Risk Management Prepared For PMI Mid-Missouri Charles “Chick” Keller March 15, 2012

Who Is Responsible For Risk Management Answer: Everyone – Project Team Members – Project Manager – Project Sponsor

Each Player Has Levers to Pull Project Team Member: Negotiates scope, schedule, budget for task; and people and vendors to work with Project Manager: Negotiates for scope adjustments, clearer scope statement, clear measure of success, more money, more time, right vendors, and good people Project Sponsor: Holds extra contingency, assigns the right people, meets with vendors and the customer

The Project Sponsor Is The Ultimate Risk Manager Project Managers Generally Have High Self Confidence, “I Can Do It.” Make Sure Resources Are Available A Project Built From The Bottom Up, i.e. Contingency In Every Task, Is Also Too Costly Don’t Give A Team An Impossible Project Access The Level Of Project Risk By Counting The Number Of News.

Real Black and Veatch Project In Brazil; How Did PM Ever Get in This Mess? New Country New Customer New Contractor New Technology New Vendor First Time PM Currency

Mitigating Risks New Country: Biggest Risk Are Permits And Getting Stuff Off The Docks. Answer: Get It Our Of Your Scope Or Subcontract It New Customer, Contractor, And Vendor: Biggest Risk Is How To Work Together Answer: Team Building

Elements of Team Building Relationships At All 3 Levels Shared Mission Shared Plan Clear Scope Understand Each Others Goals Clear Measures Of Success Agreement To Work Together, Communicate Openly How To Deal With Issues

Mitigating Risks, Continued New Technology: Get performance and schedule guarantee out of your scope and on to the vendor; visit vendor factory and review testing. Currency Risk: Price the job in 3 currencies: US dollars, local dollars, and German currency. New PM: Extensive Plan Review, Regular Project Reviews, Sponsor Meet Regularly With Customer And Vendor Executives

What To Do When It All Goes South Maintain Your Confidence Access The Situation Prepare To Clearly Answer Two Questions – What Happened? – What We Going To Do About It

Make Every Project a Success Answer Manage Expectation Of All Key Stakeholders. Example: Lockheed Fighter Jet Project – Way Over Schedule – Way Over Budget – Scope Continually Modified – But PM Has Never Been Fired

That’s All Folks Questions Your experiences Critiques