Our bias toward comfortable processes hides the root cause of failure. One of the root causes on experienced teams? The misalignment of purpose and process. Here, the author provides an easy-to-implement, purpose-driven organizational methodology that helps eliminate this risk.
There is an opportunity for organizations to uncover the hidden potential of individual project risk registers and transform risk data into enterprise value. This can be done by developing a set of metrics that link the quality of the risk management process to project outcome.
Risk facilitators play a critical role in the risk management process, leading discussions that identify, assess and develop responses. To be effective, facilitators not only understand risk principles and processes but also projects and people. And they are adept at three facilitation styles, knowing when each is most appropriate.
Do you have team members that don’t want to be seen as negative thinkers, thus hindering your risk management efforts? This PM decided to turn things around and came up with a technique that turns finding a threat into a positive thing.
Changes in the financial services sector have made achieving straight-through processing—a dedicated commitment to settle a securities transaction within 24 hours and minimize risk—a monumental effort. Can agile software development and workflow management systems have a positive impact on addressing straight-through processing?
Risk meetings are under-appreciated–but a vital part of risk management during project execution. A regularly scheduled risk meeting can help keep risks managed properly, and it is the project manager’s job to bring the resources to the table and help assist the project by naming and mitigating risks.
A significant source of project failures are due to insufficient risk management diligence. One approach we can take to help mitigate these nightmares is through the use of a document similar in concept to the failure modes and effects analysis (FMEA) methodology.
Proactively managing risks during the different phases of a project can have a significant impact on the project’s outcome. Explore four key factors that can help alleviate the workload of the project management team and lead to better project results.
This article introduces a concept for project management improvement through the use of existing project management resources, without the need for disruption. The concept intends to avoid costly overheads in implementation and running–and introduces optimal use of project managers for review of projects, bringing down risk and involvement of costlier management overhead.
The Lower Colorado River Authority (LCRA) recently completed implementation of a major change—consolidation of multiple project management offices (PMOs) into a single PMO. The lessons learned revealed a number of considerations that apply to executing any major change, revealed advantages and disadvantages to having a single PMO and identified future risks for the newly consolidated PMO.
In the webinar Technology Impact on Communication Management with Beth Spriggs, she talked about technology’s impact on communication management. She explored with attendees how communication behaviors and preferences have changed, and examined how these changes create both opportunity and risk in our projects. She also discussed ways this impacts our current project communication plans, explored ways to adjust our communications to be more effective and shared some practical communication tips. Here, she answers attendee questions.
Risk management looms large in the CIO’s world. While identifying risk scenarios is not all that difficult, quantifying risk can be all together different. And while risk comes in many different flavors, the most critical risk is a Service Disrupting Event. Are you prepared?
Collaboration among stakeholders who are not able to demonstrate project management standard practices prior to project launch leads to project-as-planned failures. The author outlines 16 unidentified project risk elements, each attributed to the aptitude or the attitude of project participants, along with recommended risk mitigations.
Too often, the organizational focus is on relieving symptoms, not necessarily solving the problem. The culture of these organizations is that as long as the user problems can be fixed, then the issue is “solved”. Not only is that inaccurate, it’s inefficient and risky. Quick fixes are not permanent solutions, so when bandage solutions and workarounds become the norm, it’s time to act.
If you don’t have a Plan B, you don’t have a plan. Let’s walk through the four easy steps to building a risk management plan. Each step is based on straightforward questions–which add a level of clarity that is sometimes missing.
The portfolio is the cornerstone of applied organizational risk management, but it is also where there is less day-to-day focus so risks can slip through the cracks. In response, we must identify risk owners at the portfolio level and connect project activities with business concerns such as idea-generation and benefits realization.
What happens when a project manager faces team attrition? This article covers three strategies that can be applied during project planning, executing and controlling within the project human resources management and project risk management knowledge areas.
Stakeholder management is critical to the success or failure of a project. The core team process is an important tool for ensuring buy-in and fostering collaboration throughout the business. It is also a means for collecting ongoing input for the team, which will reduce your level of project risk. Most importantly, it will allow you to manage your stakeholders effectively by actively including them in the project life cycle.
The most important contributor to successful risk management isn’t processes or tools, which are important, but an organizational culture that is risk-aware and encourages people to take the right risks. This can be achieved by addressing cultural aspects up front or allowing it to emerge naturally by putting a supportive infrastructure in place first.
Risk management has a variety of metrics, almost all dealing with how well the process is being maintained. What is needed are metrics that determine whether the process is working. In particular, risk management is a fundamentally a two step process
A lot has been written on risk management. One thing is certain: Decisions taken under great pressure are not always the best decisions. This article focuses on integrated risk management and pro-active decision making.
