project management - ITM Platform | Projects Programs Portfolio

The existence of risk is inherent in absolutely everything we do in life. All activities are subject to some degree of uncertainty.

Risk in project management can be defined as a change in the market environment or the product, that may influence its development.

When implementing a project, no matter how well planned and well organized, there is always a certain margin for error, we can call this the level of risk within the project.

The impact a risk has on a project should not necessarily be detrimental to the project. If preparation is done correctly then managing these changes will be straightforward and thus the consequences on the outcome of the project will be minimal.

If we are able to react adequately to this risk, we can benefit from it and improve our product, our sales or customer satisfaction.

Therefore, the best way to reduce risk exposure is proper planning. When planning, the risks should be addressed from a realistic perspective which allows you to understand them and put into place action plans if they do arise. You should never ignore the existence of the risks, they could be detrimental to your project, and hence they must be controlled.

In order to properly assess the risk exposure within your project, you may find it helpful to use a specialized software. At ITM Platform we offer you a new free risk assessment matrix tool online that allows you to create risk sets in a simple, graphical and intuitive way. You can quickly and easily plan your risks, allowing you to reduce uncertainty in your projects while focusing more of your attention on other tasks.

Good planning is essential, so that the project manager and the company as a whole know how to respond to the emergence of risks. Proper risk management can convert potential weak areas into strengths. In Japanese, the word crisis is formed from the words: "danger" and "opportunity".

The Project manager should be able to turn risks from potential dangers into opportunities.

What are the main sources of risk?

Scope risk

Throughout the development of a project, its scope may change. A project will grow in complexity as customers add new requirements and this may extend or modify the scope. Such changes are common since the product must meet the needs of the market which is constantly changing.

Planning risk

The reasons why a project may not develop as initially planned may not necessarily be the mistakes of the development team, but may be due to external circumstance.

Delays in the supply by an external provider, an accident or any other unforeseen, uncontrollable circumstances, can alter the initial plan. Therefore, proper planning should cover all possible scenarios and the probability that a scenario will arise, such that the resulting impact will be minimal. In this case it can be very useful to develop a risk assessment matrix.

Resource risk

The resources that are available during the course of a project can also fluctuate. Although initially budgetary resources are a defined amount, it is possible that during the project development the economic situation of the company may change due to external factors such as the market or macro economy.

In these circumstances, the project manager will have to do what they can with whatever budget is assigned, eliminating those tasks that contribute less to the project whilst trying to ensure an outcome that meets the minimum requirements necessary for the project to be successful.

On the other hand, human resources may also experience changes. The staff starting a project may not necessarily be the same as the staff who finish the project. In addition, new members could potentially join the team during the project, and therefore will take some time to adjust. This will, at least temporarily, lower the efficiency and productivity.

Technological risk

Using software and other utilities inadequately, could lead to a decrease in your productivity. If there are technological problems, this will delay or hinder the delivery of your projects.

To avoid such problems, we put at your disposal a leader in project management software. So, at least for this part, you can breathe easy.

Once you know the source of risks that may occur during the execution of your project, it will be easier to identify them and include them in your planning. Which will allow you to develop contingency plans to remove, transfer, mitigate or, if no other choice, accept them.

With these techniques, you can rest assured that the risk management of your projects will be successful, and the impact to your company will be minimal.

At ITM platform we understand the business world perfectly, because leaders of various sectors use our project management software.

Try it out and discover what it can do for you:

https://www.itmplatform.com/en/projects-programs-portfolio-subscription/

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Although an essential part of project management is to plan all possible scenarios and be prepared for any eventuality, it is always possible that a problem or circumstance we did not originally plan for can appear. Therefore, although we cannot anticipate all circumstances, we can anticipate how to react to an unforeseen situation. Here are some tips:

Show leadership

It is very easy to say but very difficult to implement. When things go wrong it is most common that the team lose their nerve and do not know what to do or freeze and do nothing.

