How would you handle a scenario where stakeholders prioritize cost-cutting over project quality?

I handle it by assesing risk, list down all the impact of neglectig the quality, in implemeting the project, and secure the relative cost, once the project will failed.

In a such scenario, it's crucial to find a balance that addresses their concerns while preserving the project's integrity. -Start by clearly communicating the potential risks of compromising quality, such as long-term costs, customer dissatisfaction, or damage to the brand’s reputation. -Offer alternative solutions, like phased implementation or finding efficiencies in other areas, to achieve savings without sacrificing key deliverables. -Collaborate closely with stakeholders to understand their priorities and provide data driven insights to demonstrate the value of maintaining quality. -Fostering open dialogue & aligning the project goals with business objectives can help achieve a solution that meets both cost and quality expectations.

Assess Risks: Begin by evaluating the risks associated with compromising on quality. Identify potential long-term consequences, such as increased maintenance costs, customer dissatisfaction, or potential rework. Present Data: Gather data to illustrate the impact of reduced quality on the project. Use case studies, historical data, and projections to show how cutting corners can lead to higher costs and risks in the long run. Highlight Value: Emphasize the value of quality to the stakeholders. Explain how investing in quality can enhance customer satisfaction, brand reputation, and overall project success.

Cost cutting is a rarely the only way to create value or generate a positive ROI. We need to take into account the current financial situation at the company, whether they are able to survive without cost cutting before their investments pay out? Ideally, model 1-2 scenarios of what happens if the client cuts costs and what happens if they invest into growth instead. Understand and present the findings to the client in a clear manner. Explain the opportunity cost in contrast with short-term saving. Always keep the best interest of the client in mind, and if it is clear that they won't survive without cost cutting - don't push them towards risky investments

Focar apenas no custo pode transformar seu servi?o em uma commodity. No entanto, quando você destaca o valor e o sucesso que seu projeto pode trazer, o cliente passa a enxergar além do pre?o. Ao perceber que os objetivos ser?o atingidos, o cliente se preocupa menos com o custo e mais com o resultado. Isso permite que a negocia??o se baseie em resultados, n?o em pre?os, pois a percep??o de custo diminui à medida que o valor e os benefícios se tornam claros.

For clients focused on cost-cutting, you have to get creative in your solutions to find an answer that reduces cost but doesn't impede the quality of the work. You might explore cost saving with suppliers and vendors or re-engineering processes to save money. You might also consider renegotiating the scope of the project if you can't find alternative that won't degrade the quality of the work. You and/or your team will get the blame if the project doesn't deliver high-quality results, even if it's really the client's fault for insisting on cost-cutting. Whatever you can do to preserve your results will help you work with their expense reductions and still have a satisfied client at the end.

In a scenario where stakeholders prioritize cost-cutting over project quality, it’s crucial to address the trade-offs transparently. Start by presenting a clear analysis of how reduced costs will impact quality and long-term value. Offer alternative solutions that balance cost and quality, such as phased implementation or scaling down non-essential features. Engage stakeholders in a discussion about the potential risks and benefits of their choices. By providing data-driven insights and collaborative options, you can help align their priorities with a sustainable project outcome.

O fato de um cliente focar excessivamente no custo pode indicar duas coisas: ou ele realmente tem uma preocupa??o com a equa??o de valor, ou tem dúvidas sobre sua capacidade de entregar os resultados esperados. Se for a primeira op??o, continue refor?ando o valor que você traz. Mas, se for a segunda, isso pode ser um sinal de que você ainda n?o conseguiu transmitir confian?a suficiente no seu trabalho como consultor. Vale a pena observar e refletir sobre isso.