Posts Tagged 'Risk Management'

The Three Types of Takers


I have heard it said that there are 3 kinds of people making up your organization: risk takers, caretakers and undertakers. These three types of folks definitely exist out there, and their approach to dealing with people and projects can have an impact on your team and your project’s success. Let’s take a closer look at each of these types and see which ones sound familiar.

Risk takers like to take a chance based on their ideas and dreams, advocating for changes both large and small. A recent Forbes article by Katy Finneran looks at exactly this, profiling numerous risk takers such as Elon Musk, 38, the co-founder of PayPal and Tesla Motors and founder of SpaceX.  When Musk started SpaceX, dedicated to reducing the cost and increasing the reliability of space missions, he had no experience in the aerospace industry. According to Finneran, SpaceX is off to the space races, so to speak

Caretakers do not like to take risks and play it safe, focusing more on the care and feeding of the status quo and the way we do things around here. Remember Akio Morita and Sony way back when?  According to Adam Hartung in his article titled “Innovation Killers – The Status Quo Police”, Sony was a great innovator that brought us hundreds of innovative products. After Morita left the top spot in the company, Sony is no longer the #1 electronics innovator in the world.

Undertakers are the folks that are waiting to bury those that take the risks and fail. Ouch. I was looking through some of my old files and found a Polaroid picture from long ago.  Now there is a company who didn’t take the risk to go digital and got buried anyway.

While I think folks and outcomes span a wider range of roles than this trio, this “three takers” view makes a valuable point about the people and politics in any organization.  Some aspects of human nature do tend to creep into the workplace.  Interestingly enough, those aspects of an organization are what make me like it so very much – the range of people, personalities and abilities that we find there.  It is nice to know that there is room in most organizations for the status quo and ongoing “care and feeding” of the caretaker as well as the innovation and creativity of the risk taker.  The undertakers are a bit more problematic.

I imagine if we look back on our previous jobs and the folks we worked with, we will see a large number of risk takers advocating change for small things as well as large things.

Happy 2014!  It’s great to be here kicking off another year as part of the Learning Tree team.

Susan Weese

References:

Finneran, Katy, “The Greatest Risk They Ever Took” Retrieved from http://www.forbes.com/2010/01/20/greatest-risk-they-took-entrepreneurs-management-risk.html

Hartung, Adam, “Innovation Killers – The Status Quo Police” Retrieved from http://www.forbes.com/sites/adamhartung/2011/05/25/innovation-killers-the-status-quo-police/4/

Susan’s Top Ten Skills Shared by Project Managers and Quilters


In addition to being a project manager, I am also a patchwork quilter.  Last week, a buddy of mine asked me if I thought there were any similarities between the skills required to manage projects and the skills required to make a patchwork quilt.  Absolutely!  Here is my list of the top ten skills shared by successful quilters and project managers.

Paying attention to detail. Quilting and project management both require you to pay attention to the details of what you are trying to accomplish, every step of the way.  Quilting tends to be a project of one person where you plan, execute and manage yourself while my projects tend to be large, collaborative efforts in an organization that is trying to change the way they do something or to make something they are currently doing better.  In either case, you need to be able to define and manage the little bits and pieces of your project as you perform the work required to get to the end of your project and be successful.

Defining the big picture.  On the flip side, understanding the scope of your project is also very important to quilters and project managers alike.  If you don’t know the totality of what you are trying to accomplish, you will find it is difficult, if not impossible, to achieve that something. You can’t pay attention to the details and make adjustments along the way of you haven’t defined what the scope of your efforts will be.  As a quilter, this impacts your schedule and your budget for purchasing all those lovely fabrics you plan to use.  On a larger project in an organization, you have resource skills, availability and a host of concerns that could impact the scope of your efforts.

Targeting a desired end result. My mother always says that it is hard to get somewhere if you don’t know where you want to go.  The same is true for both quilters and project managers.  Without a destination in mind, typically defined as your final outcome or solution, getting to that end point is going to be challenging.  While one key art of planning is defining the scope of your efforts, you also have to know the path you plan to take when doing the work to build that final outcome you are targeting.  Once you know where you are going and where you want to be, there are often many paths that can successfully take you there.

