Your client demands cost-cutting by shrinking the project scope. How do you navigate this tricky negotiation?
When clients demand cost-cutting by shrinking project scope, it's crucial to maintain value while managing their expectations. Here are some strategies to help:
What strategies have you found effective in similar situations? Share your thoughts.
Your client demands cost-cutting by shrinking the project scope. How do you navigate this tricky negotiation?
When clients demand cost-cutting by shrinking project scope, it's crucial to maintain value while managing their expectations. Here are some strategies to help:
What strategies have you found effective in similar situations? Share your thoughts.
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When clients push for cost-cutting by shrinking project scope, it's key to balance their needs with delivering value. Here are a few strategies: Clarify priorities: Identify essential elements and scale back where possible without sacrificing core objectives. Offer phased approaches: Break the project into phases to distribute costs over time. Communicate impact: Discuss how scope reductions may affect outcomes and timelines.
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Imho, You just have to define what's the most painful and necessary to achieve and cut the scope without any regrets or something, because when a client pays for a certain job to get done, you shall not be their enemy but a wise advisor instead. The better you listen, the better the results. And, of course, act as a professional, everywhere & always.
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To navigate scope reductions, we prioritize understanding the client's key objectives, propose phased approaches to distribute costs, and identify alternative solutions to maintain value while minimizing compromises. We focus on core objectives, suggest phased execution, and explore cost-effective alternatives to ensure value despite scope adjustments.
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When clients demand cost-cutting by shrinking project scope, navigate the negotiation with these strategies: Clarify Priorities: Identify essential deliverables to ensure the project meets core objectives. Propose Phased Execution: Break the project into manageable phases to distribute costs over time. Highlight Impacts: Transparently explain how scope changes could affect outcomes and timelines. Explore Alternatives: Suggest cost-effective solutions to maintain value without major compromises. These steps balance client demands with project integrity and long-term success
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This is a classic situation where transparency and collaboration shine. I've found that involving clients in a collaborative workshop to reassess project priorities often leads to creative solutions that neither side initially considered. It’s a win-win when clients feel like co-creators in the process. How do you ensure alignment when scope changes are inevitable?
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a) Adopt an MVP Approach: Focus on delivering only the must-have capabilities with direct ROI impact. Start lean, address immediate needs, and enhance incrementally based on feedback and budget. b) Leverage Tools and Automation: Use tools like CI/CD to automate processes, such as code deployment, reducing timelines and boosting efficiency. c) Collaborative Workload Distribution: Identify tasks like data migration that the client can handle if they have bandwidth. This reduces costs and increases client ownership while strengthening the partnership. d) Use Pre-Built Solutions: Employ templates or accelerators to cut costs and development time, achieving outcomes efficiently.
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It's very critical stage where each one us may passed through while locking any deal. Basically, when client is expecting cost-cutting, first thing always we need client to focus on features list, if there is very huge gap between your budget & client's expected budget then technically we need to access the situation. Try to explain client if budget is fixed then we need to prioritize the features important in phase 1 and remaining development we can take in phase 2 when we have additional fund. MVP development serve both the benefits going live into market, and accordingly client get funds from the market. There are various ways to achieve this goal.
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I’d prioritize understanding client goals, propose phased implementation or alternative solutions, and collaborate to adjust scope while preserving value and aligning with budget constraints.
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This happens quite frequently usually I've experienced this with non-technical business owners as they face difficulties in understanding the amount of work and resources we would have to deploy to complete their project. So, I ask my team to break the scope and explain each point according to their use case and workflow along with the technology use case for the scalability of the project. We offer option to work in Phases as alot of Business owners hesitate adapting technology because of xyz reason and we empathize and show other people's testimonials and workflows. People don't negotiate on scope, they negotiate on pricing because they feel they are overcharged. Just show how much work their scope has in detail, and they will agree.
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