Why We Refuse Fixed Scope Implementations

We Summit Mountains is constantly pushing to deliver the best possible service. Throughout our journey to deliver exceptional service, we have made the decision to not bid fixed fee projects. We believe this be in the best interest of the success of the projects that we take on. 

Consultant Motivations Behind Fixed Scope Quotes

There is only one reason why a company would be incentivized to quote fixed scopes:

They believe they could do the project in less time than they quoted the client. This incentivizes a company to quote more hours than a task typically takes (and to tell the client that it takes that longer amount of time), and to deliver in less time then was quoted. These "buffer hours" are scoped in fixed fee projects, but the client never gets those hours back if a task takes less time. 

This is so common that there is a formula that larger consulting firms use to quote these projects.

True Time Estimates * 2 + True Time Estimates * 0.3

This formula takes the time the developers think that a set of tasks will take to complete, and then they double that time. Then they add another 30% on top of that time. They will try to hide this in places in the scoped hours, but the price tag shows the buffer.

The truth is, a high majority of the time, the consultant will get it done much faster, and then they will pocket the rest of the money, and start the next cycle.

Client Motivations Behind Fixed Scope Quotes

Fixed scope quotes seem so simple. You pay x dollars, and you get your itemized list of features that you need for your software. Nothing can go wrong. It is all there on the paper.

But this is often not the case.

Many consultants will give a quote, and say it is a fixed scope, but will give a change order as soon as they find more complexity. This is completely common, and happens in every industry. But then you must ask yourself "why did I ever believe that this estimate was an exact bill of sale?"

The reason is because it was easier to believe. It is easier to tell executives that the bill will be exactly x dollars. 

But then the other shoe drops. And now the estimate has gone up.

How Fixed Scopes Hinder Progress

Why Fixed Scope Consultants Fear Scope Creep

As software gets built for a client, the client understands how much can be done with the software. They want more and more to be done. They will continue to ask for tweaks and changes that further improve the software to meet their growing needs. Many consulting firms that quote fixed scopes have a negative stance towards this behavior. 

It is generally called "Scope Creep" in the industry.

If a consulting firm quotes a fixed scope, and the client keeps wanting to improve the product, the consulting firm either has to oblige, and eventually get overrun by the scope creep, or they have to tell the customer no until they have completed the scoped work, and generate a new quote.

This leaves a bad taste for both the client and the consultant, and ends up being a pretty common source of contention.

We Encourage Continuous Improvement

We Summit Mountains takes an approach that does not just solve the contention, but we actively encourage "Scope Creep". I don't even like the negative connotation of the term "Scope Creep". I prefer "Continuous Improvement".

After years of success in this industry I have learned that a good implementation changes client expectations. Building good software is like writing a novel. A client may have an initial idea of how they want the software to function, but they can't actually articulate fully how it's going to work and how it's going to interact with their business workflow. As a client gets more integrated and familiar with Salesforce as a platform the methods that they're particular requirements are going to be achieved through get closer and closer to how they will be actually implemented. What this means is that what the client is asking for is constantly shifting as they get more integrated into the platform. 

Improvement is never finished

Like the company software supports, software must never stop growing in iterative cycles. Unlike purchasing a car, it must adapt to changes in the company, It is constantly growing with new needs being added into the software at all times.