When this happens, a leader who reassures the team is necessary, reflects and works together to find the best solution to the problem.

It is not about blame but understanding the problem and finding the solution.

Avoid the temptation to increase resources

A simple way to solve problems in project management is simply to increase resources for them. However, this is the least desirable solution.

Firstly, you must exhaust all avenues based on the optimal management of available resources. That is precisely project management: getting the best results desired by the project managers and especially by customers whilst making the best use of resources therefore achieving optimum utilization.

On the other hand, increasing resources does not necessarily improve the result. It is necessary to guide them properly. That is if, you finally decide to increase the resources used; project management will be critical in deciding how to use them.

Another aspect to consider is that new resources take time to produce the expected results. This time lag should also be considered since it is possible that despite increased resources, the results are not achieved within the desired timeframe.

However, a reorganization of resources assigned can probably be faster but not easier. Again, the project manager must be able to articulate the resources available to solve the problems that arise.

Show problems as they are

Do not be tempted to minimize problems. If a problem has a certain magnitude, show it as it is.

The only way to find an effective solution to a problem is to know it properly. The members of your team have a right to know what they are facing to adapt their effort and attitude to the needs of the company and the project.

In addition, trust is something that costs a lot to get but very little to lose. If later it is shown that you have not been completely honest with the circumstances, this can take its toll the teams’ confidence they have in you as a leader. Therefore, sincerity should always come first.

Check everything you do

Any project completed from best to worst has hits and misses. And you can learn from both.

It is easy and tempting to indulge in the completed project in the event it went well or forget where you’ve gone wrong. Neither of these attitude brings long- term benefit.

The most useful attitude is, regardless of how well a project has turned out, analyze the successes and mistakes made in it to learn from the experience and to apply it in future projects.

Successes should be recognized and rewarded in some way. However, although it should indicate the mistakes to avoid their repetition, they should not be accompanied by punishment. This only confuses the working environment for future projects.

This principle of continuous improvement (Kaizen) makes it possible to avoid backsliding on errors and instead repeat the successes. Perfection is not a goal to reach but a goal to pursue.

It involves the entire company

Making changes is necessary to include all those involved in the project. From the director of the company to the substitutes and trainees, all of them are important in the project and should feel that their work is valued.

Similarly, changes and analysis of successes and failures should be made at all levels in order to achieve global changes with scope.

At ITM platform we know the business world perfectly, because leaders in different sectors use our project management software.

Try it out and discover what it can do for you

https://www.itmplatform.com/en/projects-programs-portfolio-subscription/

Top 5 most read blogs on ITM Platform:

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Juan Delgado

Blogger ITM Platform

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A project involves devoting effort, capital and human resources to achieve the satisfactory results expected. Early detection of the project not being carried out as well as desired is essential, it is imperative to take steps to improve the measures and its development in order to avoid any unnecessary costs.

In order to improve the management efficiency and detecting problems earlier, or even before they occur, it is essential to have a specialized project management software. Thus, in a simple and economical manner, improving the efficiency of your work an reducing your costs.

There are signs that allow for early detection if a project is not developing properly. In this article we discuss some of them.

1.- Spending too much time solving problems

Obviously, one of the most fundamental tasks of the project manager is to resolve project issues as they arise.

However, the best project managers are not the ones that solves problems, but who best avoids problems.

Anticipation is an essential characteristic of a project Manager and is related to their ability to predict the risks that may occur during the execution of a project, the impact the risks can have on it, and their occurrence.

Stopping the progress of a project because there has been a problem which needs the project manager to provide a solution. This leads to a delay in the delivery of the project and requires additional effort. This can be avoided if the project has been redirected so that the problem is avoided or there is a quicker solution to the problem which has been planned prior to implementing the project, avoiding improvisation at the time of submission.

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2.- Customers constantly ask for results

A customer who fully trusts you asks not for project results, but trusts that you perform the management of the project in the most appropriate way.

