| Getting a handle on project risks is a slippery job, but | | | | available on short notice. |
| well worth the effort if you and your project team | | | | -- Recruit semi-experienced friends or neighbors to |
| desire to sleep more soundly at night. In Part 2 of | | | | help for the next 10 days. |
| this series, we identified various risks related to | | | | -- Use faster, simpler techniques and materials (such |
| choosing, estimating, and staffing your projects. In | | | | as stick-on vinyl tiles). |
| Part 3, we assessed the potential adverse effects of | | | | -- Plan to have a second kitchen set up in the |
| those risks on the project cost, schedule, quality, and | | | | backyard BBQ area, just in case. |
| features. | | | | 3. Identify your "do-nothing" and "next-to-nothing" |
| Following assessment, the mitigation phase involves | | | | alternatives. |
| brainstorming ways to avoid, eliminate, work around, | | | | These are the options that would remain available to |
| or otherwise manage each identified risk. This article | | | | you if you did not pursue the project or solution |
| (Part 4 of the series) takes you through a simple, | | | | you're considering. "Do-nothing" could mean the status |
| four-step risk management process. The results can | | | | quo, for example, and "Next-to-nothing" might denote |
| help you and your team decide whether or not to | | | | an option that already exists but has been ignored. |
| take on the project, and can aid in pinpointing the | | | | These will help you remain clear about whether you |
| most effective risk management techniques to use. | | | | must do something, and what your fallback position is |
| Risk Assessment Review | | | | if you can't do anything. |
| In Part 3, we discussed an example in which your | | | | Example. Instead of the kitchen redecorating job, |
| family has approached you about redecorating your | | | | why not: |
| kitchen because your relatives are coming for a | | | | -- Hold the family reunion somewhere else, such as in |
| family reunion the week after next. Your family has | | | | a hotel in another city. |
| many items on its "wish list" (new paint treatment, | | | | -- Forget what the relatives think. Don't worry about |
| resurfacing the cabinetry, laying new tile, and installing | | | | the kitchen because everyone will be too busy |
| new crown molding). All of this must be completed in | | | | visiting to notice! |
| the next two weekends, which gives you only four | | | | 4. Give each risk alternative a "risk reduction |
| days! | | | | likelihood" score or rating. |
| Since you don't believe you have nearly enough time | | | | If you want to move forward with the project or |
| to complete the project, during your risk assessment, | | | | solution, but can't find a way to avoid or eliminate |
| you labeled one of the risks "Too Many Features | | | | the risk, you can weigh the relative merits of each |
| Too Little Time." This means the project | | | | alternative you brainstormed in #2 above. Similar to |
| requirements are too numerous, too complex, or | | | | the Assessment Phase, you can assign relevant |
| both, given the time available. This risk also scored | | | | values to each of your alternatives. In this case, |
| high in terms of its potential negative impact on cost, | | | | these values represent the likelihood that each |
| schedule, quality, and features. | | | | alternative can significantly reduce the negative |
| Mitigating the Risks You've Assessed -- Can You Do | | | | impact of the risk on the four key factors: cost, |
| It Successfully? | | | | schedule, quality, and features. |
| Once you have a list of assessed risks, you can | | | | For instance, a High Likelihood of reducing the impact |
| begin brainstorming a variety of ways to avoid, | | | | might be a 9, a Medium Likelihood a 5, a Low |
| minimize, or manage them. This is a quick and simple | | | | Likelihood a 1, and No Likelihood a zero, with a |
| process for doing so. | | | | different value possible for each of the four key |
| 1. Consider whether you can completely avoid or | | | | areas. |
| eliminate each risk. | | | | By adding up the values for each alternative, you'll |
| If your risk involves not having enough time to | | | | have a rough score for each that indicates which |
| incorporate certain requested features, is it possible | | | | alternatives seem to be the best candidates for |
| to agree on removing the features from the | | | | minimizing the risk -- the higher the score, the better. |
| requirements list entirely? Record any ideas for | | | | You also might consider whether to combine |
| avoiding the risk altogether. | | | | alternatives. Using two or more together might help |
| Example. With the kitchen redecorating job, you | | | | reduce the risk in a complementary way. |
| might consider these options: | | | | Example: Your family wishes to move ahead with the |
| -- Radically reduce the number of features; for | | | | project with all of the current requirements. After |
| example, only paint the walls. | | | | scoring and comparing the alternatives, it appears |
| -- Push out the schedule significantly. Maybe the | | | | that seeking professionals to do the work might best |
| relatives can come next year. | | | | minimize the risk. If that's not possible, your family will |
| 2. If you can't avoid a risk, brainstorm risk | | | | do the work with simpler materials and methods and |
| management alternatives. | | | | extensive help from friends. Either way, you can |
| Alternatives are ways of mitigating the risk - from | | | | always set up a second kitchen as a contingency |
| the simplest ideas to more sophisticated solutions. For | | | | plan. |
| the Features-versus-Time risk, one strategy could be | | | | What's the Plan? |
| to negotiate a way to phase in the features over | | | | When you are finished, you'll have a risk management |
| time. Another might entail engaging more people or | | | | plan consisting of analyzed risks with a ranked list of |
| resources to address the features, if feasible. In | | | | alternatives for handling each one. And even if you |
| some situations, you might even be able to buy | | | | decide not to take on the project you are evaluating, |
| insurance to mitigate a risk. | | | | you will have used 20:20 foresight to make that |
| Example. With the kitchen redecorating job, you | | | | decision instead of the 20:20 hindsight that's usually |
| could: | | | | required to find out the hard way -- after the fact! |
| -- Hire professionals to do the work, if there are any | | | | |