Risk and Communication Slides

Report
Scoping and Launching the
Project
Dr. Vijay Kanabar, PMP
Boston University
Project Methodology
Stages:
Plan
Define
Execute
Close Out
&
Celebrate
Continuous Assessment
(Risk mgmt, plan control, change mgmt)
Project Plan
Outputs:






Stakeholder Analysis
Project Proposal
Project Charter
Statement of Work (SOW)
Communication Plan
Responsibility Matrix
 Work Breakdown
Structure (WBS)
 Critical Path
 Scheduling
 Risk Assessment
 Resource Plan




High Performing Team
Scope Control
Stakeholder Management
Final deliverables
Communications Management
Including Resource Planning
Communication Management
 Communications management is about keeping
everyone aware about what is going on with the project.
“Up to 90% of a project manager's time
is spent in communications
management.”
- PMI
Communication Requirements
 Responsibility – who ‘owns’ what
 Coordination – keeping it going together
 Status – progress, issues, resolutions
 Authorization – decisions made
Tools
 Status report
 Dashboard?
 Open task report
 Past due
 Short-view task list
 Forecast of what comes next
 Issues log
 What is happening, who can fix it
 Change control process
 Automated/manual
 Levels of approval
 Implications for other tasks & deliverables
Types Of Reports
Different types of reports are sent to Different types of
audience.
Report type
Executive status report
Status report
Project report
Task report
Audience
Senior Management
Project sponsor
Project team
Team members
PMI Processes for Communications
Planning
Executing
Monitor &
Control
Plan Communications
Distribute Information
Report Performance
Ref: PMBOK 4th Edition.
8
Manage Stakeholders
Expectations
Project Manager Role in
Communication
 Project managers must keep the following
informed:






Project owners
Team members
Management
Subcontractors and
Stakeholders.
Anyone else?
Communication Activities
Communication Activities involve
 Developing a communication management
plan
 Managing stakeholders
 Distributing project information in a timely
manner
 Motivating teams
 Resolving conflicts.
Communications Model
Messages are encoded and decoded using a
device or technology before they travel over the
medium.
11
The Communication Process
Receiver
provides verbal
and nonverbal
responses to
sender
Sender has
idea
Sender
encodes idea
into a
message
Sender’s response
to feedback may
trigger additional
feedback to
receiver
Message
travels over
one or more
channels
Receiver
perceives and
decodes
message
The Communication Process
Message
 The message refers to the verbal (spoken and written)
symbols and nonverbal cues representing the information
that the sender wants to convey.
 Nonverbal Messages
 Verbal Messages
 Written Messages
Filters
14
Filters
There are filters on both sides of the
sender and receiver that hinder
communication.
a. Language: technical material, lack of clear
communication channels, physical
separation, personality conflicts, culture,
semantics, and message content (could be
intertwined with hidden agendas).
b. Environmental background:
psychological and sociological parameters,
dysfunctional emotional behaviors. Different
educational backgrounds.
Filters (contd.)
c. Authority/Reputation
d. Pre-determined mind-set: Having a selffulfilling philosophy or unfounded
assumptions.
e. Historical consideration: The way a task
was always done.
Barriers
Communication barriers including mumbling, long
distance, static or noise and negative attitudes or
power play.
Examples are listed below :
 Noise
 Pre-occupation
 Power game
 Withholding information
 Management by Memo
 Hostility
 Filters
Too Many Communication Channels
 Communication can become a very complex activity in
large project settings.
 Formula that will calculate the lines of communication or
the communication channels based on the number of
people involved in a project
Lines of communication = N (N-1)/2
Communication Management Plan
 The Communication Management Plan is
the primary output of the communications
planning process.
 Communication Management Plan is
created by the project manager and
becomes part of the project plan.
 The purpose is to inform all stakeholders
how and in what form communications will
be handled on the project.
Communication Plan
1.Introduction
2.List steering committee and all stakeholder groups with a description of the
purpose of the group and a list of all members for each group.
3.Formal Communication Schedule/Plan
Communication
Content
Owner Audience
Audience
Method
Frequency / Date
4.Communication
Recipients
Method
Timing
(What)
(Whom)
(How)
(When)
5.Communication Rules
Method
Responsibility Assignment Matrix


WBS Activities
Units
A Responsibility
Assignment Matrix (RAM)
is a matrix that maps the
work of the project as
described in the WBS to the
people responsible for
performing the work as
described in the organization
breakdown structure (OBS).
For smaller projects assign
individual people to WBS
activities.
For very large projects, it is
more effective to assign the
work to organizational units
or teams.
OBS

