1. Risk in a Collaborative Culture

2.  Why risk matters  Risk and Conscious Competence  Mitigating risk

3. why risk matters

4. what is risk?

5. what drives risk?

6. Project Management Change Management how does risk change during a project?

7. what happens if we ignore risks? I’m beginning to think it wasn’t such a good idea to turn off those unit tests

8. what happens if we incorrectly define risks?

9. at what levels should we assess risk?

10. how is risk management different from change management?

11. risk and the conscious competence learning model

12. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence From William Howell

13. applied to profiling and mitigating risk

14. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence From William Howell

15. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence From William Howell become aware

16. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence From William Howell learn high churn~ afraid to make decisions~ uncertainty “agile”

17. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence From William Howell bureaucracy complexity optimize. mentor. perfect. “lean”

18. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence From William Howell out of touch ~ process is king develop a blind spot

19. decision making

20. what do we do? when do we do it? when do we decide?

21. Business Value Benefits Value Calculation Costs calculation typical financial calculation

22. Business Value Guess Value Calculation Estimate calculation however….

23. we need some help !

24. Purpose Considerations Costs and Benefits Business Value Model

25. where do we start?

26. Market Differentiating High Low Mission Critical Low High Differentiate Parity Partner? Who cares? Purpose Based Alignment Model

27. Market Differentiating High Low Mission Critical Low High Innovate, Create Do we take this on? Minimize or Eliminate Achieve and Maintain Parity, Mimic, Simplify Purpose Based Alignment Model

28. example financial documentation system

29. Market Differentiating High Low Mission Critical Low High What goes here? Anything here? Most are usually here. Purpose Based Alignment Model

30. 350 differentiators

31. simplified the rest focused on differentiators

32. results: better product cut time by 50% 60% cost reduction

33. Market Differentiating High Low Mission Critical Low High Differentiate Parity Partner? Who cares? Strategy?

34. Sustainable Competitive advantage strategy = sustainable competitive advantage

35. the “billboard” test…

36. You Think My Products Are Good? You Should See My Chart of Accounts!

37. “To be the low cost airline.” - Southwest Airlines

38. “Will this help us be the low cost airline?” - Southwest Airlines

39. remember, parity is mission critical

40. and purpose is not priority

41. differentiating changes over time

42. Leadership Influence innovate!

43. Purpose Business Value Model

44. other considerations ?

45. time to market

46. risks

47. Collaboration Model flexibility

48. Collaboration Model dependencies

49. team size and experience market uncertainty domain knowledge team capacity technical uncertainty

50. Purpose Considerations Business Value Model

51. costs and benefits ?

52. Purpose Considerations Costs and Benefits Business Value Model

53. group chunks high – medium - low

54. “build” a chunk …

55. objectives / projects / ideas Value Model prioritized chunks build highest value chunks adjust VM if inputs changed discuss value and value to date Enough value to go to market? ~ Yes? Deploy ~ No? Continue? ~ No? Stop. ~ Yes? using the value model

56. applied to risk

57. becoming aware: profiling risk

58. There are many models... most work well. How about:  Delivery risks  Business case risks  Collateral damage

59. delivery risks Standish Group Study, reported by CEO Jim Johnson, CIO.com, ‘How to Spot a Failing Project’

60. Always or Often Used: 20% Never or Rarely Used: 64% Standish Group Study, reported by CEO Jim Johnson, XP2002 Sometimes 16% Rarely 19% Never 45% Often 13% Always 7% business case risks

61. collateral damage

62. example: express products

63. Re-factor existing enterprise software products for the SMB market. The goal: make these products consumable by the SMB market.

64. what are the delivery risks? Low The development work is complete. Depending on the requirements, some functionality might be disabled.

65. what are the business case risks? Business Case Risk: High – IBM Sales teams for these products might not be experienced in reaching customers in this market – Required new sales channels (telesales, business partners etc) – Required new support structures (IBM L1/L2/L3 and support methods were accustomed to enterprise customers) – Marketing material needed targeting at this market

66. collateral damage risks? could be high are there existing enterprise customers that will want to migrate to the SMB versions?

67. Leading Agile Collaboration Model Collaboration Process we collaborate to increase awareness

68. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence From William Howell collaborate to become aware

69. example: updated transaction engine

70. WHOSE input is important to create an accurate, project-level profile of the risk? development sales product manager testing support

71. different risk perspectives for: delivery business case collateral damage

72. how does knowing this mitigate risks?

