Peter RapinSubject Matter Expect; Project Delivery| Independent ConsultantOntario, Canada
My interest is in risk-driven project management vs process driven. The objective of project management is to mitigate risk and enhance benefits as is the role of the project manager and the entire project staff. Yet we seem to forget that and immediately focus on process. In my opinion a project, once contemplated, should start with a risk management plan including a risk/benefit analysis (typically detailed in a risk/benefit register). Every action, process, decision from that point on is then to be based on the risk analysis. The prime element of project management is risk management, all other project elements are subservient to the risk management plan. I see risk-driven project management as the basis of a successful project delivery. It takes us from the Traditional (bureaucratic) construction delivery model to Lean construction delivery and beyond. Can anyone direct me to discussion papers, blogs or groups that can help me define, debunk or advance my hypotheses? I should mention that my interest is with delivering infrastructure projects involving design and construction. Saving Changes...
Anton OosthuizenSenior Business Analyst / Project Manager| Self EmployedPretoria, Gauteng, South Africa
Peter, I don't have references to papers or blogs but I agree with your hypotheses. Logically it make sense that the process should be built around the identified risks, both positive and negative but like you highlight this is not what we do at all. We define our plan first and then we identify risk and best case we go back to the plan. Worse case (the norm) is we stick with our original plan. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
From the very begining, mainly in software industie, you can choose project life cycle that are "risk driven". Those project life cycle can be applied to any type of solution creation (i do that from long time ago). Two of more knonw life cycles are Barry Bohem´s Spiral model (it is "the mother" of the project life cycles that support Agile based methods) and V model. Few people know that Agile approaches, mainly in software industrie, were created based on risk avoidance, mainly related to the requirements management related risks. Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
Peter, Sergio is right.
Barry W. Boehm published in 1988 his iterative spiral life cycle which had an iterative process model for software.
1. determine objectives
2. identify and resolve risks (including prototyping)
3. development and test
4. plan next iteration
It is slightly different from PDCA, also in such that as a spiral it gets wider with every iteration and it can be applied to other areas as software.
I saw this applied to first responder process models, like the triage (objective is fixed: safe as much lifes as possible, assess injured and prioritize them (triage), treat the prioritized, replenish resources).
The first documented idea of agile was by General von Moltke setting mission based tactics for units of the German army in 1860s.
"Diverse are the situations under which an officer has to act on the basis of his own view of the situation. It would be wrong if he had to wait for orders at times when no orders can be given. But most productive are his actions when he acts within the framework of his senior commander's intent."
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1 reply by Sergio Luis Conte
Dec 06, 2019 4:56 AM
Sergio Luis Conte
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@Tomas, reading von Moltke, Sun Tzu, Von Clausewitz are critical to understand what Lean / Agile mean. Is not because I am said that. Those were pre-project readings to participate in the place where agile was defined in 1990: USA DoD/NSF Agility Forum, Leihigh University. To be honest, before this time, I was not aware of those books.
Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Dec 06, 2019 3:54 AM
Replying to Thomas Walenta
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Peter, Sergio is right.
Barry W. Boehm published in 1988 his iterative spiral life cycle which had an iterative process model for software.
1. determine objectives
2. identify and resolve risks (including prototyping)
3. development and test
4. plan next iteration
It is slightly different from PDCA, also in such that as a spiral it gets wider with every iteration and it can be applied to other areas as software.
I saw this applied to first responder process models, like the triage (objective is fixed: safe as much lifes as possible, assess injured and prioritize them (triage), treat the prioritized, replenish resources).
The first documented idea of agile was by General von Moltke setting mission based tactics for units of the German army in 1860s.
"Diverse are the situations under which an officer has to act on the basis of his own view of the situation. It would be wrong if he had to wait for orders at times when no orders can be given. But most productive are his actions when he acts within the framework of his senior commander's intent."
@Tomas, reading von Moltke, Sun Tzu, Von Clausewitz are critical to understand what Lean / Agile mean. Is not because I am said that. Those were pre-project readings to participate in the place where agile was defined in 1990: USA DoD/NSF Agility Forum, Leihigh University. To be honest, before this time, I was not aware of those books. Saving Changes...
I would generally agree that a greater emphasis on risk management will provide good returns, but we do want to ensure that the level of effort spent is commensurate with the outcomes.
