The document discusses managing risk attitudes when working with stakeholders who have different risk profiles. It describes a project to integrate a telecommunications company that was struggling until a PMO got involved. The PMO focused on stakeholder management, defining each stakeholder group's risk profile as highly risk averse, moderately risk averse, moderately risk tolerant, or highly risk tolerant. It created a risk profiles matrix mapping each stakeholder group. This approach helped stakeholders regain confidence, properly manage scope, continue execution, and ultimately close the integration program successfully.

1. Managing Risk Attitude
Working with various stakeholders risk profiles
Frédéric Casagrande, PMP
Director, Program Management Office
Interoute
Prague, June 10th 2008

2. Agenda
• Introduction
• The Project
• The Recovery
• The Risk Profiles Matrix
• The Result
• Q&A

3. Introduction
• What simple tools can you use when
your company has no Project Risk
Management capabilities?
• Corporate example: A company
integration Project, where the PMO
has been brought into half way
through execution

4. The Project
• A paneuropean telecommunication
provider has bought an ISP with
hosting and security capabilities in
October 2005
• Integration started as a « network &
CRM migration », with a limited
scope identified and no Project
Manager assigned

5. The Project
• People in charge of the integration
program were running one single big
« status report meeting » on a
regular basis, with *all* involved
(and identified) stakeholders
• Stakeholders from all areas were
pushing for the project to stop…

6. The Recovery
• In July 2007, a PMO has been
created to improve Interoute’s
maturity in Project and Program
Management
• The PMO then started to get involved
in the recovery of a large, complex,
transformational program: the
integration of the ISP…

7. The Recovery
The PMO focused on the Stakeholders:
– Scope Definition & Clarification
• 1.5 years after the launch…
– Breakdown of the communication
• in smaller Groups
– Continuous Stakeholder Identification
• Definition of Risk Profiles
• Identification of all Stakeholders Risk
Profiles…

8. The Risk Profiles Matrix
• Grading the Risk Profiles
– Highly Risk Averse (Red)
– Moderately Risk Averse (Orange)
– Moderately Risk Tolerant (Yellow)
– Highly Risk Tolerant (Green)

9. The Risk Profiles Matrix
• Assigning a Risk Profile to a
Stakeholder group:
– You need to build a relevant
questionnaire
– You need to spend time with your
stakeholders
– You need to ensure both the
questionnaire, the matrix, and the
classification evolve over time

10. The Risk Profiles Matrix
• Mapping the Risk Profiles
– Assign a Risk Profile to each stakeholder
group
– Develop a behaviour (more than « just
a process ») for each Risk Profile
ALL RISK PROFILES NEED ATTENTION
STAKEHOLDERS MAY CHANGE PROFILE

11. The Risk Profiles Matrix
Finance Operations IT/IS Sales
Germany
Highly
Averse
Moderately
Tolerant
N/A
Moderately
Averse
Netherlands
Moderately
Averse
Moderately
Tolerant
N/A
Moderately
Tolerant
Czech
Republic
Moderately
Averse
Highly
Tolerant
Moderately
Tolerant
N/A

12. The Result
• Stakeholders have recovered
confidence in the Project
• The scope has been managed
properly
• The Execution has continued
• The Program has been closed in April
2008

13. Questions
& Answers
Frédéric Casagrande
frederic@casagrande.la
http://casagrande.blogs.com