How to expect the unexpected, and be ready for it?

“ Oh no! We could have foreseen the problem! “?

How often have you come across such an exclamation? Often,? if you are involved in deliveries of projects.?

Suppose you are involved in an internal project for, say, launching a new product, setting up a production line, or implementing enterprise software. In that case, you may have experienced the consequences of things gone wrong.

When the unexpected delays a project, its effects can be immediate and short, or they can occur after some time. The cost of the wait can be small and easy to limit, or it can be uncertain and unfolding.?

Consider a couple of examples.

If a project deliverable got delayed because a critical resource was unavailable, you could have avoided the delay. You could have planned a redundancy or adjusted the schedules to avoid a resource crunch.

If your project got delayed because of the scope creep, you might have realized that you could have anticipated some scope changes if you had the right experience. You could have asked your customer about them and avoided the surprises.?

Yes, you guessed it right!? I am talking about risk assessment in project deliveries.

Unfortunately, risk assessment is not taken seriously. Project managers, their teams, organizations and their customers bear the brunt of project delays and their costs due to unpleasant surprises. The costs can be damaging. The damage to the morale of those involved can be considerable.

There are many reasons why project teams don’t attach enough importance to risk assessment. People plan projects on a linear time axis. Probably, work breakdown structures are not detailed enough. They rarely stop to ask what can go wrong. Once their project plan meets the timelines and goals, they rush to launch it and get busy.?

But the real reason is a common, unstated belief ‘How can the unexpected be expected?’ Don’t we know better? We know that if we discuss risks in detail and involve knowledgeable people, we do come up with more probable defects, failures, or delays.

Risks can be eliminated, transferred, or avoided once identified and quantified. Residual risks can be mitigated with known trade-offs.

The benefits of establishing sound risk assessment and management practices are significant. It is essential from the compliance perspective, too.?

Professional services automation ( PSA ) software is the natural platform for incorporating risk assessment and management practices in your organization because it has real-time project data, resources, timelines, and financials.?

Here is how ProductDossier PSA helps:

1. Risk library: The PSA provides a repository of risk types like scope creep, inexperience of project personnel, and hardware failure. You can add new risks that you encounter in project after project. You can classify risks as classified as financial, technical, or geographic, for example.
2. The PSA provides risk templates for various types of projects. It is possible to copy risks in a project to a similar project—a project manager, therefore, benefits from the organization’s cumulative experience. You need to assess risks when you set up your project. Read: How do you set yourself up for success?
3. The PSA provides tools for assessing the probability and impact of each risk factor.
4. The tools for estimating the $ value of each risk factor in a project are available. The PSA determines the RPN (Risk Priority Number) for each risk factor based on various weight factors that you set up. The RPN is useful for visually representing the project’s dynamic risk profile.?
5. Once you carry out a project’s risk assessment, you can prepare your plan to manage the risks - eliminate, avoid, transfer. You can accept the residual risks and plan how to mitigate them.
6. AI-assistance: ProductDossier PSA has integrated AI tools that analyze your projects and suggest likely risk factors in a project. The list of risks is a valuable starting point for a project manager.

ProductDossier PSA provides a platform to use the risks observed in one project for upcoming projects.?

The PSA provides workflows for risk management during all stages of project execution. It makes risks visible to all stakeholders. Rigorous risk management enables actions that pre-empt project delays and save costs.?

The PSA’s risk management capabilities must be used during project setup, execution, and closure for more extensive benefits. Read: Go for a strong, memorable finish!

ProductDossier PSA’s capabilities help you manage risks at the enterprise level. I shall discuss the subject in detail in my next article.

Please contact me should you need any information or clarification.?

You can reach us for a demo at [email protected]