372 the risk report described in . The risk report will be updated to reflect the results ofSection 11.2.3.2 the quantitative risk analysis. This will typically include: Assessment of overall project risk exposure. Overall project risk is reflected in two key measures: Chances of project success, indicated by the probability that the project will achieve its key objectives (e.g., required end date or interim milestones, required cost target, etc.) given the identified individual project risks and other sources of uncertainty; and Degree of inherent variability remaining within the project at the time the analysis was conducted, indicated by the range of possible project outcomes. Detailed probabilistic analysis of the project. Key outputs from the quantitative risk analysis are presented, such as S-curves, tornado diagrams, and criticality analysis, together with a narrative interpretation of the results. Possible detailed results of a quantitative risk analysis may include: Amount of contingency reserve needed to provide a specified level of confidence; Identification of individual project risks or other sources of uncertainty that have the greatest effect on the project critical path; and Major drivers of overall project risk, with the greatest influence on uncertainty in project outcomes. Prioritized list of individual project risks. This list includes those individual project risks that pose the greatest threat or present the greatest opportunity to the project, as indicated by sensitivity analysis. Trends in quantitative risk analysis results. As the analysis is repeated at different times during the project life cycle, trends may become apparent that inform the planning of risk responses. Recommended risk responses. The risk report may present suggested responses to the level of overall project risk exposure or key individual project risks, based on the results of the quantitative risk analysis. These recommendations will form inputs to the Plan Risk Responses process. 11.5 PLAN RISK RESPONSES Plan Risk Responses is the process of developing options, selecting strategies, and agreeing on actions to address overall project risk exposure, as well as to treat individual project risks. The key benefit of this process is that it identifies appropriate ways to address overall project risk and individual project risks. This process also allocates resources and inserts activities into project documents and the project management plan as needed. This process is performed throughout the project. The inputs, tools and techniques, and outputs of the process are depicted in . Figure 11-16 depicts the data flow diagram for the process.Figure 11-17 C o p y r i g h t 2 0 1 7 . P r o j e c t M a n a g e m e n t I n s t i t u t e . A l l r i g h t s r e s e r v e d . M a y n o t b e r e p r o d u c e d i n a n y f o r m w i t h o u t p e r m i s s i o n f r o m t h e p u b l i s h e r , e x c e p t .

1. 372
the risk report described in . The risk report will be updated to
reflect the results ofSection 11.2.3.2
the quantitative risk analysis. This will typically include:
Assessment of overall project risk exposure. Overall project risk
is reflected in two key
measures:
Chances of project success, indicated by the probability that the
project will achieve its
key objectives (e.g., required end date or interim milestones,
required cost target, etc.)
given the identified individual project risks and other sources of
uncertainty; and
Degree of inherent variability remaining within the project at
the time the analysis was
conducted, indicated by the range of possible project outcomes.
Detailed probabilistic analysis of the project. Key outputs from
the quantitative risk
analysis are presented, such as S-curves, tornado diagrams, and
criticality analysis, together
with a narrative interpretation of the results. Possible detailed
results of a quantitative risk
analysis may include:
Amount of contingency reserve needed to provide a specified
level of confidence;

2. Identification of individual project risks or other sources of
uncertainty that have the
greatest effect on the project critical path; and
Major drivers of overall project risk, with the greatest influence
on uncertainty in project
outcomes.
Prioritized list of individual project risks. This list includes
those individual project risks
that pose the greatest threat or present the greatest opportunity
to the project, as indicated by
sensitivity analysis.
Trends in quantitative risk analysis results. As the analysis is
repeated at different times
during the project life cycle, trends may become apparent that
inform the planning of risk
responses.
Recommended risk responses. The risk report may present
suggested responses to the level
of overall project risk exposure or key individual project risks,
based on the results of the
quantitative risk analysis. These recommendations will form
inputs to the Plan Risk
Responses process.
11.5 PLAN RISK RESPONSES
Plan Risk Responses is the process of developing options,
selecting strategies, and agreeing on
actions to address overall project risk exposure, as well as to
treat individual project risks. The key
benefit of this process is that it identifies appropriate ways to
address overall project risk and

