The PRINCE2 Cityscape logo™ is a Trade Mark of the Office of Government Commerce in the United Kingdom and other countries...
10 things from MoR® that
can help your PRINCE2™
       Project today
The problems
• MoR® is seen as completing the set of
  three
• PRINCE2™ light on risk management
• PRINCE2™ projects still...
Evidence
• Delivering training in both PRINCE2™ and
  MoR®
• Marking MoR® Practitioner Papers
• Reviewing many projects ov...
Solution?
• PRINCE2™ 2009
• Until then:
 – Many concepts in MoR® that can be applied
   to PRINCE2™ projects
 – Simple, lo...
1. Identifying the Context
Multiple use of Context in
              PRINCE2™




SU4 Preparing a
Project brief     SB4 Updating
                  The...
Context Techniques
             RACI




SWOT
                               PESTLE




                PROCESS MAPS
2. Risk Descriptions
Poor Risk Description
Preferred Approach
• Risks should be described in a clear and
  unambiguous way
• The preferred approach is:
  – Risk Caus...
Question
• Is the following a well defined risk?
  – Because of poor security vetting procedures
  – There is a risk that ...
Why is this Important?
• Description linked to mitigation actions
• Options include:
  – Remove the cause
  – Reduce (thre...
3. Estimating for risk
Probability and Impact
• Projects don’t always define the estimation
  scoring
• Qualitative assessment means different
  ...
Measuring Probability
Probability    Criteria
Very High      > 75%
High           More likely to occur than not: 51%- 75%
...
Different Impacts
• Some risks will have an
  impact on one or more of:
  –   Cost
  –   Time
  –   Resources
  –   Qualit...
4. Appetite and Tolerance
Appetite and Tolerance – The
           Difference
• Risk Appetite:
  – Attitude towards risk taking
  – Willingness to to...
Appetite and Tolerance
       Summary
 Corporate or
 Programme         Appetite – 20 days delay
 Management




 Project B...
5. Aggregated Risk
What is Aggregation?
• Aggregation is the net effect of the threat
  and opportunity assessments when
  combined together
...
Example
• The project has identified 3 risks causing delay to
  the project:
   – Risk 3 – an additional 5 days for user t...
6. Risk Owners
Different Definitions
• PRINCE2™:
  – Risk owner should be the best person to keep an
    eye on the risk
• MoR®:
  – name...
7. Mitigation Actions
Choosing What to do
• Prevent – Remove the cause
• Reduce – Carry out an action to reduce the
  probability and or impact ...
Transference
• You can only transfer the financial aspects
  of a risk
• Giving the risk to someone else isn’t
  necessari...
Mitigation Actions and Appetite

Inherent Risk    Residual Risk   Risk Appetite




                                   Whe...
Mitigation Actions and Appetite

Inherent Risk    Risk Appetite    Residual Risk




                   Where
Start Point ...
Mitigation Actions and Appetite

Inherent Risk    Risk Appetite
                 Residual Risk




                Where w...
8. Reporting Risk
No Risk Reporting in
          PRINCE2™?
• PRINCE2™ reports don’t have risk in their
  Annex A Product Descriptions
• Risk...
Possible Reporting Mechanisms
• Dashboard Metrics:
  – New risks this period
  – Closed risks this period
  – BRAG Totals:...
9. Learn the Lessons
Experience is the Best Teacher
• What do you do:
  – When a risk materialises that you didn’t
    identify?
  – A mitigati...
Lessons Learned Log
• Make sure you review what happened and
  document it
• Make changes to your risk management
  proces...
10. Manage Risk
The Missing Piece
• Many projects:
  – Have a Risk Log
  – Populate the Risk Log with output from risk
    workshops
  – D...
Missed Opportunities to Review
           Risks
• Risk should be reviewed throughout:
  – Planning
  – Controlling a Stage...
Summary
10 Simple ways to add value
1. Identifying the       5. Aggregated risk
   context               6. Risk owners
2. Risk de...
Any Questions?
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Integration Of Prince2® And M O R® 1 John Fisher

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If this presentation is of interest visit http://www.bpugcongress.com to find out when the next event is taking place.

