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What Is VIRT? Part II

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VIRT (Visual Ishikawa Risk Technique) is a new project risk management technique!

Published in: Business, Economy & Finance

What Is VIRT? Part II

  1. 1. Visualizing Risk Management Rubin Jen, P. Eng, PMP Beyond Execution
  2. 2. About The Speaker <ul><li>Rubin is a speaker, writer, teacher and consultant of project management </li></ul><ul><ul><li>PM for 14 yrs across several industries </li></ul></ul><ul><ul><li>Presented at PMI Global Congress 2007 and ProjectWorld Toronto 2009 </li></ul></ul><ul><ul><li>Served on board of directors for the PMI Southern Ontario Chapter from 2005-2007 </li></ul></ul><ul><ul><li>Certified PMP trainer for Rita Mulcahy’s RMC </li></ul></ul>
  3. 3. Risk Management Today
  4. 4. Risk Recap <ul><li>Risk – something bad </li></ul><ul><li>Probability </li></ul><ul><li>Impact </li></ul><ul><li>Priority </li></ul>
  5. 5. Question <ul><li>How many of you perform project risk management on a regular basis? </li></ul><ul><li>How many of you know people who do not perform project risk management on a regular basis? </li></ul><ul><li>The reality is that it is not done by many project managers! </li></ul>
  6. 6. The Problems <ul><li>It’s not done at all by many PM’s </li></ul><ul><li>It’s done once, at the beginning </li></ul><ul><li>It’s not updated throughout the project </li></ul><ul><li>It’s all done in the project manager’s brain </li></ul><ul><li>It’s only done by the project manager </li></ul>
  7. 7. Common Excuses <ul><li>Takes too much time </li></ul><ul><li>We know all the risks anyways </li></ul><ul><li>Too many to deal with </li></ul><ul><li>Administrative paperwork </li></ul><ul><li>Just get going with the project! </li></ul>
  8. 8. And When Risk IS Performed… <ul><li>All the right risks have not necessarily been identified via brainstorming methods </li></ul><ul><li>Analysis time is spent on non-priority risks </li></ul><ul><li>Risks are not often re-used from other projects </li></ul><ul><li>Risks do not come from all stakeholders </li></ul><ul><li>Risks are neglected over the project </li></ul>
  9. 9. Another Way? <ul><li>What if we could make risk: </li></ul><ul><ul><li>Easier to maintain? </li></ul></ul><ul><ul><li>Easier to identify? </li></ul></ul><ul><ul><li>Easier to report to management? </li></ul></ul><ul><ul><li>Easier to obtain buy-in and support? </li></ul></ul><ul><ul><li>Easier to see? </li></ul></ul>
  10. 10. Why VIRT Was Created <ul><li>The need to see the big picture </li></ul><ul><li>The need to see connections </li></ul><ul><li>The distaste for tables </li></ul><ul><li>To involve the project team and have them become more risk-aware </li></ul>
  11. 11. What is VIRT? <ul><li>V isual </li></ul><ul><li>I shikawa </li></ul><ul><li>R isk </li></ul><ul><li>T echnique </li></ul><ul><li>Rather than a long explanation, let’s jump to some examples </li></ul>
  12. 12. Example 1 <ul><li>A new internal shared service is being introduced for project control services within a consulting company </li></ul><ul><li>The shared service must make better use of resources than using expensive consultants for administrative responsibilities </li></ul>
  13. 13. VIRT
  14. 14. VIRT with Risks
  15. 15. Review <ul><li>Did you get a sense of the key risks? </li></ul><ul><li>Did it take you much time to understand the overall project? </li></ul><ul><li>Did you want to find out more detail? </li></ul><ul><li>Did you wonder “what are we doing about these risks?” </li></ul>
  16. 16. Example 2 <ul><li>An application outsourcing engagement is ending after 4 years. The incumbent must transition to 2 external companies, both offshore (India & Argentina) </li></ul><ul><li>The project must be completed in 2 months to satisfy all relevant contracts </li></ul>
  17. 17. VIRT
  18. 18. VIRT with Risks
  19. 19. Risk Breakdown Structure <ul><li>The “classical” Risk Breakdown Structure (RBS) looks similar to an org chart and is usually created top-down. </li></ul><ul><li>The VIRT diagram is basically an RBS that uses the fishbone diagram instead of an org chart and is created bottom-up </li></ul>
  20. 20. The Benefits <ul><li>You can see it!! </li></ul><ul><li>Easy to present, particularly management </li></ul><ul><li>Easy to create </li></ul><ul><li>Helps find more risks </li></ul><ul><li>Easy to maintain and update </li></ul><ul><li>Easy to collect and re-use </li></ul>
  21. 21. How to Create a VIRT <ul><li>Step 1 – Use 2 VIRT diagrams, one for the product (WBS) and one for the project </li></ul><ul><li>Step 2 – Create the VIRT diagram </li></ul><ul><li>Step 3 – Identify critical failure points (red) </li></ul><ul><li>Step 4 – Identify significant obstacles (yellow) </li></ul>
  22. 22. How to Create a VIRT <ul><li>Step 5 - Decompose points of failure into detailed risks </li></ul><ul><li>Step 6 – Complete follow up risk management activities </li></ul><ul><li>Step 7 - Apply to ongoing status reports and recurring status presentations </li></ul>
  23. 23. Getting More Out of VIRT <ul><li>Create a list of tracking metrics from risks </li></ul><ul><li>Develop VIRT as a team building exercise </li></ul><ul><li>Conduct risk lessons learned </li></ul><ul><li>Harvest other VIRT diagrams </li></ul><ul><li>Correlate project issues to VIRT </li></ul>
  24. 24. What You Learned <ul><li>Introduction to VIRT </li></ul><ul><li>Why you should use VIRT </li></ul><ul><li>How to create a VIRT diagram </li></ul>
  25. 25. Conclusion <ul><li>You have just learned an amazing new technique to manage risk that you can apply today </li></ul><ul><li>It will make managing your project risk easier and simpler </li></ul>
  26. 26. Contact Information <ul><li>Name: Rubin Jen, P. Eng, PMP </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>Phone: (416) 618-1734 </li></ul>
  27. 27. Questions ?

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