Many of us are pretty accomplished project managers, at least while on the job. But how do we apply project management principles and disciplines to our personal lives? Personal projects come in all shapes and sizes, each accompanied with their own levels of complexity, risk, timelines, budgets and outcome expectations. Enter the world of Personal Project Management…the new PPM!
The team health framework can be a vital asset to help project managers deliver consistently good results regardless of risks. This is the first of a five-part series on the applicability of physical exam techniques to team management. In subsequent parts, we will discuss each of the four techniques (inspection, palpation, percussion and auscultation) in detail.
One of the best ways to make sure your agile program is successful is to think about how to make everything “smaller” to better manage potential risk. Here are six tips for making your large efforts “smaller” to achieve maximum benefit from your agile programs and to help them maintain progress.
Poor risk or issue management can lead to project failure. This article features a program manager at IBM (Bangalore, India) and a project management consultant/CEO of RefineM (Springfield, MO) debating whether project managers should treat risks and issues differently.
Many organizations are taking advantage of quality management methodologies to improve productivity, efficiency and customer satisfaction. These methodologies require employees to perform set tasks and adhere to structured processes involving changes to work habits that can sometimes be disruptive. Familiar, integrated IT tools can streamline tasks and reduce user resistance, enabling organizations to receive the maximum benefits from quality management techniques at a lower risk.
This article explains the rationale behind the creation of an in-house, customized project management methodology, iMAP, at a rapidly growing pharmaceutical company. The authors also describe the priorities that were selected to start with its implementation: a solid project initiation, a clear project life cycle, a special attention to risk management, a first step in reporting standardization, and specific attention to the activities necessary for the transition to operations. They provide an overview of their approach to IT project governance and how a defined project management methodology is the key for its success.
How do strategic or organizational risk processes integrate with project-level risk management without causing duplication of effort or confusion? Let’s consider three categories of interaction between the organization’s portfolio and its individual projects.
Technical and programmatic disruptions in project plans don’t have to negatively impact cost, performance or schedule metrics. But traditional approaches to planning are not an adequate defense. In the third and final article in this risk management series, the author outlines the six steps for building a risk-tolerant schedule.
With uncertainty comes opportunity. But if a project manager is consumed with managing the risks, there is little time to manage the opportunities. Good risk management is not about fear of failure, but removing barriers to success. And this is when opportunity management emerges.
Partnerships are the key to successful risk management that goes beyond the project level. That means building processes that are consistent from project to program to portfolio. It also requires fostering open communication lines throughout the organization, from junior team members to senior executives.
A burgeoning project management community is helping Bangladesh prepare for a range of natural disasters, slowly transforming a reactive leadership model into a solid risk-assessment culture.
Actually, it’s not always “better to be safe than sorry.” Value-driven risk management acknowledges that some risks are positive opportunities to be pursued, while others aren’t worth worrying too much about, given their unlikelihood of occurring.
Question: Working in IT, it seems that the normal risk management processes are really sort of a “phone it in” routine exercise. We don’t have to worry too much about the production line needing grease or the recycled sheet metal not arriving on schedule. Is there a better approach to risk for software-centric teams?
A. No. One size fits all. There is always equipment failure and the chance of malware, just to mention two common issues, so follow the same risk processes as all projects do to mitigate risk in your environment.
B. Yes. Make sure you have an open source set of source code analysis tools. Run them each time your developers make a change in the code to search out bugs and other vulnerabilities. That is sufficient to ensure you do not experience unfavorable risk events.
C. No. If you deviate from the risk management processes used by others producing more tangible products, you won’t be able to coordinate your risk data to give management meaningful projection data.
D. Yes. While you don’t have the typical risk issues, you have new and potentially more damaging ones that are seldom addressed in most IT environments. Use some business analysis tools to assess and deal with them.
Pick your answer then Test Your Knowledge!
Agile approaches help manage risk for projects. Is it possible to scale agile approaches to programs? Yes, and there are four areas to consider: backlog management, product architecture, managing risks across the program and explaining program state.
Risk management at the organizational level differs in fundamental ways from the processes followed by project managers and teams. But the approaches must still support each other. Here are some considerations for creating a process structure that takes into account risk at both the project and portfolio levels.
Risk management on projects has become a doom-and-gloom exercise in finding all of the bad things that might go wrong and coming up with plans of what to do about them. Project budgets inflate and schedules extend as mitigation and insurance strategies grow and contingency budgets balloon. We highlight the negatives to such an extent that we forget to focus on the positives. Time to turn that frown upside down…
Risk management is all about asking and answering the right questions. It starts with broad concerns and concludes with well-defined ideas to address them. And it requires a basic understanding of question types and how they best map to the risk management process.
The team health framework can be a vital asset to help project managers deliver consistently good results regardless of risks. This is the second of a five-part series on the applicability of physical exam techniques to team management. In this installment, we explore the first of four techniques: inspection.
