1. Project Management Session 5: Introduction to risk and quality
Last session for L3 students
Review previous assignments
Lunch Atop a Skyscraper, New York c.1932
Death-defying photographer, Charles C Ebbets ( ) was as fearless as the vertigo-resistant construction workers he photographed. Casually dangling on the I-beams of New York skyscrapers

2. Today
Introduction to risk, quality and ensuring project impact (next week – risk management)
Review of the assignment requirements
Look at previous assignments
By the end of the session, you will be able to:
Outline the main methods of identifying risk
Use a range of tools and techniques for identifying risk
Assess and mitigate risks
Reflect on how to evaluate project impact
Create risk registers to monitor and control risk

3. Project management life cycle
Market research completed
Best practice identified and incorporated into project
Project objectives defined
Project scope defined
Outputs/outcomes
Stakeholder buy-In
Team assembled
Business case created
Appraisal of project concept (Project brief, PID or business case prepared)
Approvals gained
Project completion
Monitoring and evaluation
Impact assessment
Best practice shared
Project team future
Further phases of project decided
Scope the project
project initiation
Develop detailed plans
project planning
Launch the plan
project delivery
Monitor and control progress
project monitoring
Close out the project
project closure
Controlling delivery
Monitoring
Evaluation
Change management
Regular 4-way reporting
Review of estimate budget and timescales against actual
Variance analysis reporting to senior management
Feasibility Study
Detailed planning – PID
Work Breakdown Structure
Resource Breakdown Structure
Gantt chart
Budgeting
Risk/quality measures
Risk Register
Quality Plan
Project manager leading project
Action plan published , issued to team
Implementation plan/Gantt chart used
Risk Register used
Quality Plan used
Regular project team meetings
Delegation and motivating team

4. Level 3 assignment Know how to manage a simple workplace project
Identify a simple workplace project
Use a simple tool for determining the financial viability of the project
Produce a project plan using an appropriate project planning technique
Set objectives and targets/milestones to monitor performance and review plans within the project
Use a project evaluation technique to evaluate the project
Understand the financial and non-financial implications of a workplace project
List areas where net savings can be achieved as a result of the workplace project
Identify wider non-financial implications that can result from the workplace project
Map what have you learnt so far that you can include in your assignment?
Look through your presentations, handouts and notes – more notes are provided on the table that may be useful

5. Level 5 assignment Be able to manage a project in an organisation
Assess the usefulness of project management tools and techniques for managing a project within own organisation
Plan the implementation of a project within own organisation
Communicate the project plans with appropriate colleagues and stakeholders, gaining agreement where necessary
Implement the project plan, monitoring progress against agreed targets
Be able to evaluate own ability to manage a project
Use feedback from others to critically evaluate own ability to plan and implement a project, identifying strengths and weaknesses
Create a self-development plan to improve own performance in managing projects
Map what have you learnt so far that you can include in your assignment?
Look through your presentations, handouts and notes – more notes are provided on the table that may be useful

6. Level 6 assignment Plan a complex project
Determine the feasibility and risks associated with a proposed project
Agree the goals and success criteria for the project
Plan the project and identify the financial and other resources required, using a standard method and appropriate project management tools
Select an appropriate project team
Lead a complex project to a successful close
Lead the project team to achieve project milestones and goals
Monitor progress and take action to rectify problems or recover failure
Manage the project budget, identifying any variances and taking appropriate action
Ensure full engagement of stakeholders with the project
Evaluate a complex project
Develop and implement an appropriate evaluation tool for the project and report on the outcomes to stakeholders
Reflect on and learn from the outcomes of a project
Map what have you learnt so far that you can include in your assignment?
Look through your presentations, handouts and notes – more notes are provided on the table that may be useful

7. TASK: Let’s look at some assignment examples …

8. Identifying Sources of Risks

9. TASK: Key Terminologies/Focus
Brainstorm what terminologies you know regarding risk

10. Risk and Return Why take any risks?
“all projects involve risk – the zero risk project is not worth pursuing” (Chapman and Ward, 2003)
James Lam, 2003 model on ‘risk and return’ shows that there is a correlation between the level of risk and return, this is a simplistic model
What recent projects/business practices can you name that have been particularly risky, yet provided high returns? Or, visa versa?

11. Embed risk management into your project
Identify risks early in your project planning
Communicate risks to ensure awareness
Consider threats and opportunities as potential risks
Clarify ownership of the risk and mitigation
Prioritise risks – of them occurring and their impact
Analyse risks and evaluate potential mitigations
Plan and implement risk responses – mitigations in action
Register project risks through implementing Risk Registers
Track risks and associated tasks on a regular basis with those involved

12. Key Risks - Categorising
People: skills, experience, reliability
Technical: robustness and appropriateness of IT systems/processes
Time: WBS deadlines, contingencies
Financial: budget limit per phase/element, contingency, non-essentials
Environmental: external influences, fixed costs
Overall management: responsibilities, control

13. TASK: Your project and risk
In pairs, debate your project and identify at least 3 key risks that impact your project
Consider:
People
Technical
Time
Financial
Environmental
Overall management
What can you do to reduce these risks a) occurring and b) the impact

14. Typical obstacles Securing approvals and sufficient funding
Stakeholder buy-in
Feasibility and viability
Contractual issues – delivering the unachievable
Project implementation
Keeping momentum
Managing and mitigating risks to proceed
Agreeing deliverables – outputs, outcomes, timelines, budget
Managing change and avoiding ‘project creep’
Control management – people and processes
Agreeing focus and strategy

