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Published byChristian Gardner Modified over 9 years ago
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Qantas Brand Refresh Kristy Dixon – Masters of Applied Project Management University of Adelaide 2013 Results of Risk Analysis Plan Hypothetical Project for Major Assignment
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The project Refresh the brand of Qantas to reflect new ‘world’s greenest airline’ strategy $20m with 44 week (11 month delivery) Phases include approval, R&D, concept approval, application and closure Internally project managed through marketing communications team with market research and creative agency contractors Sponsor – Qantas Executive Manager Marketing
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Our presentation focus 1.Define context and risk management criteria 2.Identify the risks 3.Assess significance of risks 4.Identify, select, and implement treatment options 5.Perform monitoring, review and corrective actions Bowden, Lane & Martin, 2001.
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Risk management Uncertainty is inevitable To reduce exposure to the consequences of risk events to levels that are considered acceptable by Qantas It is a continual cycle reviewing criteria, assessment, reduction and review RISQUE method and Critical Success Factor approach It is everyone’s responsibility to continually participate in risk management
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Risk analysis Expert panel - knowledge experts who genuinely understand the business and the risks associated with a marketing exercise like the QBR Captured the cause, event and impact of the event in risk descriptions Everyone needs to understand we may only know, what we know in hindsight (unknown unknowns) Risk tolerances have been set in line with Qantas corporate risk acceptance guidelines Risks have been analysed in relation to Critical Success Factors (cost, schedule, performance and customer satisfaction)
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Risk drivers for the QBR
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Risk driver discussion People are key to the successful risk management of this project. This is positive as we have an influence on this through strong and effective leadership Our systems and external drivers are equally driving risks in the project (though not as much as people) Our systems are robust, and accordingly, reflect the lowest drivers of risk for the project
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Who is responsible?
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Top risks by critical factors Cost : due to bad refresh design, customers could abandon airline, resulting in poor sales (this is by far the largest, potentially damaging risk on the project) Schedule : livery in use due to plane shortage (e.g. weather delays, operating issues), cannot apply new branding, delays Performance : Due to unclear requirements, miss objectives of overall project, substandard delivery Customer satisfaction : Due to transition time between brands, corporate identity weakened, confusing customers about our brand
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Variance Variance gives a ratio of how each factor is affected (variance = sum of risk / tolerance)
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Risks during project phases
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Risks during phases discussion The application of the refreshed brand is the phase of the project with the most risks We also identified a number of ongoing risks, these are mainly people orientated and require a continuous monitoring and evaluation to keep within tolerable levels The project and concept approval risks do not post as strong potential negative outcome as application phases, however still require attention Our R&D (including customer market research) has low risks in comparison to other phases of the project
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Acceptance of cost risks Through risk treatment we have managed to reduce the risks in schedule, performance and customer satisfaction to an acceptable level However, there are risks with costs consequences (total of $1.08m) which require approval to accept (primarily related to subjectivity of customer response and potential lost sales) Risk Scenario as, could occur, resulting in. ResponsibilityLikelihoodDriver 1Consequence Risk Level (likelihood x cost consequence) Risk Treatment LiklihoodConsequenceRevised Risk Due to bad design, customers could abandon airline, resulting in poor sales. PM0.5X 11,000,000 5,500,000 Consult and liaise with customers at all times, demonstrate ongoing commitment to customer needs, use incremental commitment to guide phases. 0.19 5,000,000950,000 Due to digital upgrades (e.g. website), system will be down, resulting in inconvenience to customers booking and potentially less sales. COMPANY0.79S 2,000,000 1,580,000 Offer telephone or other booking options for customers at same rate as online, pre-warn customers that website will be unavailable, employ top talent to deliver upgrade. 0.18 500,00090,000 Due to higher operational priorities, operations and maintenance staff lack of support, resulting in time/cost impacts. PM0.2S 500,000 100,000 Onboarding exercises before rollout, manage expectations and build in rewards through KPIs, clear communications. 0.2 200,00040,000
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Opportunity analysis Positive risks (opportunities) have been identified, analyzed and treated as part of the risk approach These have been featured as potential cost benefits to the project As opportunities arise in the project the Risk Register and associated documentation will be updated to track impacts of opportunities We will also considering the benefits of cross-skilling, combined employee activities with the launch and customer market research integration (e.g. additional questions or data gathering as part of the project)
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Risk treatment themes Our system of risk treatment provide effective operation of the project, effective internal controls and compliance with laws and regulations In most cases we have mitigated or accepted the risks presented by the project We will evaluate the effectiveness of risk treatments and identify trends for future treatments (on this and other Qantas projects)
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What we need from you today Confirmation you have understood and support the process Confirmation of the acceptance of risks related to costs ($1.08m regarding subjective nature of customer responses to brand refresh, this is $580,000 above the general Qantas tolerance) Confirmation you have confidence in the expert panel Confirmation you consider this process is transparent and defendable to a third party Questions or requests for further information.
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