As portfolio management becomes an increasingly important organizational approach to project delivery, new risk management skills are required. Here we look specifically at the role risk plays in project selection and portfolio definition.
The business world has long eyed Africa, but many companies have also been put off by its poor infrastructure and massive poverty. Now backed by vast natural resources and a surging youth population, the continent is on the verge of living up to its great economic potential. Yet project management success in Africa requires conquering a host of obstacles including political upheaval, limited local talent, and personal safety issues. This article examines how investors looking for projects with strong value propositions will find tremendous opportunities in Africa.
Some studies have suggested that risk management is more critical than every other project management tool and approach combined. It should be at the top of everyone’s mind. And yet, while many of us pay it lip service, it isn’t.
The effective handling of all project issues, risks, and actions by a project manager and/or project management office (PMO) is one of the more important daily responsibilities. Good performance in this regard is a critical PMO success factor. The author proposes some “best practices” for conducting review sessions to collect, record, and address these issues, risks, and actions.
A risk profile is a tool that can help organizations better understand their risk exposure, who “owns” it, where risk management effort and money is going, and their capacity to absorb risks. Here we take a closer look at this concept, including a sample risk profile template to help get you started.
Offshore outsourcing can help achieve a variety of business goals, but it is critical that senior management understand the many trade-offs. In creating a strategy to manage the offshore relationship, you must address these five major risks inherent in outsourced projects.
Don’t let today’s risks become tomorrow’s problems, and don’t sit back and wait for events to happen. Take a proactive approach to managing uncertainty. In this article, you will learn how and why using this risk management approach can greatly increase the chances of delivering your project on time and on target.
The program stands in the middle of organizational risk management, executing down through projects and considering impacts up to the portfolio. Here are key factors when determining if risk management should be “downloaded” to the project level or “uploaded” to the program level.
An IT risk assessment is intended to help IT management better allocate resources and perform capital budgeting and assign resources based on a risk-based approach. Various regulatory authorities require risk assessments be performed for all financial institutions. This article goes over what can go wrong while planning and executing an IT risk assessment.
The concept that risk can be “programmed” out of your project schedule is a false hope. However, you can manage uncertainties by understanding the risk types they represent, and addressing each in an appropriate manner. In part two of this risk management series, an aerospace program manager explains.
The common practice of reducing an uncertainty to a single best guess eliminates a lot of information, which leads to the flaw of averages, a set of systematic errors that occur when a single number, usually an average, is substituted for a distribution. Interactive simulation provides intuitive risk dashboards that can be used to detect and manage hidden risks, even for those with no statistical training. This article is accompanied by an interactive simulation model in Excel.
With the imminent retirement of seasoned PMs, valuable insight will exit as well. It is all but assured that quality will be negatively impacted. The only questions that remain are how big of an impact will we see–and what can we do to promote knowledge transfer and mitigate this risk to the overall quality of our programs and projects.
Aggregate risk rating and putting in place expert pools are just two examples of how project managers can take steps to minimize the bias of expert opinion in making decisions for their projects (throughout the various phases) by making sure the overall project risk and estimates of work are reasonable for the tasks required. Using a simple risk formula (probability x impact) to validate your information can help you achieve this goal in a precise way.
Risk analysis is a wonderful tool for project managers. But in order for risk management to be useful to a project or a program, the management team will need to move past risk analysis and into taking actions based on the analysis.
Your ability to properly anticipate risk executives’ needs and involve them into the management of your projects will set you apart from those who do not have this ability. These tips covering justification, communication, vendor selection and more will help you build this important skill.
How can an organization tell whether its management of risk is good enough? This framework describes four levels of capability based on four attributes: culture, process, experience and application.
Portfolio management is about managing your family’s investment holdings in a way that’s consistent with your liquidity needs, risk profile, goals, and objectives. A good portfolio management strategy can mean the difference between sleeping through a Great Depression or spending your nights worrying about where your kids will get their next meal.
A recent report from the IBM Center for the Business of Government, Managing Risk, Managing Results, discusses which federal programs face the highest risk for waste, fraud, and mismanagement, and how they can improve.
(From PRWEB) — A new study shows, North American employees are twice as likely to head for the door as they were before the recession, according to the latest findings of global consulting firm BlessingWhite. An alarming 19% of high performers who scored low on job satisfaction indicate plans to leave. Another 48% are non-committal, saying they’ll “probably” stay. Christopher Rice, President and CEO of BlessingWhite, explains, “In attempts to survive the recession, organizations handed employees more work to complete with fewer resources. Now employees – especially the high performers – may be burnt out or under challenged, and they are seriously considering leaving at elevated rates.” Rice cautions that leaders should think about how to create growth opportunities and assign meaningful work to keep their top employees from walking out the door. “High performers, after months of heroics for their employers, are finally stepping back and asking, ‘What about me? What about my career?'” If management doesn’t present employees with the opportunity to pursue personal development or to engage in work that’s interesting or worthwhile, these individuals are going to take their knowledge and skills elsewhere.” Read more.
