Finance Transformation Gone Wrong - Vaguely Defined Project Scope

No one plans for a project to jump the track. They're all launched with the best of intentions. However, somewhere along the way something happens. Often, it's multiple "somethings". I once had someone land on my blog with the search term "Finance Transformation Gone Wrong". I had to laugh, as anyone who's been in the business of transformation has seen good projects turn bad for a variety of reasons.

For those engaged in the art of transformation, this series will discuss some ways a project can head south, along with the appropriate remediation strategies to increase the probability of project success. One of the first ways a project can run into trouble is through vaguely defined project scope.

Vaguely defined scope

There are times when a transformation effort goes wrong before the project even starts. If a transformation project is planned badly, it will be difficult to make up during the actual project. One of the chief culprits is scope. It's one of those things that sounds like it should be easy but in practical terms is difficult to define. The devil, as they say, is in the details. This is an area that should be thought through very carefully during the planning stage, agreed by the major stakeholders, and committed to in writing.

A key to keeping a sharp focus on scope is to keep the project's ambitions manageable. Picking a scope such as "let's revolutionize Finance" is bound to create problems since everyone has a different idea of what it means to revolutionize Finance. Heck, people can have different ideas of what it means to optimize the accounts payable invoice entry process. To boost project success, sharply define project scope and keep it in manageable chunks.

The second point is related. It isn't enough for the Project Manager or Executive Sponsor to have a sharply defined project scope. The important stakeholders who can support or derail a project must also agree on the project scope and its intended impact on the organization. And this is an area where silence definitely does not equal consent. There must be overt agreement of the scope of the transformation effort and its expected results.

A third point to keep in mind is to manage "scope creep". This can kill an otherwise solid project. Scope creep occurs when a project is expanded beyond the original scope as set out in the Statement of Work or other project documents. As the phrase "scope creep" implies, it often occurs in very subtle ways that may seem reasonable at the time but that, with time and volume, can weigh down a project and keep it from coming in on time and on budget. There should should be a very strict change control process in place so that when the inevitable scope issues come up, there is a defined process for managing scope changes. Any proposed change should be supported by a business case that provides a compelling business and/or economic reason for the proposed change. A business case doesn't have to be huge, but if there is a good reason for a scope change, it should be documented and approved according to the project's governance structure.

By creating manageable transformation initiatives, gaining agreement amongst critical stakeholders, and implementing a strong governance process for scope changes, a finance organization can begin the process of successful transformation.