Managing Scope Creep in Project Changes

A large financial services organization approached me for a regulatory-driven data strategy refresh. Like many enterprises, they had fallen into the "everything is critical" trap: Regulatory reports? Critical. Quarterly filings? Critical. Internal dashboards? Critical. The result? A bloated inventory where true priorities were buried, progress stalled, and regulators remained unimpressed. Instead of expanding their Critical Data Elements (CDEs), I advised to limit them. Here's the 3-step framework we implemented: 1. Reframe CDEs as Scope Management - Treated "critical" as a strategic filter, not just a label. - Used it to draw clear boundaries around what truly mattered. 2. Focus on Maximum Impact - Identified data that, when improved, would have the greatest effect on their most important business processes. - Prioritized based on business outcomes, not data volume. 3. Maintain a Ruthlessly Short List - Fought against "scope creep" mentality. - Established governance processes to prevent CDE list inflation. This led to, • Streamlined Focus: From an unmanageable inventory to a targeted, actionable list • Improved Outcomes: Resources concentrated on high-impact areas • Regulatory Confidence: Clear priorities that aligned with compliance requirements • Program Success: Avoided the "boiling the ocean" trap that derails most data initiatives In the world of Critical Data Elements, less truly is more.

A record-breaking revenue quarter... followed by tanking margins. We’ve seen this play out in fast-growing agencies... Everyone’s celebrating top-line growth, but internal financials tell a different story: - Scopes ballooned mid-project - Project managers didn’t track margin during delivery - Finance caught the issue weeks too late - Delivery teams focused on “getting it done” rather than “getting it done profitably” - Scope changes weren’t formally addressed with clients Here’s how we’d tackle it across our Barrel Holdings agencies: 1. First, map the breakdown. The problem isn’t just financial, it’s systemic. - No formal process to manage scope changes with clients - No real-time visibility into project margin - No clear margin targets - PMs weren’t trained or expected to manage profitability 2. Reground the team in core principles. - Profit must be designed, not hoped for - Margin goals need to be simple, visible, and shared - Every miss is a lesson - Communication is a performance tool, not a formality 3. Fix the operational gaps. - Tighten scoping with templates, risk buffers, and pre-mortems - Show margin vs. estimate in real time during delivery - Train PMs on margin literacy (make it part of the role) - Report margins monthly (or biweekly) at the leadership level 4. Reinforce with structure, rhythm, and feedback: - Assign PMs as margin owners - Review margins weekly alongside delivery updates - Surface margin metrics in dashboards - Celebrate margin wins not just project completion - Feed learnings into future scoping and pricing 5. Watch for ripple effects: - Stronger scope control might cause client friction; train AMs to frame it as professionalism - Teams may resist at first; confidence comes with repetition - Sales must evolve to take margin into account; no more “close the deal and figure it out later” Success looks like: - 85–90% of projects hitting margin goals within a quarter - PMs discussing margin in every project debrief - Change orders becoming standard practice, not a conflict - Clients staying satisfied even with firmer boundaries This isn’t about adding process for the sake of process but about shifting the culture. Margin becomes a shared, measurable, and learnable responsibility. Some of our agencies have undergone this transformation and others are in the process of going through it. It's never an immediate fix but a series of many tweaks & changes over time. == 🟢 Find this type of approach helpful? Check out AgencyHabits & sign up for our weekly newsletter. We also have an Agency Systems Playbook coming out soon for our subscribers.

Scope creep—it starts with a “quick favor” and suddenly, you’re writing a whole new strategic plan for free. 😵💫 When Julia Devine and I first started consulting for nonprofits, we wanted to be helpful. We’d say yes to little extras, thinking it would build goodwill with clients. Instead, we ended up overwhelmed, underpaid, and frustrated. Sound familiar? Here’s how we learned to lovingly keep projects in scope: ❤️ Set Clear Expectations Upfront: Before the contract is signed, be specific about what’s included (and what’s NOT). A vague “fundraising support” clause? Recipe for disaster. Instead, define deliverables like “a 3-page major gifts strategy” or “two grant proposals.” ❤️ Use a Strong Contract: Your contract should be your best friend. Outline the scope in detail and include a clause about additional work requiring a change order or separate agreement. Protect your time and your income. ❤️ Say "Yes, And That Costs Extra": When a client asks for something outside the original scope, try this: ✔️ “I’d love to help with that! Let’s talk about a scope expansion and pricing.” ✔️ “That’s a great idea! I can add it for an additional $X.” ✔️ “I can prioritize that instead of [original task]—which would you prefer?” ❤️ Regular Check-Ins: During the project, revisit the scope with your client. A simple “We’re on track with XYZ—would you like to add anything as a paid extension?” can keep expectations in check. ❤️ Resist the Urge to Overdeliver: I get it—you want to wow your clients. But overdelivering doesn’t mean undervaluing yourself. Deliver what you promised, do it well, and charge fairly for anything extra. Have you experienced scope creep as a consultant? How do you handle it?

SCOPE CREEP. This is one of the most common problems I see when reviewing contracts. I have been guilty of it many times myself. What is it? It is when project tasks expand beyond the agreed scope of the agreement without additional compensation. The solution? A specific SCOPE OF SERVICES provision. A scope of services provision defines the exact work a service provider is expected to perform under a contract. It sets the boundaries of what is included (and excluded), preventing misunderstandings and limiting “scope creep.” 💡 WHY IT MATTERS: Without a clear scope, projects can quickly grow beyond the original agreement (or what you thought was agreed!!), leaving you overworked, underpaid, and frustrated. A strong scope of services provision ensures both parties know EXACTLY what to expect and helps prevent scope creep. ➡️  A SCOPE OF SERVICES PROVISION SHOULD INCLUDE: *The specific services to be delivered *The timeframe or number of hours allocated *Deliverables (reports, meetings, training, etc.) *Explicit exclusions (what’s not covered) *Process for adding new services (e.g., written amendment, additional fee) ✅ EXAMPLES OF THE GOOD AND THE BAD: 👎🏻 Bad: ““Consultant will assist Client with preparing for investor presentations.” ➡️ Why? Sounds narrow, but could balloon into pitch deck creation, financial modeling, or coaching. ✅ Good: “Consultant will review and edit one investor presentation deck (up to 20 slides) and conduct one 90-minute practice session. Financial modeling is excluded. Work beyond this scope will be billed at an hourly rate of $500.” ➡️ Why? It clearly defines the deliverables (one deck, 20 slides, one session), sets exclusions (no financial modeling), and establishes how extra work will be billed. ⭐️ PRO TIP: NEVER ASSUME. Just because you know what a clause means (or you think the other party does) does not make it clear. Contracts are not written just for “you two” to understand. Contracts are written so that a third party (like a judge, mediator, or new business partner) could read them and understand exactly what was intended. If the language is not specific enough for an outsider to interpret without guesswork, it is too vague. And you are opening the door to disputes and scope creep. ⬇️ Have an experience you want to share re scope creep? Drop it in the comments. ⬇️ *********For informational purposes only. Not intended as legal advice.