Effective Scope, Budget, and Change Request Management�in Software Development

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Jorge Tutor

Let’s imagine ��we are not in the online world

Effective Scope, Budget, and Change Request Management�in Software Development

Effective Scope, Budget, and Change Request Management in Software Development

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Our company

Effective Scope, Budget, and Change Request Management in Software Development

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The Scope

• Distance?
• Weight?
• Value?
• Priorities?
• All needed?
• …

Effective Scope, Budget, and Change Request Management in Software Development

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The Budget

• How far I can get (Km)?
• Efficiency? (Km/cost)
• refill?
• waste?
• …

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Effective Scope, Budget, and Change Request Management in Software Development

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The Deadline

• When?
• Realistic?
• Dependencies?
• Full control?
• …

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Effective Scope, Budget, and Change Request Management in Software Development

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The Plan

• Distance?
• Critical Path?
• Dependencies?
• …

Effective Scope, Budget, and Change Request Management in Software Development

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The Risks

• Knowledge?
• Blocking points?
• Dependencies?
• Unforeseen events?

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Effective Scope, Budget, and Change Request Management in Software Development

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The Scope Creep

• “Of course, we can also do that!” mentality
• New needs?

Effective Scope, Budget, and Change Request Management in Software Development

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Now what!?

I’m Jorge Tutor,

A IT Program Manager growing teams and individuals from 2010.

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• CIO at Metadrop: Drupal Consulting company metadrop.net
• Drupal: +15 years & counting! (GeduR) drupal.org/u/gedur
• Blog: jorgetutor.net

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openSource()

enjoyFamilyAndFriends()

eatBooks()

postContent()

playMetal() 🤘

About me

What is Project Scope and Why It Matters?

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What is Project Scope and Why It Matters?

Defining Project Scope

• The scope includes the project boundaries, what’s included and excluded, and a clear set of deliverables.
• Scope statement: A document that explicitly outlines these details to ensure alignment across stakeholders.

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What is Project Scope and Why It Matters?

Why a Well-Defined Scope is Essential:

• It sets the foundation for project planning, timeline, and resource allocation.�
• Avoids misinterpretations and scope disputes later on (misaligned client expectations).�
• Aligns stakeholders on the final outcomes, reducing conflicts over deliverables.�
• Reduces waste ( features that were not originally agreed upon)

What is Project Scope and Why It Matters?

Components of Scope Definition:

1. Project Goals and Objectives: Clear, measurable outcomes the project aims to achieve.�"This marketing project will create and publish a blog article to increase brand awareness. It includes research, content creation, and social media promotion by the marketing team. Website redesign is out of scope."�
2. Deliverables: Tangible outputs that meet project goals (e.g., a website, a software feature).�
3. Requirements (Acceptance criteria): Conditions that must be met for deliverables to be accepted by stakeholders.�
4. Exclusions: Things not covered by the project, which helps manage expectations.�
5. Timeline and budget constraints

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What is Project Scope and Why It Matters?

Best Practices for Scope Definition:

• Involve key stakeholders early to capture a comprehensive set of requirements.
• Break down the project scope into work packages and deliverables that are easy to understand and track.
• Use user stories in agile frameworks to clarify deliverables and define priorities.
• Establish a scope baseline and ensure changes are tracked via a change log.

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What is Project Scope and Why It Matters?

Best Practices for Scope Definition:

Visual aids such as Work Breakdown Structures (WBS) to map out tasks and ensure every stakeholder understands the project.

A WBS breaks down the project into smaller, manageable tasks. This helps:

• Identify task dependencies
• Distribute work evenly
• Estimate resources needed
• Set realistic timelines and budgets

For instance, a WBS for a software project might include high-level categories like Requirements Gathering, Design, Development, Testing, and Deployment, with subtasks under each

https://www.wrike.com/project-management-guide/faq/what-is-work-breakdown-structure-in-project-management/

What is Project Scope and Why It Matters?

Best Practices for Scope Definition:

The MoSCoW method is a prioritization technique used in management, business analysis, project management, and software development to reach a common understanding with stakeholders on the importance they place on the delivery of each requirement.

• M - Must have
• S - Should have
• C - Could have
• W - Won’t have.

Budget Management and Estimation Techniques

Budget Management and� Estimation Techniques

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Why Accurate Budgeting is Critical:

• A poorly estimated budget results in cost overruns, resource mismanagement, and project delays.
• Accurate budgeting fosters client trust and keeps your project financially viable.

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Budget Management and� Estimation Techniques

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Budget Estimation Techniques:

Analogous Estimating:

• Uses data from similar past projects to estimate costs.
• Suitable for early-stage projects with limited details.
• Example: If a similar website development project cost $50,000, your current project might be estimated similarly.

Bottom-Up Estimating:

• Break down the project into smaller tasks and estimate the cost for each.
• Sum these estimates to get the total project cost.
• This method is more accurate but requires detailed project knowledge.

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Three-Point Estimating:

• Involves calculating three estimates: optimistic, pessimistic, and most likely.
• Useful for projects with significant uncertainty, helping you plan for best and worst-case scenarios.

Agile Estimating:

• This flexible approach aligns with Agile project management principles, breaking the project into smaller iterations and creating budgets for each sprint (example)
• Explore Agile contracts!

