It's estimating. How HARD can it be? It is not like we have not done it before, right? And most estimates are basically the same, right?
Why does the Statement of Work need to be consistent? Each sales person has their own approach, and its the revenue that matter, right?
How can estimating services and other "soft" costs be simplified? How can you make it a force for growth? And can the SoW be a strategic differentiator?
We group Estimating and Statement of Work (SoW) development in one module. Why? Because they are two sides of the same coin. And yet, why does estimating and developing SoWs seem so challenging and foreign to some organizations, while to others it is a breeze? This module of the Presales Framework is optional. It is focused on "soft" services and is not as applicable for people selling hardware, hard goods, and other fixed cost goods. Back to the question, the reason it can seem as hard and intimidating as it does is because of two things. The first is consistency. The second? Actually, the second reason could also be consistency (it really is that important). However, the second reason is risk. Risk management. Risk mitigation. Risk reduction. Risk, risk, risk.
Source: cc quinn.anya
When it comes to estimating services, be they software implementation, training, or any other soft-service, there are usually several parts of the equation.
- How long does it normally take?
- How much, if any, customization might come into the picture?
- How well set-up is the client to receive the service?
- What assumptions have been made that will protect scope?
By figuring out the right formula, and then adding in all the things that might be variable, successful estimating and SoW development becomes possible.
By way of example, we helped a company set up an estimating tool and related SoW for an educational solution. There were various elements that needed to be taken into consideration. The client could "t-shirt size" numerous elements of the solution (what does a Small implementation look like, etc.) and use the estimate to generate a Statement of Work. And once the SoW was generated, it could be replicated in the future as a way to speed up SoW development. And because every part of the SoW contained both the assumptions and the tools to manage risk, delivery was far less fraught.
The above example, really all soft-service estimating, is equal parts art and science. It is determining all the variables that go into estimating, determining the degrees of difficulty or complexity, and then applying uniformly and in a way that can be put to use for selling. And it follows the life cycle all the way to putting the SoW in the hands of the prospect. Sounds easy, right!?
Please get in touch to learn if the Estimates & SoWs module is right for your company. We can get you started on better estimating.
Email sales@acivica.com to learn more.