However, since the customer is primarily interested in the project achieving the expected results, it is reasonable for him to ask to be adequately informed of the development and implementation of the project.

Therefore, planning should include checkpoints at which the customer is informed of the results achieved so far, so he can see for himself that project management is still appropriate.

You can also use cloud resources for sharing real-time updates on the progress of the project. This way, the customers can see for themselves at any time how the project is developing.

If you do not use these resources, you can resort to more traditional methods, such as making periodic meetings. In this case you must be careful with the frequency and duration of the meetings, seeking to improve the efficiency and utilization of both your teams work time and your customer’s time.

Transparency generates trust between the project manager and the customer that will be beneficial for both parties.

3.- Workers spend too many hours

If the project is properly planned, employees should only be actively working in the allocated work time that has been planned prior to the implantation of the project, neither more nor less.

If less time than expected is used to execute the tasks, this could mean that the quantity or complexity is insufficient, therefore you should review the relevant work of each of the team members or assign any member of that team to another project.

However, if the opposite happens, it means that workers are overworked. This has negative consequences in both the short and long term.

In the short term, this will mean that tasks cannot be developed at the satisfactory level required.

In the long run, the employees will most likely end up burned out from being overworked, which will decrease productivity and, above all, creativity.

If there is a specific need, you can and should ask the team members to make an extra effort, but this should not be the norm. If so, project planning has been inadequate and must be reviewed.

It should also influence the work methodologies. It is possible that the workload is correct but the way to do it is not optimal.

4.- Too many changes to the project

If customers constantly demand more changes and this prevents you from staying on course for the project, it means that there is a planning problem.

In these cases, the most convenient way to deal with this would be to meet with the customers and talk to them about what they believe the purpose and scope for the project is. Once everything is clarified, the project should go ahead.

Proceeding aimlessly with the project, is a waste of resources and effort and will in turn decrease confidence that employees have in you.

Rethinking the project with the customers will allow you to plan it properly and find the solution together that is most satisfactory.

See all the advantages to using ITM platform by viewing a free demo!

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Nicholas Taylor

ITM Platform

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Every organization hopes that their project is finished on time, under budget and most importantly that their project improves upon previous practices. The way to achieve this successfully is through efficiency and proper delegation of project assignment. This article discusses the 10 best tips for a Project Manager that will aide in the planning, organization and resource management. Ideally, best practices suggest that each time there is a new project that is been embarked upon, that the tips below are kept in mind in order to achieve maximum efficiency and success upon the completion of the project.

1. Start up meeting before the project starts.

To start off on the right foot, it is always a good a idea to have a meeting upon the start of a new project. This is the first thing a Project Manager should do. It is crucial that the Project Manager have a meeting with each person that will take part n the team. This will ensure that each person has their duties and assignments and that they clearly understand their responsibility and objective. This will allow the team so start on the same page and will lead to clear communication between the team members as the project moves through its phases.

2. Establish proper communication between all interested parties.

It is not only important to have clear and proper communication with all the internal team members involved in the project, but it is important as a Project Manager to ensure that there is also constant and clear contact with directors, sponsors, clients and important users. It is important to fully understand what clients and important parties wish to achieve with the project and in addition to keep this in mind from beginning to end. For this, the project manager will have to choose the most efficient methods of communication, to inform interested parties of any news that come about along the trajectory of the projecs.

3.Create an emergency team.

No matter what the project is, there will always be problems or issues that can come up at any moment, thus possibly stalling the project. It is for this reason that the Project Manager should always have an emergency team that is capable to deal with any issues and in addition, to put the project back in motion.

4. Create a guide with the assignments of each member of the project team.

One of the most important things for a Project Manager to do is to have each member´s responsibility in writing. It is for this reason that a guide or list that details in full each responsibility,assignment and deadlines is always a good idea. This also helps the organization of the project and ensures that each member is fully aware of their individual tasks.

