Posts Tagged With: Risk management

How comical is your project?

Frequent readers of my blog will know how much I respect Scott Adams’s unique insights into the dysfunctions of corporate life. Let’s analyze the case study provided in today’s comic strip!

Risk (mis)management

The pointy-haired boss who serves as a constant reminder of the validity of the Peter Principle expresses surprise about the bumpiness of their white-water team-building project.

A modicum of effective risk management might have caused him to utilize an avoid risk response by picking a slightly less adventurous event although with that group it is hard to envision what would be a perfectly safe one!

If there was still a desire to take the group white-water rafting, then perhaps investing in life vests for those who couldn’t swim would have been a reasonable risk mitigation response, although as the boss indicates in the last frame of the strip, there would likely have been a corresponding higher cost for implementing this response.

While the boss uses ignorance as his rationale, there is no excuse for not practicing risk management commensurate to the level of complexity and uncertainty of a given project.

Avoiding assumptions analysis

An assumption is stated in the sixth frame by the pointy-haired boss about Ted’s ability to swim. That assumption germinated a key risk – if Ted was NOT able to swim and fell in, he’d require more assistance than a competent swimmer and hence the team’s decision to not look for him was unwise. Had the boss conducted a quick elicitation of assumptions and had the team challenge those assumptions which could have been proactively validated, Ted might not be missing.

Project managers have a responsibility to ask their team members and key stakeholders what assumptions are being made as plans are defined, incorporate those assumptions as inputs into risk identification, and schedule reminders to validate those assumptions as the project progresses.

The glamour of groupthink

The fourth and seventh frames of the comic strip confirm that the team members are complicit in the project’s failure. While team consensus was achieved with the decision to not look for Ted after he fell in and then again later by pretending that he never participated, it is quite likely that Asok or Dilbert, who are two characters who usually act as the conscience of the narrative, would not have agreed with these decisions but were likely concerned about rocking the boat (or white-water raft!).

While project managers are expected to recognize the symptoms of groupthink so that it can be nipped in the bud, a more effective countermeasure is to encourage healthy conflict as one the team’s ground rules so that individual team members don’t shy away from speaking up if they believe the wrong decision is being made.

Oscar Wilde – Life imitates art far more than art imitates life


Categories: Project Management | Tags: , , , , | 2 Comments

Who is the Cassandra on YOUR project?

I’m currently reading Richard A. Clarke and R. P. Eddy’s book Warnings which analyzes a number of cases where a credible subject matter expert raised concerns proactively about a looming catastrophe but was ignored until it was too late to take preventative action.

The authors refer to these unfortunate prognosticators as “Cassandras” in reference to the Greek mythology tale of the princess of Troy, Cassandra, who was cursed by Apollo to see into the future but to be ridiculed by those she tried to warn of impending disaster. Through the analysis of past tragedies the authors have developed a four part assessment to identify potential Cassandras including the nature of their warnings, the characteristics of the decision makers who have the power to act on the warnings, attributes of the Cassandras themselves and those of their critics.

So while this might make for an interesting read, what relevance does this have to project management?

Donald Rumsfeld brought the phrase “unknown unknowns” into the mainstream with his February 2002 response to a question about the evidence of weapons of mass destruction in Iraq: “…We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns – the ones we don’t know we don’t know. And if one looks throughout the history of our country and other free countries, it is the latter category that tend to be the difficult ones.

But are such risks really “unknown unknowns”? On any project involving a reasonable number of stakeholders, surely there was someone with the imagination and creativity to have been able to surface issues which were not identified through project risk management practices.

The failure to do so might be because of one of the following factors listed in the book:

  • Initial occurrence syndrome: if a given risk has never been realized within the collective awareness of the stakeholders participating in risk identification, the tendency is to believe that it will never occur.
  • Erroneous consensus: if the culture of the team is to value harmony over healthy dissent, while one team member might have the foresight to identify a radical risk, if the consensus of the remaining team members is that this is not a concern, the Cassandra will be unwilling to push their point.
  • Invisible obvious: a lack of diversity within a team can increase the potential for groupthink. If we think of individual experience and knowledge as sets in a Venn diagram, we would ideally want to cover as much area as possible while still having some areas of commonality. The lower the diversity in a team, the greater the alignment of the collective sets and hence the greater the area of no knowledge.

In last week’s article I provided one possible glimpse into the future of our profession. A benefit of computer assisted project management might be a vast reduction in unknown unknowns if we choose to follow our AI’s guidance. Until then it is our responsibility as project managers to build diverse teams and to actively listen for the Cassandras within them.

Categories: Project Management | Tags: , , , | 2 Comments

In defense of the Digraph

I’ve found project risk management to be one of the weakest performed PMBOK knowledge areas in most organizations, even for those companies whose operational risk management practices are very mature. A part of this challenge is that we tend to identify obvious risks but miss key ones when we don’t engage sufficient stakeholders in the identification process or when we ignore lessons identified in past projects. But another major source of issues is the lack of meaningful response to identified, analyzed risks.

An article from the October 2017 issue of PM Journal reminded me that HOW we communicate risk information is as important as WHAT we communicate.

I’m sure many of you recognize the futility in only sharing risk information via risk registers. While those are a valid place to consolidate risk information for project management purposes, it is unlikely that most stakeholders will know where to locate a risk register for a project, let alone review it periodically. A better approach would be to use existing information radiators, reports or meetings to secure ownership of actions and responses for key risks.

But how do we present the information itself?

Extracting key fields from the risk register into a management-ready table is one way to do this. You might also be creating some colorful heat maps to provide stakeholders with a higher level view of overall risk probability and impacts.

But what about the relationships between risks?

You might have communicated some information regarding the secondary risks generated by responding to other risks, but what about the relationships between the risks in your register?

Creating a visual representation of the relationship between risks can help us focus further analysis and response efforts on those risks where we will get the greatest overall project benefits. An interrelationship digraph which was one of the quality management tools covered in the Fifth Edition of the PMBOK Guide and excised from the Sixth Edition provides one way to do this. Such a view might also help key stakeholders to connect the dots for themselves. They can visualize how their response to a specific risk might help to prevent impacts resulting from the realization of other risks triggered by the first one.

Our project risk management practices are only effective if there is a tangible difference in outcomes compared with our doing nothing. 

Categories: Project Management | Tags: , , | 2 Comments

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