An expensive server rack commits suicide off a 4-foot-tall shipping dock. A forklift skewers a carton of exhibit graphics. Demo equipment gets stolen in transit. What do all three of these situations have in common? They have all happened to me. Thankfully, in every case I had planned ahead and placed insurance on my clients’ exhibit properties to cover their losses. As exhibit managers, insuring against losses that we might incur isn’t usually on the top of our to-do lists. Logistics, deadlines, and troubleshooting often take precedence over identifying, evaluating, and managing the financial risks of exhibiting. But trade show-related disasters are bound to happen. Author and risk-management expert Charles Robert Tremper says, “The first step in the risk-management process is to acknowledge the reality of risk. Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning.” There are basically four types of coverage exhibitors can secure to mitigate common exhibiting risks. Read the entire article.
I’m reviewing Larry Israelite’s manuscript for his forthcoming book Talent Management: Best Practices and Strategies for Success from Six Leading Companies, and “at the risk of biting the hand that feeds” him says that he feels that ASTD’s definition of talent management is too complex: ASTD’s definition (as published in the “ASTD Talent Management Practices and Opportunities” research report): “A holistic approach to optimizing human capital, which enables an organization to drive short- and long-term results by building culture, engagement, capability, and capacity through integrated talent acquisition, development, and deployment processes that are aligned to business goals.” Larry’s definition: “The collection of things companies do that help employees do the best they can each and every day in support of their own and the company’s goals and objectives.” Now these are very different definitions. One has 38 words, the other has 29. One uses terms like “holistic approach,” “optimizing human capital,” and “integrated talent acquisition”; while the other talks about helping people “do the best they can.” They obviously have different audiences: The ASTD definition is geared toward specialized professionals who use specialized language, while Larry’s definition is geared toward anyone who works. And that last difference is part of Larry’s point: talent management is not the sole domain of human resources professionals, but really belongs to everyone. So what is talent management? Does it belong to everyone, or should it mainly concern human resources professionals? What other definitions are out there? When people talk about talent management, are they talking about the same things? It’s a hot topic these days, but why does it matter? Does it matter more or less now given the difficult state of the economy? Any thoughts?
Watch the Chapter Leader Resource Session Pilot for an overview of one of the commonly missed CARE elements, the Risk Management Assessment. An activity will be included to help you complete a risk assessment, and help you on your way to CARE completion. Members of the National Advisors for Chapters (NAC) and fellow chapter leaders will make up an interactive panel to answer questions.
A portfolio is a collection of investment tools such as stocks, shares etc, and Portfolio Management is the art of selecting the right investment policy in terms of minimizing risk and maximizing returns.
This article examines how contemporary organizations allow, store, and share knowledge according to several imperatives that are discussed in the detailed analysis. The key themes of this article are that unless KM teams separate the useful from the useless, the pertinent from the dated, and the real from the fake, organizations run the risk of drowning in the seas of information overload and the oceans of an abundance of knowledge.
Different countries have differing risks. The companies have to ensure that their business continuity management plans are according to the specific risk that the location in which they are based carries.
Talent management is not only important for hiring people as per the need, it is also important for determining when to hire. The new generation employees are more enterprising and are willing to take risks in their career.
If you think your projects will go exactly according to plan, you’re naive. The Risk Management knowledge area is, in this writer’s informed opinion, the most useful and practical knowledge area in the entire PMBOK. Be sure to know it well before taking your exam.
In this ancient guide to project management, we learn that profiting from the past is a critical part of both project planning and risk management. In this installment, we will examine the remaining two enabling factors that allowed the Romans to be successful in the area of engineering.
Risk management isn’t always about identifying the downside, though many project managers seem to focus exclusively on this side of the risk coin. The fact is, we can assess and prioritize opportunities using the same techniques that work for threats, including brainstorming, root-cause analysis and probability-impact matrices.
In this ancient guide to project management, we learn that profiting from the past is a critical part of both project planning and risk management. It can bring to light the full socio-economic implications of actions, which ties to the project management realm of professional ethics and responsibility. What better way to learn all of this than through history’s greatest empire? In this first installment, we look at the underlying Roman principles that fostered the empire’s growth.
In this ancient guide to project management, we learn that profiting from the past is a critical part of both project planning and risk management. It can bring to light the full socio-economic implications of actions, which ties to the project management realm of professional ethics and responsibility. What better way to learn all of this than through history’s greatest empire? In this second installment, we look at two crucial lessons derived from the empire’s sales tactic.