30 Nov Managing change requests and maintaining project profitability
Getting that email from a customer requesting changes to the scope or direction of a project can be stressful. Many a time, change requests affect the project timeline and budget. Some changes may even occur from within your organization when you encounter issues that affect your ability to complete a project. You can’t avoid change during the lifespan of a project. However, ensuring you have the right tools to manage change requests is crucial. In this guide, we discuss managing change requests and maintaining project profitability.
Managing Changes in the Project Scope.
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The first step to ensuring the success of your projects is by thoroughly discussing your customer’s vision and expectations. Indeed, we’re all human. At times we think we know what we need until we uncover more requirements over time. Change requests are unavoidable. With the right tools at hand, you can unearth opportunities to upsell your customers and offer value-added products and services.
If you conduct your project accounting manually, it becomes difficult to track every element of the project and can be overwhelming. With an Integrated project accounting and ERP solution, you can establish a change request procedure before the project commences. It will allow you to manage changes and track how the changes could affect your project’s profitability.
The befits of a reliable change request procedure.
A structured procedure for managing change requests allows your team to assess the impact the changes will have on the design of the project and the availability of staff. Furthermore, any additional equipment that may be required to complete the project, and most importantly, the effect’s on the budget and project milestones.
An integrated project accounting and ERP solution enable you to offer complete transparency to your customer’s on the impact their requests will have on the project. This communication allows both you and the client to assess the change request’s financial and timeline effect and decide whether to accept the change request—and keep the project on track!
Using Acumatica Cloud ERP for Project accounting and managing change requests.
Acumatica Project Accounting helps by controlling changes to the project scope, including customer and internal requests. Your project team can create a change order within Acumatica and attach electronic copies of all documentation. It includes the request for changes, as well as the revised project plan and reports showing the impacts the change will have on the revenue budget, cost budget, and resource commitments.
Tracking requests and documentation within Acumatica ensures that the project budget is always up to date and accurately reflects resource allocations and all revised project team notes and documents.
Acumatica also allows users to define automated workflows to route change requests to the appropriate people, including the client, for approval.
There are many challenges you face when attempting to deliver on a project. However, managing change requests and maintaining project profitability should not be one of them. Change requests are like the sun. They always come up, which is why it is crucial to have the necessary tool and procedures in place to manage them.