How do I develop a scope of work and price for a project that has many variables?
I am used to having employees who work hourly, however I want to switch to contracting out for specific skills in online marketing. I'm not experienced in scoping work and managing contractors - and I know it's very different. How can I get up to speed overnight on how to do this? For example, I want someone to develop a campaign strategy and execute it. I'm not sure if the campaign will include a webinar and strategy on that until the campaign is developed.
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Jan 28, 2016
Start by having one person develop the strategy for the purpose of getting others to quote on it. If I write the strategy then it will be limited to my approach. If I write the strategy for someone else to execute, I will want to be sure everything is considered. You can consider the same person for executing the strategy but do not limit it at first.
Creating the plan is best done by someone that is not implementing it.
Jan 27, 2016
Use a Project Charter with milestones and work break down structure for the many variables.
Jan 23, 2016
Easy Stuff, Dona ! I have been making and evaluating engineering bids for more than 20 years now. Now,a bid is a bid is a bid and the commercial conditions pertaining to all bids remain same. Its basically a contract.
Are u really sure that you want to do everything in one go? I ask this since if you start wrong -you will end up wrong 100% . Why not try to make it one activity at a time.
Start by making a spreadsheet and mentioning the budget you can afford. I am presuming you know what figures are realistic. . Put activity 1 as campaign strategy. Ask for people to tell how they will do it if they get the job. (No one will work for free but you'll get a lot of ideas). Fix your contract up with the person you gell most with.
For things, if you aren't sure (like a webinar) keep the option and use it as a extra item. the condition will be under the sub-title.
" Each bidder is requested to quote for charges a/c planning a webinar, submission of the plan A (and plan B -if you wanna be safe). Prices can be indicated on per 4 person/basis. This can be approximate but the deviation should not exceed 15% either way.
i'M sure that you have got the idea..All the best
Jan 23, 2016
I would most definitely think of a PFP (pay for performance) model. The basics of this model would be to attach most if not all of the fees to performance of specific KPI´s that are important to the business. This absolutely takes away time tracking, media and resources from the compensation equation. This will keep the conversations around results and timeframe.
Think about this:Nobody minds paying someone $10 per customer when we know that the customer will spend $100+ & everyopne whants to move away from being charged $10,000 for a campaign that could potencially bring in 2,000 customers (but it´s uncertain).
So why shouldn´t we start paying our vendors and employees based on contribution and impact?
If you would like to talk more about this, feel free to contact me.
Fernando Dada
Cheers,
Jan 22, 2016
During the interview decide on how much you are willing to risk or pay up front---then create a budget cash flow analysis to determine your Break even on the project and then pay upwards from there based upon an incentive package. Also know by using the same budgets when to decide that your idea is not working to the benefit of both parties.... Expectations are very important to be spelled out
Jan 22, 2016
Pay for them separately. Of course get quotes, then contract for a strategy with prices chunked out for execution. Sometimes the person who develops the strategy isn't the best to execute it and vice versa. Plus you will have options of sequencing and timing it based on need and budget. Make sure you get results examples from the strategy employed elsewhere before moving to execution. Also, don't be afraid of running test blocks of executions without committing to full roll out and billing.
Jan 21, 2016
I would suggest being very deliberate. Perhaps more so, since you aren't in the habit of purchasing consulting. [my approach is one I have followed, but others will have their own approach or will base an estimate on time and "butts-in-seats" or....]
Personally, I might suggest that you bring a consultant in who looks something like a teacher. You don't have to do all these steps face-to-face immediately. Telephone and or Web-based meetings often can move through the initial understanding that is needed to scope the work accurately.
I often suggest that you ensure that the Consulting firm know the entirety of your business, so as to more completely advise you.
For yourself, I would have you work towards defining the project fully; and, that you list the Objectives you want the project to achieve. {Ultimately, I would have your Consultant help you narrow the Objectives to two i (3 max.) objectives. If there are key-stake-holders (as there are in most situations), I also would encourage the consultant to meet with each of them and to begin to absorb the culture and work situation.
Next, I would have the consultant facilitate the creation of the workplan.
Beginning with the 2 Primary Objectives, the facilitator should identity fully the Current Situations, the putative Desired End-State, the obstacles to Success, and then lay out the tasks (each with its own Objective) , sub-tasks, inputs / outputs, interim deliverables, Deliverables, QA steps, et. al. .