Planning, planning, planning. Planning and re-planning are simply a way of life for project managers and quilters!  If you don’t have good planning skills and a solid approach to doing that planning, it is easy to miss something or someone along the way. I tend to use top-down planning in my large projects and a combination of top-down and bottom-up planning for my quilting projects.  My quilts often start out with a pleasing selection of fabrics I would like to use, and then get combined with a quilt pattern that I feel would present them to the best advantage.  Sometimes I also choose patterns that force me to increase my piecing skill levels just for fun.

Using tools to get the job done. Where would we be without tools?  Project management tools, word processing tools, communication tools, sewing machines, rotary cutters and web-based fabric shops with all the latest fabrics, oh my!  The trick is knowing what tool you need and being able to use that tool effectively when you need it.  This is true for quilters and project managers in equal measure.  As a project manager, too much tool time and not enough people time can result in a less-than-successful project.  As a quilter,  too much sewing time and not enough “looking at your work and laying out the pieces” can result in a quilt that is perfectly sewn but not pleasing to the eye.

Communicating with stakeholders. Communication is an essential part of managing projects.  There is a reason all those studies out there tell us that poor communication is the #1 cause of project failure.   Funny enough, quilters need to communicate as well – with one another and with other folks they want to share their creations with or possibly sell their creations to. Many quilters (myself included) have quilt blogs where they discuss their latest project and share tutorials on a wide variety of topics.  There are many, many project management and quilting conferences out there where you can meet your peers and learn new things.

Managing your supply chain. Supply chain management can be daunting to even the most experienced of project managers.  Just ask folks who manage manufacturing operations what happens if there is a kink in their supply chain for essential raw materials.  Quilters also manage their supply chain, although most of us end up with a serious stash of unused fabric and fabric scraps from our previous projects.  Project managers don’t usually have the luxury of building a stash of the goods and materials required for their projects.

Building (and hopefully sticking to) a project budget. Most projects come with a budget and a timescale built-in.  I call these numbers “constraints” since typically those numbers were chosen based upon a very high-level definition of what needs to be done.  When you are managing within the context of the triple constraint – time, budget and scope – something has to give in order to bring your project to completion in the real world. This is also true for quilters.  You can’t make every cool quilt pattern you see in a book or a magazine, you have to select, prioritize and do the things that matter most to you.

Capturing and applying lessons learned. Where would we be without lessons learned?  If formal lessons from previous projects are available to you in your organization, you are a step ahead of most folks.  Most of the time, we learn these lessons through the “word of mouth” method from our peers, team members and other stakeholders. As a quilter, I keep my own informal list of lessons learned, also known as “mistakes not to be repeated”.  In either case, lessons learned are an essential part of doing our projects better over time.  This principle holds true whether your project is a patchwork quilt with a team of one person or a new, mission-critical IT system.

Identifying  issues and risks. In quilting, the issues and risks certainly spice up piecing and constructing a quilt.  On a work project, issues and risks can sometimes get in the way of a successful project outcome.  The sooner you identify and assess these issues and risks, the better off you are. Nothing hurts more than being surprised by the “one that got away” or the risk you missed until it showed up on your doorstep and said “hello”.

Well, there you have it.  As always, these skills need to be balanced based upon your project situation to get the best fit. I am curious if you have anything to add to my list from a project manager’s or a quilter’s point of view. If you are looking to refine or validate your communication skills, take a look at Learning Tree’s 4-day course on fundamental project management skills.  This course is certainly a great place to begin or revisit how well you are managing your projects and your project team members and to learn some new skills and techniques for managing them even better still.  You can also check out my quilting blog at to see what I am up to these days on my personal quilting projects.

Susan Weese

Is Your Project Plan-Driven or Change-Driven?


