Posts Tagged project metircs

The Elephant in YOUR Project – Part 3 Risks

Project Risks

Project Risks

 

 

The Elephant in YOUR Project – Part 3 Risks

Many project managers use complexity and risk synonymously.  They are related, but not the same. Project risks are qualitative and quantitative issues or events which could lead to negative consequences.  Risks can be prevented, mitigated, or repaired if they become an issue. Increased project complexity does not create risks, but increases the severity and impacts of each risk on the project efforts.

Your project risks can be weighted and objectively measured.  A project’s risk and be grouped into five categories:

  1. People/Team Risks – morale, skills and experience, staffing, contractor capability, etc.
  2. Process Risks – scope creep, project management, project planning, project controls, scheduling, etc.
  3. Technology Risks – technology quality, technology newness, expectations versus requirements, etc.
  4. Finance/Budget Risks – budget approval, budget adequacy, scope changes, reporting, etc.
  5. Legal Risks – contract negotiations, contract management, terms and conditions, etc.

Once identified, risks management and reporting is the responsibility of the project sponsor and project manager(s).  Risk prevention, mitigation and repair are the responsibility of all project team members as assigned by the project manager(s).  Each significant risk should be formally reported and tracked in every project status report, and discussed effectively with the project steering committee.

So is your project a House of Cards, or are you managing project risks effectively?

 

For a free example of a Project Complexity Assessment and Project Risks Management Tool, download at:

Palomino Free Downloads

 



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Was Your Project a Success Or . . .

Project Balance Scorecard

Project Success

Just started or completed a project? How will you know if it was a success – met or exceeded expectations? Or how will you know if it was not a success – didn’t meet expectations or failed? Which stakeholders’ expectations are important? What can be improved to insure more success next time?

Did you know that most software development (SD) organizations do not have a process or commitment in place to even try to measure a project’s success, failure or areas for improvement? These are usually CMM Level 1 organizations, Chaotic. CMM Level 2 SD organizations, Repeatable, typically has a process that measures a projects success, or lack of, whether it was “On Schedule” and/or “On Budget”, but this measurement falls short of answering the questions above.

So what process and commitment is needed to answer all of the questions above. Many CMM Level 3-5 SD organizations have implemented Project Balanced Scorecards (PBSC) as the process and tool to give a ‘balanced’ view of project success, or not, and areas for improvement.

A good PBSC follows the guidelines of the Balanced Scorecard Institute and based on The Balanced Scorecard from Kaplan and Norton. The PBSC starts with identifying all key stakeholders for a project including:

1) Business stakeholders
2) IT Service Delivery, operations, stakeholders
3) Customers
4) Employees, project team

These stakeholders determine a project’s level of success and areas for improvement. Next is to develop criteria for each stakeholder’s focus on the project’s success. Major criteria categories and criteria might be:

1) Financial Focus – Business financial stakeholders

2) Service Delivery Focus – Operations and support stakeholders

3) Customer Focus – Business and external customer stakeholders

4) Employee Focus – Project team stakeholders

The above criteria contain quantitative and qualitative areas of focus to determine a project’s success – a balanced view.

For an example of a Project Balanced Scorecard, check out our web site at Palomino Consulting Group – Products



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