Allowing the consultant to co-create the workplan ensures that your team agrees with it in its entirety, including the deliverables, your beginning situations, metrics for success, etc: or, the "whole 9 yards." Moreover, it also allows your team together with you to identify for the Consultant those tasks or and sub-tasks that can be done in part by internal talent.
With the Consultant you then can estimate the hours for the sub-tasks and be very detailed.
Finally, creating the Desired End-State (my metaphor) is like weaving a tapestry. So, often multiple stakeholders need to be integral. For example, when a project appears solely to be Tech, it still should included a communications element, an educational component, and where useful, research, etc.
Jan 21, 2016
Whatever the approach it should much the number of variables, and if not known at the outside, should adapt on the way. That means small iterations, reviews and re-negotiation.
Jan 21, 2016
Donna, there are a couple of areas you need to look at, first is make sure you have a solid Independent Contractor / Mutual NDA in place for the people who will be delivering the work for you . Also you will need to create a Services Agreement that the Independent Contractor will sign that outlines the deliverables, project completion dates and pricing for the project.
Second as you have in-depth experience in regards to the elements of a campaign strategy but may not have the specific experience in scoping you will need to get the , you should be able to ask individuals to estimate the number of hours to complete the specific elements required for the project and their cost. Once you have this info you can than offer the project to the individual if they meet your requirements that includes their pricing.
Last step is sending pricing proposal to your client with associated mark up.
Of course you will need to make a requirement that the individual delivering the work sends you a weekly update to ensure the project will meet your customer's deadline.
Hope this helps, feel free to contact me directly if you want have any questions.
Jan 21, 2016
thank you, some good additional tidbits here
Jan 21, 2016
Pretty good question that has driven many crazy, especially when you end up on the short side of the stick.
Any project should have a design developed that outlines specifically what you want to accomplish and how you want to get there, sometimes this is referred to as a Project Plan. This would list what you would like to see implemented and various phases within development. After you have defined what it is you want then you can setup how you want this to flow, listing each functional aspect of the project with an indicator of required and added. The operative word is to prioritize each function.
If you not sure how you want the end product to look, review your competition and see what they all have. You also need to determine your interaction with potential clients as well as those you have.
Preparing a plan is essential to managing not just full time employees but more so with contactors. It sets expectations and goals that need to be reached at various points. You can pay on deliverables which insures you are in control of the product and drives your contractors to work as fast as possible to compete the task within the agreed timeline. As the process moves forward you can change the priority and add new items to the list as needed.
Jan 21, 2016
Hi, Donna!
Lots of folks find themselves in your shoes at some point in their entrepreneurial career. Congrats on moving to a new level in your business!
To get up to speed fastest on new things, I always sit down and do the exercise of building a Request for Proposal.
I name my project, then list the goals and outcomes I want, AND which items I want the contractor to develop or supply. In your case, this would include goals of a) campaign development by [date], b) campaign budget, list of items required for campaign in chronological order, c) this many qualified leads by [dates], d) this many converted leads by [dates] to an end result of this percentage of increase in sales revenue.
Then I run the RFP past a few (no more than three or four) fellow entrepreneur friends to sanity check it for stuff I might have left out or not known about, and revise accordingly, not worrying too much about putting in any solid numbers other than the overarching goal of the percentage increase in the sales revenue.
All this should take about a week, tops, and once you've completed this exercise, you are ready to "live trial" your RFP.
Once you've gotten a half dozen responses to the RFP, you'll have a fairly firm grip on what needs to be in it and what doesn't, and at that point, you can revise again if needed, or just start developing your Project Plan with the benefit of real-world feedback.
The RFP prods the marketplace to test realities against assumptions and make concrete what is available against what is wanted: the Project Plan outlines the scope of the job and provides the schedule for completion of items along with checkpoints and milestones such as progress review dates, allowable slippage or reschedules, and so on.
When you have both the project plan and the responses to your RFP, you will be in a position to select the best candidate(s) for the job -- bear in mind that you may decide to get one contractor to do the campaign development and a different one to do the execution in the end -- sometimes, a brilliant strategist isn't necessarily the best executor of the strategy.
Doing it this way is the best "learn by doing" way I've found so far -- it isn't literally overnight, but it does let you get into the deep end with some rudimentary water wings!
Jan 21, 2016
Super helpful, I really like this approach, thank you!