Sometimes our project success is directly related to the quality of planning that gets done. When you define your project approach, you must decide where it falls across the spectrum of plan-driven approaches and change-driven approaches.  Plan-driven project approaches focus on ensuring that the solution is fully defined before its implementation begins.  Change-driven project approaches are indicative of a more agile and iterative effort to define and implement the resulting solution.  Hybrid project approaches combine aspects of both types, and may require additional tailoring and scaling of your overall project approach to combine them well.

Most organizational environments and their management teams are likely to be more comfortable with one approach over the other. Do you know what your organization’s “comfort zone” lies? Another way I like to think of plan-driven versus change-driven project approaches is to call them “traditional” versus “agile” development methodologies. Once an Information Technology (IT) project manager, always an IT project manager, I guess.    

Plan-driven project approaches target minimizing up-front uncertainty and maximizing control. Another name for uncertainty is risk. This is more traditional styles of development, such as the waterfall model of software development or what you find in straightforward business process re-engineering initiatives.  The biggest issue with plan-driven approaches is whether or not the solution requirements can actually be well-defined prior to commencing the overall solution delivery efforts.  In effect, plan-driven approaches use structure to control project risk.

Change-driven project approaches target rapid delivery of business value.  In order to achieve that goal, they accept greater uncertainty (risk) relative to the overall solution delivery.   This is an exploratory approach to finding the best solution, using short iterations to incrementally develop components of the solution.  Change-driven approaches that you may be familiar with include agile development methods and many continuous process improvement projects being done in many organizations.  One key feature of change-driven approaches is that they use flexibility to control project risk.

Be careful not to confuse today’s plan-driven approaches with the traditional, linear models of the past.  Today’s plan-driven approaches are flexible and adaptable, using time-boxing, iterative development and multiple releases to help folks get the job done.  

Check out Learning Tree’s 3-day agile project management with SCRUM course  if you are looking for a great way to get started or fine tune your skills and approach using a change-driven project approach.

Susan Weese

The Importance of IT Strategic Planning


I think that Information Technology (IT) plays one of the most important roles in the day-to-day operation of today’s businesses.  IT may not be the business your organization is in, but it certainly keeps things working as they should and keeps folks informed about what’s going on.  Most folks I ask tell me that IT is one of the top expenditures in their organization today. IT often represents 15 to 20% of the organization’s annual budget and the percentage seems to be growing every year.  Given this percentage, effective strategic planning focusing specifically on IT seems essential to success.

The Oxford dictionary defines IT as “the study or use of systems such as computers and telecommunications for storing, retrieving and sending information.” When I think of IT, I think of things like data management, computer technology, computer programming, networking, software, software applications and telecommunications.  I always make the distinction between Information Systems (IS) and IT.  To me, IS actually is the information or data, which may not be computerized or digitized, while IT is typically defined as the systems that store, retrieve and send that data.

IT is a double-edged sword to most organizations, delivering value to organizations and bringing challenges as well. To realize more benefits and fewer challenges, I think that IT must be planned and managed.  That makes IT strategic planning a managerial activity, not just something the technical teams do in their free time. Some of the added value IT brings to an organization includes:

  • Cost reduction through automation of tasks
  • Computerized data management
  • Improved collaboration
  • Electronic data transfer
  • Knowledge management

Seems like we never add value without adding risks and challenges! On the flip side, here are a few of the challenges that IT brings to organizations:

  • IT projects over budget and behind schedule
  • IT projects not delivering expected value
  • IT “magic” is often misunderstood
  • Faults and security create new risks

In a nutshell, IT strategic planning is a structured attempt to maximize the impact of IT on your organization while controlling its cost and managing the associated changes.  Many organizations manage IT as a “business within the business”.  That means that IT delivers services to the business in the most optimized way possible, understands its “clients”, engages those clients and delivers results and value.