73. how do we now reduce uncertainty to further mitigate risks?

74. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence From William Howell learn high churn~ afraid to make decisions~ uncertainty

75. using the business value model to reduce churn and uncertainty

76. Purpose Considerations Costs and Benefits Business Value Model

77. This models iterative decisions. It helps us identify the “last responsible moment” to make decisions.

78. example: customer retention

79. Potentially great way to improve customer retention. However, lots of costs and guessed- at benefits. How do we reduce uncertainty and make progress?

80. What project “chunks” make sense? Phase 2, measure the value of improving retention in each segment. Results? Focus the big project on the segments with high retention value. Phase 1, segment the market while delivering value. Four segments each with a unique buying trigger. How does this generate value? Advertising hits one Of the buying triggers. Results? Lower marketing costs with higher return at a fraction of the big project costs. Phase 3, no need to continue. Overall results? Increased retention where it made sense at a much lower project cost and risk.

81. reduce the tendency towards complexity and further reduce risks?

82. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence From William Howell bureaucracy complexity optimize. mentor. perfect.

83. use purpose-based alignment model

84. Market Differentiating High Low Mission Critical Low High Innovate, Create Do we take this on? Minimize or Eliminate Achieve and Maintain Parity, Mimic, Simplify Purpose Based Alignment Model

85. example: business intelligence

86. our product: superior analytics engine our competitor: superior UI

87. What do we do about a new user interface? Differentiating for us? Analytics Engine Differentiating for our competitor? User Interface What is the purpose of our user interface project? PARITY! How does this help us reduce complexity? (we “go to school” on competitors UI and just try to keep pace).

88. our dynamic world

89. what happens if…

90. you accelerate the timeline?

91. the demand for the product shrinks?

92. you fold-in an acquisition?

93. part of the team is pulled away?

94. your triggers to reassess your risk profile and mitigation plans?

95. we want to avoid …

96. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence out of touch ~ process is king develop a blind spot

97. but how?

98. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence out of touch ~ process is king collaborate broadly to maintain awareness

99. Scenario In order to respond to a competitor, Product Management announces an early release. In order to meet the release date, Development shrinks the time allocated to the quality plan. Technical Sales now requires a SAR and a service engagement. The product releases but Support is not prepared for the required support levels. Support shifts some support tasks to Development. Development no longer has the resources to meet the next planned release date or content.

100. in other words... there are no isolated decisions!

101. What triggers should cause us to review and revise the risk profile and mitigation plan?

102. macro leadership and risk

103. Macro Leadership Cube Mitigate Delivery Risks Mitigate Business Case Risks

104. Shared Boundaries Mitigate Delivery Risks Mitigate Business Case Risks Mitigate Delivery Risks Mitigate Business Case Risks Mitigate Delivery Risks Mitigate Business Case Risks Interlock DevelopmentSalesSupport

105. example: network services to remote locations

106. what are the critical interlocks?

107. construction schedules network design decisions vendor schedules

108. focus on any changes …

109. Leading Agile Collaboration Model Collaboration Process through cross-functional collaboration

110. summary

111. profiling risk

112. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence From William Howell

113. collaborating to profile risk delivery risk ~ business case risks ~ collateral damage risks

114. bring the right people together from the entire enterprise in other words, the affected and affectors!

115. Market Differentiating High Low Mission Critical Low High Differentiate Parity Partner? Who cares? Purpose Based Alignment Model

116. Purpose Considerations Costs and Benefits Business Value Model

117. risk management cannot be siloed

118. Shared Boundaries Mitigate Delivery Risks Mitigate Business Case Risks Mitigate Delivery Risks Mitigate Business Case Risks Mitigate Delivery Risks Mitigate Business Case Risks Interlock DevelopmentSalesSupport

120. Collaborative Leadership and Risk Mitigation The collaborative leadership tools are designed to improve decision making. This includes decisions about risks. These tools are: The Purpose Alignment Model The Business Value Model

121. What Tool Do We Use For Decisions Today?

122. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence Business Value Model To Reduce Uncertainty

123. Competence Consciousness Low High Unconscious Incompetence Conscious Incompetence Conscious Competence Unconscious Competence Purpose Alignment To Focus

124. what triggers will cause you to reassess your risk profile and mitigation plans?

125. Leading Agile Collaboration Model Collaboration Process collaborate!