Visualizing Risk Management Rubin Jen, P. Eng, PMP Beyond Execution

About The Speaker Rubin is a speaker, writer, teacher and consultant of project management PM for 14 yrs across several industries Presented at PMI Global Congress 2007 and ProjectWorld Toronto 2009 Served on board of directors for the PMI Southern Ontario Chapter from 2005-2007 Certified PMP trainer for Rita Mulcahy’s RMC

Rubin is a speaker, writer, teacher and consultant of project management

PM for 14 yrs across several industries

Presented at PMI Global Congress 2007 and ProjectWorld Toronto 2009

Served on board of directors for the PMI Southern Ontario Chapter from 2005-2007

Certified PMP trainer for Rita Mulcahy’s RMC

Risk Management Today

Risk Recap Risk – something bad Probability Impact Priority

Risk – something bad

Probability

Impact

Priority

Question How many of you perform project risk management on a regular basis? How many of you know people who do not perform project risk management on a regular basis? The reality is that it is not done by many project managers!

How many of you perform project risk management on a regular basis?

How many of you know people who do not perform project risk management on a regular basis?

The reality is that it is not done by many project managers!

The Problems It’s not done at all by many PM’s It’s done once, at the beginning It’s not updated throughout the project It’s all done in the project manager’s brain It’s only done by the project manager

It’s not done at all by many PM’s

It’s done once, at the beginning

It’s not updated throughout the project

It’s all done in the project manager’s brain

It’s only done by the project manager

Common Excuses Takes too much time We know all the risks anyways Too many to deal with Administrative paperwork Just get going with the project!

Takes too much time

We know all the risks anyways

Too many to deal with

Administrative paperwork

Just get going with the project!

And When Risk IS Performed… All the right risks have not necessarily been identified via brainstorming methods Analysis time is spent on non-priority risks Risks are not often re-used from other projects Risks do not come from all stakeholders Risks are neglected over the project

All the right risks have not necessarily been identified via brainstorming methods

Analysis time is spent on non-priority risks

Risks are not often re-used from other projects

Risks do not come from all stakeholders

Risks are neglected over the project

Another Way? What if we could make risk: Easier to maintain? Easier to identify? Easier to report to management? Easier to obtain buy-in and support? Easier to see?

What if we could make risk:

Easier to maintain?

Easier to identify?

Easier to report to management?

Easier to obtain buy-in and support?

Easier to see?

Why VIRT Was Created The need to see the big picture The need to see connections The distaste for tables To involve the project team and have them become more risk-aware

The need to see the big picture

The need to see connections

The distaste for tables

To involve the project team and have them become more risk-aware

What is VIRT? V isual I shikawa R isk T echnique Rather than a long explanation, let’s jump to some examples

V isual

I shikawa

R isk

T echnique

Rather than a long explanation, let’s jump to some examples

Example 1 A new internal shared service is being introduced for project control services within a consulting company The shared service must make better use of resources than using expensive consultants for administrative responsibilities

A new internal shared service is being introduced for project control services within a consulting company

The shared service must make better use of resources than using expensive consultants for administrative responsibilities

VIRT

VIRT with Risks

Review Did you get a sense of the key risks? Did it take you much time to understand the overall project? Did you want to find out more detail? Did you wonder “what are we doing about these risks?”

Did you get a sense of the key risks?

Did it take you much time to understand the overall project?

Did you want to find out more detail?

Did you wonder “what are we doing about these risks?”

Example 2 An application outsourcing engagement is ending after 4 years. The incumbent must transition to 2 external companies, both offshore (India & Argentina) The project must be completed in 2 months to satisfy all relevant contracts

An application outsourcing engagement is ending after 4 years. The incumbent must transition to 2 external companies, both offshore (India & Argentina)

The project must be completed in 2 months to satisfy all relevant contracts

VIRT

VIRT with Risks

Risk Breakdown Structure The “classical” Risk Breakdown Structure (RBS) looks similar to an org chart and is usually created top-down. The VIRT diagram is basically an RBS that uses the fishbone diagram instead of an org chart and is created bottom-up

The “classical” Risk Breakdown Structure (RBS) looks similar to an org chart and is usually created top-down.

The VIRT diagram is basically an RBS that uses the fishbone diagram instead of an org chart and is created bottom-up

The Benefits You can see it!! Easy to present, particularly management Easy to create Helps find more risks Easy to maintain and update Easy to collect and re-use

You can see it!!

Easy to present, particularly management

Easy to create

Helps find more risks

Easy to maintain and update

Easy to collect and re-use

How to Create a VIRT Step 1 – Use 2 VIRT diagrams, one for the product (WBS) and one for the project Step 2 – Create the VIRT diagram Step 3 – Identify critical failure points (red) Step 4 – Identify significant obstacles (yellow)

Step 1 – Use 2 VIRT diagrams, one for the product (WBS) and one for the project

Step 2 – Create the VIRT diagram

Step 3 – Identify critical failure points (red)

Step 4 – Identify significant obstacles (yellow)

How to Create a VIRT Step 5 - Decompose points of failure into detailed risks Step 6 – Complete follow up risk management activities Step 7 - Apply to ongoing status reports and recurring status presentations

Step 5 - Decompose points of failure into detailed risks

Step 6 – Complete follow up risk management activities

Step 7 - Apply to ongoing status reports and recurring status presentations

Getting More Out of VIRT Create a list of tracking metrics from risks Develop VIRT as a team building exercise Conduct risk lessons learned Harvest other VIRT diagrams Correlate project issues to VIRT

Create a list of tracking metrics from risks

Develop VIRT as a team building exercise

Conduct risk lessons learned

Harvest other VIRT diagrams

Correlate project issues to VIRT

What You Learned Introduction to VIRT Why you should use VIRT How to create a VIRT diagram

Introduction to VIRT

Why you should use VIRT

How to create a VIRT diagram

Conclusion You have just learned an amazing new technique to manage risk that you can apply today It will make managing your project risk easier and simpler

You have just learned an amazing new technique to manage risk that you can apply today

It will make managing your project risk easier and simpler

Contact Information Name: Rubin Jen, P. Eng, PMP Email: [email_address] Phone: (416) 618-1734

Name: Rubin Jen, P. Eng, PMP

Email: [email_address]

Phone: (416) 618-1734

Questions ?