
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 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.
Risk is a fact of life. Risk creep need not be. Use open conversations to mitigate risk creep risk. First in this series Top
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Related articles
More articles on Project Management:
Communication 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?
Why Scope Expands: II
- The scope of an effort underway tends to expand over time. Why do scopes not contract just as often?
One cause might be cognitive biases that make us more receptive to expansion than contraction.
Unnecessary Boring Work: I
- Work can be boring. Some of us must endure the occasional boring task, but for many, everything about
work is boring. It doesn't have to be this way.
Ten Approaches to Managing Project Risks: I
- Risk management usually entails coping with losses if they do occur. Here's Part I of a concise summary
of the options for managing risk.
Missing the Obvious: I
- At times, when the unexpected occurs, we recognize with hindsight that the unexpected could have been
expected. How do we miss the obvious? What's happening when we do?
See also Project Management and Personal, Team, and Organizational Effectiveness for more related articles.
Forthcoming issues of Point Lookout
Coming March 3: Risk Acceptance: One Path
- When a project team decides to accept a risk, and when their project eventually experiences that risk, a natural question arises: What were they thinking? Cognitive biases, other psychological phenomena, and organizational dysfunction all can play roles. Available here and by RSS on March 3.
And on March 10: On Repeatable Blunders
- When organizations make mistakes, they sometimes acknowledge them and learn how to avoid repeating them. And sometimes they conceal them or even deny they happened. When they conceal mistakes or deny they occurred, repetition is more likely. Available here and by RSS on March 10.
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