Risk management gets a lot of fanfare, but many project managers fail to cash in on the benefits. Here are some simple and practical project risk management tips that can aid project managers in getting better results.
“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.” —Charles Tremper
Do you feel uncertain about your project schedule? Does something see out of order but you just can’t put your finger on it. In this article, let’s look at five causes of schedule risks and ways to avoid or reduce these risks.
Many times, it starts with pressure from a sponsor to deliver the project early. For sure, project managers have a responsibility to work with their sponsors to understand the requirements and to complete the projects within the sponsor-imposed deadlines. Rather than wasting our time complaining about the deadlines, how can we work with our sponsors and team members to find solutions to schedule issues?
My friend Colin Gautrey has some wise advice on 8 Ways You Can Better Respond to Unrealistic Demands.
As we work to develop and compress our schedules, let’s be aware of the common causes of risk. We will be in a better position to manage the risks and deliver our projects on schedule.
Question: What other ways have you seen project managers unintentionally create schedule risks?
How often have you neared a project implementation date, only to find new requirements? Or perhaps your team said they had gathered the requirements, but in reality, the team had hastily rushed through the requirement process resulting in rework, missed deadlines, and another blown budget.
If you want to improve your chance for project success, focus on improving your requirement processes. You can’t overcome all the issues overnight, but here are a few things to consider.Continue reading
The Standish Group says three of the biggest factors that lead to failed and challenged projects are:
We should attack these threats with a vengeance. How can we do this? We add skilled requirements analysts to our teams.
The role of the project manager is to achieve the project’s goals or objectives. Who performs the business analysis tasks for the projects? That depends.
For small projects, the project manager may assume many roles including but not be limited to:
For larger projects, project managers must find ways to complete project tasks through others. They must not fall into the trap of doing everything themselves. Wise project managers recruit team members with the necessary skills and talents.Continue reading
Poor project quality can have profound effects on projects resulting in rework, schedule delays, higher cost, frustration, morale problems, and lack of customer satisfaction. Project managers cannot afford to miss the mark here. Quality matters.
When buying eyeglasses, what do people look for? One person may focus on features such as the frame style. Another person may want anti-scratch coating or UV-blocking treatment.
Others also look for a great customer experience—how they are greeted, how easy it is to find their frames, and the fast, accurate checkout process.
Projects are similar–project customers, whether internal or external, want great products and service. How do your customers describe your service? Are they getting the product features they want?
Here are some common quality management mistakes. Overcoming these seven mistakes can greatly improve your chance of success. Continue reading
Earlier I wrote about eights ways to treat risks. One of the risk responses is avoidance. The focus of this strategy is to ensure the risk does not occur by eliminating the cause of the risk.
It was Fall, and I had raked the leaves in my backyard into three piles. I was trying to decide what to do with them. I knew there was a ban on burning in my area since we had been extremely dry for months.
What were my options? I could bag the leaves. I could haul the leaves into the woods. Or I could burn the leaves.
I decided to take a chance and burn the leaves. Later, I soaked the areas with water to fully extinguish the remaining embers.Continue reading
The Project Management Institute added a new risk strategy in the Sixth Edition of the Project Management Body of Knowledge. Let's take a look at what it means to escalate risks and how to escalate risks, both threats and opportunities.
Escalation is one of the eight ways to treat risks.The PMBOK® Guide–Sixth Edition says:
"Escalation is appropriate when the project team or the project sponsor agrees that a threat is outside the scope of the project or that the proposed response would exceed the project manager's authority. Escalated risks are managed at the program level, portfolio level, or other relevant part of the organization, and not on the project level. The project manager determines who should be notified about the threat and communicates the details to that person or part of the organization. It is important that ownership of escalated threats is accepted by the relevant party in the organization."
The language for escalating opportunities is nearly identical, interchanging the term threat with opportunity.
Every organization has risks at various levels such as teams, departments, business units, and an enterprise level. Projects touch different parts of the organization. Project managers discover all kinds of risks, some that are within the scope of the project and others that are not.
What should a project manager do when a risk is identified that is outside the scope of the project? Escalate the risk. Here are three takeaways.
Do you have risks in your project risk register that should be escalated? Work with your project sponsor and other key stakeholders to clarify the risks, determine the true risk owners, and ensure ownership at the right level of your organization.
Imagine you have a large amount of credit card debt. You decide to eliminate one of the causes of your debt. So, you cut up your credit cards.
What if you had an opportunity to increase company revenue by getting a product to market a few months early? You could assign your most skilled resources to your critical path tasks.
In our projects, we face threats that may limit our ability to achieve our goals. We also see opportunities, if properly seized, that could allow us to make greater progress. Our job is to treat risks to enhance opportunities and reduce threats. We can optimize our risk responses over time.Continue reading
I fear that many project managers live by the letter of the law and may fail to gain the true benefits of risk management. These individuals are too concerned with checking boxes and making the risk management processes overly complex. Let’s look at some common mistakes and how to overcome them.
Every project is different. Wise project managers tailor their risk management plan to each project. Pick only the necessary inputs and tools and techniques. And speak in a manner that your sponsor, project team, and stakeholders understand. If you wish to introduce new terms (e.g., risk attitude, risk tolerance, Monte Carlo), be sure to define them.Continue reading
Do you remember the first time you missed a project deadline? I do. I recall the embarrassment for me and my team. I promised myself I would take proactive steps to mitigate this outcome for future projects including the use of quantitative risk analysis.
Why do projects take longer than expected? Often times, risks occur and project managers lack adequate schedule reserves.
Once burned, many project managers start a bad habit – padding their project schedules. If a project is estimated at 120 days, the project manager may add a 10% pad, an additional 12 days. The project manager estimates the project duration to be 132 days.
Padding is a quick and dirty method. It provides reserves, but let’s look at a better way to estimate reserves.Continue reading