3. individual project risks. This process also allocates resources
and inserts activities into project
documents and the project management plan as needed. This
process is performed throughout the
project. The inputs, tools and techniques, and outputs of the
process are depicted in . Figure 11-16
depicts the data flow diagram for the process.Figure 11-17
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9. EBSCO Publishing : eBook Collection (EBSCOhost) - printed
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AN: 1595320 ; Project Management Institute.; A Guide to the
Project Management Body of Knowledge (PMBOK Guide)Sixth
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373
Figure 11-16. Plan Risk Responses: Inputs, Tools &
Techniques, and Outputs
Figure 11-17. Plan Risk Responses: Data Flow Diagram
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374
Effective and appropriate risk responses can minimize
individual threats, maximize individual
opportunities, and reduce overall project risk exposure.
Unsuitable risk responses can have the
converse effect. Once risks have been identified, analyzed, and
prioritized, plans should be
developed by the nominated risk owner for addressing every
individual project risk the project team
considers to be sufficiently important, either because of the
threat it poses to the project objectives or
the opportunity it offers. The project manager should also
consider how to respond appropriately to

10. the current level of overall project risk.
Risk responses should be appropriate for the significance of the
risk, cost-effective in meeting the
challenge, realistic within the project context, agreed upon by
all parties involved, and owned by a
responsible person. Selecting the optimal risk response from
several options is often required. The
strategy or mix of strategies most likely to be effective should
be selected for each risk. Structured
decision-making techniques may be used to choose the most
appropriate response. For large or
complex projects, it may be appropriate to use a mathematical
optimization model or real options
analysis as a basis for a more robust economic analysis of
alternative risk response strategies.
Specific actions are developed to implement the agreed-upon
risk response strategy, including
primary and backup strategies, as necessary. A contingency plan
(or fallback plan) can be developed
for implementation if the selected strategy turns out not to be
fully effective or if an accepted risk
occurs. Secondary risks should also be identified. Secondary
risks are risks that arise as a direct
result of implementing a risk response. A contingency reserve is
often allocated for time or cost. If
developed, it may include identification of the conditions that
trigger its use.
11.5.1 PLAN RISK RESPONSES: INPUTS
11.5.1.1 PROJECT MANAGEMENT PLAN
Described in . Project management plan components include but
are not limited to:Section 4.2.3.1

11. Resource management plan. Described in . The resource
management planSection 9.1.3.1
is used to help determine how resources allocated to agreed-
upon risk responses will be
coordinated with other project resources.
Risk management plan. Described in . Risk management roles
andSection 11.1.3.1
responsibilities and risk thresholds are used in this process.
Cost baseline. Described in . The cost baseline has information
on theSection 7.3.3.1
contingency fund that is allocated to respond to risks.
11.5.1.2 PROJECT DOCUMENTS
Project documents that can be considered as inputs for this
process include but are not limited to:
Lessons learned register. Described in . Lessons learned about
effective riskSection 4.4.3.1
responses used in earlier phases of the project are reviewed to
determine if similar responses
might be useful during the remainder of the project.
Project schedule. Described in . The schedule is used to
determine howSection 6.5.3.2
agreed-upon risk responses will be scheduled alongside other
project activities.
Project team assignments. Described in . Project team
assignments canSection 9.3.3.2
show the resources that can be allocated to agreed-upon risk
responses.

12. Resource calendars. Described in . Resource calendars identify
whenSection 9.2.1.2
potential resources are available to be allocated to agreed-upon
risk responses.
Risk register. Described in . The risk register contains details of
individualSection 11.2.3.1
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375
project risks that have been identified and prioritized, and for
which risk responses are
required. The priority level for each risk can help to guide the
selection of appropriate risk
responses. For example, high-priority threats or opportunities
may require priority action and
highly proactive response strategies. Threats and opportunities
in the low-priority zone may
not require proactive management action beyond being placed in
the risk register as part of
the watch list or adding a contingency reserve.
The risk register identifies the nominated risk owner for each
risk. It may also contain
preliminary risk responses identified earlier in the Project Risk
Management process. The
risk register may provide other data on identified risks that can
assist in planning risk
responses, including root causes, risk triggers and warning
signs, risks requiring responses in

13. the near term, and risks where a need for additional analysis has
been identified.
Risk report. Described in . The risk report presents the current
level ofSection 11.2.3.2
overall risk exposure of the project that will inform selection of
the risk response strategy.
The risk report may also list individual project risks in priority
order and provide additional
analysis of the distribution of individual project risks that may
inform risk response
selection.
Stakeholder register. Described in . The stakeholder register
identifiesSection 13.1.3.1
potential owners for risk responses.
11.5.1.3 ENTERPRISE ENVIRONMENTAL FACTORS
The enterprise environmental factors that can influence the Plan
Risk Responses process include
but are not limited to the risk appetite and thresholds of key
stakeholders.
11.5.1.4 ORGANIZATIONAL PROCESS ASSETS
The organizational process assets that can influence the Plan
Risk Responses process include but
are not limited to:
Templates for the risk management plan, risk register, and risk
report;
Historical databases; and
Lessons learned repositories from similar projects.

