Change Requests: How it makes or breaks a project implementation

Scope Creep: How Change Requests can make or break a project

By Aristou Admin Change Requests 0 Comments

Did you know? According to the 2018 Pulse of the Profession survey by PMI, 52% of projects experienced scope creep.

Scope creep: the dreaded obstacle in ERP project management. Often referred to as the silent project killer, scope creep occurs when project requirements expand without proper control mechanisms, like change requests.

It typically manifests as unplanned additions to project deliverables or unforeseen increases in feature sets.

Imagine this: Your team starts with a project that includes a single deliverable, only to end up with five. Or envision a product initially designed with three essential features suddenly requiring ten.

Midway through a project, shifting customer needs may prompt a complete reassessment of requirements.

During implementation, change requests often evoke a sense of dread. However, they are a reality in the business world and frequently arise for legitimate reasons.

In our ever-evolving business environment, predicting exact needs at a project’s outset is nearly impossible. A proficient project manager and team anticipate and plan for scope creep to some extent.

As we’ve discussed in the previous blog article, the key to managing change lies not in avoidance but in effective management, aka communication.

While it’s crucial to resist unnecessary changes, staying open to new opportunities that add value to the project and organization is equally important.

Today, this article will explore the concept of change requests (CRs), detailing their components, types, and steps for effectively managing them, supported by real-life examples.

Let’s go!

What is a change request (CR)?

Essentially, a change request is a formal proposal for an alteration to some product or system.

In ERP project management, a change request often arises when the client wants an addition or alteration to the agreed-upon deliverables for a project.

What does a change request consist of?

Change requests, as straight forward it is: requesting for change. It may involve an additional feature, customization or an extension of service, among other things.

Usually, change requests are beyond the scope of an original agreement or contract, this often means that the client will incur costs to pay for the resources required to satisfy the project changes.

Let’s look at the different types of CR below.

Types of CR

Aristou predominantly operates on 2 main kinds of change requests:

Chargeable: This refers to a fee typically based on “man-days,” which calculates how many days are required to fulfill a specific change request. We bill customers accordingly for the time spent on the change requests.
Non-chargeable: This involves assisting customers without additional fees, usually entails fixing issues or incorporating additions into processes or reports at no extra cost to the client.

In essence, “chargeable” signifies billing based on the time spent fulfilling a client’s request, while “non-chargeable” provides assistance or enhancements at no additional charge.

What should a change request include?

All change requests should include the same basic information, including the following:

Consideration and Limitation
Detail Cost for the Change Result
Approval / signature for both parties (Aristou & Customer)
Term & Condition

Understanding CR: Best Practices for Effective Management

Change requests play a crucial role in project management, ensuring that adjustments align with client needs and project objectives.

According to one of our internal consultants, there are 3 main protocols to comply to when it comes to best practices for managing customer’s change requests.

1. Internal Discussion: Before submitting a change request to Aristou, it should first be thoroughly discussed internally within their organization.

This step ensures clarity on the proposed changes and their alignment with project goals.

2. Clarity in Requirements and Outcomes: Customers should articulate their requirements clearly when initiating a change request.

It’s important for them to specify what they need and outline the expected results to facilitate smooth implementation.

3. Project Management Approval: Each change request must be acknowledged by the customer’s project Manager or the designated authority within their organization.

This ensures that requests are formally recognized, assessed for feasibility, and integrated into project planning as necessary.
Without the approval of the client’s PM, Aristou won’t proceed with the change request.

By adhering to these best practices, we aim to enhance communication, maintain project alignment, and deliver solutions that meet our clients’ expectations effectively.

While scope creep remains a concern in ERP projects, change requests when managed properly can mitigate its risks significantly.

They provide structure, transparency, and control over project changes, enabling organizations to adapt to evolving requirements while maintaining project integrity and alignment with business objectives.

On a more positive note, embracing change requests as a valuable tool in project management can lead to more successful ERP implementations and overall project outcomes.

Let’s look at some real life scope creep examples that we had to mitigate here with our consulting team at Aristou.