Marketing
1.2
R
RP
1.3
Finance
1.4
R
P
IT
R = Responsible organizational unit
P = Performing organizational unit
21
1.1
R
P
1.5
Responsibility Matrix - For Decision
Making
GR 1
Business Case
CEO
CFO
COO
(Ops/Logistics)
VP Human
Resources
VP CCE
(if CCE project)
VP Strategy
GR 2
Opportunity
Identification
GR 3
Capture Strategy
GR 4
Proposal
Go / No-Go
GR 5
Program Design
Feasibility
GR 6
Proposal
Responsiveness
& Compliance
GR 7
Proposal Quality
(Submission)
X
(if signature
required)
X
X
X
X
X
X
X
X
X
X
X
VP Programs
X
VP Region
X
X
X
X
X
X
Director G&C
Country Rep /
CoP
X
X
X
Director NBD
X
X
X
X
X
X
X
X
Resource Planning
 Determining what resources (people, equipment,
materials) are needed in what quantities to perform
project activities.

PMBOK Glossary
Resource Requirements
Inputs






Work Breakdown Structure
Historical information
Scope statement
Resource pool description
Organizational policies
Activity duration estimates
Tools and Techniques

Expert judgment
 Alternatives identification
 Project management software
Outputs

Resource requirements
Responsibility Matrices
 Also called a linear responsibility chart.
 Summarizes the tasks to be accomplished and who is responsible
for what on the project.
 Lists project activities and participants.
 Clarifies critical interfaces between units and individuals that
need coordination.
 Provide an means for all participants to view their responsibilities
and agree on their assignments.
 Clarifies the extent or type of authority that can be exercised by
each participant.
Responsibility Matrix
Instructional Notes for the RACI Matrix:
The RACI Matrix is a powerful tool to assist in the identification of roles and assigning of crossfunctional responsibilities to a project deliverable or activity.
RACI represents: R - Responsibility, A - Accountable, C - Consulted, and I - Informed
RACI Definitions:
R esponsibility = person or role responsible for ensuring that the item is completed
A ccountable = person or role responsible for actually doing or completing the item
C onsulted = person or role whose subject matter expertise is required in order to complete the
item
I nformed = person or role that needs to be kept informed of the status of item completion
Simply place an R, A, C, I or any appropriate combination in each of the applicable roles for
each activity Each Activity should have at least one individual Accountable while there may be
shared responsibilities depending on the activity.
RACI Matrix is widely used
Responsible
Accountable
Consulted
Informed
People who
do the work
Makes sure
work is done
Provide work
input
Progress
Report
provided
Or could be Assist, Coordinate, Sign-off, Review etc.
Responsibility Matrix
Identify
Scope
Create
Prototype
Coordinate
Training
Mary
R
C
R
Peter
A
R
R
James
C
A
A
Responsibility Matrix
RACI Matrix Template
Initiate Phase Activities
Plan Phase Activities
Execute Phase Activities
Control Phase Activities
Close Phase Activities
Role #5
Role #4
Role #3
Role #2
Role #1
External Contributors
Role #5
Role #4
Role #3
Role #2
Project Sub-Team s
Role #1
Role #5
Role #4
Role #3
Role #2
Role #1
Project Team Mem bers
Role #5
Role #4
Role #3
Project Deliverable
(or Activity)
Role #2
Role
Role #1
Project Leadership
Project Methodology
Stages:
Plan
Define
Execute
Close Out
&
Celebrate
Continuous Assessment
(Risk mgmt, plan control, change mgmt)
Outputs:






Stakeholder Analysis
Project Proposal
Project Charter
Statement of Work (SOW)
Communication Plan
Responsibility Matrix
 Work Breakdown
Structure (WBS)
 Critical Path
 Scheduling
 Risk Assessment
 Resource Plan




High Performing Team
Scope Control
Stakeholder Management
Final deliverables
iBasis Project/Initiative Discussion
Communications Plans
 Form into groups based on group lists
 Combine break & work session = 30 Minutes
 Continue to discuss project/initiative that was assigned to
your group
 Brainstorm and document:
 Identify the key components of a project communications plan for your
projects.
 Vijay – Identify key frameworks that you want them to use here
 Action: Be prepared to present your communications plan
xxx framework/template to the larger group
 Pick a spokesperson to represent you
Risk Management
Dr. Vijay Kanabar, PMP
Boston University
Risk Management Planning
 Risk Management Planning is a
process that describes your
strategy to manage the entire risk
management activities for a
project.
3
3
Why Risk Management?
 Project managers and project teams
are always more optimistic than they
should be.
 Risk management balances out undue
optimism by introducing a process that
constantly asks “what if?”
3
4
Philosophy:
Prevention is Better
 than
As in medical
the practice
Cure!risk prevention is more
cost-effective (and potentially life saving) than
risk detection.
 Project risks must be tackled actively and
prevented.
 A good project manager must know how to
recognize such risks, evaluate their impact and
take steps to counter them.
3
5
Process
 Identify all risks.
 Quantify them in terms
of their probability and impact.
 high, medium, low, no impact.
 Respond




