How to Eliminate Scope Creep

and Get Paid on Time. Every Time.

• Lead a sales team of 20 in Australia’s largest ski travel wholesaler, generating $30m revenue/year.

• Web Development Project Manager, working on individual projects with scope > $200K/project.(hint: scope creep is a constant issue in both industries.)

Why Listen to me?

• Define scope creep.

• Find out why scope creep happens.

• Learn the easy steps to eliminate it.

Agenda

Scope creep: When your clients ask for more than they have paid for.

vs.

Scope seep: When you give away value, even if your clients haven’t asked for it.

Defining Scope Creep

1. Your time and resources. 3. Your relationship with your client. 5. Your profit and your ability to be paid on time:

For the average accounting firm, scope creep/seep can result in a minimum of $10K in lost revenue per head.*

*Figure is based on feedback provided by our clients from the US, Canada, UK, New Zealand and Australia. Quantifiable by calculating invoice write-offs.

If scope is poorly managed, it will impact:

Why does it happen?Poor expectation setting and communication

at the start of the engagement.

The symptoms of this areFailure to understand the clients needs,

pains and goals.

The symptoms of this are Failure in demonstrating the value of your services.

The symptoms of this areFailure to clearly define the deliverables

and formalize the agreement.

What can we do to prevent scope creep?

1: Define your discovery process. Implement, refine and repeat.

You need a protocol in place to ensure you are gathering the right information

from the start every single time.

Why?

1: Define your discovery process. Implement, refine and repeat.

Meet Chris from

How?

1: Define your discovery process. Implement, refine and repeat.

How?Chris’ steps to new client success:

• Document your process. • Capture basic details first incl. a client snapshot. • Client Meeting: Business interview questions. • At the end of the meeting, deliver the solution.  

See Chris’ on-boarding process in action:  bitly.com/scopenewclients

1: Define your discovery process. Implement, refine and repeat.

Result• You begin the relationship with clear communication. • You have understood your clients’ challenges. • You have established both party’s expectations.

2: Issue your client with a written engagement letter

Formalize what you have established in the discovery stage.Why?

MS Word and a carrier pigeon (but really: Practice Ignition).How?

Scope is clearly defined and both parties can refer back.Result

3: Managing Scope creep requires open communication

Because you need to understand your clients needs.Why?

Don’t charge your clients to speak to you.How?

You always know what their problems/needs are and can easily up-sell.Result

4: Issue Change of Service Requests in writing

Reinforces the NEW set of expectations after up-sells and add-ons.Why?

Alter your original agreement and get it signed off by your client.How?

New scope is correctly defined.Result

5: Annualize your engagements

A natural, yearly outlet to address scope and up-sell.Why?

Have contracts run for 12 months, instead of open-ended.How?

Increased revenue opportunities and happy clients! Result

• Define your discovery process. Implement, refine and repeat. • Issue your client with a written engagement letter. • Managing Scope creep requires open communication. • Issue Change of Service Requests in writing. • Annualize your engagements.  

Recap

Supercharge these steps!

Move to fixed or value pricing.

It’s much easier to define what is in and out of scope with fixed pricing and it’s in the best interest of your client.

Why?

“So far our customers on fixed price agreements are very happy. They know the price, what the service is and that, no matter what, we will do the work at the stated price.”

Gabrielle M Luoma, CPA, CGMA

Move to fixed or value pricing.

Seek help, access educational resources and go for it!

How?

“Our fixed fee pricing model forces us to innovate and move towards a system of

processes that are as effective as possible.”

Ryan Lazanis CPA, CA

Move to fixed or value pricing.

Fixed pricing + technology = gets you paid on time (hint: no more Invoicing and ducking.)

Result?

“The result (of moving to fixed fees) was an increase in

signups, revenue and quality clients where the scope

for growth and value add work was much larger.”

Guy Pearson, CPA (and founder of Practice Ignition!)

• Provide an explanation in a new engagement letter. • Be prepared for a little resistance. • Book meetings: Give them some face-to-face time. • Walk them through your shiny new on-boarding process!  

Transitioning existing clients

• You have a fantastic relationship with your client. • You manage your capacity for work like an absolute pro. • You unleash opportunities to increase your revenue like never before!  

So what cool things happen when you eliminate Scope Creep?

but best of all…

You get paid on time. Every time.

It sounds a little like I created a whole lot more work for you right?

(shameless product plug coming up)

wrong!

Practice Ignition will help you:Establish a process for the best client on-boarding experience. period.

Lightning fast proposal creation. Engage new clients in a matter of minutes.

Clients click to accept = no more print/sign/scan.

Edit existing engagements to eliminate scope creep/ handle up-sells = no more new documents or “handshake agreements.”

Super fast annual re-engagements using PI’s Bulk Rollover feature (eliminating weeks/months of work).

Bullet-proof engagement compliance = Practice Inspection Friendly!

Business Intelligence you simply can’t get from word docs = Ignite your practice!

Really? how has PI helped other accountants?

Practice Ignition eliminates the burdensome task of creating engagement letters and obtaining client signatures - Adam Puckett, Delap LLP, Portland OR.

I'm not even finished my trial of PI yet and I've had two major proposals accepted. They were cohesive, formal and professional and I know PI made all the difference. - Elaine Orr Morgan, balancesheets.ca, Canada.

My first proposal was accepted before I had a chance to click back to Outlook! I need an "easy button” - Rachel Barnett, Primarily Bookkeeping, Seattle WA.

Saves oodles and allows you to focus on developing a client relationship and achieving the desired outcome, rather than administrative tasks - Alycia Edgar, Business Performance HQ, Australia.

Work on the beach is not a figure of speech

When you can save up to 2 hours on an engagement letter

Start saving time now

As a member of CPA Academy we give you three months FREE!

http://www.practiceignition.com/cpaacademy