Risky Business

riskWhen starting a new project, everything looks shiny, bright and new. Everyone is focused on the end goal. However, it is the project manager’s job to look deeper into the project and identify the possible risks—not what will go wrong (because at this stage we all believe nothing will), but what could possibly go wrong. Without identifying risks, the project manager is not able to plan how to address any of these possible risks or prevent any risks.

The Project Management Institute lists 6 steps for Risk Management: Plan, Identify, Qualify, Quantify, Plan Response, and Control Risk. But Bruce Garrod, founder of the project management consulting firm Solutions Management Inc., recently presented a simpler 3.5 step approach:

0.5 – Establish the highest priority on the project
Talk to your owner and other stakeholders to establish the priorities. For example, ask “Is it ok to overrun the budget to stay on the time line?” This step is crucial since it will directly affect step 2 where you will be prioritizing your risks.

1 – Identify possible risks
Do your homework. Use whatever means are at your disposal: research the city, county, and state plans to see if any will have a direct or indirect impact on your project; use your past experiences to flag trouble spots; read up on any equipment or materials with which you aren’t familiar to identify weak spots; and most importantly, brainstorm with your team.

2 – Prioritize    
Of the identified risks, which are most likely to impact the project? Be sure to use clear language here. Words can be ambiguous—”severe”, “critical”—whichever is higher on your scale, may not be the highest on mine.  Use numbers. Rank 1-5, $50K, 10 days, 75%, etc. are clearer and ensure that everyone is on the same page.

3 – Be Proactive    
Start with working your prioritized list of risk. Keep in mind your three goals to

  1. make the risk go away,
  2. mitigate the risk by taking actions to minimize the probability and/or impact and
  3. move the risk to a 3rd party, such as insurance or contracts with your vendors.

After you have your list, consider what tools you have to manage your risks.  For example, in the Spitfire Project Management System, there is an Issue document where each risk can be tracked and related spreadsheets, files, correspondence, etc. can be attached.

Spitfire also offers a Forecast system that presents the Project’s Budget and the Actuals-to-Date along with the Committed Amount to date. What’s been spent can’t be changed, but forecasting allows for better decisions about future expenditures.  For example, with forecasting, you could start planning on how to appropriate a contingency budget, or could re-appropriate budgeted amounts based on the current situation, or could discover cost overruns and “out of scope” work indicating that a Change Order is appropriate.

In our recently released Spitfire Project Management System V2016, you could even configure a Risk Register to track all risks and then better handle each one before the risk impacts the project budget or schedule. Spitfire’s built-in collaborative capabilities also facilitate the  communication, sharing, and assignment of risk management items with the team.

Risky business is serious business. If you would like to see how the Spitfire Project Management System can help you handle risk management, contact us to schedule your free demo.

When It’s Broke

broken-and-new-computer

“If it ain’t broke, don’t fix it.” — an English proverb credited to Bert Lance (1931-2013) in 1977.

I stick with this motto when it comes to almost everything, but most assuredly when it relates to the technology I use while doing business day-to-day. Do you want to see my productivity go down the toilet? Then change something that impacts my routine!

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It’s Time For New!

new new newIf there is a student or teacher in your household, you know that a new year has begun or is about to begin. Generally, people of all ages involved with traditional schools in the U.S. know that these weeks are about new: new teachers/students, new things to learn, new people to meet, new outfits to wear, new challenges and rewards to experience. For those who look forward to “new,” there is a certain excitement in the air.

There is a certain excitement and energy in the offices of Spitfire Management also.

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Awe Thanks

treeI recently enjoyed reading The Healing Power of Nature, an article in the July 14th issue of TIME magazine by Alexandra Sifferlin. One of the points in the piece was that a 2015 study found that people who spent 60 seconds looking up at towering trees were more likely to report feeling awe than those who looked at equally tall buildings.  

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The One Constant is Change

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be preparedFinally, after all the training and effort, your company is running like a well-tuned machine. Finally your Project Managers have grasped that Accounting needs details in order to keep track of the project’s expenses. And your Accountants have accepted that the Project Managers will never give them all the details, so they will need to double check the account codes before they post. Everything is perfect, and then…

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