I'd also agree with Sergio that one of the key tenets of an agile mindset & approach are to tackle the key risks in a project effectively at an early stage so that if a critical risk is to be realized, the team has time to implement workarounds or change their direction.
I wouldn't say that the primary focus or element of PM is risk management - by itself, that doesn't deliver value to customers or stakeholders. I'd rather use the analogy of insurance - we need to be effectively insured to achieve a certain set of outcomes.
I'd recommend reviewing Dr. David Hillson's articles on his website (The Risk Doctor) as this area is his passion and I'm sure he's covered similar ground over the past few decades...
Kiron
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1 reply by Peter Rapin
Dec 06, 2019 10:30 AM
Peter Rapin
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Kiron: Thanks for the response. One of the observations you make "... doesn't deliver value to customers or stakeholders." caught my attention. It has been my experience that many owners/customers don't see the value in planning - it doesn't build walls or pour floor slabs. However, planning can save considerable time and money and improves the probability of achieving the objective. The question really is "How much planning is sufficient?" That is why risk analysis should include costing of proposed mitigation compared with benefit.
Thanks for the reference to Dr. Hillson's website, my next stop
Peter
Saving Changes...
Luis BrancoCEO| Business Insight, Consultores de Gestão, LdªCarcavelos, Lisboa, Portugal
Dear Peter Interesting your question Thanks for sharing
I think the important thing is delivery (customer value), although I think the risks should be weighed from the start of the project (identified, analyzed and studied response measures) and monitored throughout the project.
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1 reply by Peter Rapin
Dec 06, 2019 10:12 AM
Peter Rapin
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Thanks for the response and thoughts. From a risk-driven project management perspective delivering customer value is a major risk/benefit consideration. Risk - failure to achieve customer satisfaction. One of the mitigating measures is to clearly identify customer requirements and provide actions to be implemented to address these needs. One of the elements of risk analysis is to cost out the proposed mitigation measures and compare against the gain making 'value' a key consideration. Note that customer value can be a complex equation involving scope, time and costs, usually in competition with each other. The project management triangle.
I'll see what if anything I have in my library. I partially agree with your premise, however before any type of risk management can begin, one must be able to apply critical systems thinking in order to identify any such risks, and this domain is essentially part of the systems engineering discipline - at least on the technical side. Saving Changes...
Peter RapinSubject Matter Expect; Project Delivery| Independent ConsultantOntario, Canada
Dec 06, 2019 7:31 AM
Replying to Luis Branco
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Dear Peter Interesting your question Thanks for sharing
I think the important thing is delivery (customer value), although I think the risks should be weighed from the start of the project (identified, analyzed and studied response measures) and monitored throughout the project.
Thanks for the response and thoughts. From a risk-driven project management perspective delivering customer value is a major risk/benefit consideration. Risk - failure to achieve customer satisfaction. One of the mitigating measures is to clearly identify customer requirements and provide actions to be implemented to address these needs. One of the elements of risk analysis is to cost out the proposed mitigation measures and compare against the gain making 'value' a key consideration. Note that customer value can be a complex equation involving scope, time and costs, usually in competition with each other. The project management triangle.
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1 reply by Luis Branco
Dec 06, 2019 10:28 AM
Luis Branco
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Dear Peter
Once referred to you: "From a risk-driven project management perspective delivering customer value is a major risk / benefit consideration"
I think the appropriate approach is: "risk-driven project management"
Saving Changes...
Luis BrancoCEO| Business Insight, Consultores de Gestão, LdªCarcavelos, Lisboa, Portugal
Dec 06, 2019 10:12 AM
Replying to Peter Rapin
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Thanks for the response and thoughts. From a risk-driven project management perspective delivering customer value is a major risk/benefit consideration. Risk - failure to achieve customer satisfaction. One of the mitigating measures is to clearly identify customer requirements and provide actions to be implemented to address these needs. One of the elements of risk analysis is to cost out the proposed mitigation measures and compare against the gain making 'value' a key consideration. Note that customer value can be a complex equation involving scope, time and costs, usually in competition with each other. The project management triangle.
Dear Peter
Once referred to you: "From a risk-driven project management perspective delivering customer value is a major risk / benefit consideration"
I think the appropriate approach is: "risk-driven project management" Saving Changes...
