Point Lookout: a free weekly publication of Chaco Canyon Consulting
Volume 17, Issue 45;   November 8, 2017: Risk Creep: II

Risk Creep: II

by

When risk events occur, and they're of a kind we never considered before, it's possible that we've somehow invited those risks without realizing we have. This is one way for risk to creep into our efforts. Here's Part II of an exploration of risk creep.
Selling an idea

Selling an idea

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 encounter
or 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.

Risk is a fact of life. Risk creep need not be. Use open conversations to mitigate risk creep risk. First in this series  Go to top Top  Next issue: Exploiting Functional Fixedness: I  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? rbrenSFeFFkPVVigAWiEqner@ChacYnOerllYwkdMDDuZoCanyon.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:

Mess line, noon, Manzanar Relocation Center, California, 1943Remote Facilitation in Synchronous Contexts: II
Facilitators of synchronous distributed meetings — meetings that occur in real time, via telephone or video — encounter problems that facilitators of face-to-face meetings do not. Here's Part II of a little catalog of those problems, and some suggestions for addressing them.
A section of the Rose Kennedy Greenway in Boston in 2008The Politics of the Critical Path: I
The Critical Path of a project or activity is the sequence of dependent tasks that determine the earliest completion date of the effort. If you're responsible for one of these tasks, you live in a unique political environment.
Robert F. Scott and three of his party arrive at a tent left by Roald Amundsen near the South PoleManaging Non-Content Risks: I
When project teams and their sponsors manage risk, they usually focus on those risks most closely associated with the tasks — content risks. Meanwhile, other risks — non-content risks — get less attention. Among these are risks related to the processes and politics by which the organization gets things done.
Platform supply vessels battle the fire that was consuming remnants of the Deepwater Horizon oilrig in April 2010Managing 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.
The U.S. F-35 Lightning II joint strike fighter lifts off for its first training sortie March 6, 2012, at Eglin Air Force Base, FloridaWishful Thinking and Perception: II
Continuing our exploration of causes of wishful thinking and what we can do about it, here's Part II of a little catalog of ways our preferences and wishes affect our perceptions.

See also Project Management and Personal, Team, and Organizational Effectiveness for more related articles.

Forthcoming issues of Point Lookout

Office equipment — or is it office toys?Coming July 25: Exploiting Functional Fixedness: II
A cognitive bias called functional fixedness causes difficulty in recognizing new uses for familiar things. It also makes for difficulty in recognizing devious uses of everyday behaviors. Here's Part II of a catalog of deviousness based on functional fixedness. Available here and by RSS on July 25.
Tim Murphy, official photo for the 112th CongressAnd on August 1: Strategies of Verbal Abusers
Verbal abuse at work has special properties, because it takes place in an environment in which verbal abuse is supposedly proscribed. Yet verbal abuse does happen at work. Here are three strategies abusers rely on to avoid disciplinary action. Available here and by RSS on August 1.

Coaching services

I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenMxYcFozwdHZTChgjner@ChacQPgfmKDNeRHTPoiwoCanyon.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.
303 Tips for Virtual and Global TeamsLearn how to make your virtual global team sing.
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.