prevent
mitigate
Transfer
Absorb
3
6
Let us Make this Complicated
There are Threats & Opportunities
 So far we have defined risk as a
threat—event that may cause
suffering, harm or loss, but risks are
also associated with opportunity—
event that may cause us to gain or
profit.
3
7
A complete example
Risk Identification: Turnover
 Based on past history turnover is estimated to be
at 0.60.
 This is going to increase project duration and
project cost. Customer is going to be unhappy.
Risk Quantification:
 High Probability, High Consequence.
Risk Response:
 Meet with current staff & determine reasons.
 Define a back-up staff member for every key
technologist.
 Define higher documentation standards.
 Disperse project information widely.
3
8
What are sources of risks in your
organization?












Scope creep
Resources
Low quality
Excessive schedule pressure
Cost overruns
Inadequate configuration control
Inadequate cost estimating
Excessive paperwork
Error prone software /modules
Canceled projects
Excessive time to market
Friction between contractor, client,....
See Sample List
to consider !
3
9
Identifying Risks:
Two Different Approaches
Generic Approach
•Operational risk.
•Strategic risk.
•Technical risk
•Projectprocess.
Environmen
Focus on overall development
•External
risk.
Project
Based Approach
•Product
•See nextrisk.
slide.
Top Down
Bottom-Up
Focus on individual process or WBS 4tasks
0
PMBOK Process
4
1
Risk Identification
 During this process you examine a project to identify
areas of potential risk. Risk Identification is a planning
process that defines the risks that might affect the
project and documents their characteristics.
4
2
Visually Quantify Risks
4
3
Use this to Quantify Qualitatively
100%
RISK SEVERITY CONTOURS
(Unacceptable)
Probability
High Risk
0%
Medium Risk
Low Risk
(Acceptable)
Units of relative loss
100%
4
4
Use this to Quantify Quantitatively
Example 1
Risk
Probability
Impact or
Amount at
Stake
Risk
Contingency
Cost Overrun
0.8
500,000
-$400,000
Vendor Problem
0.5
100,000
-$50,000
Potential Impact to Project is $450,000
Should we request a
contingency budget of
$450,000?
•Management might give less
as the probability of both risks
4
5
Example 2
Risk
Probability
Impact or
Amount at
Stake
Risk
Contingency
Cost Overrun
0.8
500,000
-$400,000
Faster
Completion
0.5
100,000
+$50,000
Potential Impact to Project $350,000
4
6
Example 3
 There is a Project from which we stand to Profit
$100,000 if we pursue it aggressively—by developing it
very quickly—results in higher market share. However,
the probability for success is estimated to be only 20%
as all the bells and whistles will not be available in the
product.
 However, if we pursue it more conservatively we will
make $20,000, as the competition might have captured
a significant portion of the market. But the probabilities
for project/product success are 80%--as the developers
will have incorporated some additional features.
4
7
Example (contd)
 Question: Which option should we use?
 Use:
 Business Profit * Probability
4
8
Example (contd)
Answer:
 Aggressive: $100,000 * 0.20 = $20,000
 Conservative: $20,000 * 0.80 = $16,000
 EMV = +$ 4000 for aggressive choice should be the
preferred choice.
 Note: You would want a lower number if the risk was
negative.
4
9
What it looks like
Commute: 30 mins to
90
minutes
Could be cost or could be schedule risk that
5 is
0
Monte-Carlo Simulation Sample Diagram using Excel from http://www.projectsmart.co.uk/docs/monte-carlo-simulation.pdf .
Risk Response Planning

