Sunday, April 30, 2017

Introduction to IT Project Risk

While working on a variety of IT projects, I’ve seen several project charters and risk registers. Over time, I’ve noticed that not all project managers have a solid grasp of how to identify and mitigate project risk. So, here’s an introduction to the subject.

These aren’t project risks
Perhaps it seems an odd place to start, but the most common problem I see is that many risks identified aren’t really risks.  So, what is not a project risk?

An issue is not a project risk.  An issue is something that is already a problem for the project. E.g. a risk item that states: Vendor is late delivering components. Since the vendor is already late, or you already know the delivery is going to be late, this is an issue, not a risk. A risk is something that could happen, but hasn’t happened yet.

An outcome is not a project risk. E.g. a risk item that states: The project might not go live on time. This statement is an outcome of one or more events that could happen, for which the outcome is that there could be an impact on the project timeline. A risk is the thing that might cause the project to go late or cost more, etc.

Also, a vaguely-defined concern isn’t a risk. Risks aren’t really properly identified if they are not specific. E.g. a risk item that states: Testing is a risk. This statement is too vague, as it doesn’t say what specifically about testing is a risk and why it is being identified.

These aren’t mitigation plans
In addition to incorrectly identified risks, I often see vague mitigation plans. E.g. Manage dependencies and milestones. E.g. Leverage vendor’s experience. These mitigation plans are too vague to be actionable.

What are we worried about? What will we do about it?
Every book on project management has a risk definition along the lines of “Project risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives such as scope, schedule, cost, and quality.” (PMBOK, Fifth Edition). Following that, there’s a definition of risk mitigation, such as: “Risk mitigation is a risk response strategy whereby the project team acts to reduce the probability of occurrence or impact of a risk.” (PMBOK, Fifth Edition)

Although accurate, these definitions can be simplified to aid understanding. The easiest way to identify risks is to ask yourself and others: What exactly are we worried about and why are we worried about it?

Then, once the worry and rationale are very clearly defined, the mitigation plan is based on:  What very specific actions are we going to take regarding that worry?

An example
Do you have reason to believe the vendor might deliver late – before it happens? For example, maybe the vendor has recently made a lot more sales than usual and you’ve had late deliveries when you’ve bought from other fast-growing vendors. If so, you can record the risk very clearly: Vendor has gained significant market share in the last three months. Based on our experience with other vendors, this market gain can have an impact on manufacturing capacity, which may result in late delivery.

If you want to avoid this event, think about what options you have to avoid your project being derailed by late delivery. For example, if the contract isn’t signed yet, can you build in a penalty clause, or pay a premium for on-time? Can you spend extra effort on vetting your requirements to ensure your own project doesn’t cause any impact on the vendor? Do you have access to other equipment you could use temporarily if the delivery is late? Does that strategy lead you define an additional risk and mitigation plan? Ask others for ideas on how they’ve managed this kind of risk before and how successful the strategy was for them. Be specific in your mitigation plan: go beyond platitudes such as good project management.

Do you have other worries?
Anything that causes you a specific concern is a candidate to be included as a risk.  Risks are as varied as the projects on which they arise. Here are a few examples I’ve seen: (1) Servers are being moved from a company-run to an external data centre during the same time period that our project needs to test connectivity for several interfaces. Testing connections to the old data centre will need to be repeated for the new data centre, with potential for delay to our project’s timeline. (2) Although the on-site project manager assigned by a major vendor has great leadership skills, he’s not particularly rigorous about scheduling and tracking against the schedule. Since he is managing a large team and a tight delivery timeline, we are concerned that we won’t have adequate visibility to progress or lack thereof. (3) Previous upgrades to this application have failed due to lack of understanding of the integration points.

Notice that all of these risks are very specific, and they provide a rationale for why the risk has been identified.

Schedule and follow up
Assign a responsible person and due date for every mitigation action item. If you aren’t able to assign a person and due date, the mitigation step probably isn’t defined clearly enough. Track these mitigation steps to make sure that they actually get accomplished.

