Point Lookout: a free weekly publication of Chaco Canyon Consulting
Volume 4, Issue 44;   November 3, 2004: Status Risk and Risk Status

Status Risk and Risk Status

by

Last updated: August 8, 2018

One often-neglected project risk is the risk of inaccurately reported status. That shouldn't be surprising, because we often fail to report the status of the project's risks, as well. What can we do to better manage status risk and risk status?

Warner glared his famous glare, and for once, he had a legitimate complaint. "Let me see if I have this right," he began. "You knew back in July that we had memory footprint problems, but you waited to report it until now. Is that right?"

FootprintsRobin had nowhere to go. "Yes, that's right. We felt it was best to wait until we were sure we had a problem."

"Well, we have a problem now, don't we?" Warner replied.

"Yes, and that's why…" Robin began, but Warner wouldn't let her finish.

"That's why you're reporting it, I know, I know."

Robin has made a serious error, but the mistake isn't hers alone. She failed to alert the project sponsor to a problem when she first became aware of it. And Warner's intimidating style tends to discourage early reporting of trouble.

Together, they're living out one of the consequences of status risk: the risk of failing to report status promptly and fully. Here are some sources of status risk:

Status risk is high
when realistic status
reporting is punishable
Rewarding positive reports and punishing negative reports
At any link in the status reporting chain, the report recipient might be signaling that only positive reports are acceptable. The signal can be unintentional, or it can be very deliberate.
Prior experience
People can bring to the reporting task their experiences with prior projects or prior managers. If they've learned along the way that realistic reporting is punishable, they're likely to apply those past lessons.
Turnover
When new people assume responsibility for work underway, their perceptions about status are likely to be inaccurate.
Wishful thinking
Because most of us want things to go well, we sometimes fool ourselves that our wishes match reality, especially if we've become attached to the task. See "Managing Wishful Thinking Risk," Point Lookout for October 21, 2015, for more about wishful thinking.

Making status reporting a group task helps mitigate status risk. Form a status review team that's responsible for reviewing status reports. Normally, they'll easily reach consensus, but any failure to reach consensus is valuable information in itself — it signals the need for a closer look by management.

Even when we manage Status Risk, there remains the too-common failure to report — or even to track — Risk Status. Most status reports focus on budget, schedule, milestones achieved, work completed, and so on. But we rarely report or track the status of our initial risk profile, and that can lead to surprised (and very upset) project sponsors. Including a review of the risk profile in each status report helps to limit the incidence of surprising disasters.

Status Risk and Risk Status are intimately intertwined. In part, the sources of status risk contribute to our spotty reporting of risk status. And by creating the conditions for surprising disasters, failure to track risk status can enhance status risk. Address both — or don't bother. Go to top Top  Next issue: The Fine Art of Quibbling  Next Issue

52 Tips for Leaders of Project-Oriented OrganizationsAre your projects always (or almost always) late and over budget? Are your project teams plagued by turnover, burnout, and high defect rates? Turn your culture around. Read 52 Tips for Leaders of Project-Oriented Organizations, filled with tips and techniques for organizational leaders. Order Now!

Your comments are welcome

Would you like to see your comments posted here? rbrenLiGQOsvOvnuPgKOLner@ChacqfLzohUJcIrUyDdioCanyon.comSend me your comments by email, or by Web form.

About Point Lookout

Thank you for reading this article. I hope you enjoyed it and found it useful, and that you'll consider recommending it to a friend.

Point Lookout is a free weekly email newsletter. Browse the archive of past issues. Subscribe for free.

Support Point Lookout by joining the Friends of Point Lookout, as an individual or as an organization.

Do you face a complex interpersonal situation? Send it in, anonymously if you like, and I'll give you my two cents.

Related articles

More articles on Project Management:

Two U.S. Army soldiers use binoculars and a riflescope to watch for insurgentsScheduling 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.
Rough-toothed dolphinThe Injured Teammate: I
You're a team lead, and one of the team members is very ill or has been severely injured. How do you handle it? How do you break the news? What does the team need? What do you need?
Edward Bernays, nephew of Sigmund Freud and an early pioneer in the field of Public RelationsCommunication Traps for Virtual Teams: I
Virtual teams encounter difficulties that rarely confront face-to-face teams. What special challenges do they face, and what can we do about them?
Flooding in Metarie, Louisiana, following Hurricane Katrina in 2005Mitigating Risk Resistance Risk
Project managers are responsible for managing risks, but they're often stymied by insufficient resources. Here's a proposal for making risk management more effective at an organizational scale.
Cargo containers at a port of entryUnresponsive Suppliers: III
When suppliers have a customer orientation, we can usually depend on them. But government suppliers are a special case.

See also Project Management for more related articles.

Forthcoming issues of Point Lookout

Feeling shameComing December 19: Embarrassment, Shame, and Guilt at Work: Creation
Three feelings are often confused with each other: embarrassment, shame, and guilt. To understand how to cope with these feelings, begin by understanding what different kinds of situations we use when we create these feelings. Available here and by RSS on December 19.
Inside the space station flight control room (FCR-1) in the Johnson Space Center's Mission Control CenterAnd on December 26: Embarrassment, Shame, and Guilt at Work: Coping
Coping effectively with feelings of embarrassment, shame, or guilt is the path to recovering a sense of balance that's the foundation of clear thinking. And thinking clearly at work is important if you want to avoid feeling embarrassment, shame, or guilt. Available here and by RSS on December 26.

Coaching services

I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrensHfZtAIblcfNtYlPner@ChacHwRKdqqunnCmpZmuoCanyon.com or (650) 787-6475, or toll-free in the continental US at (866) 378-5470.

Get the ebook!

Past issues of Point Lookout are available in six ebooks:

Reprinting this article

Are you a writer, editor or publisher on deadline? Are you looking for an article that will get people talking and get compliments flying your way? You can have 500 words in your inbox in one hour. License any article from this Web site. More info

Public seminars

The Power Affect: How We Express Our Personal Power
Many The Power Affect: How We Express Personal Powerpeople 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.

Follow Rick

Send email or subscribe to one of my newsletters Follow me at LinkedIn Follow me at Twitter, or share a tweet Follow me at Google+ or share a post Subscribe to RSS feeds Subscribe to RSS feeds
The message of Point Lookout is unique. Help get the message out. Please donate to help keep Point Lookout available for free to everyone.
Technical Debt for Policymakers BlogMy blog, Technical Debt for Policymakers, offers resources, insights, and conversations of interest to policymakers who are concerned with managing technical debt within their organizations. Get the millstone of technical debt off the neck of your organization!
Go For It: Sometimes It's Easier If You RunBad boss, long commute, troubling ethical questions, hateful colleague? Learn what we can do when we love the work but not the job.
101 Tips for Managing ConflictFed up with tense, explosive meetings? Are you the target of a bully? Learn how to make peace with conflict.
101 Tips for Managing ChangeAre you managing a change effort that faces rampant cynicism, passive non-cooperation, or maybe even outright revolt?
101 Tips for Effective MeetingsLearn how to make meetings more productive — and more rare.
Exchange your "personal trade secrets" — the tips, tricks and techniques that make you an ace — with other aces, anonymously. Visit the Library of Personal Trade Secrets.