Presentation by: John Fisher - Director, UnconfuseU Ltd & Chief Examiner, M_o_R®

Many people recognise PRINCE2® and M_o_R as sister products, coming from the same OGC /APM Group stable. This view however misses an important concept that this are not sister products but a marriage between two methodologies.

Very little has been published on how these two different methodologies integrate. This presentation takes the very simple concept of a single project run under the PRINCE2 methodology and shows how M_o_R can be integrated to produce an all encompassing approach that manages risk in an effective and efficient way.

The presentation discusses the current (2005) version of PRINCE2 and maps it across to M_o_R demonstrating several useful approaches that Project and Risk Managers can take.

Using examples throughout, the audience will gain practical understanding of the power and ease as to how to join these two methods on their projects.

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Integration Of Prince2® And M O R® 1 John Fisher

  1. 1. The PRINCE2 Cityscape logo™ is a Trade Mark of the Office of Government Commerce in the United Kingdom and other countries MSP™ is a Trade Mark of the Office of Government Commerce M_o_R® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries The Swirl logo™ is a Trade Mark of the Office of Government Commerce BPUG 2009 Integration of PRINCE2™and MoR®
  2. 2. 10 things from MoR® that can help your PRINCE2™ Project today
  3. 3. The problems • MoR® is seen as completing the set of three • PRINCE2™ light on risk management • PRINCE2™ projects still failing to manage risk
  4. 4. Evidence • Delivering training in both PRINCE2™ and MoR® • Marking MoR® Practitioner Papers • Reviewing many projects over many years • Role as Risk Manager • NAO Reports
  5. 5. Solution? • PRINCE2™ 2009 • Until then: – Many concepts in MoR® that can be applied to PRINCE2™ projects – Simple, low cost but very effective
  6. 6. 1. Identifying the Context
  7. 7. Multiple use of Context in PRINCE2™ SU4 Preparing a Project brief SB4 Updating The Risk Log CS1 – MP1 Agreeing a Work Package
  8. 8. Context Techniques RACI SWOT PESTLE PROCESS MAPS
  9. 9. 2. Risk Descriptions
  10. 10. Poor Risk Description
  11. 11. Preferred Approach • Risks should be described in a clear and unambiguous way • The preferred approach is: – Risk Cause (source of risk) – Risk Event (threat or opportunity) – Risk Effect (impact should it arise)
  12. 12. Question • Is the following a well defined risk? – Because of poor security vetting procedures – There is a risk that an inappropriate person is employed – Which might mean that company secrets are leaked to the press So what?
  13. 13. Why is this Important? • Description linked to mitigation actions • Options include: – Remove the cause – Reduce (threat) or maximise (opportunity) the likelihood of the event – Reduce the effect (impact)
  14. 14. 3. Estimating for risk
  15. 15. Probability and Impact • Projects don’t always define the estimation scoring • Qualitative assessment means different view points and therefore different scores • What do you really mean when you say a risk has a “medium probability”?
  16. 16. Measuring Probability Probability Criteria Very High > 75% High More likely to occur than not: 51%- 75% Medium Fairly likely to occur: 26 – 50% Low Low but not impossible: 6 – 25% Very Low Virtually impossible: 0 – 5% ©Crown Copyright 2005 Reproduced under licence from OGC
  17. 17. Different Impacts • Some risks will have an impact on one or more of: – Cost – Time – Resources – Quality – Scope – Benefits – Security • Need to consider multiple impacts.
  18. 18. 4. Appetite and Tolerance
  19. 19. Appetite and Tolerance – The Difference • Risk Appetite: – Attitude towards risk taking – Willingness to tolerate a situation – What is and what is not acceptable • Tolerance – Levels of exposure which when exceeded trigger a response – How bad does it have to be before I escalate?