IT strategic planning addresses the design/development/acquisition of IT solutions, implementation/support of those solutions and the modernization of existing, legacy solutions within the organization. IT strategic planning can be achieved by following a few basic steps:

  1. Engaging stakeholders in a structured planning approach
  2. Prioritizing the IT efforts and resources across the organization and its pieces and parts
  3. Establishing your IT governance structure and approach
  4. Monitoring IT performance across the organization
  5. Managing IT value and measuring business benefits
  6. Aligning the business and IT to achieve the maximum possible outcome

IT strategic planning is needed in most organizations in order to sustain the business strategy, control costs, manage risks and clarify the benefits that our costly IT initiatives provide to the business as well as their end users. Be warned that organizations have different maturity level when it comes to their IT strategic planning efforts.  If you get involved in your organization’s IT strategic planning activities, be sure you have a sense of the maturity of processes surrounding the effort. The less mature you organization is in this area, the more time you will have to spend defining and selling the benefits of doing the work in the first place.

Next time, we will take a look at the recommended contents and focus of an IT-specific strategic plan. Be sure to check out Learning Tree’s 3-day strategic planning and implementation course if you are looking for a great way to get started or fine tune your skills and approach to IT strategic planning.  

Susan Weese

Ten Essential PRINCE2® Approaches for Kicking Off Your Project


I am sure having fun thinking about things in lists of ten… it’s always nice to be able to count what you need to consider on your fingers. Here is a quick reference list of things to think about when starting up your project.  I use this PRINCE2-based list alongside almost any project methodology where planning is a major driver for the work that needs to be done.   I think of these ten items as my essential checklist to make certain my project is locked, loaded and ready to begin.

1. Got a viable business case? Successful projects are begun for a justifiable reason that remains valid throughout the life of the project. Document this justification in your business case and let it drive your decision-making.  This ensures that your project stays on track and aligned to the organization’s business objectives and benefits.

2. Decided upon your decision-making architecture? It sure helps things downstream if you decide the levels of decision-making on your project up-front.  Consider setting tolerances for time, cost, quality, scope, risk and benefits to define accountability, escalation and decision-making at all levels of management. PRINCE2 calls this concept “management by exception” and it really works.

3. Are the customer’s quality expectations known and documented? Whatever your project is producing, be sure you know what the customer expects when all the work is done.  The customer’s quality expectations for the final product of your project provides you with the framework for project scope, features and quality across the project life cycle.

4. Established all those registers and logs?  Set up your risk, issue and quality registers right up-front in your project. The risk register tracks all identified project risks and their status, the issue register is a key component of change requests and other project issues, and the quality register summarizes all quality activities for the project. Consider an informal daily log for the project manager and a lessons log, too.

5. Strategic risks documented and reviewed? Nothing manages unrealistic expectations like a round of strategic risk management, either as part of your business case or as a standalone effort at the beginning of your pre-project activities. Oh, and don’t forget to document your strategic risk findings in your brand new risk register.

6. Next phase of the project planned out and approved? Successful projects tend to be planned in stages or phases that create control points throughout the project.   At the end of each stage/phase, the project is reviewed to see if it will still deliver its business case.  Use a ‘rolling wave’ approach to planning for best results downstream, planning each phase in detail just before it begins.

7. Thought about those roles and responsibilities?  Don’t forget to formally define and establish your project roles and responsibilities.  Be sure that you clearly address the three project interests: business, user and supplier.  Additionally, be sure to look at all levels of management in the project:  corporate or program management, the project board, the project manager and the team managers.

8. Decided on your project approach? This is kind of like your project road map, where you decide and describe the way project work will be approached. After all, there are lots of ways to do projects: in-house, outsourced, purchasing and customizing an existing product and so on.  The way you choose to go about getting the work done impacts the project downstream and dictates your future activities.

9. Defined and documented all those strategies? There are four strategies that need to be defined early on: risk management, configuration management, quality management and communications management.  You know the drill. Define how things will be done in each area so everyone follows the rules and everything gets done as and when it should be done.

10. Obtained authorization to proceed? Then you are good to go! Best of luck…

Susan Weese


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