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.
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More articles on Project Management:
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- Historically, military logistics practice has provided a steady stream of innovations to many fields,
including project management. But project managers can learn even more if we investigate battlefield tactics.
- The Injured Teammate: II
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do you handle it? Here are some suggestions for breaking the news to the team.
- Mitigating Risk Resistance Risk
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Here's a proposal for making risk management more effective at an organizational scale.
- Nonlinear Work: Internal Interactions
- In this part of our exploration of nonlinear work, we consider the effects of interactions between the
internal elements of an effort, as distinguished from the effects of external changes. Many of the surprises
we encounter in projects arise from internals.
- Design Errors and Groupthink
- Design errors cause losses, lost opportunities, accidents, and injuries. Not all design errors are one-offs,
because their causes can be fundamental. Here's a first installment of an exploration of some fundamental
causes of design errors.
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- 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.