Jan 23, 2016
Hi Leah, Yes-that's the way I do it too. But I know exactly what I want and I can express what I want in tangible terms. These inputs come from the scope of work, one wants to contract out. Pls correct me if I'm wrong but Donna says " I'm not experienced in scoping work ". So she may have problems as to finalizing the scope of work. If the contractor is not honest, then they won't point that out. After being paid, they may then ask how she wishes to go about in the next phase. Donna may think that's included but until and unless it is stated in the Phase 1 agreement, she won't be able to say anything because the contractor had not mentioned scope.
Jan 21, 2016
There is no way to really get up to speed overnight in regards to managing contractors each has their own method to how they work and what they offer. Your best approach would be to get out there and reach out to individuals or organizations in the field that can fulfill what your needs. I have clients that have asked this same question of me and what it always starts with on my end is a needs assessment. This way I can keep both my interests and my clients interests at the forefront of working together. If you would like to discuss this further or need my assistance in any way please feel free to reach out at your earliest convenience.
JR
CEO -BLX Consulting Group
Jan 21, 2016
You can reach qualified digital marketing professionals on Thumbstack.com. Ask them to bid and share their thoughts. You then get to pick and choose based on track record, client testimonials and potential to meet your objectives.
I hope that helps. Please let me know if you need anything else.
Steve Akinboro
Collaborative Strategic Leadership for Transformative Performance.
Jan 21, 2016
First off, I wanted to say I believe you have made the right choice moving to a 'per project' model over a 'per hour' pricing model. I know all of my clients appreciate that knowing that they know what to expect as far as the cost of the project.
As you stated, with moving to a per project model can come a lot of issues, time and labor being a big factor. If you are not efficient or do not have a clear scope of work, you can end up doing a lot more work for projects than originally intended and that is utterly detrimental to the bottom line when you are not being paid per hour.
Tip #1: I know the service(s) you are offering backwards and forwards. This goes beyond knowing the platform or product you are working in well. Using automated email campaigns as an example:
- Know how long a consultation typically lasts
- Know how long it takes, on average, to create a single email of a campaign
- Know how long it takes to set up triggers and rules for campaigns once the emails are set up.
- If you are using automation Software, know how long, on average it takes for the support team to get back with you after you submit a support ticket.
When you know all of these things and the time (cost) it takes to do them, it will allow you put a price and scope together with much more accuracy and ease.
Tip #2: Be realistic and do not let pride get in the way. If a client wants something and you do not currently know how to do it or think it may be an issue, be mindful of that. Sometimes it is better to say something upfront than to just get the sale and think you will figure it out later, only to find out you are in over your head.
Tip #3: Offer a pilot program to start. One of my BIGGEST pieces of advice to new entrepreneurs is never work for less than you are worth. However, if you are new to the area, it can be helpful to pitch a client on a "pilot program" letting them know that you are giving them a decent discount because you are still working out the kinks in this new system. That way, if there are ever errors or missed deadlines, it was stated (hopefully in the scope) that these were anticipated and it was agreed that the price discount would be worth the client bearing with the new program.
Tip #4: Track Everything. It can be very difficult but most people do not truly understand how much time a single client can take up in a given month. Use a project manager like teamwork.com (free to try, highly recommended) to set tasks and time how long it takes. Additionally, keep a time sheet every week of how long calls and communications take with a client. I know some agencies are sticklers that bill religiously on 15 minute increments on work but they pay no mind to the 45 minute conversation someone had with a client. Again, time is your most valuable resource, especially when you are not being paid by the hour on projects.
PM me if you have any more questions! Best of Luck!
Adam
Jan 21, 2016
Thanks Adam, good to keep in mind the perspective of the contractor while doing this!
Jan 21, 2016
Suggest you do some research on how to create a "Work Breakdown Structure (WBS)" delineate all of the elements of the project using the WBS and then cost each of the major elements from the ground up. Your WBS elements are the building blocks for the work scope. Similarly, but approaching the problem from more of a creative standpoint - you may wish to experiment with mind mapping tools such as "MindManager" (free 60 day trial available) or "Xmind" (free). Mind mapping tools can produce a very similar outcome.
Hope this helps!
Jan 21, 2016
I love this - yes I want to know how to develop the framework, software that helps with this would be great. I am intuitively a good project manager myself - very logical and able to go to big pic to small pic - a framework on how to work with others to phase out would be helpful, though I wonder if this is overkill because if I use this software would I be mapping out all the details when I want my hired expert to do so?