14. 11.5.2 PLAN RISK RESPONSES: TOOLS AND TECHNIQUES
11.5.2.1 EXPERT JUDGMENT
Described in . Expertise should be considered from individuals
or groups withSection 4.1.2.1
specialized knowledge in the following topics:
Threat response strategies,
Opportunity response strategies,
Contingent response strategies, and
Overall project risk response strategies.
Expert input may be sought from individuals with particular
subject matter expertise relevant to a
specific individual project risk, for example, where specialist
technical knowledge is required.
11.5.2.2 DATA GATHERING
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Chapter 10
Being an Effective Project Manager
© McGraw-Hill Education. All rights reserved. Authorized only
for instructor use in the classroom. No reproduction or further
distribution permitted without the prior written consent of
McGraw-Hill Education.

15. Where We Are Now
© McGraw-Hill Education.
10-‹#›
Learning Objectives (1 of 2)
Understand the difference between leading and managing a
project
Understand the need to manage project stakeholders
Identify and apply different “influence currencies” to build
positive relations with others
Create a stakeholder map and develop strategies for managing
project dependencies
10-‹#›
© McGraw-Hill Education.
Learning Objectives (2 of 2)
Understand the need for a highly interactive management style
on projects
More effectively manage project expectations
Develop strategies for managing upward relations
Understand the importance of building trust and acting in an
ethical manner while working on a project
Identify the qualities of an effective project manager
10-‹#›
© McGraw-Hill Education.

16. Chapter Outline
10.1 Managing versus Leading a Project
10.2 Managing Project Stakeholders
10.3 Influence as Exchange
10.4 Social Network Building
10.5 Ethics and Project Management
10.6 Building Trust: The Key to Exercising Influence
10.7 Qualities of an Effective Project Manager
10-‹#›
© McGraw-Hill Education.
Managing versus Leading a Project (1 of 2)
Managing—coping with complexity
Formulate plans and objectives
Monitor results
Take corrective action
Expedite activities
Solve technical problems
Serve as peacemaker
Make tradeoffs among time, costs, and project scope
10-‹#›
© McGraw-Hill Education.
Managing versus Leading a Project (2 of 2)
Leading—coping with change
Recognize the need to change to keep the project on track
Initiate change
Provide direction and motivation
Innovate and adapt as necessary
Integrate assigned resources
10-‹#›

17. © McGraw-Hill Education.
Managing Project Stakeholders
Project Management Maxims:
You can’t do it all and get it all done.
Projects usually involve a vast web of relationships.
Hands-on work is not the same as leading.
More pressure and more involvement can reduce
your effectiveness as a leader.
What’s important to you likely isn’t as important
to someone else.
Different groups have different stakes (responsibilities,
agendas, and priorities) in the outcome of a project.
Remember: project management is tough, exciting, and
rewarding—endeavor to persevere.
10-‹#›
© McGraw-Hill Education.
FIGURE 10.1 Network of Stakeholders
© McGraw-Hill Education.
10-‹#›
Influence as Exchange
The Law of Reciprocity
One good deed deserves another, and likewise, one bad deed
deserves another.
Quid pro Quo
Mutual exchanges of resources and services
(“back-scratching”) build relationships.
Influence “Currencies” (Cohen and Bradford)

18. Cooperative relationships are built on the exchange
of organizational “currencies” (favors).
10-‹#›
© McGraw-Hill Education.
TABLE 10.1 Commonly Traded Organizational Currencies (1 of
3)Task-related currencies ResourcesLending or giving money,
budget increases, personnel, etc.AssistanceHelping with
existing projects or undertaking unwanted
tasks.CooperationGiving task support, providing quicker
response time, or aiding implementation.InformationProviding
organizational as well as technical knowledge.Position-related
currenciesAdvancementGiving a task or assignment that can
result in promotion.RecognitionAcknowledging effort,
accomplishments, or abilities.VisibilityProviding a chance to be
known by higher-ups or significant others in the
organization.Network/contactsProviding opportunities for
linking with others.
© McGraw-Hill Education.
10-‹#›
TABLE 10.1 Commonly Traded Organizational Currencies (2 of
3)Inspiration-related currenciesVisionBeing involved in a task
that has larger significance for the unit, organization, customer,
or society.ExcellenceHaving a chance to do important things
really well.Ethical correctness Doing what is “right” by a higher
standard than efficiency.Relationship-related
currenciesAcceptance Providing closeness and
friendship.Personal support Giving personal and emotional
backing.UnderstandingListening to others’ concerns and issues.