Scope creep example (AristoU)

Issue Summary:

The mobile app developed by a previous vendor (not Aristou) encountered severe compatibility issues when it went live. As the current vendor, Aristou had to then troubleshoot these issues, revealing numerous problems that led to significant delays and increased costs.

Main Issue:

The root of the problem was a compatibility issue between the app’s SAAS solutions and the specific server required. This incompatibility was not identified until the app was live, leading to a cascade of issues.

4 Reasons Behind the Issue:

Initial Delay: A one-week delay in the project timeline triggered a chain reaction, resulting in a subsequent four-month setback. This delay disrupted the original schedule and affected subsequent phases of the project.
CR (Change Request) Issues: The change requests (CRs) were not anticipated due to the initial delay. The proposed changes did not align with the existing customizations and server requirements, causing unforeseen complications.
Lack of Awareness: Aristou and the customer were not fully aware of the compatibility requirements or potential issues until the app was tested in a live environment.
Assumptions: Both Aristou and the customer assumed the app would function as expected without additional issues, which proved incorrect.

Implications:

Financial Impact: The unexpected compatibility problems led to an estimated additional cost of $150,000 due to CR adjustments and previous customizations by another vendor.
Operational Disruption: The project experienced a four-month delay, which affected the customer’s ability to meet their go-live deadline. Impacting both the project timeline and budget.
Impact business continuity: The additional troubleshooting and fixes led to substantial unexpected expenses and delays, the disruption forced the customer to rely on legacy systems.

Key Learnings:

Effective Communication: This case highlighted the critical importance of detailed planning and strong communication in the face of unexpected change requests.
Proactive Management: Compatibility issues that are not identified early can result in significant delays and financial strain.
Thorough Testing: Ensuring thorough testing and clear understanding of project requirements are essential to mitigate such risks and ensure project success.

At Aristou, drawing on over 20 years of industry expertise, including extensive experience as a team lead consultant, we remain committed to navigating such complexities with precision and ensuring seamless project execution for our clients.

Understanding Scope Request/Change Requests: Common Causes and Process

Now that we’ve understood a clearer picture on what change requests are, let’s delve into the 4 common causes of change requests our Aristou consultants use:

Unique Functional Requirements

- One of the primary causes of change requests is the absence of standard functions to accommodate specific needs. Each organization operates differently, necessitating tailored solutions that align with their distinct operational requirements.

Evolving Business Processes

- Changes in current business processes can also trigger CRs. As businesses adapt to new market conditions or regulatory requirements, existing systems often require adjustments to ensure continued efficiency and compliance

Process Optimization and Automation

- The pursuit of business process improvement and automation frequently leads to change requests. Companies strive to streamline workflows and enhance productivity through technological advancements, prompting modifications to existing systems.

Customization Needs

- Customization of business forms and reports is another significant driver of change requests. Every company has its own unique formats and layouts for essential documents, necessitating adjustments to align with specific branding and operational standards.

Handling Change Requests: A structured approach

Understanding the common causes of change requests allows our consultants to effectively manage change requests.

Our team at Aristou puts into practices a systematic process to ensure clarity, efficiency, and client satisfaction:

Requirement Gathering: Upon receiving a change request, initiate meetings—either online or onsite—to gather detailed information about the client’s needs and expected outcomes.
Technical Assessment: Communicate the client’s requirements to the technical team for assessment. Determine the feasibility of the changes and estimate the time required for implementation.
Quotation Submission: Provide the client with a comprehensive quotation detailing the scope of changes, anticipated costs, and expected outcomes. This step ensures transparency and manages client expectations.
Approval and Implementation: Upon acceptance of the quotation, proceed with the implementation of the change request. Initiate the necessary adjustments to the system or process as agreed upon with the client.

Stay focus

In conclusion, scope creep poses a significant risk to the success of ERP projects, potentially leading to budget overruns, missed deadlines, and strained resources.

Addressing this challenge requires proactive management and a clear understanding of the difference between necessary scope changes and creeping scope that undermines project goals.

