discover matters that require us to increase the scope of our work we will discuss the situation with you, amend our engagement letter and increase our fees accordingly.”
Then act promptly when these situations arise.

Standardize your change order process and have materials readily available for everyone’s use.

Realization and profitability will increase... guaranteed.

We recommend having all of your employees and partners sign up for the weekly blast and start your firm profit improvement efforts now!

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