Over-Promise and Under-Deliver: The Hidden Cost of Unrealistic Project Commitments

In the competitive world of technology and software, promises are currency. Companies promise innovation, efficiency, and transformation to secure deals. But what happens when those promises exceed what can be delivered? "Over-promise and under-deliver" is not just a cliché; it’s a costly pitfall that affects everyone involved in a project.

Let’s explore the repercussions of over-promising, how to identify it early, and what you can do if you find yourself in such a situation.

The Problem with Over-Promising

To win projects, suppliers often overstate the capabilities of their solutions. They may promise features or timelines that their product cannot realistically deliver. This overconfidence can stem from various factors:

• Lack of Suitable Products: The solution isn’t fit for purpose and requires significant modification.
• Underestimating Costs or Timelines: Sales teams downplay the complexity of the project.
• Knowledge Gaps: The supplier doesn't fully understand the client’s requirements or their own product’s limitations.

For the client, the gap between expectations and reality can lead to frustration, wasted time, and wasted resources. For the supplier, the cost is stressed teams and tarnished reputations.

The Impact on Clients

Clients pay the highest price when promises fail to materialize. Here’s how:

1. Wasted Resources: Clients often deploy additional staff to compensate for shortfalls, increasing costs. These resources are diverted from other projects or responsibilities.
2. Frustrated Teams: The client’s employees, often the first to notice issues, scramble to fill gaps, resulting in stress and burnout.
3. Diminished Trust: Stakeholders lose faith in both the project and the supplier, damaging relationships and future collaborations.

The Impact on Suppliers

Suppliers also bear the burden of over-promising:

1. Disjointed Handoffs: Sales teams, who made the lofty promises, often move on to new deals, leaving delivery teams to face the fallout.
2. Pressure on Delivery Teams: Developers and implementers work under intense stress, trying to retrofit unsuitable products to meet commitments.
3. Reputational Damage: Failing to deliver tarnishes the supplier’s credibility, affecting future sales and partnerships.

Early Warning Signs of Trouble

Spotting over-promising early can save a project from disaster. Look for these red flags:

• Missed Deliverables: Early milestones are delayed or skipped entirely.
• Shifting Blame: Teams start pointing fingers, and excuses become frequent.
• Compounded Delays: One delay leads to another, creating a domino effect.
• Rumours and Discontent: On-the-ground staff discuss missing features or limitations compared to the promised solution.
• Gaps in Requirements: Functionalities of the old system are not replicated in the new solution.

What to Do When Things Go Wrong

If a project veers off track, several options are available. None are ideal, but understanding the trade-offs can help you choose the least damaging path:

1. Pull the Plug: If the project is beyond salvageable, cutting your losses may be the wisest choice.
2. Accept a Reduced Scope: Scale back expectations to align with what the supplier can realistically deliver.
3. Learn and Move On: Document lessons learned and apply them to future projects.
4. Refocus on Minimum Viable Functionality: Strip the project to its core essentials, ensuring at least some value is delivered.
5. Deprioritize: Shift focus to other initiatives, letting this project take a backseat while still attempting to salvage some outcomes.

Preventing Over-Promise and Under-Deliver

The best way to avoid these challenges is through thorough preparation and due diligence:

• Validate Supplier Claims: Insist on real-world examples and case studies that demonstrate the supplier’s ability to deliver similar solutions.
• Engage Your Team: Involve your staff early to assess proposals and match them against actual needs.
• Define Requirements Clearly: Document precise requirements and ensure the supplier can meet them.
• Set Gates and Checkpoints: Break the project into phases with clear milestones and validation steps.
• Prioritize Transparency: Establish an open dialogue with suppliers to ensure alignment and realistic expectations.

Conclusion

Over-promising and under-delivering isn’t just a project management issue; it’s a systemic problem that creates stress, wastes resources, and undermines trust. By recognizing the warning signs and taking proactive steps, organizations can protect themselves from falling into this trap.

The key takeaway? Due diligence is your best defence. Understand what you’re buying, involve your team, and ensure the supplier can deliver what they promise. In the end, realistic expectations lead to successful partnerships—and projects that deliver real value.