The Importance of Scope Statements

Photo by Danny Smith

“By failing to prepare, you are preparing to fail.” ― Benjamin Franklin

I once saw a photograph of a large yacht named “Change Order” with a small dinghy at its stern named “Original Contract”. That picture seems to tell a terrible story of misunderstandings and unanticipated expenses. Many contractors make most of their profit via change orders because their customers often don’t know what they want or don’t know how to define what they want before a project begins. It is dangerous to fire when you are not aiming at a clear target! Unless project and work expectations are clearly memorialized within a Scope Statement, you are probably in for a rough, confusing, and contentious ride. I have experienced the mass confusion of such rides with no one driving. It certainly does not have to be like that. Preparing a proper Scope Statement is a simple concept that just requires a little bit of leadership. I gave a lecture on the importance of Scope Statements to graduate students at Samford University last week and the essential points follow below. 

Scope Statements are sometimes called a Scope of Work or simply a Scope. A Scope Statement typically contains the following parts:

Objectives: Concisely describes the project or work to be performed. Clearly state exactly what you intend to accomplish. Specify who, what, and when.

Deliverables: Deliverables are specific outputs that occur at specific points in time. Examples include draft reports, final reports, presentations, completing construction, finishing a service, etc. 

Milestones: These are naturally important control points during the project. Examples include the completion of certain assessments, acquiring permits and approvals, acquiring materials, completing various phases of construction or design, etc. A date should be specified for each milestone, if possible.

Technical Requirements: Technical requirements include codes, standards, and design specifications to which the project or work must conform.

Limits and Exclusions: Expressly state what is not included in the project or work to be performed. It is an excellent way to prevent confusion and misunderstandings.

As you draft a Scope Statement look for unanswered questions, anything vague, or anything that could be interpreted in more than one way and seek to clarify those points. Scope Statements are typically incorporated into a written agreement that also includes terms and conditions such as compensation, insurance requirements, etc. Scope Statements are a simple concept that cannot be ignored for ongoing organizational success.

“The purpose in a man’s heart is like deep water, but a man of understanding will draw it out” – Proverbs 20:5