Risk Management Using Project Risk Management to Promote - PowerPoint PPT Presentation

Risk Management Using Project Risk Management to Promote Communica5on, Understanding and Agreement Kevin Raum Tim Boatwright

Welcome Tim Boatwright • Principal Consultant with Ten Six • PMP, EVP & ITIL Cer5fied • Project Controls expert with 20 years in DoD, Energy, Biotech and IT experience • Former EVP Cer5fica5on Board Lead for AACEi Kevin Raum • Principal Consultant with Ten Six • Project and risk management systems, process, tools implementa5on expert with 30+ years in Biotech, IT, DoD, state-local-federal government and interna5onal experience • Cer5fied mediator

About Ten Six • Specialists in enterprise Project PorRolio Management and Earned Value Management – Global customer list – Offices in USA & UK – Experienced staff – average 25+ years – Experts in Oracle Primavera P6 & Deltek tool suites – Unique consul5ng & training services

Learning Objec=ve • To provide you with some prac5cal and proven Risk Management tools, techniques and strategies that can improve project communica5ons • To share our experiences and lessons from the successful implementa5on and applica5on of risk management framework to improve project communica5ons across an array of projects

Poor Communica=ons Impacts Project Performance One in five projects fails due to failed project communica5ons Source: Project Management Ins5tute; The Essen(al Role of Communica(ons

Communica=on Challenges “ … project success is dependent upon communicating the correct information to the appropriate stakeholders, using clear and relevant language that resonates with the audience.” Source: Project Management Ins5tute; The Essen(al Role of Communica(ons

Causes of Poor Communica=ons • Communica5ons processes not in place or followed • Language and concepts inappropriate or poorly understood • Stove pipes of work and informa5on • Differences in expecta5ons • Leadership not engaged • Discomfort with delivering “bad” news or disagreeing

What Can You Do?

Risk Management Addresses These Challenges Communica=ons Challenges How Risk Management Addresses Reviewing work scope, contract, for understanding and to iden5fy risks • Language and concepts inappropriate Reviewing assump5ons and using these as basis for risk iden5fica5on • or poorly understood Mul5-disciplinary teams working together to iden5fy and clarify risks • Modeling using analy5c tools, techniques, methods • Using cross-func5onal teams to review requirements, assump5ons, and iden5fy risks • Stove pipes of work and informa=on Planning processes integra5ng upstream and downstream work and risk impacts • Iden5fying linked risks • Risk plans provide a standard and guidance on execu5ng risk management • Risk kick-offs • Communica=ons processes not in Risk review mee5ngs • place or followed Risk submissions by anyone related to the project • Escala5on mechanism • Engaging leaders in risk planning, risk reviews, escala5ons • Involving stakeholders risk processes prior to project ini5a5on Leadership not engaged • Engaging stakeholders, including customers, in risk reviews • Risk workshops • Differences in expecta=ons Risk iden5fica5on, analysis and response planning • Risk Iden5fica5on process • Discomfort with delivering “bad” Escala5on mechanism • news Risk reviews •

Risk Concepts • Risk: The likelihood that a project will fail to meet its objec5ves because of an event or condi5on • Risk Management: is aimed at reducing the uncertainty of outcomes (business decisions, project decisions, work done by the team and suppliers, etc.) and/or the impact of a risk event

Risk Concepts Project risk management is a process • – Increases the likelihood of project success – Iden5fies and assesses threats to the project – Iden5fies ac5ons to either reduce the probability of those threats occurring or reduce the impact of the threats to the project. Benefits: • – Inclusive of ALL project team members and project stakeholders, e.g. scien5sts, contracts people, technicians, managers and stakeholders such as the client (begins in the investment decision making process and ends at project closure) – Used as a means to promote dialog and understanding of the program within the project team, project team and contractors, and between the project team / program manager and the customer and other stakeholders – It has the poten5al to create cohesion and strengthen the no=on of “team”

View of Risks Vary With Role Risk Management is important from strategy/vision to project delivery Sponsors/Management: Growth, ROI, • CAPEX, OPEX, reputa5on, dates, safety…. Customer: financial outlay, delivery • dates, reputa5on, poli5cal…. Program/Project Manager: schedule, • costs, quality, resources, safety…. Team Members: my work, other’s work • that affects me, safety…. Suppliers/Subcontractors: schedule, • demand, reputa5on, safety….

