The competing needs listed below are among the most vexing, catch-22 components of a project's initiation phase:
- agencies need to have a signed SOW before starting work and committing resources
- the substantial amount of work and information required to develop a proper SOW
- clients need to know what they are buying before they sign off
- projects need to start quickly lest they go away or will not be finished on time
- client-side vetting and delays in getting a full-blown SOW approved
Enter the Letter of Agreement (LOA). This short document can be enough to satisfy both agency execs and clients alike that there is value on its way. The goal of the LOA is to quickly and painlessly establish that the agency, under the direction of the client, will carry out a preliminary set of activities and deliverables and will be compensated for all substantiated fees and costs incurred.
Additional parameters such as upper fee limits, general timing and deliverables can also be included if necessary. However, it's preferable to avoid these details or you will find yourself on the road to developing a bad SOW. Once you get sucked into this, it is easy to slip into project kick-off with no agreement signed.
To help move LOA approval along, it's worth pointing out to the client and that the agreement protects them with phrases like, "directed by the client" and "substantiated fees and costs". Including a statement in the LOA that a subsequent agreement, such as an SOW, will govern the final compensation terms, activities and deliverables, also helps mollify clients and agency execs.
I've been advised that these letters really don't have much legal bite, but that's not the point. The LOA is simply a tool to break through the typical project initiation impasse and prevent projects from starting with nothing in writing and ending without the agency being paid for all their efforts.
Issuing an LOA is the lesser of many evils. However, standing firm by not allowing a project to begin unless there is a signed SOW, when there is a hard deadline that can't move, isn't so great either. Just make sure you get around to issuing a proper SOW.
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Great advice, Jeff. Depending upon the size of the company, the tenor of the conversation seems to change. For instance, I've found that if you're dealing with a small agency and large client, the client is less adverse to a portion of the fees upfront (either 50/50 or thirds across the the length of the project) since the client know they are not dealing with deep pockets. It seems expectations change when it's large agency/small client or large agency/big client. Then, the client seems to think the agency can float more easily putting the agency at risk if client doesn't pay on time or in full. But your point is well taken that the LOA can certainly grease the wheels in terms of moving things along and make the agency seem less obstinate.
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DeleteTag: PM236A55. Let me share all of you about #5 Tips for Project Management Success,, I hope you enjoy it
1. Plan your day using time management techniques
As a project manager, time management skills are essential because you are dealing with a wide range of tasks that demand a quick turnaround time. Planning your day will go a long way in keeping you organized and increasing your productivity. Assist your task planning by using project management software which helps you track the work of you and your team.
If you are not very tech savvy, a simple to-do list can also be a great organizational tool. Prioritize your most important tasks by putting them at the top of the list and less important ones at the bottom. Having a visual plan of your daily tasks helps to keep you on track and aware of time.
Related post: Free ebook 104 secrets to become a great project manager
2. Include stakeholders in important project conversations
While you will have plenty of responsibilities regarding the project, don’t neglect your clients.
Good communication is essential is keeping both parties informed of project progression, curtailing scope creep, and apprised of changing requirements. Some clients may have different expectations when it comes to communication, so make sure to establish the frequency and type of communication (like emails, phone calls, and face-to-face conversations) at the beginning of your project.
Establishing communication expectations early helps alleviate stakeholder uncertainty about communication frequency and delivery.
3. Regularly communicate with your team
Daily team communication helps keep misunderstandings and unclear requirements under control. Keeping your team informed in every step of the project is essential to project management success.
For example, a study published by Procedia Technology found that good communication skills were the cornerstone of project management. The study examined over 300 “construction project managers, architects, construction managers, engineers and quantity surveyors” and their successes and failures on various construction projects.
4. Anticipate project setbacks
Even the best-laid plans often go awry.
Remember that even with a high amount of planning and attention to detail, your project may still encounter some challenges. Pay attention to complaints from stakeholders or colleagues, and other warning signs, like a missed deadline or cost overrun, that there may be a problem.
Preventing a crisis will keep your project running smoothly, save you a lot of time, and keep you, your team, and your stakeholders confident in progressing with the project.
Unfortunately not every complication can be avoided. Crisis management skills are essential for dealing with the unexpected. Project managers need to be flexible and pragmatic. Improvise and make sharp decisions when needed.
Related post: 92 free project management templates
5. Stay focused on the details
A common problem project managers encounter is having the project aims not aligned with the organization’s objectives. A great project manager will strategize a plan for the project to lead back to the overall success of the business.
Know your project’s scope by heart and avoid wandering outside of the project’s requirements. It’s too easy to get lost in minor details and forget what your focus is, so a well-planned project scope is essential for success.
And final, you should use KPI to measure effectiveness of the project, here are full list: 76 project management KPIs
Thanks for the comment Rob. Agreed - there are a lot of ways to become engaged and agency/client size has a lot to do with it.
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