Conclusion
Understanding of IT project risks and mitigation plans can be improved by simplifying the definitions to: (a) What you are worried about exactly and why; and (b) what you will do about it.

It is important to be very specific and provide the rationale for the risks. The mitigation plan needs to be detailed enough that each task in it can be assigned to a person and on a specific date. 

Friday, June 10, 2016

Project risk: Vendor management case study

Working with vendors is a fact of life on technology projects. It makes sense to engage vendors to work on your projects. They have product experience with many clients and can bring best practices in addition to technical expertise.

However, vendors are not your employees and it is wise to remember that their goals and your company’s goals are not always completely aligned. As a result, in addition to the benefits, there are risks in bringing on vendors to deliver your projects.

Case study
Here’s an example of a project gone off the rails due to issues with selecting and managing the vendor.

The client had issued a Request for Proposal (RFP) and selected a vendor to implement a new application and its supporting technology platform.

The vendor started missing deadlines early in the project. The client’s requirements for performance were not met. To resolve the performance issues, the vendor proposed hardware changes. The resulting procurement and installation time caused more delay.

Unfortunately, installation of the new hardware did not resolve the performance problems, so the vendor embarked on a series of changes to try and improve performance.  Time after time, the vendor said the performance changes would be done by the following week, but every time they were unable to deliver the improvements.  It was clear that the vendor’s team was working hard, including evenings and weekends, but still the system could not operate within the necessary timeframe.

After months of promises followed by non-delivery, the vendor asked for a three-month period to achieve the necessary performance. The client agreed to the three-month timeline, but once again, the performance metrics were not achieved.

At this point, the vendor asked if the client would make changes to other applications in the same business process. As long as all of the applications fit into the overnight process, the vendor’s own application performance would be of less concern. The client agreed to modify other applications, which caused further delays while requirements, development, and testing took place.

Unfortunately, the changes to the other applications were not sufficient. When done, it was clear that the vendor would still have to significantly improve the performance of its own product.  

The vendor continued to work at application changes and database tuning to try and correct the performance issues. When that failed to achieve the desired results, the client agreed to examine the business process to see if they could change it to accommodate the product’s performance issues. The process re-design did not create enough efficiency to solve the problem.

If you’ve ever been in this position, either as vendor or client, you know it’s a very unpleasant situation. The client and vendor blame each other for the problems. Millions of dollars are spent. The business does not have their new application. The vendor is losing money on the project. Discussions about legal action take place.

Causes
There were several problems with this situation.

In the RFP, the client did not specify performance requirements. This lack of guidance allowed the vendor to avoid considering performance when creating the proposal.

The vendor was a solid, well-established company, with an excellent reputation for delivery and support. However, the product was new, with no installations in the client’s industry or any other industry. When evaluating the vendor proposals, the client did not recognize the importance of the fact that the references provided by the vendor (for other products) were irrelevant to the project they were proposing.

The vendor’s size, stability, and reputation were a good thing, of course, in that the vendor was motivated to deliver to the client’s satisfaction, and had the financial resources to invest in efforts to correct the problems.  A smaller, less reputable vendor may have simply walked away early on.

As delays continued over many months and millions were spent, the client never had any discussion regarding whether the project should be cancelled and alternative products evaluated.  This inability to face the failure of a product and project is common. Many clients, once they’ve invested a lot of money, time, and resources, do not admit defeat and start over.

Conclusion
The interests of the client and vendor were never aligned right from the start. The client was looking for a product to install and add value to their business process right away.

The vendor was looking for a successful installation of its new product, so they could use it as a reference when selling to other clients.


If the client had realized up front the differences in their goals, they may have been able to negotiate an approach that worked for both. Instead, both the client and vendor have failed to achieve their objectives.

Tuesday, July 21, 2015

Listening every day to identify project risks

There are plenty of resources available on project risk management. It’s an important topic. After all, if you mismanage risks, your project could run late, go over budget, fail to deliver its benefits, or fail to be completed at all. The topic of project risk management is often treated academically. Try reading most books, articles, or blogs on the subject and you are quickly submerged in frameworks, assessments, protocols, Black Swan theory, and Monte Carlo simulation. There is also some practical advice about holding an initial risk assessment meeting at the outset and again during the project, so risks can be logged and monitored.  Unfortunately, there are also things that happen that team members don’t really recognize as project risks, as they are situations that happen all the time and assumed to be ‘just the way it is’.

