Tip for Project Success
Risk Management is Essential
I remember one project, leading a policy decision for a health plan on whether to cover heart transplants (this was before transplants were common), where we had done months of analysis and risks were everywhere: higher than anticipated costs, systems issues, political fallout, etc. What we didn’t plan for was an actual patient to show up before the decision was made. Overnight, the Medical Director decided to cover this one patient - the precedent was made and the policy was set.
“Risks,” in project jargon, are uncertain events or conditions that may have a negative or positive effect on the project objectives. We usually only plan for negative risks, but surprises that have a positive effect also need to be planned for. You could argue that the Medical Director’s decision had both a positive and negative effect: it sped up an inevitable decision, but we weren’t ready.
Whatever the risk - you need to be prepared. It is essential that all projects have a Risk Management Plan to anticipate and plan for risks before they happen. Basic elements of a plan include:
Risk Identification: Brainstorm all events or conditions that can disrupt the project plan.
Risk Analysis: Assess the probability a risk will occur and the effect it will have on the project objectives (i.e., budget, timeline, scope and quality).
Risk Mitigation: Identify what you can do to avoid or minimize the opportunity for identified risks to occur.
Risk Response: Identify what you would do if each identified risk happens. The goal is to decrease the negative impact and increase any positive impact.
Risk Monitoring and Control: Have a way to track identified risks, identify new risks, implement the response plan and see how well the response plan works.
You can’t avoid all risks, but you will certainly be more successful if you anticipate and plan for them.
Good Luck!
Paul