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Process- and Project Risk Management Copyright © BK-CPS GmbH EHAG.

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Presentation on theme: "Process- and Project Risk Management Copyright © BK-CPS GmbH EHAG."— Presentation transcript:

1 Process- and Project Risk Management Copyright © BK-CPS GmbH EHAG

2 Process- and Project Risk Management Copyright © BK-CPS GmbH EHAG Setting the correct priorities in the project environment as well as controlling and mastering the Project Risks

3 © Copyright BK-CPS 2002 EHAG Terms & Definitions Strategic vs. operational Management? Strategic vs. operational Management? Content vs. organisational context? Content vs. organisational context? Program-Management Project Portfolio-Management Multiproject-Management

4 © Copyright BK-CPS 2002 EHAG Agenda The responsibility for the project portfolio The responsibility for the project portfolio Branches of the portfolio-management Branches of the portfolio-management Facilities Facilities Abstract & critical factors for success Abstract & critical factors for success Motivation and Targets Motivation and Targets

5 © Copyright BK-CPS 2002 EHAG Incentive based on anticipated definaces Consistent with the business strategy Consistent with the business strategy Exposure to sacred cows Exposure to sacred cows Assessment and prioritization of projectsAssessment and prioritization of projects Determination of the operational risk Determination of the operational risk Utilization of key personal Utilization of key personal

6 © Copyright BK-CPS 2002 EHAG Incentive based on operative defiances We dont want to just react, we want to We dont want to just react, we want to approach problems in a proactive manner approach problems in a proactive manner We dont know the state of the projects We dont know the state of the projects We dont know how delays and changes to one project influence other projects We dont know how delays and changes to one project influence other projects We just want to take care above all about the critical and problematic projects We just want to take care above all about the critical and problematic projects

7 © Copyright BK-CPS 2002 EHAG Agenda The responsibility for the project portfolio The responsibility for the project portfolio Branches of the portfolio-management Branches of the portfolio-management Facilities Facilities Abstract & critical factors for success Abstract & critical factors for success Motivation and Targets Motivation and Targets

8 © Copyright BK-CPS 2002 EHAG ProjectSupport Project QA DesignAuthority Different roles in the company organization structure ChangeManager Project Portfolio Manager ProjectPortfolioQAProjectPortfolioSupport Steering committee Projectmanager Team Strategy Portfolio Projects Operation Company Management

9 © Copyright BK-CPS 2002 EHAG Candidates for the Project Portfolio Management Manager in charge (in project organizations)Manager in charge (in project organizations) Official Program-Executive Staff position (e.g. Organization development) Staff position (e.g. Organization development) Member of the executive board (e.g. CFO) Member of the executive board (e.g. CFO)

10 © Copyright BK-CPS 2002 EHAG Agenda The responsibility for the project portfolio The responsibility for the project portfolio Branches of the portfolio-management Branches of the portfolio-management Facilities Facilities Abstract & critical factors for success Abstract & critical factors for success Motivation and Targets Motivation and Targets

11 © Copyright BK-CPS 2002 EHAG Branches of the Project Portfolio Management Managementdisciplins in the Project Portfolio ProjectmanagementDimensions Planning Controlling Opportunity Management Priority Management Risk & Problem Management Quality- Management & Audit Configuration Management Stakeholder Management TimeCosts Result Quality Resources Corporate Strategy

12 © Copyright BK-CPS 2002 EHAG Adjustment of strategic vs. economic importance Total Portfolio consideration Economic Importance [/$] Strategic Importance Strategic Importance Economic Importance [/$] p1 p2 p1 Total utility Adjustment through Expansion and Compression Strategic Importance Economic Importance [/$] Project Portfolio Projects

13 © Copyright BK-CPS 2002 EHAG Priority Management D oing the correct thing correctly! Project Importance Aktual Priority Project xy Strategy Conformance Matrix (SCM) Recognize Strategy conformance Target-Prioritization Recognize deviations of the Actual -Situation Controlling Traceability Conflict reduction Risk Assumption Opportunity Costs Prioritization Deficiency

14 © Copyright BK-CPS 2002 EHAG Basics for the Assessment of the SCM Actual Priority Project importance Strategy Paper Business Plan Balanced Scorecard Project Business Cases IAOC ManagementAwarenessResourceDedicationAppropriatedBudget Project progress on schedule Tangible assets Intangible assets

15 © Copyright BK-CPS 2002 EHAG Inquiry of the strategic importance of projects(1) Balanced Scorecard with targets and measurement categories How does a project xy influence the customer business? Customer Perspective Internal Processes Innovation Which part contributes project xy to the reduction of time and costs? Which innovation targets are addressed by project xy?

16 © Copyright BK-CPS 2002 EHAG Inquiry of the strategic importance of projects (2) Pragmatical chance assessment based on BSC-Indicators Weight 100% 10% 10% 15% 15% 10% 10% 15% 15% 10% 10%#CategoryIndicator Measurement Categoryv Strategic importance 1 Client Strategy Customer count increase Number of new clients 2 Client Strategy Product density Number of products per clients 3 Client Strategy Intensity of customer relationship Number of transactions per client / year 4 Effectiveness & Efficiency Web-based presence Portion of web-based processes 5 Effectiveness & Efficiency Process improvement external Portion of swaped out process steps 6 Effectiveness & Efficiency Process improvement internal Quality- and time-saving index 7 Effectiveness & Efficiency Leverage from/to other units Leverage Index 8 Accomplishments & Communication Provide leading instruments Platform Enhancement Index 15% 15% Chacteristics per Project and Indicator: No Impact Minor Impact Large Impact Core Target

17 © Copyright BK-CPS 2002 EHAG Overview Project Portfolio (1) Projects Project Importance Actual Priority Declarations: - The size of a circle constitutes the estimated project expenses (Costs and Time) - The color constitutes the affiliation of the project to a certain context.