Budget Management and� Estimation Techniques

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Budget Estimation Techniques:

Contingency Reserves!

Always include a contingency to cover unexpected costs (commonly 10-20% of total budget).

Example: If your project is estimated at $100,000, allocate an extra $10,000-$20,000 for unforeseen issues.

Handling Budget Overruns:

• Regularly compare actual spending with the original estimates to spot discrepancies early.
• Communicate overruns early with clients and stakeholders to adjust expectations.
• Be proactive about re-allocating resources or reducing scope if budget overruns are forecasted.

Managing Change Requests Effectively

Managing Change Requests Effectively

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Why Change Requests are Inevitable:

• Clients may realize new requirements mid-project or want to change the scope due to evolving business needs.
• While flexibility is essential, uncontrolled changes can lead to missed deadlines and budget blowouts.

Managing Change Requests Effectively

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Agile principles

• Customer collaboration over contract negotiation.
• Responding to change over following a plan.

Welcome changing requirements, even late in development. Agile processes harness change for the customer’s competitive advantage.

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Managing Change Requests Effectively

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Effective Change Request Process:

1. Formal Change Request Submission: All change requests should be submitted formally, with clear documentation of what’s changing and why.�
2. Impact Assessment: Assess the potential impacts on scope, timeline, and budget.�Example: If a client requests an additional feature, estimate how much extra time and cost it will require.�
3. Approval Workflow: Establish a Change Control Board (CCB) to approve or reject changes. Implement an approval process where major change requests require sign-off/approval from both parts.

Communicate the implications of each change clearly to both the development team and client.

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Use version control and regular updates to ensure changes are reflected in the project plan.

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Set a cutoff point beyond which new changes cannot be accommodated without significant trade-offs (e.g., post-beta stage in software development).

Preventing and Mitigating Scope Creep

Preventing and Mitigating Scope Creep

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What is Scope Creep?�Scope creep occurs when additional features or requirements are introduced without corresponding changes to the project scope, budget, or timeline.

Early Warning Signs:

• Repeated client requests for “small” adjustments.
• Development team working on unplanned features to meet perceived client needs.

Impact of Scope Creep:

• Causes budget overruns, missed deadlines, and strained client relationships.
• Leads to developer burnout due to unclear priorities and expanded workloads.

Preventing and Mitigating Scope Creep

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Strategies to Prevent Scope Creep:

• Clear Initial Scope: Ensure the project scope is documented in detail and signed off by stakeholders before work begins.�
• Strict Change Control Process: Any additional requests should go through the formal change request process outlined earlier.

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• Regular Scope Reviews: Conduct scope reviews during project milestone meetings to ensure alignment with the original plan.�
• Client Communication: Set clear expectations with the client about how changes will impact the overall project (e.g., costs, timeline).

Tracking and Reporting Key Metrics

Tracking and Reporting Key Metrics

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Why Metrics are Critical:

• Metrics provide an objective way to measure project progress and ensure that you're staying within scope, budget, and schedule.�
• They also help in maintaining transparency with stakeholders.

Tracking and Reporting Key Metrics

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Key Metrics to Track:

• Scope Progress: Measure completed deliverables vs. planned deliverables.�Example: Track user stories or features completed at the end of each sprint.�
• Budget Tracking: Track actual costs vs. estimated costs.�Use tools like Earned Value Analysis (EVA) to measure project performance.

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• Timeline Adherence: Measure planned milestones vs. actual progress to identify delays early.�
• Change Request Metrics: Keep a log of all change requests, their status, and impact assessments

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Tracking and Reporting Key Metrics

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Reporting Best Practices:

• Focus on clear, concise reporting that is easy for clients and non-technical stakeholders to understand.�
• Use visual tools such as:
• Gantt charts: to show project timelines and dependencies.
• Burnup charts: to visualize progress towards project completion.
• Financial dashboards: to track budget performance.

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• Ensure regular reporting intervals (e.g., weekly or bi-weekly status meetings) to maintain ongoing transparency.

Tracking and Reporting Key Metrics

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Budget Monitoring Tools and Practices:

• Use tools like Jira, or custom Excel sheets.
• Set milestones and conduct regular budget reviews at critical points of the project.
• Use reports to tell a story: Highlight not just where the project is but why it’s progressing in a certain way.
• If there are delays or budget concerns, be transparent and discuss possible mitigation strategies.

Tracking and Reporting Key Metrics

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Budget Monitoring Tools and Practices:

• Employ Earned Value Management (EVM) to assess project performance in terms of scope, time, and cost.

https://en.wikipedia.org/wiki/Earned_value_management

Conclusions

Takeaways

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Mastering these techniques will enable you to deliver successful, on-scope, on-budget, on-time projects

• Scope, Budget, and Time are dependent variables.
• Scope definition must be clear and known by heart.
• Budget is a shared responsibility.
• Change requests need to be handled formally to avoid friction.
• Stay vigilant of the Scope creep!
• Tracking key metrics and regular reporting foster transparency and trust.

Q&A

Q&A

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What questions do you have?

Share your experience on this!

Add me on Linkedin!�linkedin.com/in/jorge-tutor-a1157417/

Let me know how we can collaborate!�jorge.tutor@metadrop.net

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¡Gracias!

Thanks!