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Chapter 10: Working the Project Plan 227 Getting it done This is what project management is all about Find out what they do to ensure success. Chances getting the project to completion. are they will tell you they created a quality product by using the appropriate tools and techniques Getting your software project to a successful available to create a solid quality management completion should not be a painful process. In plan. fact, it can be quite enjoyable. You just have to think logically and remember the keys to suc-No project is without risk, so remember to plan for cessful project management. Use your resources; the potential risks and identify responses to each talk to other successful software project man-risk. Risk management is an iterative process and agers who have done this type of project already. should be performed at each project phase.
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226 Part III: Executing Your Software Project Plan solutions with the project. Peter s hiring is a secondary risk because it came about due to the planned risk response. You should identify secondary risks and create a response plan for these risks. A residual risk, on the other hand, is a risk that just won t get the hint and go away. It stays. You can t avoid it or get rid of it. For example, you identify declining team morale as a primary risk. After you implement steps to respond to this risk, such as team building activities, you still have one or two team members who continue to be miserable. Nothing you try will change the attitudes of those team members. You may have to accept that misery as a residual risk. The bottom line is that you still need to manage these risks as well as the primary risks identified in the planning process. Documenting Risk Management Effectiveness How effective is your risk management plan? Why should you document the effectiveness of your risk management planning? Why do you care? Here are some reasons why you care: You can use the data that demonstrates your project effectiveness as you start developing the plans for your next software project. This information will help you (and others) to use your risk management effectiveness documentation as lessons learned documentation. You can use this documentation to improve the risk management planning on your current project and on the next phase of your current project. You can use this documentation to improve your chances of getting a promotion for being intelligent enough to create a strong risk management plan and the documentation to support it. You should hold post project reviews (otherwise known as meetings) to gather feedback from stakeholders regarding the effectiveness of your risk management plan, elicit suggestions on how it could be improved, as well as discuss what areas of the plan were particularly successful. This information will be extremely valuable when you (or others) start planning for your next software project.
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Chapter 10: Working the Project Plan 225 You can use a risk database as part of your risk management plan to track and respond to project risks, as well as to monitor and control risks. However, you don t need a database to monitor and control risks. It s just an added tool that may assist you with your risk management planning. These processes interact with each other and are ongoing throughout the life of your software project. You will continue to monitor and control risks based on whether or not identified risks are still valid, new risks have been identified, a risk probability has changed, or any other number of factors that could affect your risk management plan. You don t need to overcomplicate what really should be a standard part of your project planning. You can track risks with a risk database or with a spreadsheet or even with good old-fashioned paper and pen (but who uses those things anymore?). The method you use is not as important as your commitment to following through on identifying, tracking, planning for, and responding to each risk. Of course, if you do have a database where you can store project planning information such as risk management data, you may be able to easily report on the risk management aspects of the project. Here are a couple of benefits of creating a database for your risk management data: A database will enable you to keep the appropriate stakeholders informed of any issues related to risk management. A database will also aid you and your organization in creating a more solid risk management plan for future projects. A risk management database can become part of your firm s historical database, contributing to the company s overall risk management strategy. Who knows? They might even name the database after you. Managing Secondary and Residual Risks As you develop your risk management plan, you need to consider secondary and residual risks: A secondary risk is a risk that occurs because of a planned risk response. For example, you may identify as a primary risk the fact that Kathy, a key resource, is leaving your project. As part of your response to that risk, you hire a new programmer, Peter, when Kathy leaves. Maybe Peter stretched the truth on his resume and did not have the experience that he indicated he had. All you know is that he ends up causing more problems than
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224 Part III: Executing Your Software Project Plan time, and quality. To obtain the risk assignment, you multiply the probability by the impact: P I = RA. Table 10-2 shows an example impact matrix. Table 10-2 Risk Probability and Impact Matrix Risk Probability Impact Risk Assignment Technology becoming obsolete .6 .9 .54 Key resource leaving project .3 .8 .24 Execs changing direction .4 .8 .32 Major bugs in software .4 .7 .28 The first column in the risk probability and impact matrix lists each identifiable risk. The second column, probability, indicates, in a decimal format, how likely a risk is to occur. For example, if you determine that there is a 60 percent probability that technology will become obsolete, you enter a .6 in this column. Probability should always be listed as a number between 0.0 (no probability) and 1.0 (100 percent certainty). The third column, impact, assigns a number to the impact of an event occurring. For example, your organization may say that any event that will have a high impact should be assigned a .9 or 1, and anything with a relatively low impact should be assigned a value somewhere between .1 and .3. To determine the probability and impact of a risk, you should use expert judgment and gather information from other stakeholders who have knowledge and expertise regarding your software project. Monitoring and Controlling Risks Risk monitoring and control is the last risk management planning process listed in Table 10-1. After you identify your project s risks, perform qualitative and quantitative analyses, document your risk management plan, and define your responses to the risks, you can start working on the project. Along the way, you will be monitoring and controlling your risks. You may create a database or register to keep track of each previously identified risk, identify and document new risks, and track the response plans for each risk. There may even be instances where a risk that you documented at the start of the project is no longer valid; you should make revisions to your risk management plan to address this change.
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Chapter 10: Working the Project Plan 223 To gather information for your risk management plan, you may use some of the following techniques: Brainstorming: Be sure to document all ideas regarding risk identification. The idea that you omit because it sounds lame could end up being the best idea of all. Another reason to accept all ideas is so that no one feels that their idea is too dumb to be accepted. You never want someone with an idea to avoid raising his or her hand because this could potentially keep you from discovering some valuable information. SWOT analysis: This analysis documents the strengths, weaknesses, opportunities, and threats to your project. You ll be surprised at how much easier it is to identify risks after you ve thoroughly explored each of these areas. Delphi: This strategy is sort of like anonymous brainstorming. You and others provide your input on risk identification but no one knows who submitted particular ideas. One method of accomplishing this is to have people send an e-mail to a particular person and have that person consolidate the items into one document (without assigning names to each idea). Another method is to have everyone place his or her documented ideas into a receptacle (a suggestion box) and have someone take all of the documentation and consolidate it. One advantage of this technique is that those people who are shy or uneasy about providing input in meetings can speak freely without being concerned with how they look to others. You receive input from those that you might not otherwise hear from. Root cause analysis: You discuss risks and the likely causes of each risk. If there are many risks associated with a particular cause, root cause analysis provides you with the information you need in order to prioritize your risks. When you see that several risks are associated with a particular cause, you can make sure that you put more effort into minimizing those risks. Interviewing: Chances are, you already have access to several experts regarding risk identification. These are the people who have already created risk management plans for your firm. Don t be shy. Talk to them. They probably won t bite. Don t reinvent the wheel: You may already have contact with people who have already done all of this work before, so take advantage of their expertise. As you gather the information regarding types of potential risks, the probability of each risk occurring, and the potential impact of each risk, you can start to develop a risk probability and impact matrix to show each risk and its potential impact on project objectives that deal with the Iron Triangle of cost,
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