Identify risks by listening

Often, additional risks can be identified outside of formal risk meetings. Once identified, risks can be managed, so identification is critical. Project managers need to practice their listening skills throughout the project to identify additional risks. In any kind of project meeting or casual discussion, risks can be identified. Here are several examples I’ve heard at different times, and how I heard about them:

·         When we change the active directory security groups we need to make sure it isn’t month-end because there are always so many errors that users can’t work for a while. (In a meeting on scheduling)
·         At go-live, it’s always crazy trying to get the inventory to reconcile, the accountants end up doing lots of ‘plugs’ and estimates, then they figure it out correctly and fix it the next month. (In a status meeting, when the discussion got side-tracked to an unrelated topic)
·         When we launch new forms, the end users make a mess of them because they can’t figure out how to fill them in. Then we have to re-work the form and launch the revision. (At a kickoff meeting for a project to design and implement a new form)
·         We hope that Jenny never catches the flu, as no one else knows how to do that critical step we need at go-live. (At a status meeting, while explaining that a component is late due to Jenny’s lack of availability)
·         It seems like there’s an awful lot of work to be done on the go-live weekend, I wonder if it’s too tight. (In the kitchen, when the project manager was getting coffee)
·         We have a new vendor working on an internal web site for our HR department. (In a discussion about roles and responsibilities)
·         The vendor’s project manager is a sub-contractor; do you think she will keep the vendor’s senior management informed and engaged? (Informal chat, after the vendor’s project manager had been introduced)

The risks noted above did not come up in official risk identification meetings, but instead came up in other unrelated discussions.

Managing the risks

Because these came up outside of the formal risk meeting, and many were assumed as ‘just the way it is’, there was sometimes resistance when the question was asked “what can we do to manage this?” However, when pressed further, it was frequently possible to identify steps that could be taken to manage the risk. Let’s look at risk mitigation ideas for the first few risk examples:

·         If changes to AD security groups usually have a lot of errors, can they be subject to a rigorous review step before implementation, or can the testing approach be examined to see if there are gaps, or can part/all of the process be automated?
·         If it’s crazy trying to get the inventory to reconcile, how about a rehearsal, or customized reconciliation reports, or review the approach with the accounting department to see what additional controls are warranted?
·         If new forms are not well received, can they be vetted and changed as part of the project instead of after launch? Is it possible to create a user advisory panel, or run a pilot with a subset of users?

As you can see, once the risk is identified, it’s possible to come up with ideas on how to mitigate that risk.

Conclusion

Although the risk identification meetings can generate some ideas about risk, additional risks can be identified if the project manager is listening for them. Ask yourself every day: Did I hear something today that might suggest there’s a risk we aren’t managing?

Copyright 2015 Debbie Gallagher

Monday, July 20, 2015

Great by choice by Jim Collins and Morten T Hansen (book summary)

Have you read Great by Choice, by Jim Collins and Morten T. Hansen? The book describes nine years of research done to try and identify why some companies thrive in uncertainty and others do not. As I read the book, I realized that with the fast pace of change in technology, the question is relevant not just to companies, but to their IT projects as well.

The study

The authors studied the stock market for the period 1972 to 2002, and selected several companies who met three criteria: (a) stock price beat their industry index by ten times (10X); (b) the environment in which the company operated over that period was turbulent; and (c) the company was fairly small (and therefore vulnerable) at the beginning of the period.  These companies and their leaders were called 10Xers.

Then for each 10X company, they selected a comparison company in the same industry. The majority of the work was to research what was different between the 10X companies and the comparison companies to find out what could have been the cause of the 10Xer’s success.