At Aristou Pte Ltd, we leverage a systematic approach and robust process workflows to effectively manage scope changes while maintaining project integrity.

Whether you’re facing the challenges of scope creep or seeking to optimize your change management processes, Aristou is here to support your organization’s ERP project success.

Contact us today to learn more about how we can tailor our expertise to meet your specific needs and empower your team to achieve lasting project outcomes and ensure the success of your ERP projects.

Stay connected with us:

LinkedIn: https://www.linkedin.com/company/aristousg
Facebook: https://www.facebook.com/aristouSG
Instagram: @aristou_sg
Email: support@aristou.com.sg
Website: www.aristou.com.sg

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Scope Creep: How Change Requests can make or break a project

Scope Creep: How Change Requests can make or break a project

Did you know? According to the 2018 Pulse of the Profession survey by PMI, 52% of projects experienced scope creep.

Scope creep: the dreaded obstacle in ERP project management. Often referred to as the silent project killer, scope creep occurs when project requirements expand without proper control mechanisms, like change requests.

It typically manifests as unplanned additions to project deliverables or unforeseen increases in feature sets.

Imagine this: Your team starts with a project that includes a single deliverable, only to end up with five. Or envision a product initially designed with three essential features suddenly requiring ten.

Midway through a project, shifting customer needs may prompt a complete reassessment of requirements.

During implementation, change requests often evoke a sense of dread. However, they are a reality in the business world and frequently arise for legitimate reasons.

In our ever-evolving business environment, predicting exact needs at a project’s outset is nearly impossible. A proficient project manager and team anticipate and plan for scope creep to some extent.

As we’ve discussed in the previous blog article, the key to managing change lies not in avoidance but in effective management, aka communication.

While it’s crucial to resist unnecessary changes, staying open to new opportunities that add value to the project and organization is equally important.

Today, this article will explore the concept of change requests (CRs), detailing their components, types, and steps for effectively managing them, supported by real-life examples.

Let’s go!

What is a change request (CR)?

Essentially, a change request is a formal proposal for an alteration to some product or system.

In ERP project management, a change request often arises when the client wants an addition or alteration to the agreed-upon deliverables for a project.

What does a change request consist of?

Change requests, as straight forward it is: requesting for change. It may involve an additional feature, customization or an extension of service, among other things.

Usually, change requests are beyond the scope of an original agreement or contract, this often means that the client will incur costs to pay for the resources required to satisfy the project changes.

Let’s look at the different types of CR below.

Types of CR

Aristou predominantly operates on 2 main kinds of change requests:

Chargeable: This refers to a fee typically based on “man-days,” which calculates how many days are required to fulfill a specific change request. We bill customers accordingly for the time spent on the change requests.

Non-chargeable: This involves assisting customers without additional fees, usually entails fixing issues or incorporating additions into processes or reports at no extra cost to the client.

In essence, “chargeable” signifies billing based on the time spent fulfilling a client’s request, while “non-chargeable” provides assistance or enhancements at no additional charge.

What should a change request include?

All change requests should include the same basic information, including the following:

Consideration and Limitation

Detail Cost for the Change Result

Approval / signature for both parties (Aristou & Customer)

Term & Condition

Understanding CR: Best Practices for Effective Management

Change requests play a crucial role in project management, ensuring that adjustments align with client needs and project objectives.

According to one of our internal consultants, there are 3 main protocols to comply to when it comes to best practices for managing customer’s change requests.

1. Internal Discussion: Before submitting a change request to Aristou, it should first be thoroughly discussed internally within their organization.

This step ensures clarity on the proposed changes and their alignment with project goals.

2. Clarity in Requirements and Outcomes: Customers should articulate their requirements clearly when initiating a change request.

It’s important for them to specify what they need and outline the expected results to facilitate smooth implementation.

3. Project Management Approval: Each change request must be acknowledged by the customer’s project Manager or the designated authority within their organization.

This ensures that requests are formally recognized, assessed for feasibility, and integrated into project planning as necessary.

