I was asked to give a presentation at the recent AccountantsDaily Strategy Week on my favourite topic, Modern Firm Practices - speaking specifically on Pricing & Services.
The three areas I covered were: Scope Stretch, Alternate Pricing and Start Helping. By far Scope Stretch received the most questions and feedback.
A favourite by many was the analogy I told:
You have a builder quote a kitchen renovation, you accept and they start the job.
Half way through they discover you have termites. Do they just cut out and treat the affected areas without telling you and without re-quoting? No.
They give you a call, let you know what they have found, what it means, explain the importance of treating it now and the additional time and cost involved.
Scope stretch is a common problem in many many firms. It is letting value slip through the gaps, reducing margins and blowing out productivity. In this weeks Modern Firm Practices show I cover:
- what is scope stretch (and scope creep and scope seep)
- legacy clients who are used to a certain standard and new clients
- taking charge and leading the way reducing scope stretch
- communicating and educating: the action required to tackle this problem
- sending an additional engagement for the *out of scope* work
Is this the year you’ll change your habits to reduce scope stretch?
Until next week,