The results of their research surprised them. Great creativity and risk taking turned out not to be key factors to success in the long run. Instead, the 10X companies and their leaders managed risk very well, and had three key behaviors: (a) Fanatic discipline; (b) empirical creativity; and (c) productive paranoia

Antarctica

The authors use the race for the South Pole in 1911 by Roald Amundsen and Robert Falcon Scott to illustrate some of the book’s findings. They liken the approach of Amundson’s successful expedition to the10X company leaders, while the comparison company leaders lean more toward the habits of Scott, whose team perished before completing the trek.

It’s an interesting step back in time and also illustrates very well not only the concepts of the study but also the relationship between risk management, success, and failure.

Fanatic discipline

In turbulent times, the companies that outperformed their industries had consistent goals and performance. Instead of pursuing massive high-growth strategies, they pushed for consistent returns every year, no matter how difficult it was to achieve. In addition, even during boom times in their industry, they held back from wild growth strategies despite pressure to do so.

Achieving consistent performance no matter what is happening in the marketplace requires concrete, clear, intelligent, and rigorously pursued performance mechanisms to keep on track. Fanatic discipline is not about bureaucracy, but about the ability to remain clear about goals and find ways to deliver consistent performance. It also requires the ability to be a non-conformist and avoid the herd instinct of the marketplace.

Empirical creativity

The most successful companies tested new concepts on a small scale and determined what worked and what didn’t work before launching significant new lines of business, markets and technologies.

These trials allowed the 10X companies to spend a lot of time and money on big launches only once they had tried the concept on a smaller scale and determined how to be successful. Alternatively, they sometimes learned that the concept didn’t work for them and avoided spending a great deal of money and resources to learn that.

Although innovation is necessary, the authors were surprised to find that the most innovative were not the most successful companies. Instead, a threshold level of innovation is required to compete in the industry, and beyond that the amount of innovation doesn’t matter very much. Instead, it matters more that innovation is paired with the ability to scale the innovation and deliver on commitments to customers.

Productive paranoia

Leaders of 10X companies prepared for the unknown and managed risks well.  They concerned themselves with what could go wrong and created buffers to deal with those known and also with unknown risks.

The leaders of the 10X companies avoided taking actions that had huge downside potential. In addition, they had the ability to look beyond daily operations to see the big picture and identify the biggest risks to their companies.

IT project risk

This book is based on research into US corporations and makes interesting references to the South Pole expeditions of 1911.  However, as I read it, I thought very often of IT projects I’ve been on, and how the lessons could be applied. Many projects fail to achieve their objectives (or even fail to complete) due to lack of discipline, trying to deliver untested concepts, or poor risk management. Examples include projects without clear objectives, sponsorship, scope, or requirements (lack of discipline). Also, there are projects attempting to launch big technological or business changes without pilots (lack of empirical information).  Probably anyone reading this can think of cases where big risks (new software, new hardware, new vendor) were taken, but the risks were either unrecognized or unmanaged (lack of productive paranoia).

Summary

The authors of the book Great by Choice have based their book on research into US companies that outperformed their industry competitors over a thirty-year span by at least ten times. They identify three key characteristics of 10X companies and leaders that have been key to their success: (a) fanatic discipline; (b) empirical creativity; and (c) productive paranoia.

They make no claim at all of the book’s relevance to IT projects. However, as I read the book, I thought the parallels were easy to see and recommend the book to those who are interested in managing the risk of IT projects.


Copyright 2015 Debbie Gallagher

Sunday, July 19, 2015

It's just an upgrade

This is a true story. The company name has been changed.

The project manager was developing a project charter for his new project. He and his supervisor expected this project to be low risk and quite straightforward, as it was just an upgrade to an application that had already been running for many years in the organization. The application was used daily by approximately ninety percent of employees across the country.

The first risk assessment

The project manager met with his assigned mentor to discuss the project. At this company, it was a requirement that the project charter include a risk assessment section. The project manager included as risks some items that had been problems on previous projects, such as business resources and IT code promotion resources not being available. When questioned, the project manager said there was no particular reason to believe these would be problems on the new project, but he wasn’t sure what else was relevant to include as risks.

