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Well, I would say when it stresses out your employees - people like to say "do more with less." But what does that mean? In my experience it means burning out employees, who understood what the customer wanted before the "mission creep" wherein they were required to do more and more with the same resources.
It takes a strong leader to stand up and say, "Wait a minute...we're contracted to provide you with X, and you pay us Y. If you want W and X, you'll have to pay Y+1."
At some point you're not providing value to your company's employees or shareholders, who are both paying for your lack of assertiveness with the client - the employees by being overworked; and the shareholders by not receiving the value, in revenue, from their investment in personnel and other resources.
More, unpaid work for the same money...no thanks.
