Status Risk and Risk Status
by Rick Brenner
One often-neglected project risk is the risk of inaccurately reported status. That shouldn't be surprising, because we often fail to report the status of the project's risks, as well. What can we do to better manage status risk and risk status?
Warner glared his famous glare, and for once, he had a legitimate complaint. "Let me see if I have this right," he began. "You knew back in July that we had memory footprint problems, but you waited to report it until now. Is that right?"
Robin had nowhere to go. "Yes, that's right. We felt it was best to wait until we were sure we had a problem."
"Well, we have a problem now, don't we?" Warner replied.
"Yes, and that's why…" Robin began, but Warner wouldn't let her finish.
"That's why you're reporting it, I know, I know."
Robin has made a serious error, but the mistake isn't hers alone. She failed to alert the project sponsor to a problem when she first became aware of it. And Warner's intimidating style tends to discourage early reporting of trouble.
Together, they're living out one of the consequences of status risk: the risk of failing to report status promptly and fully. Here are some sources of status risk:
Status risk is high
when realistic status
reporting is punishable
- Rewarding positive reports and punishing negative reports
- At any link in the status reporting chain, the report recipient might be signaling that only positive reports are acceptable. The signal can be unintentional, or it can be very deliberate.
- Prior experience
- People can bring to the reporting task their experiences with prior projects or prior managers. If they've learned along the way that realistic reporting is punishable, they're likely to apply those past lessons.
- When new people assume responsibility for work underway, their perceptions about status are likely to be inaccurate.
- Wishful thinking
- Because most of us want things to go well, we sometimes fool ourselves that our wishes match reality, especially if we've become attached to the task.
Making status reporting a group task helps mitigate status risk. Form a status review team that's responsible for reviewing status reports. Normally, they'll easily reach consensus, but any failure to reach consensus is valuable information in itself — it signals the need for a closer look by management.
Even when we manage Status Risk, there remains the too-common failure to report — or even to track — Risk Status. Most status reports focus on budget, schedule, milestones achieved, work completed, and so on. But we rarely report or track the status of our initial risk profile, and that can lead to surprised (and very upset) project sponsors. Including a review of the risk profile in each status report helps to limit the incidence of surprising disasters.
Status Risk and Risk Status are intimately intertwined. In part, the sources of status risk contribute to our spotty reporting of risk status. And by creating the conditions for surprising disasters, failure to track risk status can enhance status risk. Address both — or don't bother. Top Next Issue
Are your projects always (or almost always) late and over budget? Are your project teams plagued by turnover, burnout, and high defect rates? Turn your culture around. Read 52 Tips for Leaders of Project-Oriented Organizations, filled with tips and techniques for organizational leaders. Order Now!
Your comments are welcome
Would you like to see your comments posted here? rbrenDAngTcTTefSSaqSxner@ChacILjqxIeToIicdhFqoCanyon.comSend me your comments by email
, or by Web form
About Point Lookout
Thank you for reading this article. I hope you enjoyed it and found it useful,
and that you'll consider recommending it to a friend
Point Lookout is a free weekly email newsletter. Browse the archive
of past issues. Subscribe for free.
Support Point Lookout by joining the Friends of Point Lookout,
as an individual or as an organization.
Do you face a complex interpersonal situation? Send it in,
anonymously if you like, and I'll give you my two cents.
More articles on Project Management:
- Some Causes of Scope Creep
- When we suddenly realize that our project's scope has expanded far beyond its initial boundaries — when we have that how-did-we-ever-get-here feeling — we're experiencing the downside of scope creep. Preventing scope creep starts with understanding how it happens.
- Remote Facilitation in Synchronous Contexts: Part I
- Whoever facilitates your distributed meetings — whether a dedicated facilitator or the meeting chair — will discover quickly that remote facilitation presents special problems. Here's a little catalog of those problems, and some suggestions for addressing them.
- The Politics of the Critical Path: Part II
- The Critical Path of a project is the sequence of dependent tasks that determine the earliest completion date of the effort. We don't usually consider tasks that are already complete, but they, too, can experience the unique politics of the critical path.
- Publish an Internal Newsletter
- If you're responsible for an organizational effort with many stakeholders, communicating with them is important to success. Publishing an internal newsletter is a great way to keep them informed.
- Team Risks
- Working in teams is necessary in most modern collaborations, but teamwork does carry risks. Here are some risks worth mitigating.
See also Project Management for more related articles.
Forthcoming Issues of Point Lookout
- Coming December 2: Suppressing Dissent: Part II
- Disagreeing with the majority in a meeting, or in some cases, merely disagreeing with the Leader, can lead to isolation and other personal difficulties. Here is Part II of a set of tactics used by Leaders who choose not to tolerate differences of opinion, emphasizing the meeting context. Available here and by RSS on December 2.
- And on December 9: Clearing Conflict Fog
- At times, groups can become so embroiled in destructive conflict that conventional conflict resolution becomes ineffective. How does this happen? What can we do about it? Available here and by RSS on December 9.
I offer email and telephone coaching at both corporate and individual rates.
Contact Rick for details at rbrenwqCZcLdTZzqiYeLSner@ChacppdwgNYHEcxJiZcNoCanyon.com
or (617) 491-6289, or toll-free in the continental US at (866) 378-5470.
Get the ebook!
Past issues of Point Lookout
are available in six ebooks:
Reprinting this article
Are you a writer, editor or publisher on deadline?
Are you looking for an article that will get people talking and get compliments flying your way? You can have 500 words in your inbox in one hour. License any article from this Web site. More info
- Managing in Fluid Environments
- Most people now work in environments that can best be characterized as fluid, because they're subject to continual change. We never know whats coming next. In such environments, managing — teams, projects, groups, departments, or the enterprise — often entails moving from surprise to surprise while somehow staying almost on track. It's a nerve-wracking existence. This program provides numerous tools that help managers who work in fluid environments. Read more about this program. Here's an upcoming date for this program:
- Cognitive Biases and Workplace Decision-Making
- For most of us, making decisions is a large part of what we do at work. And we tend to believe that we make our decisions rationally, except possibly when stressed or hurried. That is a mistaken belief — very few of our decisions are purely rational. In this eye-opening yet entertaining program, Rick Brenner guides you through the fascinating world of cognitive biases, and he’ll give concrete tips to help you control the influence of cognitive biases. Read more about this program. Here's an upcoming date for this program: