Scope Creation
“Get the scope wrong, and everything else falls apart.” says every experienced procurement professional, ever.
In the world of procurement, few activities carry as much weight or risk as scope development. It’s the foundation of every tender, the blueprint for every contract, and the single greatest predictor of an engagement’s success or failure. Yet, time and again, scoping is treated as an afterthought, either non-existent, rushed, vague, or copied from legacy contracts that may no longer be considered fit for purpose for the organisation.
So, what is Scope Development?
Scope Development is about successfully formulating the expected results, managing expectations of all stakeholders, anticipating risk, and building a mutual understanding of the requirements that is clear enough for both you (the Requester) and the supplier to successfully contract with.
A well-defined scope typically allows for:
- Reduced supplier confusion and disputes
- Minimised variation claims and cost overruns
- Alignment with budget, operational requirements and performance KPIs
- Strengthening of your ability to enforce effective accountability with all parties
- Implementing appropriate risk mitigation
Indicators of poor scoping
A poorly defined scope can result in significant cost for the Requester. Good scoping practice is essential to avoid the issues such as:
- An offer that includes goods or services you don’t want
- Offers that vary significantly in both methodology and price
- Contracts incurring significant variations
- Contract Managers managing problems rather than performance
A strategic approach to Scope Development
Find the “why” or purpose
Throughout my career, I have always found it useful to start with “Why”. Answering why allows you to understand the overarching objectives of the engagement without losing sight of the big picture.
- Why does this problem need to be solved?
- Who is impacted and how?
- What are the risks if we leave things as is?
- What are the risks if we implement changes tomorrow?
- Why aren’t existing solutions being used or extended?
Involve stakeholders early
Identifying and engaging with all relevant stakeholders early in the scoping process is a crucial step in Scope Development. It ensures a smooth transition once the services are accepted or the goods are received, and highlights any indirect complexities or considerations that could significantly impact on the delivery or implementation of the goods or services later on.
Additionally, early involvement will help to determine if the engagement is in fact aligned with the best interests of the broader organisation or if solutions already exist within the organisation that could solve the issue, resulting in significant cost savings. Important stakeholders to consider in scoping development include:
- End users
- Operational managers
- Finance & legal (especially for risk appetite and performance KPIs)
- IT if any API’s or other types of integrations are required.
Map out deliverables and expectations
A vague deliverable list won’t cut it. Good scope development requires an in–depth understanding of how an organisation operates. For example:
- What is the organisation’s financial capacity?
- What is its risk appetite?
- How will the deliverables impact the organisation’s operations?
- Does the engagement align with the organisation’s values and culture?
- What are the organisation’s non-negotiables and reporting requirements?
- What are the organisation’s expected service levels and quality control measures?
Addressing these questions during the Scoping process may result in a significant reduction in potential variations later on.
Anticipate variations before they happen
Identify potential changes early and plan for them during scoping to avoid possible delays and extra costs. This includes:
- Clearly defining what is included and excluded
- Identifying what may be required later and treating them as optional.
Including optional items in the scope allows you to:
- Obtain pricing upfront without committing immediately
- Compare options and manage budget expectations
- Avoid delays and additional costs if those items are needed later.