5. Have a detailed work plan.

The Project Manager should also prioritize each task and assign a deadline accordingly. In order to do this, a project schedule must be created to develop a strategy and to assess all risks. Having a detailed plan for all the phases of the project will allow and facilitate the completion of each deadline and move along the project accordingly.

6. Take note of everything that could go wrong.

Make sure that you write everything down! If any unexpected issues happen make sure that you document what happened, why it happened and how it was resolved. In the future, this can serve as a good reference point for other unexpected issues.

7. Try to find feedback from users.

There is no such thing as a perfect project. There is always room for improvement. One of the best ways to improve in the future is by requesting feedback about the Project Manager. This is a great opportunity to learn about the strength and weaknesses of the Project Manager along the course of the project.

8. Avoid project overload.

As the project moves along, you might be tempted to add new assignments and tasks. However, as the project manager, you must keep in mind what adding new tasks or assignments might mean to the overall project. Will this increase costs. Do the team members already have enough to do. If the additional tasks are crucial for the project, then it could be worth it However, as the person in charge of the success of the project you must think twice with any additions to the current tasks of the project.

9. Establish and create a new contract with any change that takes place in the project.

Make sure that if you have accepted adding new tasks that you add this to the contract. This way, those who have a stake in the project will not only be fully informed of all that is going on with the project but will also be informed if there are any additional costs associated with the changes, along with any changes in deadlines0.

10. Revise the final project once it has been completed and call a meeting for all the members of the team.

Once the project is complete, it is the time to edit, revise or make any changes that need to be made. The Project Manager should schedule a final meeting with the team to discuss every completed assignment, costs, issues that took place, how those were resolved and what could be improved for next time.

By following these ten steps you will be able to succeed in the completion of the project an ensure success as a Project Manager.

Once you have followed these ten steps you will surely achieve the goal that was set at the beginning of any project. However, remember that you are not the only person that works with energy and dedication, but that you should also transmit that same energy, dedication and passion to all your team members. That is what ultimately makes a great leader.

At ITM platform we believe that if you have a team that is prepared to complete all tasks, a team that is motivated and passionate about the final goal and a team that is ready to accept new challenges, you will complete any project with great success.

We make sure to help you with the rest with a system that facilitates good management. A system that allows you to maximize your production and allows a faster and easier way to achieve your objectives.

See all the advantages to using ITM platform by viewing a free demo!

Product Demonstrations

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Manuel Echeverría-Content Manager ITM Platform

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Let’s face it, even if you have the utmost confidence that your project will be a success, there is always the possibility something can go wrong. Wise project managers will identify the project risks in the early stages of the project to give themselves more time to develop a plan on how they can avoid them if they arise. However, risk management is an ongoing activity and can’t be done just once.

Here are a few key components of risk management:

A Contingency Plan

Essentially, this is a plan developed to help the company respond to a possible future situation that could occur but isn’t outlined in the original or “expected” plan. The project team will find solutions ahead of time in the case that the problem appears. A contingency plan is also often referred to as being “plan B”, one which can be put in place in only a moments notice.

For instance, suppose the completion of a product significantly depends on purchasing a component from a supplier. Although for whatever reason, the deal is unable to be made which can set the end date of the project way behind schedule. To prevent crisis from occurring, project managers will use contingency plans that will be implemented immediately to resolve the issue.

The Risk Assessment Matrix

This is a well known project management tool increasingly used in risk management. In a single page, it will organize all of your possible risks based on their likelihood of occurring and the severity of their consequences. You will need this in order to develop an effective risk mitigation plan and project strategies.

The risk management matrix can only be completed after you have filled out a risk assessment form. In this form you will have to uncover and list out all potential risks that may be a threat to your project or company. You will need to gather data about these possible risks, understand their consequences, determine the probability of them occurring and brainstorm possible prevention strategies.

The risk assessment matrix will then be able to provide the project management team with a quick and useful overview of the risks to help them prioritize which should be dealt with first.

