As the management of Corporate Performance becomes more mature, a concern is business managers proceed with software base solution without a clear understanding of what they really need in their in CPM system.
The problem comes when they seek consultants to “implement” these type of concept projects believing that it’s similar to any other project that has a clear define scope, deliverables and activity e.g. build a table.
With that understanding, proposal are requested by sending limited description of reports with the expectation that the consultant will interpret and return with a proposal. Well, yes, with “risk assumptions” backed up, estimated proposal can be submitted in no time. Let’s look at those risk assumptions for example;
· Does the customer have skillset appropriate for application administration and project management, no? on top 20%
· Is the customer available to carry out project work, no? on top 40%
· Are the customer requirements at least scoped and clarified e.g. data sources and integration, process workflow defined?, no top 60%
· What is the customer expectations of application performance/user interface?, “I have a dream syndrome?”, on top 60%
There you go, easily almost 200% top-up added to the final pricing. So if you received a proposal, before replying with “Your price is over our budget, how much can you discount”, you better ask yourself if you have done your homework to reduce those “risk assumptions” that made the price go up in the first place?