Uncover project troubles before they blow up.
What’s worse than having a pricey project collapse? Knowing it could have been prevented. “If you don’t identify risk areas and have some sort of response plan, then you’re setting yourself up for really tough times,” says Rebecca Reed, CEO, Reed Integration.
Ms. Reed and her husband Steve Waddell, PMP — who serves as vice president of strategy for their Smithfield, Virginia, USA-based project management firm — specialize in systems engineering, project management, training and consulting for government, academic and private industry clients.
Ms. Reed and Mr. Waddell touch on some of the details of detecting and then verifying risk:
Step 1: Detection
Ms. Reed says that a solid risk identification analysis — one that thoroughly examines the project, recognizing any potential flaws in design or execution — begins with a brainstorming session.
Ms. Reed says that you need to include a wide cross-section of stakeholders from all levels of the company to openly discuss how the project will launch and close and to predict possible hiccups on the path to success. If the project is spread out across several branches, Mr. Waddell suggests using videoconference software to include everyone.
“In a good brainstorming session, you want everyone to think of something different,” he says. “The focus is on quantity. The more people you include, the more ideas coming through, the more likely you are to find an uncommon solution.”
Without structure, however, brainstorming sessions can result in chaos. To be effective, the sessions should follow a few key ground rules — the most important being that criticism simply isn’t allowed.
“Everyone has to have the opportunity to speak freely,” Ms. Reed says. “Before starting a brainstorm, we normally tell everyone to leave their criticism at the door.”
Mr. Waddell recommends having a brainstorm moderator — either a third party or an in-house project manager — facilitate the session as well as a recorder jotting down ideas that are raised.
Step 2: Verification
Use multiple risk identification methods to uncover all possible issues, Mr. Waddell says. “In our software projects, we use TBQ, Taxonomy-Based Risk [questionnaire], but that’s dangerous because if you rely [solely] on that, you could overlook things,” he says.
In addition to TBQs, Reed Integration uses fault tree analysis (FTA), a reverse risk identification technique that begins with a worst-case scenario.
Another technique, Failure Mode and Effects Analysis (FMEAs) can dissect the project and its potential weaknesses step-by-step. Both FMEAs and FTAs can be used to predict future problems to figure out where it could all go wrong, Ms. Reed says.
While you should strive to identify risks upfront, don’t forget that the risk management process continues. “Everyone involved in the project can identify risk,” Mr. Waddell says. “Once you have that, you start to achieve cost, schedule, and technical goals on budget and in some cases you can even exceed them.”
How’s your risk vocabulary?
- • Taxonomy-Based Questionnaire (TBQ), often used in software-based projects, helps assess where your project may be vulnerable to several types of common problems.
- • Fault Tree Analysis (FTA) identifies an undesired outcome and then helps you explore all possible scenarios that could lead to that outcome.
- • Failure Mode and Effects Analysis (FMEA) reveals potential problems at each phase of a project then helps you uncover how common and potentially dangerous each problem is.
PMI’s New Risk Credential
Over the past few years, PMI research has highlighted the importance of providing certification for project professionals in specialty areas. And risk management has always been one area at the forefront.
So this July, PMI launched the Risk Management Professional (PMI-RMP)SM credential.
The new credential is meant to recognize project risk management practitioners’ skills and expertise, including identifying and assessing project risks along with plans to mitigate threats and capitalize on opportunities.
As part of the credential’s launch, PMI is offering an inaugural incentive to become one the first to receive the PMI-RMP. The first 100 eligible candidates who sit for the examination between now and 31 October 2008 will receive 50 percent off the price.