Without the approval of the client’s PM, Aristou won’t proceed with the change request.

By adhering to these best practices, we aim to enhance communication, maintain project alignment, and deliver solutions that meet our clients’ expectations effectively.

While scope creep remains a concern in ERP projects, change requests when managed properly can mitigate its risks significantly.

They provide structure, transparency, and control over project changes, enabling organizations to adapt to evolving requirements while maintaining project integrity and alignment with business objectives.

On a more positive note, embracing change requests as a valuable tool in project management can lead to more successful ERP implementations and overall project outcomes.

Let’s look at some real life scope creep examples that we had to mitigate here with our consulting team at Aristou.

Scope creep example (AristoU)

Issue Summary:

The mobile app developed by a previous vendor (not Aristou) encountered severe compatibility issues when it went live. As the current vendor, Aristou had to then troubleshoot these issues, revealing numerous problems that led to significant delays and increased costs.

Main Issue:

The root of the problem was a compatibility issue between the app’s SAAS solutions and the specific server required. This incompatibility was not identified until the app was live, leading to a cascade of issues.

4 Reasons Behind the Issue:

Initial Delay: A one-week delay in the project timeline triggered a chain reaction, resulting in a subsequent four-month setback. This delay disrupted the original schedule and affected subsequent phases of the project.

CR (Change Request) Issues: The change requests (CRs) were not anticipated due to the initial delay. The proposed changes did not align with the existing customizations and server requirements, causing unforeseen complications.

Lack of Awareness: Aristou and the customer were not fully aware of the compatibility requirements or potential issues until the app was tested in a live environment.

Assumptions: Both Aristou and the customer assumed the app would function as expected without additional issues, which proved incorrect.

Implications:

Financial Impact: The unexpected compatibility problems led to an estimated additional cost of $150,000 due to CR adjustments and previous customizations by another vendor.

Operational Disruption: The project experienced a four-month delay, which affected the customer’s ability to meet their go-live deadline. Impacting both the project timeline and budget.

Impact business continuity: The additional troubleshooting and fixes led to substantial unexpected expenses and delays, the disruption forced the customer to rely on legacy systems.

Key Learnings:

Effective Communication: This case highlighted the critical importance of detailed planning and strong communication in the face of unexpected change requests.

Proactive Management: Compatibility issues that are not identified early can result in significant delays and financial strain.

Thorough Testing: Ensuring thorough testing and clear understanding of project requirements are essential to mitigate such risks and ensure project success.

At Aristou, drawing on over 20 years of industry expertise, including extensive experience as a team lead consultant, we remain committed to navigating such complexities with precision and ensuring seamless project execution for our clients.

Understanding Scope Request/Change Requests: Common Causes and Process

Now that we’ve understood a clearer picture on what change requests are, let’s delve into the 4 common causes of change requests our Aristou consultants use:

Unique Functional Requirements

One of the primary causes of change requests is the absence of standard functions to accommodate specific needs. Each organization operates differently, necessitating tailored solutions that align with their distinct operational requirements.

Evolving Business Processes

Changes in current business processes can also trigger CRs. As businesses adapt to new market conditions or regulatory requirements, existing systems often require adjustments to ensure continued efficiency and compliance

Process Optimization and Automation

The pursuit of business process improvement and automation frequently leads to change requests. Companies strive to streamline workflows and enhance productivity through technological advancements, prompting modifications to existing systems.

Customization Needs

Customization of business forms and reports is another significant driver of change requests. Every company has its own unique formats and layouts for essential documents, necessitating adjustments to align with specific branding and operational standards.

Handling Change Requests: A structured approach

Understanding the common causes of change requests allows our consultants to effectively manage change requests.

Our team at Aristou puts into practices a systematic process to ensure clarity, efficiency, and client satisfaction:

Requirement Gathering: Upon receiving a change request, initiate meetings—either online or onsite—to gather detailed information about the client’s needs and expected outcomes.

Technical Assessment: Communicate the client’s requirements to the technical team for assessment. Determine the feasibility of the changes and estimate the time required for implementation.