The team will need to work together to decide which level of risk can be tolerated and which ones should just be “accepted” and left to be watched. Our new free tool for risk analysis allows you to register, quantify and share risks. You can also save different sets of risks, such as those for a project, business, process or any other context in which you are working. You can share them collaboratively as well.

Each circle represents the estimation of a risk. Colors and sizes of circles depend on the exposure level of the risk. They are fully configurable, simply click on the “customize values and thresholds” tab.

If you click on the “see matrix” button in each of the risks, you’ll be able to see all of the possible combinations for impact, probability and place of the product; i.e the numerical value of the level of risk exposure.

Risk Mitigation Planning

This process involves creating possible options to help strengthen future opportunities and reduce threats to your project objectives. It will require project management team members to continuously track the current identified risks while searching for new ones. They will also need to evaluate how successful the risk management process is throughout the development of the project.

It is best if you refer back to the chart below when applying risk mitigation. The Risk Mitigation Handling Option you choose to use will once again depend on the probability of a risk occurring and the severity of its costs. There are several handling options that can be used:

Avoid: You can change your current project requirements to reduce the risk from occurring. However, don’t be surprised if this also impacts your schedule, funding, etc.

Control: Implement new actions to diminish the impact the risk will have.

Transfer: Reassign the projects responsibility or authority to another stakeholder willing to take on the risk

Watch: Constantly monitor the project and its environment for any changes that may impact or increase the risk.

Assume: You may choose to acknowledge that a particular risk exists and then willingly make the decision to accept it without trying to control it in any way.

In a nutshell, risk mitigation planning requires you to think about the probability of the risk occurring and materializing as well as the impact it will have on your objectives if it does.

Steps to Risk Management

Simply put, risk management is a 2 step process that starts with determining what risks exist and then handling those risks. Although, you should develop an action plan which includes all of the 5 steps mentioned in the PMBok:

Step 1: Initiating

This step is all about brainstorming. You will need to determine the project manager, the company culture and understand the business case. You must review and uncover possible risk sources by determining initial constraints, requirements, assumptions and agreements. If you have an strong project management tool, like ITM Platform, you will be able to categorize and prioritize risks depending on if they have a high impact or high probability of occurrence.

Step 2: Planning

This stage involves developing a plan for each knowledge area. To do so, you must perform risk identification, qualitative and quantitative risk analysis and risk response planning. Once this is done you will need to finalize your management plans by developing a performance measurement baseline. By doing so, you will now have successfully developed responses to the risks you previously uncovered.

Step 3: Executing

From here on you will want to execute all of the work being done according to the PM plan you have created in the previous stage. Look to continuously improve by following the processes but also implementing approved changes. You must determine whether the processes are effective by evaluating individual or team performances and performing quality audits. Make sure you give strong feedback as well as recognition to employees when a job is well done. Following your management plans will reduce risk likelihood but will also prepare you in case something does arise.

Step 4: Monitoring & Controlling

With change can come brand new risks, but you will need change to occur if you want your business to grow. In this case, you must bring on change in a controlled way. Start off by measuring the performance of your team members as well as the project as a whole by comparing it to other metrics you have in your PM plan. Determine whether or not variances require corrective actions or change requests. You should request changes regardless and then update the PM plan accordingly.

Step 5: Closing

You must start off by assessing whether the work completed is done based on the requirements listed previously. Gain acceptance over the final product and then hand it off to be able to receive customer feedback. After this is all done you should record the lessons you have learned, all of the risks you may have encountered and the knowledge gained. All of this will help you out in the future.

Risk management isn’t an easy task and it’s natural to feel unsure on how to go about it. The best thing you can do is implement a PM tool that will help you with the process. ITM Platform provides their users with a new and innovative tool to help with calculating and managing project risks. Furthermore, their friendly and supportive staff has your back every step of the way so you’ll have no need to worry.

Visit http://www.itmplatform.com/en/ to find more information.

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