Professional Documents
Culture Documents
Aamir Thanawala PMP, Prince2 Practitioner, ITIL, CGEIT July 14, 2012
Agenda
Plan Risk Management Identify Risks TEA BREAK Perform Q Qualitative Risks Perform Quantitative Risks Risk Exercises LUNCH BREAK
Agenda
Plan Risk Responses Monitor and Control Risk Develop Human Resource Plan TEA BREAK Acquire Project Team Develop Project Team Manage Project Team Plan Procurement Day 3 Quiz PMP Exam Tips and Tricks
Processes of conducting risk management planning, identification, analysis, response planning, and monitoring and control on the project
Introduction to Risk
Risk
Uncertain Events or Condition that may have positive or negative effect on the project. Risks are Inherent in Project Management. Example : Weather Risks
Introduction to Risk
Types of Risk
Known Risks - Planning is possible Unknown Risks - Cant be managed proactively add contingencies
Initiating Processes
Closing Processes
Executing Processes
Knowledge Area
Executing
Closing
Risk
Process of deciding how to approach & plan the risk management activities for a project. Planning also important to provide sufficient resources & time for risk management p g activities
Risk management cost elements and schedule activities will be developed for inclusion in the project budget and schedule respectively.
IDENTIFY RISKS
Identify Risks
Identify y Risks
Iterative process for determining which risks are likely to affect the project and documenting the characteristics of each risks.
Identify Risks is concerned with opportunities (positive outcomes) as well as with threats (negative outcomes) outcomes),
Identify Risks
Key Participants
Project Manager, Project Team Members Customers , End Users Subject j Matter Experts p ( (outside p project) j ) Risk Management Experts
Risk Categories
External, unpredictable: Regulatory, etc. External, predictable: Market risks I Internal, t l non-technical: t h i l Management M t Technical : Design Legal : Contractual
Identify Risks
Inputs Risk Management Plan Activity Cost estimates Activity Duration estimate p baseline Scope Stakeholder register Cost Management plan Schedule Management plan Quality Management Plan Project Documents Enterprise environmental factors Organizational process assets Tools and Techniques Documentation R i Reviews Information Gathering Techniques Checklist analysis Assumptions Analysis g g Diagramming Techniques SWOT Analysis p Judgment g Expert Outputs Risk Register
Identify Risks
Scope Baseline
Uncertainty in Project Assumptions WBS
Recognizing Excellence in Project Management
Stakeholder Register
Stakeholder list/inputs Customer interviews / participation in risk identification
Project Documents
Assumption log Work Performance reports Earned Value reports Network Diagrams Baselines
Checklist Analysis
Organized by Source of Risk Not a complete and final list of Risk Needs to be updated at the closure for future project use
Whats the big difference between Brainstorming and the Delphi Technique? q Can you y think of a situation where one would be more useful than the other?
Recognizing Excellence in Project Management
Diagramming Techniques
Cause and Effect Diagrams also known as Ishikawa or Fishbone diagrams
Influence diagrams graphical representation t ti of f showing h i causal l influences, time ordering events and other relationships among variables and outputs. outputs
SWOT Analysis y
Strengths, weaknesses, opportunities, and threats (also known as SWOT analysis) is a technique that examines the project from each of these perspectives to increase the breadth of identified risks by including internally generated risks. Examples,
Strengths : The technology to be installed in the project has been installed by other large companies in our industry. industry Weakness : We have never installed this technology before. Opportunities : The new technology will allow us to reduce our cycle time for time-to-market on new products. Threats : The time to complete the training and simulation may overlap with product updates, new versions, and external changes to our technology portfolio.
Recognizing Excellence in Project Management
Process of prioritizing risks for further analysis or actions by assessing and combining their probability of occurrence and the Impact
Risk Categorization
Sources of Risks Area of the project affected Project Phase
Expert Judgment
Probability / Impact Risk Metrics Definition (as seen previously)
Perform Quantitative analysis is a more time-consuming process as compared to Qualitative analysis, and is therefore also more expensive.
Recognizing Excellence in Project Management
Risk Management Plan discussed earlier Schedule Management Plan discussed earlier Cost Management Plan discussed earlier
Risk Register
Identified Risks Evaluation of risks identified during g the Identify Risks process and their potential impacts on the project
Probability Distributions
Continuous probability distributions represent the uncertainty in values, such as durations of schedule activities and costs of project components. Discrete distributions can be used to represent uncertain events, such as th outcome the t of fat test t or a possible ibl scenario i in i a decision d i i tree. t
Process of developing options and determining actions to enhance opportunities and reduce threats to the projects objectives
Risk Register
Identified Risks Evaluation of risks identified during the Identify Risks process and their potential impacts on the project
Accept
Passive Acceptance
Deal with the risks as they occur = No Plan B prepared
Share
Allocating ownership to a third party who is best able to capture the opportunity for the benefit of the project. Example : Joint ventures, special-purpose companies
Accept
Accepting opportunity is being willing to take
advantage of it, if it comes on but not actively pursuing it
Expert Judgment
Expert inputs for handling a risk event or planning for responding to risk event. event
Performance Reports
Variance Analysis Earned Value Analysis Forecasting F ti data d t
Risk Audits
Examine and document the effectiveness of risk responses Examine and document the effectiveness of the Risk management Process
Status Meetings g
Should be an agenda item in periodic status meetings.
