PM ADVISORY:

Risks in Projects: The Road to Success!

By Glenn R. Koller, PhD

Well, in almost all of the past articles of this series of 10, I have focused primarily on the problems, hurdles, and challenges associated with implementing a risk-based process in any organization.  In this 9th article, I will stress 5 steps to success that I deem to be essential.

1 – Make sure they get it!

In article #8, I stressed that the support of upper management for the risk-based effort is absolutely critical.  I will add here, that such support has to be genuine.  I have many times experienced upper management “support” with said management believing that the changes necessitated by embracing a risk-based business process would impact those personnel “down the ladder” and would not make meaningful differences in their everyday responsibilities.  This very-wrong interpretation typically accounts for their quick agreement to support the effort (“Great, as long as it is for everyone else and it does not impact me!). 

I experienced this situation first hand in Egypt years ago (one of many such experiences).  The “Big Manager” on location had called us to Egypt to bring risk-based processes to his exploration/production effort and made, while we were present, great pontifications to the gathered employees regarding just how important it was to embrace the new risk-based process.  Of course, probabilistic analysis results, usually, in results expressed as ranges and probabilities (a typical cumulative frequency curve, for example).  Later, when speaking with one of the “Big Manager’s” direct reports, that person indicated that when bringing information to the “Big Manager,” you had better not show up with a range of answers – he wanted THE number!  Just another example of saying one thing but meaning another.  This subject is expanded upon greatly in the book Risk Assessment and Decision Making in Business and Industry – A Practical Guide, 2nd Edition.

The lesson here is that management has to be prepared regarding the impact that a switch to risk-based processes will actually have on them and the way they do business.  This leads me to the education aspect of this article. 

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About the Author Glenn R. Koller, PhD Dr. Glenn Koller received his Ph.D. in geochemistry/geophysics from Syracuse University. In his career Glenn has held positions with the Department of Energy, DuPont, Amoco, BP, and Schlumberger. Glenn’s primary focus for the past 20 years has been on aspects of risk-and-uncertainty analysis, management, and training. Responsibilities included implementation of risk-assessment/management technologies and processes; development of statistical routines that comprise risk systems; marketing risk technology; and performing technical and consulting services. Areas of responsibility include business and product development, environmental concerns, ranking and prioritization of projects and products, analysis of legal commercial, security, logistical, financial etc. scenarios and other aspects of a diversified business. Glenn has authored four books on risk/uncertainty and currently resides in Tulsa, Oklahoma. Glenn may be contacted at riskaid@cox.net.