Introduction
In this article, I discuss the importance of risk management in project
management. First, I highlight the concept of project risk management. I then proceed
to share my experience from a project that was not successful in order to
illustrate the critical importance of project risk management.
What is project
risk management?
Risk management is one of the nine knowledge areas (responsibility
areas) defined in PMBOK version 4 (Project Management Institute, 2008) that the
project manager and sponsors should pay special attention to. Since project risk is
an unforeseen event or activity that can impact the project's progress and
outcome, it needs to be carefully managed. The following YouTube video by Mind
Tools (2013) explains the process of managing project risks:
The borehole project
In 1999 I sponsored a $6000 project to construct a borehole to supply safe
drinking water to my mother who resides in the rural areas, five hundred
kilometres from the city where I work and live. The drilling was done by a
Government department responsible for district development. After drilling for
seventy metres, the drilling contractor stopped and advised that this was a dry
hole. The end result is that I lost $6000 and the expected deliverable was not
available.
Borehole project
post-mortem
Portny
et al. (2008) have explained the need to conduct a post project evaluation or
project post-mortem after the completion every project in order to learn from
best practices and avoid making the same mistakes in future projects.
The following are some of the things that were done to contribute to the
borehole project success: the selected drilling contractor was experienced and
had previously constructed boreholes in the district, including one borehole
located one kilometre away in the next village; borehole siting was done by the
drilling contractor. However, I had not considered the possibility and
repercussion of a dry hole. With hindsight, I should have discussed the
following issues with the drilling contractor: what are the chances of getting
a dry hole?; what are the main causes of dry holes?; what happens in case of a
dry hole?; what can be done to mitigate the effects of a dry hole, for example,
is there is any insurance? Of particular concern is that there was no written
contract with the drilling contractor. The main lesson learned from this project is
that risk analysis is essential in project management since it helps to
identify and manage potential problems that are likely to adversely affect the
outcome of the project.
Conclusion
Although risk management is critical to successful project management,
it is an activity that can easily be overlooked. Deliberate efforts should be
made to incorporate project risk planning into the overall project management
plan.
References
Mind Tools (2013). Risk analysis: Evaluating and managing risks.
Retrieved from http://www.mindtools.com/pages/article/newTMC_07.htm
Portny, S. E., Mantel, S.
J., Meredith, J. R., Shafer, S. M., Sutton, M. M., & Kramer, B. E. (2008). Project
management: Planning, scheduling, and controlling projects. Hoboken , NJ
Project Management Institute (2008). A guide to the Project Management
Body of Knowledge (PMBOK Guide). 4th Edition.
Retrieved from http://www.greenlocalschools.org/Downloads/File1BOK.pdf
You provided a great analysis of the three communication styles. I think the method in which people communication in organizations should be approached through the examination of the culture and norms of the organization. The introduction of the various electronic media technologies introduced into organizational settings has influenced the way in which people in organizations communicate. The instantaneous nature of electronic communication has nurtured the demand for faster and more efficient forms of interaction. There are many attributes to what makes for effective communication and often people do not understand the how, when, with, why and with what effect organizational communication happens. However, the role of communication in organizations is constantly evolving as organizational environments shift over time. The theory of “media richness” contends that media can be ranked on a continuum according to its capacity to provide feedback, convey cues, accommodate linguistic variety and support personalization (Yates & Orlikowski, 1992). The organization I work for has both instructor lead and self-study courses that provide employees training on effective communication within our organizational environment. My boss told me once “I am often in meetings and even though my door is closed it is always open electronically.”
ReplyDeleteReference
Yates, J., & Orlikowski, W. J. (1992). Genres of Organizational Communication: A Structurational Approach to Studying Communication and Media. The Academy of Management Review, 17(2), 299-326. Retrieved from http:/ /links.j stor.org/sici ?sici=0363-7425%28199204%2917%3A2%3C299%3AGOOCAS %3E2.0.C0%3B2-T