Risk response planning:
 Developing procedures and techniques to enhance
opportunities and reduce threats to the project’s objective;
 The risk register is updated.
 This process is followed by Monitor and Control.
5
1
Assessing and Planning for Risk
H
Probability
ELIMINATE
REDUCE
ACCEPT
L
L
Impact
H
Response Planning
Negative Risks
 Prevent the risk
 Transfer the risk
 Mitigate the risk
 Share the risk.
 Leave it aside and Monitor
(accept the risk)
5
3
Response Planning
Positive Risks
 Exploit and Maximize!
5
4
Techniques with Examples
 1. Avoidance:
 Prevention: Change the scope of the project.
 2. Transference:
 Move it outside: Purchase Insurance.
 3. Mitigation:
 Containment: Send the resource for training.
 4. Acceptance:
 Leave it aside: Gets absorbed in a contingency
budget.
5
5
Risk Management:
Prevention Template
What can go
wrong with
my project?
Risk
Event
Where is the
greatest
impact of the risk?
Impact
of Risk
How might I
prevent it
from going wrong?
How can I mitigate it?
Prevention/
Containment
Steps
56
Risk Management:
Contingency Template
How and when will I
know that it went
wrong?
What can go
wrong with
my project?
Risk
Event
Risk
Trigger
What will I do when
the risk
materializes?
Contingency
Plan
57
Be Proactive and Assign risk
Risk
Event
Resource
Name
Action
List
Target
Date
Status
58
After Response Planning Comes
Monitoring & Control
5
9
Risk Monitoring and Control
 Risks need to be monitored and controlled. At weekly
meetings use the following strategy.
1. High Risk: Change--reduce probability & impact of risk.
Your strategy could also include prevention by changing
the project scope.
2. Medium Risk: Contain and mitigate them--ensure that
risks do not escalate by monitoring them closely.
3. Low Risk: Monitor risk level--do nothing--track them at
weekly meetings to see if the status has changed from
Low to High.
6
0
Risk Monitoring & Control
6
1
Assessing and Planning for Risk
Failure Modes Effects Analysis
Process or Product
Name:
Process Owner:
What is the impact
on the Key Output
Variables once it
fails (customer or
internal
requirements)?
Potential Causes
What causes the
Key Input to go
wrong?
O
C
C
Current Controls
What are the
existing controls
and procedures
that prevent either
the Cause or the
Failure Mode?
D
E
T
R
P
N
How well can you
detect the Cause or
the Failure Mode?
In what ways can
the Process Step
or Input fail?
S
E
V
How often does cause
or FM occur?
What is the
Process Step or
Input?
Potential Failure
Effects
How Severe is the
effect to the customer?
Key Process Step Potential Failure
or Input
Mode
Prepared by:
Page:
FMEA Date (Orig):
Rev.
Actions
Recommended
Resp.
Actions
Taken
S
E
V
of
O
C
C
D
E
T
R
P
N
What are the
Who is Responsible
Note the
actions for
for the
actions
reducing the
recommended
taken.
occurrence of the
action?
Include dates
cause, or improving
of completion.
detection?
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Assessing and Planning for Risk
Source: VA National Center for Patient Safety; http://www.patientsafety.gov/SafetyTopics/HFMEA/FMEA2.pdf
Assessing and Planning for Risk
Source: VA National Center for Patient Safety; http://www.patientsafety.gov/SafetyTopics/HFMEA/FMEA2.pdf
Bottom up Risk Management
 Based on your WBS.
 I find it easy to insert a new column and flag risks. See
figure in next slide.
 Flag tasks that go outside your control as risks so that
you can monitor them
6
5
Bottom up Risk Management
6
6
Conclusion
 Risk Management is an art and a science.
 Project managers can have a successful project if the
know both.
 Communications is a key skill within Risk Management.
 The project manager should be a good “risk elevator”
and “risk communicator”.
 If a project manager fails to communicate risks to senior
management or to sponsors and stakeholders he/she
has failed as a project manager.
6
7
Project Methodology
Stages:
Plan
Define
Execute
Close Out
&
Celebrate
Continuous Assessment
(Risk mgmt, plan control, change mgmt)
Outputs:






Stakeholder Analysis
Project Proposal
Project Charter
Statement of Work (SOW)
Communication Plan
Responsibility Matrix
 Work Breakdown
Structure (WBS)
 Critical Path
 Scheduling
 Risk Assessment
 Resource Plan




High Performing Team
Scope Control
Stakeholder Management
Final deliverables
References
 Kanabar & Warburton: Project Management, Kaplan
Publishing, 2008
 Warburton & Kanabar: Art & Science of Project
Management, RWPress, 2012
 PMBOK Guide 4th Edition, PMI.
6
9
Workshop
 Using the templates introduced in this seminar create a
risk management register.
 At least three risks should be identified.
 For any one risk identify a contingency plan.
7
0
Engaging with the Environment
 Project life cycle




Define
Plan
Execute
Shut down
Project Plan
Define







Project Proposal
Stakeholder analysis
Project Charter
SOW
Communication plan
Team formation
Resp. matrix
Plan







WBS
Budget / Estimation
Network diagram
Gantt Chart
Slack / Critical Path
Risk assessment
FMEA
Execute




Continuous Assessment
(Risk mgmt, plan control, change mgmt)
Scheduling / Balancing
Scope management
Measure / control
Phase gates
Close Out
&
Celebrate
Key Concepts
•
R
i
s
k
Stakeholders & Risk
• Triple Constraints
Schedule
Cost
• Create the Deliverables
• Leading the Team
Deliverables
time
iBasis Project/Initiative Discussion
Risk Management
 Form into groups based on group lists
 Combine break & work session = 30 Minutes
 Continue to discuss project/initiative that was assigned to
your group
 Brainstorm and document:
 Discuss how risk management techniques could be applied to their
projects.
 Vijay – Identify key frameworks that you want them to use here
 Action: Be prepared to present your Risk Management xxx
framework/template to the larger group
 Pick a spokesperson to represent you

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