Risk Management Process Risk Management Planning Risk Risk Monitoring & Iden=fica=on Control The risk management process is carried out itera=vely in all phases (Pre-ini=a=on to Project Closeout) Risk Response Risk Analysis Planning

Risk Managem ent Risk Management Planning Planning Risk Risk Monitorin Iden=fica g & =on Control Risk Risk Response Analysis Planning Risk Processes Business and Drivers and Procedures Priori5es Risk Planning Leadership Project Objec5ves, Team (PM, Goals and RM, BM, et al) Constraints Project Approach, Schedule and Cost Es5mates Communica=ons Benefits Lays out and defines the process, roles, responsibili5es, & • tools to be used Lays out standards for types and quality of informa5on • Sets expecta5on that risk management is important • Commits stakeholders to the risk process •

Risk Managem ent Risk Iden=fica=on Planning Risk Risk Monitorin Iden=fica g & =on Control Risk Risk Response Analysis Planning Risk Risk Itera5ve Planning Iden5fica5on Process Complete Tools: A project life cycle ac=vity Prior to project ini5a5on – Risk Log Outset of the project (planning) – Project or milestone reviews – Rebaseline exercises – When environmental condi5ons change –

Risk Managem ent Planning Documents Needed Risk Risk Monitorin Iden=fica g & =on Control Risk Risk Response Analysis Planning • Contract and Statement of Work: Formal requirements • Assump=ons and “Other” Guidance: “Informal” requirements • Technical Approach: The agreed upon approach to mee5ng the goals and objec5ves of the project • Work Breakdown Structure (WBS/D): Tool used to define and group a project's work elements (or tasks) in a way that helps organize and define the total work scope of the project • Detailed Cost Es=mate: Project costs defined to the lowest level of the WBS • Project Schedule: Tool defining the dura5on, resources, and dependencies associated with each WBS.

Risk Managem ent Risk Iden=fica=on Planning Risk Risk Monitorin Iden=fica g & =on Control Risk Proposal Review Risk Response Analysis Planning Obtain All Proposal Ar5facts and Review and Prepare Conduct Proposal Contract (terms, for Proposal Debrief Debrief Communica=ons Benefits SOW, costs, etc.) • Builds on agreed Prep Draft Risk Log informa5on (plans, Project Planning schedules, assump5ons, NO etc.) Review Scope, Craft and Lay in Review WBS and Prepare Conduct 1:1 Integrate Review Schedule Contract, SOW, High Level WBS, Draft Project Schedule for Update WBS/D Planning Fragnets into WBS/D, Risk Log OK? • Challenges assump5ons Assumptions, Target Dates, on Schedule with each WBS Sessions Draft Schedule with Team etc. WBS Element(s) Team Element • Supports clarifying requirements, plans and Brainstorming, Mind Map Final Draft designs Schedule, WBS/ D, Risk Log • Promotes cross- func5onal discussions • Permits discussion of poten5ally bad news • Engages stakeholders Ishikawa/Fishbone Diagram

Risk Managem ent Planning Capture Iden=fied Risks Risk Risk Monitorin Iden=fica g & =on Control Risk Risk Response Analysis Planning PROJECT: New Project Revision Date: 9/15/2016 Version: 1 Consequences Analysis WBS ID Risk Name Description Cost Schedule Performance Mitigation Options Likelhd Mitigation Actions Owner Status Internal? Affected Individual operators may not 1 have received full training for 1.1 20,000 20 days None 4 the operations. 2 3 4 5 6 7 8 9 10

Risk Analysis Risk Managem ent Planning Risk Risk Monitorin Iden=fica g & (Qualita=ve & Quan=ta=ve) =on Control Risk Risk Response Analysis Planning Inputs: Outputs • Agreed Approach • Individual Risk Details • Rules and Guidelines • Risk Severity Risk Analysis Index • Risk Log Process • Es5mated Costs • Project Team • Mi5ga5on • Experts Strategies • Risk Item Form • Categories Communica=ons Benefits • Involves en5re team: could include experts, contractors/suppliers, as well as management and customer • Helps to clarify requirements, assump5ons, designs and plans • Promotes cross-func5onal discussions and collabora5on as risks’ causes and linkages are iden5fied • Sets an “objec5ve” founda5on for calcula5ng adjusted schedule, budget and performance targets • Begins to iden5fy op5ons for mi5ga5ng risks • Brings alen5on to parts of the project that require closer scru5ny and monitoring • Assigns responsibility for risks