Project e-Tip 033: Contract Only for that which You Understand

August 18th, 2004 by Hal

One of the more provocative lean construction principles is make decisions (commit) at the last responsible moment. Our habit which is reinforced by project software is to go for the early start. That habit inevitably gets us into trouble. One reader proposes a practice that helps you follow the lean construction principle.

The Project Reformer's e-Tip of the Week

033: Contract Only for that which You Understand

This tip derives from a lean principle commit at the last responsible moment. A reader from South Africa sees this as sound advice, but argues it can result in much effort managing expectations. He suggests that we contract (promise) for only that which we understand. By breaking the project into a development phase and a performance phase you can develop an understanding of client wants and needs then make commitments based on that understanding.

Here's their two-step contracting process:

spend time with the client to understand his problem
contract with the client to develop the plan
conceptualize the solution
develop a project plan (time & budget)
contract with the client to implement
implement the solution

Results:

We have far less pain around scope changes
We have far less effort to manage expectations. These are clear. First contract: we'll tell you how and why. Second Contract: we'll implement.
We have a better relationship with the client - he feels more in control.

Projects run shorter. What we have done is buy some time for decent planning. During this time, we also do some testing and piloting. Free work you might suggest. But, it serves us well as we have all the answers when those creative scope change requests hit us on a Monday morning.

The Project Leaders' Studio™
This week's Project e-Tip was proposed by Mike O'Callaghan of Engen Petroleum, Ltd.

How about an e-Tip proposal for a friend?

Weekly Project e-Tip: Read the Proposal Everyday

Project e-Tip of the Week — Get Selfish!

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Weekly Project e-Tip: Speak about Customer Value with Your Team

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