
Example of an unsecured driver-side floor mat trapping the accelerator pedal in a 2007 Toyota Lexus ES350. We don't yet know much about the root cause of quality problems in recent models of vehicles designed and manufactured by Toyota, but we can already evaluate the company's public response to the reports of problems. Briefly, their response has been erratic. In part, this might be due to the company's inexperience with defects. Their record has been so good, and recalls so few, that they might have had an organizational blind spot relating to the risk of public exposure of defects in their products. Undoubtedly, this blind spot is now being corrected, albeit in a manner most unpleasant for all concerned. Photo courtesy U.S. National Highway Traffic Safety Administration.
Risk plans are rarely perfect. For complex projects, unanticipated risk will almost certainly materialize. We can deal with this risk — I'll call it risk management risk — if we adopt some simple practices. Let's begin with some examples of organizational and political risks.
- Organizational blind spots
- Organizational risk management asset bases usually consist of previously developed risk plans and risk plan elements, documented risk plan development procedures, and personal experiences.
- Although referring to these assets might uncover risks that any particular risk manager might not otherwise consider, relying on the asset base probably won't uncover risks not included there. Since continuous organizational change almost certainly exposes the organization to risks never before seen, these asset bases have blind spots.
- To limit these blind spots, analyze the results of retrospectives to determine what risks were unanticipated. They provide clues to the location of the organization's blind spots.
- Organizational political correctness
- In general discourse, political correctness requires that we shape our statements and behavior — if not our opinions — to conform to a generally accepted ideological standard. Organizational political correctness provides an analogous constraint relative to the ideology and views of the organization.
- Organizational Organizational political correctness
can limit the ability of risk managers
to address significant riskspolitical correctness can limit the ability of risk managers to address significant risks, when even discussing such risks calls into question organizational beliefs, or the beliefs of those who have internal political power. - If a common theme appears among unanticipated risks, if those risks are evident to many, and if the same risks materialize across many projects, organizational political correctness could be a cause. Organizational culture change is required to address this risk.
- Political risk
- The organizational value of any project is determined, in part, by the political clout of its advocates. How an organization values a project can present risks to it through resource allocation, schedule, and budget.
- Although these risks are widely understood, talking about them openly and planning for them in writing is often difficult, for reasons far beyond organizational political correctness. For the politically weak project, committing to writing and review any plan to deal with political risks simply provides a roadmap to rival projects if they are politically stronger. Such a risk plan is often effectively countered before it can be implemented. In some cases, it might even be forbidden. This effect is especially pronounced if a state of toxic conflict persists between the departments, leaders, or champions of the two projects.
- Two factors suggest the presence of political risk. First is the absence of any explicit mention of political risk from the risk plans of politically weak projects. A second indicator can be changes in the execution plan of politically stronger projects, especially following publication of the risk plan of a politically weaker project.
In Part II, we'll examine risk dynamics and risk interactions. Next in this series Top
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Related articles
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?"
Toxic Projects
- A toxic project is one that harms its organization, its people or its customers. We often think of toxic
projects as projects that fail, but even a "successful" project can hurt people or damage
the organization — sometimes irreparably.
Down in the Weeds: I
- When someone says, "I think we're down in the weeds," a common meaning is that we're focusing
on inappropriate — and possibly irrelevant — details. How does this happen and what can
we do about it?
Just-In-Time Hoop-Jumping
- Securing approvals for projects, proposals, or other efforts is often called "jumping through hoops."
Hoop-jumping can be time-consuming and frustrating. Here are some suggestions for jumping through hoops
efficiently.
The Risks of Too Many Projects: I
- Some organizations try to run too many development projects at once. Whether developing new offerings,
or working to improve the organization itself, taking on too many projects can defocus the organization
and depress performance.
See also Project Management and Personal, Team, and Organizational Effectiveness for more related articles.
Forthcoming issues of Point Lookout
Coming January 27: Cost Concerns: Comparisons
- When we assess the costs of different options for solving a problem, we must take care not to commit a variety of errors in approach. These errors can lead to flawed decisions. One activity at risk for error is comparing the costs of two options. Available here and by RSS on January 27.
And on February 3: Cost Concerns: Bias
- When we consider the costs of problem solutions too early in the problem-solving process, the results of comparing alternatives might be unreliable. Deferring cost concerns until we fully understand the problem can yield more options and better decisions. Available here and by RSS on February 3.
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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.
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Webinar, sponsored by Technobility
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- A recording of a program presented June 29, 2017, Monthly
Webinar, sponsored by Technobility
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- Bullet Points: Mastery or Madness?
Decis
ion-makers in modern organizations commonly demand briefings in the form of bullet points or a series of series of bullet points. But this form of presentation has limited value for complex decisions. We need something more. We actually need to think. Briefers who combine the bullet-point format with a variety of persuasion techniques can mislead decision-makers, guiding them into making poor decisions. Read more about this program.
- A recording of a program presented June 24, 2020, Monthly
Webinar, sponsored by Technobility
Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.
- A recording of a program presented June 24, 2020, Monthly
Webinar, sponsored by Technobility
Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.
- A recording of a program presented June 24, 2020, Monthly
Webinar, sponsored by Technobility
Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.
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