Change Management

by Craig Sadler, CTO

“A verbal contract is not worth the paper it’s written on.“

- Samuel Goldwyn

Everybody in business understands the need for contracts.  Sure, there are still plenty of handshake deals and verbal agreements, but most business deals are based on formal, signed contracts.  “Putting it in writing” is simply a way to increase agreement and to reduce friction by specifying what is or is not part of the contract.  God bless ol’ Sam.

The problem is that sales guys are just that – sales guys.  No disrespect to the sales teams because they keep the work pipeline and revenues flowing.  But sales people are not delivery people.  That is, sales teams usually do not know all the technical, logistical, and operational specifics required by delivery teams to satisfy the project’s objectives.  A Project Definition Document fills this void nicely.

A Project Definition Document (or “PDD”) is a companion document to provide details for a given contract.  This document can certainly be started before the contract is finalized, but the PDD cannot be completed until delivery team members have reviewed all contracts.  Team members and other subject matter experts provide the technical expertise that makes it possible to fulfill the contract.

Think of it this way: A contract is a CliffsNotes version of the future project, providing enough details in a summary format to pass your regular English Lit class.  But if you want to pass AP English Lit and the AP test, then you have to read the full book, er, I mean PDD.  Now for some Q&A…

Q: Why should senior management execute a second document?

A: They shouldn’t.  The contract signing gets all the publicity and champagne toasts, but the PDD operates at a lower level – between the provider’s project manager and sponsor and their client counterparts.

Q: Is a PDD legally binding?

A: I am not a lawyer and do not play one on TV, but I believe it is.  The PDD defines the specific things a provider will do to satisfy its contractual requirements and is signed by the client.  The doc can be modified with approved change requests, but it is hard to imagine a PDD not being enforceable.  Of course, if you wind up in court with your client, you have bigger problems.

Q: A PDD is redundant to a contract.

A: I’m sorry, but you must submit your comments in the form of a question.

Q: OK, smart aleck.  Isn’t a PDD redundant to a contract?

A: That’s better.  And no.  The documents overlap but are not identical.  A contract will, for example, require a provider to replace all existing PCs in Buildings 1, 2, and 3 by March 31 with high-end Acme Brand PCs.  The corresponding PDD would define the exact PC specs, number of phases for the rollout, which move groups are in which phase, testing/validation metrics, escalation paths, and so on.

Q: Doesn’t a PDD protect the provider from doing extra work?

A: Well, duh.  Every client tries to get stuff for free.  A properly defined PDD gives the provider leverage to do what is required to satisfy the contract without having to throw in freebies.  On the other hand….

Q: I have another question.

A: Stop interrupting.  On the other hand, a PDD also gives the client protection against a poorly executed project.  A client can stop a provider from walking away by highlighting unfulfilled PDD areas and insisting on completion before signing the project completion documents and, more importantly, making the final contract payments.

Q: Last question: What if a client will not sign a PDD?

A: I’m glad this is the last question because I am tired of talking to myself.  The answer to your question is to find better clients because yours is insane.  Every normal client wants to know what they will get for their money.  If your client does not want to agree to specifics, then you should run away as fast as possible because you are being set up to fail.

Q: I thought of one more question: Where can I get a PDD template?

A: Put in writing that this is your last question.

Q: Um, I just did.

A: Oh, right.  Just enter “Project Definition Document Template” into your favorite search engine.

We at IPM & IPM Asset Solutions always create PDDs with our clients.  Our philosophy is to define the project as clearly as possible so all stakeholders know exactly what to expect.  Please contact me at craig.sadler@ipmasset.com or (817) 807-2988 to discuss how we can help add value to your company.