19. © McGraw-Hill Education.
10-‹#›
TABLE 10.1 Commonly Traded Organizational Currencies (3 of
3)Personal-related currenciesChallenge/learningSharing tasks
that increase skills and abilities.Ownership/involvementLetting
others have ownership and influence.GratitudeExpressing
appreciation.
Source: Adapted from A. R. Cohen and David L. Bradford,
Influence without Authority (New York: John Wiley & Sons,
1990). Reprinted by permission of John Wiley & Sons, Inc.
© McGraw-Hill Education.
10-‹#›
Social Network Building
Mapping Stakeholder Dependencies
Project team perspective:
Whose cooperation will we need?
Whose agreement or approval will we need?
Whose opposition would keep us from accomplishing the
project?
Stakeholders’ perspective:
What differences exist between the team and those on whom the
team will depend?
How do the stakeholders view the project?
What is the status of our relationships with the stakeholders?
What sources of influence does the team have relative to the
stakeholders?
10-‹#›
© McGraw-Hill Education.
FIGURE 10.2 Stakeholder Map for Financial Software

20. Installation Project
Software installation project
Information technology manager
Software vendor
Shipping
Top management
Inventory
Billing and receipts
Information technology director
Purchasing
10-‹#›
© McGraw-Hill Education.
Management by Wandering Around
Management by Wandering Around (MBWA)
Involves managers spending the majority of their time in face-
to-face interactions with employees building cooperative
relationships.
Characteristics of Effective Project Managers
Initiate contact with key stakeholders
Anticipate potential problems
Provide encouragement
Reinforce the objectives and vision of the project
Intervene to resolve conflicts and prevent stalemates
10-‹#›
© McGraw-Hill Education.
Managing Upward Relations
Project Success = Top Management Support
Appropriate budget
Responsiveness to unexpected needs
A clear signal to the organization of the importance of

21. cooperation
Motivating the Project Team
Influence top management in favor of the team:
Rescind unreasonable demands
Provide additional resources
Recognize the accomplishments of team members
10-‹#›
© McGraw-Hill Education.
FIGURE 10.3 The Significance of a Project Sponsor
Upper management
Project sponsor
Project
10-‹#›
© McGraw-Hill Education.
FIGURE 10.4 Leading by Example
Leading by example
Standards of performance
Problem solving
Priorities
Cooperation
Urgency
Ethics
10-‹#›
© McGraw-Hill Education.
Ethics and Project Management
Ethical Dilemmas
Situations where it is difficult to determine whether conduct is

22. right or wrong:
Padding of cost and time estimations
Exaggerating pay-offs of project proposals
Falsely assuring customers that everything is on track
Being pressured to alter status reports
Falsifying cost accounts
Compromising safety standards to accelerate progress
Approving shoddy work
Code of conduct
Professional standards and personal integrity
10-‹#›
© McGraw-Hill Education.
Building Trust: The Key to Exercising Influence
Trust
An elusive concept
See it as a function of character and competence
Character focuses on personal motives.
Competence focuses on skills necessary to realize motives.
The core of highly effective people is a character ethic (Stephen
Covey in Seven Habits of Highly Effective People).
Consistency—more predictable
Openness—more receptive to others
A sense of purpose—what is best for the organization and the
project
10-‹#›
© McGraw-Hill Education.
Contradictions of Project Management
Innovate and maintain stability
See the big picture while getting your hands dirty
Encourage individuals but stress the team

23. Hands-off/Hands-on
Flexible but firm
Team versus organizational loyalties
10-‹#›
© McGraw-Hill Education.
Traits of an Effective Project Manager
Systems thinker
Personal integrity
Proactive
High emotional intelligence (EQ)
General business perspective
Effective time management
Skillful politician
Optimist
10-‹#›
© McGraw-Hill Education.
Suggestions for Project Managers
Build relationships before you need them.
Trust is sustained through frequent
face-to-face contact.
Realize that “what goes around comes around.”
10-‹#›
© McGraw-Hill Education.
Key Terms (1 of 2)
Emotional intelligence (EQ)
Inspiration-related currencies
Law of reciprocity

24. Leading by example
Management by wandering around (MBWA)
Personal-related currencies
Position-related currencies
10-‹#›
© McGraw-Hill Education.
Key Terms (2 of 2)
Proactive
Relationship-related currencies
Social network building
Stakeholder
Systems thinking
Task-related currencies
10-‹#›
© McGraw-Hill Education.
End of Presentation
© McGraw-Hill Education. All rights reserved. Authorized only
for instructor use in the classroom. No reproduction or further
distribution permitted without the prior written consent of
McGraw-Hill Education.
10-‹#›