The real story

In discussion with the project manager, the mentor learned more about the project, which was in the planning stage prior to charter approval and project launch.

The application vendor had been slow to respond to requests for help with planning the upgrade.  The vendor was apologetic about the lack of assistance provided and explained that they had recently sold a very large engagement and were very busy as a result.

The existing application had numerous customizations and interfaces, almost none of which were documented. Upgrades of this application had been attempted before, but the projects were never completed due to the difficulty in replacing the undocumented customizations and interfaces.

The project sponsor had just gone on medical leave for several months and appointed a junior manager to act as sponsor in her place.

The mentor helped the project manager to identify three significant risks: (a) unavailable vendor resources; (b) undocumented customizations and interfaces; and (c) inappropriate sponsorship.

Actions taken

The mentor suggested several follow up actions to the project manager to try and manage the risks before launching the project.

The project manager approached the application vendor about alternatives for resourcing the project, but the answers were discouraging. The vendor had no business partners trained to perform implementations and also could not recommend any other companies or individuals who might to able to guide the company through the application upgrade process.

A business analyst was assigned to start documenting the customizations and interfaces, but the work was progressing very slowly as he was also assigned to a high-priority project.

Although the original project sponsor was available for a brief phone call, she was unable to suggest a more appropriate replacement sponsor for her expected several-month absence.

Unfortunately, none of the actions resulted in lower risks.

Updated risk assessment

After these follow up actions and further discussion with the mentor, the project manager had a much more realistic view of the project risk.

The vendor’s lack of availability during planning raised significant concerns about its ability to provide appropriate resources for the project itself. Noticeable lack of availability during the sales cycle made it clear that the vendor was overwhelmed by the large contract they had just signed and would not be focused on this company’s upgrade. Even if they managed to provide a few resources, the vendor would not be able to support them to the extent needed.

Undocumented customizations and interfaces had already caused previous upgrades of this application to fail. Proceeding with the project without developing a good understanding of the customizations and interfaces would certainly cause the project to fail once again.

The lack of an appropriate project sponsor is a risk that sounds alarm bells for any experienced project manager.  The appointment of a low-level resource shows a lack of understanding of the role of the sponsor. Someone too junior to determine business priorities and commit resources is not an appropriate choice.

Any one of the three risks described would put the project at significant risk of failure. Given all three risks, it would be nearly impossible for the project to succeed. 

Recommendations

The project manager discussed the revised risk assessment with his supervisor. The supervisor was reluctant to delay the project but did finally agree that it was too risky to proceed at that time.  However, the discussion of the risk with the sponsor would be a delicate matter, especially given the concern about the inappropriateness of the sponsor.

The supervisor arranged for the IT vice-president to have a discussion with the business vice-president (to whom the original project sponsor reported).

Epilogue

The two vice-presidents agreed that a different project was needed first, one with the purpose of documenting the existing customizations and interfaces. The IT vice-president agreed to commit resources to this predecessor project.

They expected that by the time that project was completed, the original project sponsor would be back from medical leave and the vendor would have had time to train new resources.

Conclusion

Given the risks identified for the project, the vice-presidents made the right decision. Delaying the project and starting with documenting the customizations and interfaces was the best option to set it up for success.

Evaluating project risk is frequently a challenge for junior project managers. It is typical for new project managers to focus on schedules and budgets, and develop their understanding of risks and issues at a later stage of their project management career. Providing a mentor for the project manager was a wise course of action for the company. The mentor was able to guide the project manager through the risk assessment process, leading to a more realistic evaluation of the project’s chance of success.


Copyright 2015 Debbie Gallagher

Saturday, July 18, 2015

Is it really all about schedule and budget?

When I read job postings for IT project managers, there is a heavy focus on being able to deliver on schedule and on budget. In addition, I sometimes hear rather lively discussions about the role of the project manager: are they/should they be accountable for anything at all beyond schedule and budget? I’ve also observed from my own project management experience that the first questions from the sponsor and from the steering committee are invariably “how much will it cost” and “when will it be done”? Again, the focus is on schedule and budget.

