To execute their projects, project champions must secure resources from their organizations. Whether proposing new ideas, or seeking additional resources to continue work on existing efforts, they're in the role of "sellers." They must seek approval for resources from decision-makers — "buyers" in this situation. Risk creep happens when the decisions of buyers and sellers introduce unrecognized risk into the projects they pursue together. Here are three sources of risk creep. For more examples, see Part I.
- Organizational blind spots
- By applying to new efforts the patterns we used for past efforts, we often leave unaddressed whatever risks the past efforts didn't encounter. Most organizations have risk blind spots. The risks that are overlooked or underestimated tend to be correlated across similar efforts, because of knowledge and experience sharing, and because management tends to hire and promote people of similar strengths and abilities. In some cases, people with unique experiences or unusual knowledge might encounter resistance upon offering those experiences or knowledge, or upon incorporating their insights into plans and proposals. Thus, organizations not only have blind spots, but also harbor mechanisms that tend to maintain those blind spots.
- Sellers exploit the biases of buyers
- Intentionally By applying to new efforts the
patterns we used for past efforts,
we often leave unaddressed whatever
risks the past efforts didn't encounteror inadvertently, buyers disclose their personal preferences to sellers, who then use that information in the selling process, to make their proposals more appealing to buyers. In some cases, this tailoring requires biased assessments of risks of the proposed project. Risk then creeps into the project, even when neither buyer nor seller is aware of the bias. These biases affect sellers not only in how they position their proposals, but also in their choices of what to propose. Some perfectly sound ideas are never even proposed, because the sellers mistakenly believe the buyers wouldn't be interested.
- Both buyers and sellers exploit urgency
- When we regard pursuing an idea as urgent, we're more likely to accept risks, more likely to underestimate risks, and more likely to overlook risks. Both buyers and sellers contribute. Some buyers have preconceived ideas about what's important. Whether or not they're correct, they communicate their preconceptions to sellers to encourage them to propose the kinds of ideas they favor. At times buyers add a dash of urgency to these communications to attract the most capable sellers. This biases the portfolio of proposals they receive by replacing importance with urgency. As an element of their "sales pitch," some sellers assert, "…we must do this now or miss the opportunity." This replaces the question of the importance of the proposed objective, with a question of timing. When this happens, both buyer and seller may be mistaking urgency for importance. Whether buyers or sellers exploit urgency, risk creeps in.
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More articles on Project Management:
- Communication Traps for Virtual Teams: II
- Communication can be problematic for any team, especially under pressure. But virtual teams face challenges
that are less common in face-to-face teams. Here's Part II of a little catalog with some recommendations.
- Scope Creep, Hot Hands, and the Illusion of Control
- Despite our awareness of scope creep's dangerous effects on projects and other efforts, we seem unable
to prevent it. Two cognitive biases — the "hot hand fallacy" and "the illusion
of control" — might provide explanations.
- Down in the Weeds: II
- To be "down in the weeds," in one of its senses, is to be lost in discussion at a level of
detail inappropriate to the current situation. Here's Part II of our exploration of methods for dealing
with this frustrating pattern so common in group discussions.
- How We Waste Time: II
- We're all pretty good at wasting time. We're also fairly certain we know when we're doing it. But we're
much better at it than we know. Here's Part II of a little catalog of time wasters, emphasizing those
that are outside — or mostly outside — our awareness.
- Planning Disappointments
- When we plan projects, we make estimates of total costs and expected delivery dates. Often these estimates
are so wrong — in the wrong direction — that we might as well be planning disappointments.
Why is this?
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- And on July 15: Disjoint Concept Vocabularies
- In disputes or in problem solving sessions, when we can't seem to come to agreement, we often attribute the difficulty to miscommunication, histories of disagreements, hidden agendas, or "personality clashes." Sometimes the cause is much simpler. Sometimes the concept vocabularies of the parties don't overlap. Available here and by RSS on July 15.
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