Few companies are content with simply maintaining revenue, and most aim for year-over-year growth. This can create pressure to win contracts and deliver results. This pressure, though, can lead to a common pitfall: overpromising and under-delivering. The trap can damage your reputation and the bottom line, especially since managing client expectations is central to your business relationships. It’s important to understand why this phenomenon occurs frequently, the associated risk, and how proper scoping can help you avoid this cycle.
What does it mean to overpromise and underdeliver?
Overpromising and under-delivering refers to committing to more than you can realistically achieve and then falling short of those commitments. There is a mismatch between expectations and reality. It could look like setting unrealistic deadlines, committing to features that exceed budget limitations, or failing to communicate the complexities of specific deliverables fully.
The cause of overpromising and under-delivering can stem from various factors, including:
- Overoptimism in estimating project scope and timelines
- Pressure to win contracts in a competitive market
- Lack of thorough understanding of project requirements
- Inadequate risk assessment and management
- Poor communication between sales teams and technical teams
For example, an IT provider eager to secure a contract promises to deploy a complex cloud infrastructure within a month. However, unforeseen security configurations or compatibility issues emerge during implementation, causing delays. The client, who was promised quick deployment, is left frustrated, and the provider’s credibility is damaged.
Though a tempting reason to secure business, as soon as a team fails to meet the promises given to a client, the consequences can quickly outweigh the benefit of closing the deal.
Why do we fall prey to overpromising?
The reasons behind overpromising can vary but often stem from a mix of optimism, competitive pressure, and miscommunication. Understanding why we fall into this trap is crucial for avoiding it.
1. Optimism bias
Humans naturally tend to be optimistic about our abilities and the outcomes of our efforts. Thus, many project managers and service providers are idealistic about their ability to deliver. This cognitive bias can lead us to underestimate the time and resources required for complex projects, as the inherent assumption is that “everything will work out positively.”
2. Competitive pressure
In crowded markets, the need to stand out is high. When competing for clients, it may be tempting to overcommit to outshine your competition, even when you know those commitments might stretch resources thin. Promising to deliver faster, better, or cheaper than others can win a contract — but it also sets the stage for potential failure if the team can’t meet those promises under tight deadlines.
3. The planning fallacy
The planning fallacy refers to our tendency to underestimate the time, costs, and risks associated with future actions. This cognitive bias is particularly prevalent in project planning and can lead to overly ambitious timelines and budgets.
4. Lack of proper scoping
In many cases, overpromising is a direct result of poor project scoping. When a project’s scope is poorly defined, it becomes difficult to gauge the resources, time, and technical requirements necessary to deliver. Without thorough communication and a clear scope of work, you could commit to features or deadlines that aren’t feasible without fully understanding the client’s actual needs or the project’s technical complexity.
5. Short-term thinking
The pressure to meet quarterly targets or win immediate contracts can overshadow long-term considerations. This nearsighted view often results in making promises to clients and prioritizing short-term gains over sustainable, long-term success.
Dangers of overpromising and under-delivering
The immediate consequences of overpromising and under-delivering are often seen quickly, with the ripple effects extending much further.
1. Negative reviews
Consistently failing to meet commitments can irreparably damage your company's standing in the market. Clients with a bad experience won’t recommend your company to their network. Additionally, they may leave negative reviews on Google or tech review sites like G2, Capterra, and Clutch, hurting the company’s pipeline and chance of getting new business.
2. Client churn
Trust is one of the most valuable assets in any client-provider relationship. Overpromising undermines trust. Once clients feel they can’t rely on your commitments, retaining their business or securing referrals becomes much harder.
3. Increased costs
When projects run over budget or require additional resources to fix issues caused by under-delivering, it cuts directly into profitability. Rushed work or patching up incomplete features also increases the risk of errors and future maintenance costs. Moreover, the resources spent on damage control and rework can significantly impact your bottom line.
4. Employee morale
Overpromising doesn’t just impact clients. Employees are often forced into unsustainable workloads or unrealistic deadlines, leading to burnout, turnover, and decreased productivity.
5. Missed opportunities
Providers could better invest time and resources in innovation and growth instead of putting out fires and managing upset clients. Overpromising can trap your business in a cycle of playing catch-up rather than moving forward.
How to avoid overpromising and under-delivering
Avoiding the overpromising and under-delivering cycle requires a strategic approach to project scoping and client communication. By defining realistic expectations and managing scope carefully, you can meet client needs and protect your reputation.
1. Realistic project scoping
The key to any successful project is a well-defined scope. A good scope sets the foundation for everything from budget and timelines to deliverables and resource allocation. Mapping out each phase and identifying dependencies, potential blockers, and resource needs creates a granular view that helps you estimate timelines more accurately. Scoping tools, like CPQs, can quickly remove the potential for human error and generate a more accurate scope and estimates.
2. Leverage historical data
Maintain a database of past projects, including initial estimates, actual timelines, and resources used. Use this data to inform future estimates and identify patterns in your estimation accuracy.
3. Implement a change management process
Scope creep is a common culprit in project overruns. Implement a clear change management process that assesses the impact of any proposed changes on timelines, resources, and costs so you can accommodate requests that won’t compromise the overall project.
4. Manage client expectations
It’s crucial to manage client expectations from the very first conversation. Be transparent about potential risks and challenges while explaining why certain deliverables might take longer or cost more than initially expected. This helps clients appreciate the work involved and fosters trust in your expertise.
5. Align sales and delivery teams
Ensure your sales team understands the technical realities of service delivery. Regular cross-team meetings and project retrospectives can help bridge this gap.
6. Use buffer time wisely
It’s always better to exceed client expectations than to fall short. By building in a buffer for unexpected delays or issues, you can position yourself to over-deliver on key milestones. Rather than padding each task, use techniques like the Critical Chain Method to add buffers at key project milestones.
How ScopeStack’s CPQ can help avoid overpromising and under-delivering
Managing scope and client expectations is difficult, especially for service providers handling complex projects with many moving parts. ScopeStack’s CPQ software helps providers streamline this process. ScopeStack provides a structured framework for scoping projects, considering all facets of the project for a more accurate quote. The platform can integrate with historical project data and automatically generates quotes based on your defined scope. As a project may evolve, the CPQ allows you to make real-time adjustments to scope, timelines, and budgets. Additionally, built-in risk assessment features help identify potential pitfalls early in the scoping process.
In the end, the most successful service providers are those who master the art of promising accurately and delivering more. With the right tools, processes, and mindset, you can join their ranks and thrive.
Contact us to learn more about how ScopeStack’s CPQ can help you accurately plan and deliver projects, as our team would love to hear from you.
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