In Part I of this two-part series, we examined the organizational and political risks of risk management plans and processes. Now we turn to the risks that arise from change and from the interactions between risks.
- Risk dynamics risk
- Risk is a dynamic attribute of projects. Even if a project were frozen in place, its risk probabilities and risk impacts could change, because its environment changes. It's necessary to review risk plans with a frequency compatible with the volatility of the risk environment, which is itself difficult to estimate.
- Indicators of risk dynamics risk include risk plans that remain unchanged for long periods of time; budgets and schedules that omit risk reviews or perhaps schedule them infrequently; and retrospectives that don't address risk review. If these indicators are present, risk dynamics risk is also likely present.
- Intra-project risk interactions
- Risk interactions within a given project are especially problematic. Two risks might seem independent, but the probability of one occurring might change if the other materializes; or the response to one risk might alter the consequences of or the probabilities of materialization of others; or the response to one risk might limit the project's ability to respond to another.
- For instance, if Arthur is backup for both Tory and Chris, all's well, as long as either Tory or Chris is available. If both become unavailable, we have trouble.
- The method known as morphological analysis developed by Fritz Zwicky, is useful for uncovering intra-project risk interactions. In this method, you examine all pairs of risks and ask, "If both risks materialize, will our planned responses still be effective?" If you find that the answer is "no," you can revise your plan. You can generalize this procedure to triples of risks, quadruples, and so on. For more on morphological analysis, see the article by Tom Ritchie at the Web site of the Swedish Morphological Society. Or take your pick from hundreds of sources.
- Inter-project risk interactions
- An inter-project risk interaction occurs when conditions in a given project change risk probabilities in another project, or cause risks to materialize in another project.
- For example, If Arthur is backup for both
Tory and Chris, all's well,
as long as either Tory or
Chris is availablesuppose two projects are scheduled to use the same resource serially. If the first project is delayed, the availability to the second project of that same resource changes. At the time of development of the risk plan of the second project, knowledge about the strategies and risks of the first would have been useful, but such information, sadly, is rarely shared.
- To limit inter-project risk interaction risk, coordinate risk reviews with projects likely to transmit risk back and forth. If the risk profile of one of the projects changes, there is enhanced probability of impact on the other.
Most risk conditions are connected to at least a few other risk conditions, either internal or external to the project. Maps of these connections can be very helpful. First in this series Top Next Issue
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More articles on Project Management:
- The Cheapest Way to Run a Project Is with Enough Resources
- Cost reduction is so common that nearly every project plan today should include budget and schedule
for several rounds of reductions. Whenever we cut costs, we risk cutting too much, so it pays to ask,
"If we do cut too much, what are the consequences?"
- Scheduling as Risk Management
- When we schedule a complex project, we balance logical order, resource constraints, and even politics.
Here are some techniques for using scheduling to manage risk and reduce costs.
- Managing Non-Content Risks: II
- When we manage risk, we usually focus on those risks most closely associated with the tasks at hand
— content risks. But there are other risks, to which we pay less attention. Many of these are
outside our awareness. Here's Part II of an exploration of these non-content risks, emphasizing those
that relate to organizational politics.
- Symbolic Self-Completion and Projects
- The theory of symbolic self-completion holds that to define themselves, humans sometimes assert indicators
of achievement that either they do not have, or that do not mean what they seem to mean. This behavior
has consequences for managing project-oriented organizations.
- Irrational Deadlines
- Some deadlines are so unrealistic that from the outset we know we'll never meet them. Yet we keep setting
(and accepting) irrational deadlines. Why does this happen?
Forthcoming issues of Point Lookout
- Coming December 13: Reframing Revision Resentment: II
- When we're required to revise something previously produced — prose, designs, software, whatever, we sometimes experience frustration with those requiring the revisions. Here are some alternative perspectives that can be helpful. Available here and by RSS on December 13.
- And on December 20: Conceptual Mondegreens
- When we disagree about abstractions, such as a problem solution, or a competitor's strategy, the cause can often be misunderstanding the abstraction. That misunderstanding can be a conceptual mondegreen. Available here and by RSS on December 20.
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- Person-to-Person Communications: Models and Applications
- When we talk, listen, send or read emails,
read or write memos, or when we leave or listen to voice mail messages, we're communicating person-to-person.
And whenever we communicate person-to-person, we risk being misunderstood, offending others, feeling
hurt, and being confused. There are so many ways for things to go wrong that we could never learn how
to fix all the problems. A more effective approach avoids problems altogether, or at least minimizes
their occurrence. In this very interactive program we'll explain — and show you how to use —
a model of inter-personal communications that can help you stay out of the ditch. We'll place particular
emphasis on a very tricky situation — expressing your personal power. In those moments of intense
involvement, when we're most likely to slip, you'll have a new tool to use to keep things constructive.
Read more about this program. Here's a date for this
- Embassy Suites by Hilton Jacksonville Baymeadows, 9300 Baymeadows
Road, Jacksonville, Florida, 32256, USA: January 15, 2018,
Monthly Meeting, Northeast Florida Chapter of the Project Management Institute. Register now.
- Embassy Suites by Hilton Jacksonville Baymeadows, 9300 Baymeadows Road, Jacksonville, Florida, 32256, USA: January 15, 2018, Monthly Meeting, Northeast Florida Chapter of the Project Management Institute. Register now.
- Ten Project Management Fallacies: The Power of Avoiding Hazards
- Most of what we know about managing projects is useful and effective, but some of what we know "just ain't so." Identifying the fallacies of project management reduces risk and enhances your ability to complete projects successfully. Even more important, avoiding these traps can demonstrate the value and power of the project management profession in general, and your personal capabilities in particular. In this program we describe ten of these beliefs. There are almost certainly many more, but these ten are a good start. We'll explore the situations where these fallacies are most likely to expose projects to risk, and suggest techniques for avoiding them. Read more about this program. Here's a date for this program:
- The Power Affect: How We Express Our Personal Power
- Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.