Change Requests
Managed through Integrated Change Control Process Recommended corrective action Recommended R d d preventive ti action ti
Initiating Processes
Closing Processes
Executing Processes
Process Knowledge Area Initiating Planning Executing Monitoring & Control Closing
Human Resource
Process of identifying and documenting project roles, responsibilities, and required skills, reporting relationships, and creating a staffing management plan
Whatever methods are used, the objective is to Ensure that each work package has an unambiguous owner All team members have clear understanding of their roles & responsibilities
Recognizing Excellence in Project Management
Organization Theory
Describes the behavior of people, teams and organizational units Application of these proven principles shortens the HR Planning time and improve the effectiveness of the plan While concentrated networking for a project is a useful technique, networking regularly even without a project is also very useful
Process of confirming Human Resource availability and obtaining human resources required to complete the project
Negotiation
Acquisition
People outside the organization obtained by way of Subcontracting Hiring individual consultants Organizational dynamics as well as the ability of project management tt team t to i influence fl others th plays l an important i t t role l in negotiations
Recognizing Excellence in Project Management
Resource Calendars
Useful in creating the final schedule
Process of improving the competencies, team interaction and overall team environment to enhance project performance.
Resource Calendars
Identifies the times that the team members can participate in team development activities.
Training
All activities for improvement of team member competencies & performance. Scheduled training as per the project plan. Unplanned training as a result of observation, conversation and project performance appraisals.
Recognizing Excellence in Project Management
Co-location
Locating many or all of the team members at one location either temporarily or for the full project duration.
Basic Needs
Motivation Factors
- Responsibility - Self actualization - Professional growth - Recognition
Process of tracking team member performance, providing feedback, resolving issues & coordinating changes to enhance project performance
Collaborating Incorporating multiple viewpoints and insights from differing perspectives; Leads to consensus and commitment.
Compromising Searching for solution that bring some degree of satisfaction to all parties parties.
Confronting & Problem Solving Treating conflict as problem to be solved by examining alternatives; Requires a give and take attitude and open dialogue.
Forcing - I win, you lose P Pushing hi one's ' viewpoint i i t at t th the expense of f others; th offers ff only l win-lose i l solutions "Do it my way! Fundamental premise: Associates "winning" winning a conflict with competition
Smoothing/Accommodating I loose, you win Emphasizing E h i i areas of f agreement t rather th than th areas of f difference diff "Let's calm down and get the job done! The smoothing technique does not usually result in a permanent solution F d Fundamental t l premise: i W ki toward Working t d a common purpose is i more important than any of the peripheral concerns; the trauma of confronting differences may damage fragile relationships
Forcing Confronting
Collaborating
Interpersonal Skills
Leadership Team Building Motivation Communication Influencing Decision Making Political and Cultural awareness Negotiation
Project Procurement Management includes the processes to purchase or acquire the products, services, or results needed from outside the project team to perform the project work
Plan Procurements - Planning Processes: Conduct Procurements Executing Administer Procurements Monitoring and Controlling Close Cl P Procurements t - Closing Cl i
Recognizing Excellence in Project Management
Initiating Processes
Closing Processes
Executing Processes
Process Knowledge Area Initiating Planning Pl Procurements Plan P t Executing Conduct C d t Procurements Monitoring & Control Administer Ad i i t Procurements Closing Close Cl Procurements
Procurement
PLAN PROCUREMENTS
Plan Procurements
Plan Procurements
Identifying which project needs can be best met by procuring products or services outside the project organization and how the procurement will be managed
Plan Procurements
Inputs
Scope baseline
Inputs
Procurement Management Plan
Requirements documentation Teaming agreements Risk registry g y Risk-related contract decisions Activity resource requirements Project schedule Activity cost estimates Cost p performance baseline Enterprise environmental factors Organizational process assets
Procurement Statement of Work (SOW) Make or Buy Decisions Procurement documents Source Selection criteria Change requests
Plan Procurements
R Requirements i t D Documentation t ti
Information about Project requirements that is considered during procurement planning Requirements with contractual and legal implications
Recognizing Excellence in Project Management
Risk Register
Contains Identified Risks, Risk owners and Risk Responses.
Project Schedule
Information on required timelines.
Recognizing Excellence in Project Management
Expert Judgment
Expert technical judgment Expert p p purchasing gj judgment g Expert legal judgment
Low
Fixed Price FFP FPIF Time and Materials Cost Reimbursable CPIF CPFF CPF CPPC
High
BUYER RISK
SELLER RISK
T&M can be a high risk for buyer if contract does not include a total not-to-exceed (NTE)
High
Low
Final price