How can you communicate effectively with stakeholders when project estimates are lower than expected?

1 Explain the reasons

The first step is to explain the reasons why the project estimates are lower than expected, and how they affect the project scope, schedule, and budget. You should provide clear and factual evidence to support your claims, such as changes in requirements, assumptions, risks, dependencies, or external factors. You should also acknowledge the impact of the lower estimates on the stakeholders' goals, expectations, and benefits. By explaining the reasons, you can show that you are transparent, honest, and accountable for your project estimates, and that you are not trying to hide or manipulate the information.

2 Negotiate the trade-offs

The second step is to negotiate the trade-offs between the project estimates and the stakeholders' expectations. You should present the options and alternatives that are available to close the gap, such as reducing the scope, increasing the resources, extending the deadline, or compromising on the quality. You should also highlight the pros and cons of each option, and how they affect the project objectives, risks, and value. You should involve the stakeholders in the decision-making process, and seek their feedback, input, and approval. By negotiating the trade-offs, you can show that you are flexible, collaborative, and respectful of the stakeholders' opinions and preferences.

3 Manage the expectations

The third step is to manage the expectations of the stakeholders throughout the project lifecycle. You should communicate the revised project estimates and the agreed trade-offs clearly and consistently to all the stakeholders, and document them in the project plan, contract, or agreement. You should also monitor and report the project progress and performance regularly, and alert the stakeholders of any issues, changes, or deviations that may affect the project estimates. You should also solicit and address the stakeholders' concerns, questions, or feedback promptly and professionally. By managing the expectations, you can show that you are reliable, responsive, and committed to delivering the project as promised.

5 Learn from the experience

The fifth step is to learn from the experience of communicating with stakeholders when project estimates are lower than expected. You should conduct a post-mortem or a retrospective analysis of the project estimation process, and identify the root causes, factors, and lessons learned that led to the lower estimates. You should also gather and analyze the feedback, comments, and suggestions from the stakeholders, and evaluate their satisfaction, engagement, and value perception of the project. You should also document and share the best practices, recommendations, and improvements for future project estimation and stakeholder communication. By learning from the experience, you can show that you are reflective, proactive, and continuous in your project estimation and stakeholder communication skills.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?