Big Projects That Suck Up Your Time

Embarking on big projects can be both exhilarating and daunting. While the allure of tackling significant challenges is undeniable, the risk of disappearing into a black hole, resulting in large write-offs, looms large. In this article, we delve into how problems get started in the first place and strategies to avoid being overwhelmed and…sucked in. By the way, many of us have gotten drawn into small projects as well.

Understanding what makes projects irresistible

Reflecting on past experiences can shine some light on why people sometimes get lured into taking on projects that eat up time like a gas guzzler consumes fuel. It could be:

• The appeal of a groundbreaking opportunity
• Underestimating the complexities involved
• Unanticipated curve balls

Identifying these triggers can help prevent overruns in the future.

Defining “sucked in”

It’s a situation where one spends a lot more time on a project than originally planned. Sometimes the amount of excess time seems endless. For whatever reason, the excess cannot be billed. Often, this condition isn’t recognizable until too late. You continue working the excess time because you want to get it right and provide world-class service to your client.

In my experience, my miscalculations have meant one or more of the following:

• I simply don’t have enough experience in the specific nuances of the project to complete it in a reasonable amount of time. I have the knowledge to do the work, but because I haven’t dealt with the nuance often enough, I’m not as efficient as I would like to be.
• In order to provide the high level of quality that I am committed to, I feel that extra work is needed – work I hadn’t anticipated.
• The project is really interesting and the extra work will pay off in dividends the next time I have this kind of project. As a result, I may have low-balled my fee quote to make sure I got the job. Also, I recognize it as a great learning experience. Note that I am not an advocate of low-balling a project to land the client with the feeling that this is justified because of future work I may get from them.
• I screwed up my initial fee quotation. But I never sacrifice quality to stay on budget.
• Sometimes an innovative idea comes to me and I want the client to have the full benefit of this creative thinking.

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What problems does getting “sucked in” create?

Two questions need to be asked, all related to “how much of a problem is this?”

1. If it happens every now and then, chalk it up to “that’s the nature of our work; some projects will go over budget and some under, with the net for the year being on target.” But if this happens regularly, you may experience some or all of these:

• • Big write-offs.
  • The frustration of spending good, valuable time and effort on a project that cannot be billed. This frustration is experienced as much, perhaps more, by your staff than you.
  • The excess time may delay you from attending to other important
  • Mental exhaustion and stress that upsets your work-life balance.

2. What is your overall target for billings and total work hours? If getting sucked in doesn’t endanger your ability to achieve your revenue goal and you are okay with working some extra hours, then occasionally, it’s manageable and tolerable. But if it causes you to bill less and work more, then you have a real problem.

Setting realistic targets

Establishing realistic revenue targets and annual work hour limits is essential. Striking a balance ensures fulfillment and prevents burnout. If content with your workload, then falling down the occasional rabbit hole may not be a concern. However, if dissatisfaction arises, it’s time to reassess.

Moderation is key

Life is a balancing act, and the same applies to performing client work. Occasional time warps may be unavoidable, but consistency is key. Distinguishing between minor deviations and recurring patterns is crucial to maintaining equilibrium.

Learning from early career experiences

In the early stages of pricing work in your career, it’s tempting – and common – to low-ball fee quotes for the sake of gaining experience. However, as experience grows, so should your ability to detect undesirable projects/clients and use effective pricing strategies.

If you’re going to get sucked in, use these tactics to at least get paid for it

1. Begin with the “end in mind,” Stephen Covey’s second habit of his legendary book Seven Habits of Highly Effective People (Free Press, 1989). Before you start anything in life, not just a business project, first think “big picture.” How much time (roughly) will it take? What will be my learning curve? How much research will I need to do? Do I have the time to do all this? Will it be worth it? When starting a new project that will take more than a couple of hours, decide how much of your time it’s worth. Then as you proceed, always keep in mind how much time you have spent compared to your original commitment.
2. Build a cushion into your fee quote:
   • Set your billing rates high enough, so that when you factor in time overages, your net rate will still sustain high profits.
   • Always budget jobs in sufficient detail to support your fee quotation. The budget should provide for a 5%–10% cushion of time.
   • Always quote fees in ranges, never exact amounts. If you think a reasonable fee on a project is $17,000 (including setting your standard rates high and providing a cushion in your time budget), quote $17,000–$20,000.

Some of you may be enchanted by the recommendations of some in the CPA industry to stop tracking hours. I’m perfectly fine with adopting a pricing menu (like doctors) rather than arriving at a quoted fee by multiplying hours times rates. But I am not okay with ceasing the tracking of time because you need to know how much time you actually worked on a project vs. the amount you quoted. The results of this analysis are helpful in quoting future projects. It will prevent you from repeating underpricing in the future.

3. Change orders. Your engagement letter should have clear wording that states that if additional time is needed that was not in your original proposal or was committed to by your client, you reserve the right to bill additional fees. You should always inform clients of this when the excess time occurs instead of the client finding out about the excess billing when they receive your invoice.

Vigilance in tracking progress on projects

Regularly tracking your time on the project while you are working on it and comparing it to budget will hopefully red-flag overages in time to minimize some of the damage. It’s too late to mitigate overruns if you wait until projects are completed.

Finally, remember this…

Many of us have perfectionist tendencies, but they need to be controlled. Perfection is the enemy of good enough, and good enough accomplishes the mission.