Why are schedule and budget the big focus of project managers and the executives for whom they deliver projects? Is that where all the big risks are?

The big risks

In my opinion, schedule and budget overruns are not the big risks themselves. They are the outcome of other risks that have materialized into issues. So, what are the biggest project risks that drive schedule and budget problems?

In a previous article Identifying and Managing Project Risk by Tom Kendrick (book summary), I summarized Tom Kendrick’s book, in which he outlines his findings from examining hundreds of technical projects. In the book, all the risks that occurred were translated to a timeline impact so they could be compared. I think it’s a fair assumption that when the timeline is extended, the cost also grows. So, what are the risks that have the greatest impact? From Kendrick’s book, two risk areas with the greatest impact are: (a) non-mandatory scope changes; and (b) legitimate, but not anticipated, requirements gaps.

In other words, the big risks are related to scope and requirements. There are plenty of other risks, but let’s start with these two. When these risk events occur, there is an impact on the schedule and budget.

Managing scope and requirements

There are several ways to focus on scope and requirements.

First, these need to be defined as clearly as possible at the outset.  Too often there is a rush to get the project started, and it begins with inadequate descriptions of scope and requirements. This rush to delivery and related skimping on scope and requirements can lead to disastrously large impacts on schedule and budget.

Sometimes there is a good reason to have uncertainty at the start of the project.  In that case, identify the lack of clarity as a project risk. Then, make sure that everyone on the project and on the steering committee knows about that risk. Also be sure to include a re-assessment point in the schedule and funds in the budget to address the cost of potential changes.

Next, focus on requirements and scope during the project.  At the outset, meet with the project team(s) to review these in detail and address any questions. It is crucial that the team knows what is to be delivered.

Make sure there is a change control process and that it is followed.

Review and follow up on the project issues frequently. Issues are often the result of disagreement regarding what is in scope or what is needed. Too often, issues are logged in a database and neglected.

During the project there should be checkpoints to verify that the project team is on track. Hold walkthrough meetings with team members, and also with stakeholders outside the team. While often seen as time consuming, these walkthroughs are critical tools to ensuring the delivered product supports the requirements and scope of work.

An effective way to determine during the project if there are issues with scope and requirements is to ask team members informal questions about what they are working on, whether they are clear enough on what they need to do, and what problems they are having.  The project manager needs to make herself available when there are questions from the team regarding scope and requirements, and not put them off while heads-down adding up budget hours or updating Gantt charts.

Testing is another method of ensuring that the delivered product meets requirements and scope. Evaluate test plans to determine if they engage the right people and cover the right tests to identify gaps in scope and requirements. Ideally, gaps should be identified before testing, but even if found during testing, at least they are dealt with before go-live.

Conclusion

When hiring and evaluating project managers, the heavy focus on schedule and budget overlooks the relationship between schedule and budget, and project risks.  It’s usually the project risk events occurring that cause the budget and schedule problems.  Managing the schedule and budget is really about managing the project risks. In this article, I picked two top risks and discussed common techniques to manage them.

I’ll leave you with a couple of thoughts. First, I think the question about whether the project manager is responsible for anything besides schedule and budget has a definitive answer. Project Management Institute says yes, as the knowledge areas cover a lot more than schedule and budget.  Quite apart from PMI’s body of knowledge, the answer has to be yes, because if you aren’t managing the project risks, it isn’t possible to manage the schedule and budget.

My second parting thought: If the project comes in on time and on budget, but does not deliver the expected scope or meet requirements, what was really achieved?


Copyright 2015 Debbie Gallagher

Friday, July 17, 2015

Identifying and managing project risk by Tom Kendrick (book summary)

In reading Tom Kendrick’s book, Identifying and Managing Project Risk: Essential Tools for Failure-Proofing Your Project (2nd edition, 2009), I found it a compelling read and thought I’d share my views.

The premise of Kendrick’s book is that the experiences from previous projects, specifically the historical data of project problems and their impacts can help us in identifying risk and managing those risks on our own projects.