15. TASK: Your obstacles In pairs, review your risks so far and:
Brainstorm typical obstacles that may occur in your own organisation that may impact the project
Identify the obstacles as risks “not securing sufficient budget to deliver 100% of the project outcomes”
Rank them in order of highest impact and probability of occurring – these may be different

16. Risk Identification Techniques
(Level 3+) Scenario analysis - i.e. SWOT, PEST/LE or STEEPLE
(Level 5+) Stakeholder analysis – identify people strengths and weaknesses
(Level 5+) Probability analysis – judgement based (probability + impact)
(Level 5+) Sensitivity analysis – i.e. 10% and 25% reductions in budget
(Level 5+) 3 point estimate – ranked as maximum, most likely, minimum (also consider PERT)
(Level 5+) FMEA – (Failure Mode Effect Analysis) identify quality and technical risks.

17. SWOT/STEEPLE Analysis
Important to be honest with this technique and use up-to-date information
Rank items in order of importance
Based on quantitative and qualitative analysis
Most effectively used at the beginning of identifying risks, used in conjunction with other frameworks i.e. Chapman and Ward 6Ws, then revisited before completing risk analysis
SWOT should be accompanied with STEEPLE/PESTLE to consider the external environment as SWOT considers mostly the internal environment

18. Simple identification of risk sources
Using Chapman and Ward (2003) 6Ws framework is an effective starting point
Who
What
Wherewithal
Why
Which way
When
TASK: Swap partners for this task and ask each other questions about the project based on 6W
Two most common and quick ways of identifying risk are to review the weaknesses and threats in the SWOT/TOWS and PEST(LE)/STEEPLE
Political
Economic
Social
Technical
Legal
Environmental
Ethical (for STEEPLE)
TASK: Review your SWOT/PESTLE/STEEPLE and identify the main risks. If you have not completed any of these tools, write down some risks now using the model

19. Risk Registers
In project management it is important to create a Risk Register to manage risks effectively
Incorporate:
Prevention
Deflection
Contingency
Acceptance
Consider:
People
Technical
Time
Financial
Environmental
Overall management
Further risk assessment models that are appropriate for Level 5 and 7 include the following:
Risk impact assessment
Expected monetary value
Probability (risk impact) analysis
3 point estimate
Stakeholder analysis
Sensitivity analysis
Scenario analysis
FMEA analysis
We will look at these in more detail next session along with risk assessment and management

20. TASK: Create a Risk Register
Create a Risk Register for your chosen project, incorporating the following:
Identify the risks associated with your project
Analyse the level of risk and prioritise them (red, amber, green; or high, medium, low)
Evaluate the likelihood (probability) of them occurring and/or impact
Plan how you will mitigate (overcome) these risks

21. Quality
Consider: How you will Control quality? What are your quality Measures, Existing Policy & procedures, Key performance indicators?

22. Quality management Quality Control Quality Planning Quality Assurance
Consists of 3 categories:
Quality Planning
Quality Assurance

23. Quality management
Quality planning - clear definition of the project aims, outcome and what the deliverable are and how these are going to be measured. Include assessing the risks, setting high standards, keeping an audit trail and measurement of success
Quality assurance - uses a system of quantitative and qualitative metrics to determine whether or not the quality plan is proceeding in an acceptable manner, mostly through intermittent quality audits
Quality control - involves operational techniques meant to ensure quality standards. Control is reactionary and occurs after a problem has been identified, unlike quality assurance which occurs before a problem is identified. The monitoring of specific project outputs, compliance, risk factors/mitigation and overcoming unsatisfactory performance
How will you manage quality?

24. Evaluation is measuring success in a systematic and objective way

25. How are you going to evaluate whether and how your project was a success?

26. What to focus on
Evaluation focuses on whether the project was effective, achieved its objectives and the outcomes had an impact – how has it made a difference?
How the project changed/evolved and what strategic added value has it provided that can improve stakeholder relationships
How has the project meet your and stakeholder needs
What would you have done differently and what were the restrictions that limited maximum return
How the project compares with forecast v actual timings and budget.

27. Outputs and Outcomes Outputs Outcomes
Outputs are the products and services you deliver as part of your project i.e. training courses, support sessions, jobs created and publications etc
They can be easily captured during the project, even if it’s a short project - they can be seen/felt
Recruit staff = newly appointed people
Prepare a meal = a meal
Outcomes are the changes, benefits, learning or other impact that happens as a result of your project – what difference it has made
A level of performance, or achievement that may be associated with the process, or the output - implies quantification of performance
Newly appointed people may be = capable, or incapable of performing their role; too many, or too few

28. Measuring impact When should I monitor progress and impact?
Formative – frequent evaluation throughout the project
Summative – conducted at the end of the programme to assess outcomes, impact on the community, and overall success. 
Consider:
What criteria you will use to measure successful achievement of your aims and objectives
What benchmark information or data you need before commencing
How you will use the findings of your evaluation

29. Evaluation methods Quantitative: statistical analysis (numbers)
Qualitative: views/opinions (combined with quantitative for maximum effectiveness)
Return: consider financial and social return discussed last session
Consider using tracking actual performance against forecasts, with variance analysis
Market research techniques:
Sampling methods – random, systematic random, stratified, cluster, multi-stage
Primary research – Questionnaire; Interviews; Focus groups; Observation
Secondary research – Internet, Libraries, Universities, Trade Reports

30. Review What have we achieved today? Where do we need to focus further?
What are we doing next time?