Project Management

You Are Entering … The PM Zone

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Modelling Business Decisions and their Consequences

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Over the long New Year’s Day holiday weekend, the SyFy® channel was airing a Twilight Zone marathon, and one of the episodes caught my attention. It was entitled “Nick of Time,” and it was written by Richard Matheson. This episode dealt with a newlywed couple whose car had broken down in a small Midwestern town, and were waiting in a diner while it was being repaired. The diner’s tables had fortune-telling machines, which would push out a slip of paper with cryptic words designed to answer yes-or-no questions for a penny. 

(Spoiler Alert!) The newlywed husband (played by William Shatner) quickly realizes that the answers he is receiving are improbably accurate, and becomes fixated on the notion that the machine can predict the future. His wife (played by Patricia Breslin) pleads with him to stop; in response, he challenges her to ask the machine some yes-or-no questions, to demonstrate that it’s not just the husband’s choice of questions that is causing the phenomena of the seemingly 100% accurate penny fortune-teller. Sure enough, each of the questions that she asks where she already knows the answer is answered correctly. 

When Shatner’s character begins to almost frantically feed the machine pennies and ask questions about where the couple will live, the wife pleads with him to recognize what’s happening. She points out that they can leave the diner any time they wish (their car was repaired earlier than had been estimated, and, yes, the penny fortune-teller “foresaw” it), go wherever they want to go, and write the story of their future themselves, rather than allow the machine to do so. The husband realizes the wisdom of her words, and they leave the diner, only to have another couple immediately sit at that particular table, and, with frightened looks on their faces, begin to ask the machine questions and feed it pennies. Rod Serling’s voice over at the end is “Counterbalance in the little town of Ridgeview, Ohio. Two people permanently enslaved by the tyranny of fear and superstition, facing the future with a kind of helpless dread. Two others facing the future with confidence - having escaped one of the darker places of the Twilight Zone.” (1)

Besides the reference to “one of the darker places of the Twilight Zone,” much in this episode reminded me of current risk management theory. Oh, sure, there are some differences (risk managers don’t work for pennies), but, epistemologically speaking, the similarities are striking. Consider:
•    Both the penny fortune-telling machine and the risk manager purport to predict future events,
•    For money.
•    Their predictions are always somewhat cryptic (“The answer should be obvious” or “There is an 85% confidence interval”).
•    On top of each of the machines was a little bobble-head that looked like a devil, whereas the appearance of risk managers is…
Ha, ha! Just kidding there.  I’m sure the appearance of typical risk management-types is perfectly normal. However, their results are chillingly similar, with (at least) one major difference. In the show, the machine’s answers were improbably accurate, with a 100% confidence interval (get it?), which is why its answers were so compelling. Conversely, should a so-called risk event happen to a project that was not predicted nor pseudo-quantified in the risk analysis, their “out” is to simply assert that the event was an “unknown unknown,” which is somehow different from a “known unknown,” in that the latter was mentioned in the risk analysis. And, should the event be captured in the risk analysis, the analysts can claim that they had actually predicted it, using their Gaussian Curve-based, jargon-filled processes. Convenient, no?

So, the question I will leave my readers is this: Will you be one of the managers permanently enslaved by the tyranny of fear and superstition, facing the future with a kind of helpless dread, or will you be among those PMs facing the future with confidence, having escaped one of the darker places of… the PM Zone?

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(1)   Nick of Time (The Twilight Zone). (2016, January 2). In Wikipedia, The Free Encyclopedia. Retrieved 20:46, January 2, 2016, from https://en.wikipedia.org/w/index.php?title=Nick_of_Time_(The_Twilight_Zone)&oldid=697844470


Posted on: January 04, 2016 10:35 PM | Permalink

Comments (8)

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Michael Henderson Director| South Sea Bubble Limited Wellington, New Zealand
Useful metaphor.

One could also reduce this down to these statements:

1) You can''t predict the future with confidence - and if you could, would you want to?

2) The quality of the groundwork is perhaps more valuable than the end game. If you know you have put the groundwork in place then you can feel confident that you have set yourself up for the best outcome. Of course you are not guaranteed to get the outcome you want in the way you want, but you should feel confident in the work you have done - no matter what you do, there are events that could derail your efforts anyway.

One could read this as a parable to not waste energy in predicting the future - which could be interpreted as risk management. Perhaps this runs counter to much of the accepted wisdom of Risk management but it is consistent with my view, and also Nassim Taleb''s, if I understand him correctly. Ie. Put energy into mitigating risks that will derail your project, but don''t waste energy on the fine granular risks - be confident in the groundwork you have put in place will take care of the majority and be responsive to the ones you had not mitigated: Thats as good as it gets.

Since we are making analogies to popular media , let me quote the last line of Blade Runner: "We didn't know how long we would have together, but then again, who does?".

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Khalid A. Elzairy GM| ECO Consultant Office Elwasta, Bani Sweef, Egypt
thanks

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Stéphane Parent Self Employed / Semi-retired| Leader Maker Prince Edward Island, Canada
As someone who just finished a course on enterprise risk management, I find the article a bit simplistic.

Risk managers are only facilitators; they get the risks from the organization's staff. If risks are missed it's because insufficient time was spent in the identification stage. (You can use facilitated worshops, Delphi analysis, HAZOP, ...)

Risk management is not about predicting the future. It's about reducing uncertainty within the organization's risk appetite.

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Arielle Shnaidman Communications & Community Officer| Accelo San Francisco, Ca, United States
Great post! Although, I have to agree with Stephane with risk management in terms of reducing uncertainty.

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Michael Hatfield Author / Blogger| Author Albuquerque, Nm, United States
Arielle -- do you HAVE to agree with Stephane, or was there an 80% confidence interval that you would do so?


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Arielle Shnaidman Communications & Community Officer| Accelo San Francisco, Ca, United States
An 80% confidence interval that I would do so, to be specific.

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Rogerio Santos Director| .: RIZ | iko Software :. Rio De Janeiro, Rj, Brazil
Answering your question Michael!

In my opnion we can change company confidence on risk assessment results by following these:

1st) Giving them a range of probabilities instead of fixed values (from 73% to 80% that it'll occur);
2nd) Showing them more opportunities (positive risks),beyond threats;
3rd) Monitoring and communicating treatment plan regulary and communicating every time treatment plan is effective on mitigate or eliminate threats.

As someone who just finished a course on enterprise risk management (or a bit more), I find the article great!

"Simplicity is the ultimate sophistication" (Leonardo da Vinci).

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Marius Oprea Bucharest, Romania, Romania
good !

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