Risk plans are rarely perfect. For complex projects, unanticipated risk will almost certainly materialize. We can deal with this risk — I'll call it risk management risk — if we adopt some simple practices. Let's begin with some examples of organizational and political risks.
- Organizational blind spots
- Organizational risk management asset bases usually consist of previously developed risk plans and risk plan elements, documented risk plan development procedures, and personal experiences.
- Although referring to these assets might uncover risks that any particular risk manager might not otherwise consider, relying on the asset base probably won't uncover risks not included there. Since continuous organizational change almost certainly exposes the organization to risks never before seen, these asset bases have blind spots.
- To limit these blind spots, analyze the results of retrospectives to determine what risks were unanticipated. They provide clues to the location of the organization's blind spots.
- Organizational political correctness
- In general discourse, political correctness requires that we shape our statements and behavior — if not our opinions — to conform to a generally accepted ideological standard. Organizational political correctness provides an analogous constraint relative to the ideology and views of the organization.
- Organizational Organizational political correctness
can limit the ability of risk managers
to address significant riskspolitical correctness can limit the ability of risk managers to address significant risks, when even discussing such risks calls into question organizational beliefs, or the beliefs of those who have internal political power. - If a common theme appears among unanticipated risks, if those risks are evident to many, and if the same risks materialize across many projects, organizational political correctness could be a cause. Organizational culture change is required to address this risk.
- Political risk
- The organizational value of any project is determined, in part, by the political clout of its advocates. How an organization values a project can present risks to it through resource allocation, schedule, and budget.
- Although these risks are widely understood, talking about them openly and planning for them in writing is often difficult, for reasons far beyond organizational political correctness. For the politically weak project, committing to writing and review any plan to deal with political risks simply provides a roadmap to rival projects if they are politically stronger. Such a risk plan is often effectively countered before it can be implemented. In some cases, it might even be forbidden. This effect is especially pronounced if a state of toxic conflict persists between the departments, leaders, or champions of the two projects.
- Two factors suggest the presence of political risk. First is the absence of any explicit mention of political risk from the risk plans of politically weak projects. A second indicator can be changes in the execution plan of politically stronger projects, especially following publication of the risk plan of a politically weaker project.
In Part II, we'll examine risk dynamics and risk interactions. Next in this series Top Next Issue
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Related articles
More articles on Project Management:
- The Weaver's Pathway
- When projects near completion, we sometimes have difficulty letting go. We want what we've made to be
perfect, sometimes beyond the real needs of customers. Comfort with imperfection can help us meet budget
and schedule targets.
- Project Improvisation Fundamentals
- Project plans are useful — to a point. Every plan I've ever seen eventually has problems when
it contacts reality. At that point, we replan or improvise. But improvisation is an art form. Here's
Part I of a set of tips for mastering project improvisation.
- How We Waste Time: I
- Time is the one workplace resource that's evenly distributed. Everyone gets exactly the same share,
but some use it more wisely than others. Here's Part I of a little catalog of ways we waste time.
- Some Risks of Short-Term Fixes
- When we encounter a problem at work, we must choose between short-term fixes (also known as workarounds)
and long-term solutions. Often we choose workarounds without appreciating the risks we're accepting
— until too late.
- The Risk Planning Fallacy
- The planning fallacy is a cognitive bias that causes underestimates of cost, time required, and risks
for projects. Analogously, I propose a risk planning fallacy that causes underestimates of probabilities
and impacts of risk events.
See also Project Management and Personal, Team, and Organizational Effectiveness for more related articles.
Forthcoming issues of Point Lookout
- Coming May 1: Antipatterns for Time-Constrained Communication: 2
- Recognizing just a few patterns that can lead to miscommunication can reduce the incidence of miscommunications. Here's Part 2 of a collection of antipatterns that arise in communication under time pressure, emphasizing those that depend on content. Available here and by RSS on May 1.
- And on May 8: Antipatterns for Time-Constrained Communication: 3
- Recognizing just a few patterns that can lead to miscommunication can reduce the incidence of problems. Here is Part 3 of a collection of antipatterns that arise in technical communication under time pressure, emphasizing past experiences of participants. Available here and by RSS on May 8.
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