  20. 20. Appetite and Tolerance Summary Corporate or Programme Appetite – 20 days delay Management Project Board Tolerance – 15 days delay Project Manager Tolerance – 10 days delay
  21. 21. 5. Aggregated Risk
  22. 22. What is Aggregation? • Aggregation is the net effect of the threat and opportunity assessments when combined together • In other words “what if several risks materialise at the same time”? • PRINCE2™ doesn’t consider this eventuality
  23. 23. Example • The project has identified 3 risks causing delay to the project: – Risk 3 – an additional 5 days for user training – Risk 7 – extra 4 day delay to training due to staff sickness – Risk 12 – delay of 10 days due to staff unavailability for training because of operational needs • If Project Board Risk Tolerance is 15 days, aggregated risk exceeds this.
  24. 24. 6. Risk Owners
  25. 25. Different Definitions • PRINCE2™: – Risk owner should be the best person to keep an eye on the risk • MoR®: – named individual who is responsible for the management and control of all aspects of the risks assigned to them, including the implementation of the selected actions to address the threats or to maximise the opportunities.
  26. 26. 7. Mitigation Actions
  27. 27. Choosing What to do • Prevent – Remove the cause • Reduce – Carry out an action to reduce the probability and or impact of the risk • Accept – The risk is below the agreed risk appetite for the risk • Contingency – Carry out an action to reduce the impact of the risk when it occurs
  28. 28. Transference • You can only transfer the financial aspects of a risk • Giving the risk to someone else isn’t necessarily transferring the risk • Common transference actions include penalty clauses and insurance
  29. 29. Mitigation Actions and Appetite Inherent Risk Residual Risk Risk Appetite Where Start Point Where we are we want to be
  30. 30. Mitigation Actions and Appetite Inherent Risk Risk Appetite Residual Risk Where Start Point we want Where we are to be
  31. 31. Mitigation Actions and Appetite Inherent Risk Risk Appetite Residual Risk Where we are Start Point is where we want to be
  32. 32. 8. Reporting Risk
  33. 33. No Risk Reporting in PRINCE2™? • PRINCE2™ reports don’t have risk in their Annex A Product Descriptions • Risk reporting can be integrated into Checkpoint or Highlight Reports • Standard measures include: – Summary Risk Profiles – Dashboard metrics
  34. 34. Possible Reporting Mechanisms • Dashboard Metrics: – New risks this period – Closed risks this period – BRAG Totals: • Black 2 • Red 8 • Amber 15 • Green 1 – Trend Summary (number rising, falling or neutral)
  35. 35. 9. Learn the Lessons
  36. 36. Experience is the Best Teacher • What do you do: – When a risk materialises that you didn’t identify? – A mitigation didn’t work? – Risk owners don’t own the risk?
  37. 37. Lessons Learned Log • Make sure you review what happened and document it • Make changes to your risk management processes if they aren’t working • Carry out regular risk Healthchecks • Formal update in SB5 Reporting Stage End – but don’t wait that long if its urgent!
  38. 38. 10. Manage Risk
  39. 39. The Missing Piece • Many projects: – Have a Risk Log – Populate the Risk Log with output from risk workshops – Define good risks and mitigation actions – Totally ignore risks until the next Project Board meeting
  40. 40. Missed Opportunities to Review Risks • Risk should be reviewed throughout: – Planning – Controlling a Stage – Managing Product Delivery – Stage Boundaries – Directing a Project
  41. 41. Summary
  42. 42. 10 Simple ways to add value 1. Identifying the 5. Aggregated risk context 6. Risk owners 2. Risk descriptions 7. Mitigation actions 3. Estimating for risk 8. Reporting risk 4. Appetite and 9. Learn the lessons Tolerance 10.Manage the risk
  43. 43. Any Questions?

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