Project risk awareness
“Start with the end in mind”
Organizations are increasingly “managed by projects”. Successful projects are key to enable companies to be successful. However, only a small fraction of all projects is successful. The vast majority of projects struggle with cost overruns, significant delays, and less than the required features or functions.
As reported in many studies the IT project failure rates remain high. Regular performed researches by Standish Group show that project results haven’t really improved over the last years and the figures beneath are still valid.
Successful: delivered on time, on budget with required features and functions
Failed: cancelled prior to completion or delivered and never used
Challenged: late, over budget, and/or with less than the required features and functions
In many occasions the project success or -failure is already defined at the start. If risk areas are known upfront the right measures can be taken the increase the chance to drive the project to a success.
Project risk awareness
Project-driven organizations and teams increasingly discover the importance of risk assessment and management. In times of increasing competition and internal budget constraints it is necessary to have insight into the risks within projects, the impact of such risks at the turnaround time, the costs/resources and the quality of the end product. Studies have shown that sound risk management leads to successful projects and that the omission of risk management leads to unsuccessful projects.
Responsibility for success clearly lies with both executive management and the project team. When project risks are known, a proper risk reduction strategy can be defined by the organization to mitigate the risk/impact. Transparency around project risks is a must!
A Project Readiness Check (PRC) provides a transparent overview of project areas with the biggest risks. Five focus areas are validated and reported in an unburdened maturity level graph.
The PRC best can be performed just before or at project start. It is based on a proven knowledge based checklist. This service has following features: Quick, Simple, Comprehensive and Transparent.
It contains three steps:
- Step 1 – Project Orientation
- Step 2 – Individual Project Assessments
- Step 3 – Presentation to management
* Example of a Project Readiness Check
Based on this information management can take the appropriate strategic choices to mitigate the risks.