| When your enterprise decides to undertake a new | | | | To complicate matters, people often feel pressured |
| endeavor -- whether it's designing a new training | | | | to further "reduce the truth" -- that is, to minimize |
| program, planning a new service, or revamping an | | | | whatever their already low calculations tell them it |
| existing product -- this endeavor is called a project. It | | | | should take when they put together a bid. Whenever |
| involves people, funding, resources, schedules, | | | | management pushes people to underestimate this |
| requirements, testing, fine tuning, and deployment, | | | | way -- perhaps for fear of losing the project -- the |
| plus a host of other activities. | | | | risks can easily overwhelm and even destroy the |
| You may have seen this phenomenon by now: | | | | project's success. |
| projects are risk magnets. Why is that? | | | | 4. Project requirements are typically fuzzy at the |
| There appear to be several factors involved. | | | | beginning. |
| Managing project risk is a process that seems to be | | | | Whether you're talking to a client, your boss, your |
| poorly understood by business owners and project | | | | colleagues, or your clients to figure out what the |
| managers. As a result, projects frequently experience | | | | project should produce, whatever they say initially |
| problems with understaffing, schedule overruns, cost | | | | may sound as clear as a bell in some areas but very |
| overruns, and unmet requirements. This article (the | | | | sketchy in others. Getting clarification on the fuzzy |
| first of a series) explains six common traps that, | | | | parts might entail many conversations with many |
| when not fully recognized, can lead to unpleasant | | | | people, and much more time than anybody ever |
| surprises. | | | | imagined. |
| Here's what I've observed over many years as both | | | | 5. Requirements invariably shift over time. |
| a project leader and participant: | | | | The minute after you've cemented the requirements |
| 1. Each project differs in some way, shape, or form | | | | with everyone's agreement, "scope creep" begins. |
| from the last one. | | | | This means that the project needs may expand, |
| If all your projects were exactly the same, you could | | | | shrink, or morph into something altogether different! |
| simply use a cookie-cutter approach to crank 'em out | | | | These situations arise because the very act of |
| without losing any sleep at night. Although projects | | | | creating something new can produce a result (or a |
| may share some similarities, a new project could very | | | | series of results) that may exceed or differ from |
| easily introduce several new, unfamiliar elements that | | | | what people were capable of imagining at the start. |
| can completely throw off your sense of balance - | | | | And even when the team guards against it, pressure |
| often without your even realizing it until it's too late. | | | | to include "add-ons" can stretch the scope beyond its |
| 2. Projects are often constrained by finite conditions. | | | | limits. |
| Initially, you might hear limitations such as, "We only | | | | 6. Nearly everything else about the project is |
| have $1,200 and three weeks to have you complete | | | | dynamic! |
| all 18 training modules for this project." (What? You're | | | | Aside from the requirements changing, many other |
| thinking that based on the requirements you've heard | | | | things can stop, start, or fluctuate during the project. |
| so far, this project should take a year and a half and | | | | Experienced people may leave and new people may |
| cost three hundred grand!) | | | | come on board. Budgets could get chopped. |
| Speaking of constraints, it's not unusual for project | | | | Schedules might get slashed or -- sometimes even |
| sponsors or clients to ask for 1) low cost and 2) fast | | | | worse -- delayed. Resources may evaporate or not |
| completion and 3) high quality and 4) many features | | | | materialize in the right forms. Politics can sneak in and |
| in the final project deliverables. Although it's | | | | remove support, or require skipping critical steps such |
| understandable to want the greatest value for the | | | | as testing. The list goes on and on. |
| money, unless the project is blessed with an infinite | | | | Studies of failed projects have revealed how difficult |
| schedule and an unlimited budget, tradeoffs become | | | | it can be to detect all of the red flags in advance. |
| necessary. | | | | Unbridled optimism can block everyone's ability to see |
| Usually it's only possible to achieve two or three out | | | | clearly. Yet turning down an iffy project may be |
| of four of these goals on a typical project. The | | | | better than letting egos rule. |
| tradeoffs might constrain the number of features, | | | | What to do? As we've seen, projects can involve |
| limit the quality, or both. | | | | several highly dynamic variables. They often operate |
| 3. People chronically underestimate their time and | | | | under tight budgets and schedules. People tend to |
| effort. | | | | miscalculate time, effort, and resources. |
| Whether it's because of a perceived social stigma or | | | | Requirements frequently expand, shrink, or change. |
| a cloudy crystal ball, people typically have a difficult | | | | And shifting circumstances can pull the rug out from |
| time deriving realistic project estimates. Given the | | | | under everyone's plans. Add these together and |
| number of project unknowns, coming up with | | | | many projects will cook up a recipe for failure. |
| accurate predictions can be tricky. (Smart project | | | | But it doesn't have to be that way. You and your |
| managers know this and frequently add buffers | | | | team can learn to avoid project pitfalls by paying |
| derived from records of actual past experience, | | | | close attention to the cause-and-effect relationships |
| commonly known as "fudge factors," to project bids.) | | | | among these six important keys! |