Risk Management – The Overlooked First Process of Project Planning - Part 6 of 6

PART 6 of 6 - Risk follow-up as the project progresses through the phases

I mentioned earlier that to be effective in controlling risks, the Risk Log must be reviewed at frequent intervals; first to determine if there are any new or developing risks, second to determine if assigned responses (actions) are being pursued, and third to make sure that risks are being controlled so that they do not become issues. It is critical that risks be controlled before they become issues – issues may have the potential of destroying momentum and may result in failure of the project..

Conclusion

All comments are welcome.  Please take the time to share your experience with Risk Management (both good and bad) and, of course, your opinion and comments of what I have said.

Thanks,

Charles.

(E. Charles E. Moone)

February, 2012

Risk Management – The Overlooked First Process of Project Planning - Part 5 of 6

Part 5 of 6 – Conducting the Risk Workshop

In Part 3, “The Missing Something”, I recommended holding an initial Risk Workshop at the beginning of the project.

Risk Workshops provide early identification of risks.  The workshop is conducted as a brainstorming facilitated meeting with a Facilitator and note taker.  The Kickoff Workshop should be conducted with representatives from all affected groups – from Senior Management to workers (Vice Presidents, Directors, CIO, line managers, solution specialists, production supervisors, etc.).  The reason for having such a broad group is to ensure that the project risks and environment are articulated from across the organization.  The discussion in such a disparate group will awaken awareness and possibly bring forward risks which may have been overlooked.

For example, I held a Kickoff Risk Workshop at the Headquarters of a major shipping company.  The scope involved an overhaul of worldwide shipping activities by replacing and updating processes and the infrastructure needed to achieve the goals.  Participants included C-level executives as well as operations and technical managers – all were subject matter experts in their areas of expertise.  During a roundtable discussion, I asked what the impact would be if this project didn’t work or was not delivered on time.  The CIO answered “I will lose my job” – an unexpected answer but one that focused all participants.

The activities of a Risk Workshop are

·        Identify the Risks

·        Quantify and prioritize the risks

·        Develop risk responses

·        Assign Actions and Owners

·        Establish Periodic Reviews

Risk Management – The Overlooked First Process of Project Planning - Part 4 of 6

Part 4 of 6 - Example Risks

Some examples of risks are given in this Part. The primary reference for this part is John E. Martin & Pierre-Francois Heaulme, “Risk Management: Techniques for Managing Project Risk”, AMA Handbook of Project Management, American Management Association, pp. 171-172 with additions by Charles Moone.  This is an excellent reference book for all aspects of Project Management. 

To some, it may seem odd that I would choose a book published by the AMA (American Management Association), a business management group, as a reference for this Blog.  The reason is that while there are excellent references on the PMI site, we should always look for other sources in order to broaden our knowledge of factors affecting how we work.  After all, projects are pursued to achieve business goals and our profession contains the word Management.

Note that portions of the list may not apply to the current situation; however, the list should be presented as examples of looking at the overall environment that affects projects:

Risk Management – The Overlooked First Process of Project Planning - Part 3 of 6

Part 3 of 6 – The missing something

In Part 2, “Starting a New Project”, I suggested that there may have been something you missed as you conducted Project Planning for your project.

You had the right idea with scheduling a Risk Management session once all the planning stuff settles down and you have a clear, documented path going forward; however, it may be too late and some critical risks may be forgotten because of intense conversation around clarifying and organizing a solution.  Having a Risk Framework in place during planning allows capturing the Risk as a routine part of the planning process rather than being captured later in the planning process.

I recommend holding an initial Risk Workshop at the beginning of the project.  This initial Workshop sets the framework for all Risk related activities, including other Workshops, for the duration of the project.  This initial Workshop, along with Scope and Organizational discussions, is invaluable for setting the tone and methods for Risk activities.

Part 4 presents some examples of risks. See you then.

Charles

Risk Management – The Overlooked First Process of Project Planning - Part 2 of 6

You received an orientation and “marching instructions” for your new project.  Your mind is swirling with all the things that you have to do, you are confident that you can do this, but also a little concerned because this project is different than any you have guided before.

You start by listing the things to be done:

·        making sure that the scope is clear,

·        staffing the planning teams,

·        gathering experts together,

·        making sure that the right people are involved,

·        coordinating the planning,

·        gathering requirements,

·        documenting existing workflows,

·        creating plans,

·        and more.

You even schedule a Risk Management session for when all the planning stuff settles down and you have a clear, documented path going forward.

You get started and there are a lot of things happening – meetings are being held, discussions are intense and sometimes complicated, summary notes are kept, minutes and status are being published, and you are happy with your progress.  Terms like swim lanes, organizational dependencies, solution architecture, user communities, and more are filling your mind.

But . . . , in the back of your mind, you’re asking yourself if you missed something.

Part 3 identifies the missing something and what you should do about it.  See you then.

Risk Management - The Overlooked First Process of Project Planning - Part 1 of 6

Introduction

Project managers understand that Risk Management is a critical part of their projects; however, some methodologies place the start of Risk Management late in project planning.  It is my belief that Risk Management must start at the beginning of a project and be recorded and updated as planning and the project progress; otherwise, the extent or characteristics of a Risk may be misunderstood or improperly tracked.

This entry in the About Project Management blog presents my vision of Risk Management.  I am aware that there are many methods (and opinions) on the best mechanisms for identifying and controlling risks.  I humbly acknowledge the other ways of doing things and invite anyone with an opinion and, better still, details of processes, to step in and participate in this blog.

This blog entry consists of six parts:

1.       Issues and risks

2.       Starting a new project

3.       The Missing Something

4.       Example Risks

5.       Conducting a Risk Workshop

6.       Risk follow-up as the project progresses through the phases

Part 1 of 6 – issues and risks

The differences between issues and risks are often confused among Project Managers and others.

Risks and Issues, as defined by the Project Management Institute (PMI), are

·         Issue: “A point or matter of discussion, debate, or dispute”

·         Risk: “An uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives”

From these definitions, it appears that an issue could be treated the same as a risk. The real difference is its place in time. For example, in summer the risk of a blizzard can be stated as “There is a risk that a blizzard will occur in winter” and planning should start on procedures to deal with the blizzard. In winter, when the blizzard occurs and plans are not available to deal with it, the blizzard has suddenly become an issue and crisis management may be needed in order to deal with this emergency. From this example come the basic conceptual differences between risks and issues. (From a conversation with Michael Lavengood, PMO Director, Mylan Pharmaceuticals, 2005).

·         Risks are identified early in planning so that appropriate steps can be taken to prevent them turning into issues.

·         A risk can turn into an issue if the preventive actions have not been effective or have not been performed.

·         An issue must be dealt with immediately in order to minimize impact on the project.

Part 2 talks about starting a new project.  See you then.

Charles