Jan 21, 2016
Donna, You have some very good suggestions below and the first seems to resonate with you best. However, the critical factor is to break your goal into pieces. Once you have done that, you can decide to hire one or multiple resources to accomplish each goal. And you can still pay by the hour. Most contracts I take are paid hourly. Easy for me and easy for the client to know how much is assigned to the spend. Furthermore, when you want someone to develop a campaign strategy, that should be something of which you already have a vague idea. Decide the components you must have included. Then think about nice to haves. And finally, list the items in your campaign you definitely do not want at all. Personally, I don't think you can do this overnight without having a clearer idea of the end result. But, only you would know that. Best of luck! Elizabeth
Jan 21, 2016
Hi Elizabeth Thank you. How do you get paid hourly even though you are getting paid in phases? Do you decided x phase will take this hours? What if you don't complete the deliverables?
Donna
Jan 21, 2016
The best way is to split the contract into several phases. So you will have an top level scope for the project, but only, but only a detailed scope for the next phase. So if you assign a contractor for the job, his or her scope of work is for the next phase, but not for the whole campaign. You will have provided a list of objectives and deliverables for the completion of the phase, as well as a time schedule and a budget. This should be managed on a regular basis as a mini-project, and you will be able to control the scope.
Once the phase is complete and based on the results or conclusions from the first phase, you establish the scope for the following phase or phases, and do the same until the project achieves its objectives.
By doing that you are only committing to a limited scope and if after each phase and based on the findings and results you will detail the scope for the next phase.
It is very important that you establish a budget for the whole project before committing to the first phase, and split that budget for each phase, because otherwise you will go over budget you do not control the scope (scope creep). The same applies for your schedule.
I hope this helps.
Jan 21, 2016
Very helpful Abdulrazak, I like this way of splitting and a friend showed me how he does it on a quick tour of his upworks screen and I realized OMG this an established way of doing things that I do not know how to do but would be a much better way so no creep and delayed deadlines.
Jan 21, 2016
Donna,
IMHO you need to have well-formed requirements in order to contract work. Are you considering just (1099) individuals or firms, as well?
You might want to separate these two deliverables - use a process to define the strategy then hire a contractor to execute. Rate for execution would presumably be less than that of strategist+doer.
Part of the execution requirement should be to prepare & maintain operational documentation - you need to be prepared for their inevitable departure.
In order to get started suggest you create a marketing plan then have it peer-reviewed. Your local Score chapter may have templates, workshops, etc.
Good Luck!
Doug
Jan 20, 2016
Hi Donna,
Here's what I'd suggest:
Firstly your campaign must have a mission. You also have to have a vision of the end game (ie; what exactly you want a campaign to achieve. To do this, you must also understand that your vision must match your resources.
Secondly, you may want to sit with the candidate and share your vision to see if they can picture it. It may mean that you make allowances for screening.
Asssuming you have the candidate for the task, brainstorm and mindmap the campaign. You can them ask them to cost out the vision and include as many variables as possible. By doing this, you both have a shared vision and understand the costs implications against any returns on investment.
You may then want to optimise your solution if its constrained by budget or perhaps up the game to include more variables.
Those variables however will determine whether your campaign is a success or not. Truth is more variables doesn't necessarily guarantee on investment so you must be sure to decide on the most effective and measurable variables based on it's impact on your shared vision - in other words, foregoing some "would be good" variables for "this is closer to the vision" ones.
The shared vision becomes a shared responsibility and the right candidate will ensure the project is delivered to schedule, cost and desired "impact" effect.
Hope this helps and feel free to connect if I can be of further help.
Best of luck
Jan 20, 2016
Very helpful, thank you so much Roland.
Jan 20, 2016
Secondly, you may want to sit with the candidate and share your vision to see if they can picture it. It may mean that you make allowances for screening. - Roland would I normally pay for this?
Jan 20, 2016
Hi Donna,
I would consider this exercise as part of your candidate screening process. Afterall, you need to make sure the right candidate for the task shares your vision so your selection process.
You could advertise the role with a clear description of your vision. Ask candidates to deliver a powerpoint presentation or even to atteend an interview to present their ideas with any cost projections.
As this is part of the screening process, it should cost nothing apart from the cost of advertising and only serious candidates will apply.
Feel free to connect if you need any further help or clarification. More than happy to help.
Best of luck and thank you for your comments.
Jan 21, 2016
Very helpful to know, thanks again Roland
Good thoughts, thank you