Understanding GM Impact When You Add SMEs to Recover Delays
When a project schedule slips, the first instinct is often to bring in a subject-matter expert or an additional specialist to speed things up. This usually helps the team move faster, but it also comes with a trade-off that many project managers worry about: the overall gross margin (GM) of the project gets affected.
The first step is to understand why the GM is slipping. A PM needs a clear narrative: where the effort spilled over, how much rework occurred, which skills were missing, and how these gaps forced the team to bring in expensive SMEs. Once this story becomes visible, the PM can convert scattered chaos into a controlled plan.
Every additional expert you add increases the project cost. Even if the person works for a short duration, their higher billing rate adds financial pressure. While they help recover timelines and improve the quality of deliverables, the margin you originally planned begins to shrink. This creates a delicate balance for the project manager—delivering on time without losing too much profitability.
Another layer of impact comes from context switching. New experts need onboarding, time to understand the problem, and coordination with the existing team. This overhead further adds to the cost. It helps the schedule, but the financial side gets stretched.
The next move is to stabilise the delivery engine. This means rebalancing workloads, tightening scope, resetting expectations with stakeholders, and making sure every hour spent actually contributes to forward progress. It also means eliminating waste—duplicate testing, back-and-forth clarifications, and unclear requirements that lead to expensive do-overs.
As a project manager, you often stand in the middle of this balance. You need the schedule to get back on track, but you also need the project to remain healthy financially. This is where transparent communication with leadership becomes essential. When delays occur due to team issues, scope underestimation, or unforeseen complexities, calling out the impact on GM early builds trust. Leaders understand that adding experts is a recovery strategy, not a luxury.
Ultimately, the project manager’s role is to protect both delivery and profitability. Adding SMEs is the right decision when quality or deadlines are at risk, but it should be paired with clear risk communication, improved planning for the next phases, and stronger prevention measures so the same issue doesn’t repeat. This way, GM impact becomes a one-time correction, not a pattern.