Managing Project Risks (Part 3): How to Quickly Assess Potential Pitfalls

Being optimistic is a wonderful thing, but being overlySo, of all of the risks you've identified, you might
optimistic -- in the face of unrealistic odds -- canlabel one of them "Too Many Features/Too Little
sabotage a project's success. Over-optimism aboundsTime." This means that the project requirements are
when people view every project as a "must-win"too numerous, too complex, or both, given the time
effort while failing to flag potential problems. In Part 2available.
of this series, we identified 10 types of risks related1b. Next, describe the kinds of problems this risk
to choosing, estimating, and staffing your projects.could cause.
After identifying the potential risks, the next phaseAlso ask how likely it is to occur. For instance, if
entails assessing to what extent the risks canyou're concerned that you won't have enough time in
negatively affect your project in areas such as cost,the schedule to incorporate everything requested,
schedule, quality, or features. This article (Part 3 ofwhat problems might it cause whoever will be using
the series) explains how you can quickly evaluate anythe product, system, or solution? Are those chances
risks you've identified to see whether they're likely tofairly high? Describing these concerns can help
overwhelm your project.everyone on your team agree on just how serious
Risks You May Have Flaggedthat potential risk is.
Using the ideas in Part 2 of this article series, you andExample: Your relatives might arrive while the work is
your team may have identified one or more concernsstill in progress, and the kitchen will be unusable. Also,
related to a project you're weighing. Tenif you bow to the pressure to hurry, the quality of
considerations appear below; you might think ofthe work may be low. Both of these problems are
many others. If your answer to any question is "yes"likely if your family members try doing the work
-- or even "maybe" -- in relation to your project, itthemselves, since they're not skilled in home
means that you've flagged a risk:improvements.
1) Is the project non-compelling or a bad fit for the2. Give each identified risk a "potential impact" score
project team?or rating.
2) Will the project scope entail operating in unfamiliarYou can give each risk a High Impact, Medium
territory?Impact, Low Impact, or No Impact score, based on
3) Are project requirements, such as productsimple numbers you can derive easily. One way is to
features, complex?assign relative values to the negative impact a risk
4) Are the requirements pitted against an aggressivemay have on the project cost, schedule, quality, and
schedule?features -- with a different value possible for each of
5) Are too few personnel and resources available forthese four areas. For example, a high negative impact
the project?might be a 9, a medium impact a 5, a low impact a 1,
6) Will coordination with many different collaboratorsand no impact a zero.
be needed?Example: Your kitchen redecorating project might
7) Are the primary collaborators unfamiliar to theearn scores like those below.
project team?* Cost - You estimate that by doing the work
8) Are project team members discouraged fromyourselves, you'll possibly save money (if you don't
raising concerns?botch the job). So your "Too Many Features/Too
9) Are there insufficient review and test cycles in theLittle Time" risk might have a medium negative
schedule?impact on cost, for a score of 5.
10) Are there no standard protocols for managing* Schedule - Since you feel backed into an almost
scope changes?unworkable time frame, you expect a high negative
Assessing the Risks You've Identified -- Howimpact on schedule, for a score of 9.
Worrisome Are They?* Quality - Because you expect to rush through the
Once you have a list of risks, you can next assessproject, you anticipate a high negative impact on
them to find out whether they will be mildly annoyingquality, for a score of 9.
or could wreak havoc on your project. This is a quick* Features - Some features probably can't be
and simple process for evaluating them:completed, regardless of how fast you go. You
1a. Start by giving each risk a name or label.foresee a high negative impact on features, for a
Example: Imagine that your family has approachedscore of 9.
you about redecorating your kitchen because yourThe total score for all four areas in this example is
relatives are coming for a family reunion the week32, very close to the maximum. When you complete
after next. Your family believes that several changesthe process for any other risks you identified, you
are needed, as follows:can compare this score with the others to see which
Project requirements:risks are of greatest concern. You can then
* New faux paint treatment on the wallsdetermine the priority order in which to mitigate
* Resurfacing all of the kitchen cabinetrythem.
* Laying new tile on top of the vinyl flooringWhen you are finished with this phase, you'll have a
* Installing crown molding around the ceilingset of named and assessed risks. Following this, Part
Time available: Two weekends (four days) within the4 in the series will explain how to brainstorm ways to
next 10-day period. But you don't believe that's nearlyavoid, eliminate, work around, or otherwise mitigate
enough time to complete the job!each risk.