Even the best project teams will have a difficult time overcoming a poorly set up SOV, so make sure that you invest the right amount of time in this process up front.
- Develop a billing format that is easy to reconcile internally with changes and progress billings.
- Ensure that the billing format is easy to understand for the customer and easily integrates with their systems.
- Have the project schedule in-hand or at least know the basic flow of the project before developing your SOV.
- Develop your SOV after you develop your budget and make sure they are integrated so your cash flow looks good based on the project schedule.
- Have a structured internal review process to ensure both good cash flow AND that you are not introducing other risks based on how the SOV is loaded.
- Looking at the map of your cash flow process in the project, sell the SOV to the appropriate people to ensure smooth progress billings. Use this as an opportunity to build relationships.