PERIL database

Over a period of more than ten years, Kendrick collected data on project problems from hundreds of project managers. He assembled this data in his Project Experience Risk Information Library (PERIL) database. The database provides information on what types of things go wrong on projects, and attributes each to root causes. In addition, the database captures estimates of the impact of the problems that occurred. The PERIL data is mainly based on projects having a dependence on new or relatively new technology; includes mostly projects that had a planned duration between six and twelve months; and twenty or fewer project team members. 

Kendrick analyzed over six hundred projects, and has come up with an interesting approach to allow comparison. For each project, whatever the actual impact of the project issues, he has converted the impact to a time impact.  For example, if scope was reduced to meet the scheduled completion date, the timeline impact has been determined by calculating how late the project would have been if it had delivered its original scope. Kendrick’s approach may not stand up to rigorous scientific scrutiny (and he is open about the bias in the data), but in my opinion, it still provides a very useful way to compare project risks. From these risks come clear risk management strategies. 

Kendrick’s findings

Kendrick’s first analysis is high level and compares the total timeline impact in the PERIL database for eight root causes.  These include, for example, scope changes during the project, failure to meet deliverable requirements, schedule delays, internal staffing.

In later chapters, Kendrick then breaks down the categories of risk/impact into sub-categories. For example, the impact of scope changes during the project is broken down into non-mandatory scope changes, legitimate requirements gaps, and so on.

In the chapters covering sub-categories, the descriptions of issues from the project managers are included along with the frequency and impact figures. For example, end user not involved enough in requirements, supplier not meeting deadlines, system architect not available. In reading these issues from other project managers, some triggered project flashbacks!

The Panama Canal

Throughout the book Kendrick weaves stories of the Panama Canal building projects. The first project, which ran from 1879 to 1889, was a failure. Ten years after the start of the project, it was cancelled, thousands of workers were dead, the costs had spiraled out of control, and there was no canal. A failure indeed!

The second Panama Canal project started in 1902, started re-planning in 1905, and the canal opened in 1914. This project finished under budget and ahead of schedule, and was useable for its intended purpose. Although workers also died on the second project, the death and disease rates were dramatically reduced due to improved insect control, housing and other practices implemented on the project.

Although Kendrick placed the Panama Canal segments to tie each to a specific risk or approach being discussed in the book, for me they were very interesting, not just as project management solutions, but also as an interesting historical sidebar.

Lessons from the book

Although Kendrick makes project management recommendations regarding each sub-category, he does not make recommendations about which are the most critical practices for project managers to adopt overall. He leaves this to the discretion of each project manager, to be determined based on their own specific projects and environments.

In examining the breakdowns in the book, each project manager can determine what the biggest-impact problems are likely to be, either in general or on their own project, and then decide what to do about them. Every reader will likely take something different from the book depending on whether they are looking for general guidance or for insights for their own project.

An example

For purposes of this article, I decided to look at the data from the perspective of “If I wanted to improve my project risk management in just one area, where should I focus to address the project risks that occur most frequently and have the greatest impact?” So, I started by looking for the category that has the greatest number of issues and the greatest impact.  As described above, the greatest impact is from scope changes that occur during the project.  It is also the issue that occurs with the greatest frequency.

Then, within the scope change category, the two sub-categories that have the greatest frequency and impact are non-mandatory changes and legitimate requirements gaps.

My conclusion is that to improve my project risk management practices, I should start by improving scope management. By looking at the sub-categories, I see that the ways to improve scope management the most are: (a) eliminate the non-mandatory changes; and (b) reduce legitimate requirements gaps by either spending more time on requirements or by making a provision in the schedule right from the outset.

Summary

If I was looking at the data before starting a new project, I would be looking to see what might apply to my own project.

The value in Kendrick’s book is the analysis of many technical projects and the comparability of the various causes of problems.  This comparability allows each project manager to assess for themselves what recommendations can be quickly implemented for the highest improvement in their projects. 

The Panama Canal highlights provide interesting examples of the differences in project management techniques and capabilities.


Copyright 2015 Debbie Gallagher