Please refer our previous blog, Blog No. 50, in which we identified a few measures to overcome the challenges in Business Development.
Let’s review another important aspect in Engineering Business – “Ensuring good margins after paying well to the resources.” As you can see, there are two important phrases “ensuring good margins” and “paying well to the resources” – the “happiness” of an organization depends on the former, and that of resources on the later. Both are important for a “happy state of affairs”.
Let’s identify the factors on which margins depend:
- A good effort estimation with a clear understanding with the client on scope change
- Sound technical expertise and efficient processes to ensure that the actual effort is well within the effort estimated
What are the challenges with respect to the above?
|A good effort estimation with a clear understanding with the client on scope change||(i) No or limited prior experience
(ii) Incomplete understanding of the scope
(iii) Lacking in expertise to estimate
(iv) Difficulties in having with a clear understanding with the client on scope change
|Sound technical expertise and efficient processes to ensure that the actual effort is well within the effort estimated||(i) Lacking in expertise
(ii) Lacking in best practices
(iii) Superfluous elements in the processes (Quality / Project Management) taking “uncalled-for” extra effort
Do you see any other challenges?
We’ll look for measures to overcome these challenges in our next blog.
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