18 © Copyright BK-CPS 2002 EHAG Overview Project Portfolio (2) Factual Dependencies Declarations: Connections between projects: Interdependencies and influences (red = negative, green = positive, black = neutral/not yet clear) Actual Priority Project Importance

19 © Copyright BK-CPS 2002 EHAG Overview Project Portfolio (3) Personnel Dependencies Declarations: Conflict situation between projects based on planned resources Actual Priority Project Importance 8

20 © Copyright BK-CPS 2002 EHAG Overview Project Portfolio (4) Time Dependencies Declarations: Time coherences (e.g. Completion of project 4 is prerequisite for project 5) Actual Priority Project Importance 8

21 © Copyright BK-CPS 2002 EHAG Overview Project Portfolio (5) Green Region = Strategy Conformity Aktual Priority Project Importance 8

22 © Copyright BK-CPS 2002 EHAG Overview Project Portfolio (6) Arrangements Aktual Priority 6 1& Project Importance 8

23 © Copyright BK-CPS 2002 EHAG Risik and Problem Management The Process Risk Management Process Risk Monitoring Improvement of the Risk Management Risk Management Strategy Recognize and assess risks Data/ Information Portfolio Targets

24 © Copyright BK-CPS 2002 EHAG Risk and Problem Management The necessity of an assessment P R O D U C T L I F E - C Y C L E R I S K PLANNING & INITIATIONREQUIREMENTS ANALYSIS TESTING DESIGN IMPLEMENTATION & ROLLOUTPOST IMPLEMENTATION DEVELOPMENT COST P R O J E C T M A N A G E M E N T R I S K COMMUNICATIONPROCUREMENTHUMAN RESOURCERISK QUALITYTIMESCOPE PROJECT INTEGRATION (PROJECT OFFICE) P R O J E C T S U P P O R T R I S K PROGRAMME OFFICEINTEGRATION WITH COMMON BUSINESS FUNCTIONS P R O J E C T E N V I R O N M E N T R I S K STAKEHOLDERS PORTFOLIO MANAGEMENT STRATEGIC ALIGNMENT CORPORATE CULTURE BUSINESS ENVIRONMENT (ORG) PROCESS ALIGNMENT

25 © Copyright BK-CPS 2002 EHAG Frequent indicators for Project risks... Artificial pressure of time: Without pressure of time nothing will proceed anyways... Planning is based on a perfect world: Project Management by Hope: The Project members were rolled over by the day-to-day business... Key person xy was absorbed by another project... There should be nothing to intervene... We do not have any time buffer... We do not have any time for a detailed planning...

26 © Copyright BK-CPS 2002 EHAG Develop a Risk strategy Measure of damages Probability of occurrence Control Ignore Crisis Management Reduce Accept Insure

27 © Copyright BK-CPS 2002 EHAG The basis of the Risk Management processes in a complex environment Effort Controlling Aktual and adopted Project plans (Aktivities, Deliverables) Supply object list & Milestone control Status reports of the Projects Combined open issue lists on the program management level Risk Mapping Significance Likelihood Risk Management Report Risk Tracking Interviews Observations

28 © Copyright BK-CPS 2002 EHAG Having the sight on the benefit The active dialog about the project risks improves the creation of awareness of the project members involved The established Risk-Management-Process serves as an early waring system Through the realization of the proposed measures the risks will be reduced in the appropriate manner The risk dialog forces the dealing with unrealistic project defaults ( costs, time,resources, technical feasibility) at the management level Basis for the cockpit-function at the project portfolio level

29 © Copyright BK-CPS 2002 EHAG The Controlling-Cycle Contents of the reporting Precense oriented aktual state of the project Little effort for project and portfolio managers Professional degree of performance (percental) Accumulated Costs (nominal, percental) Combined from single project reports, concentration on the essential Planning deviations with rationals Options for problems, risiks and solutions Planned steps up to the next report

30 © Copyright BK-CPS 2002 EHAG Agenda The responsibility for the project portfolio The responsibility for the project portfolio Branches of the portfolio-management Branches of the portfolio-management Facilities Facilities Abstract & critical factors for success Abstract & critical factors for success Motivation and Targets Motivation and Targets

31 © Copyright BK-CPS 2002 EHAG Literature reference: PRINCE 2 (Project- / Portfoliomgmt.) Central Computer and Telecommunication Agency CCTA COMPONENTS OrganizationOrganization PlansPlans ControlsControls StagesStages Management of RiskManagement of Risk Quality in a Project EnvironmentQuality in a Project Environment Configuration ManagementConfiguration Management Cange ControlCange Control PROCESSES Strating Up A ProjectStrating Up A Project Initiating A ProjectInitiating A Project Directing A ProjectDirecting A Project Controlling A StageControlling A Stage Managing Product DeliveryManaging Product Delivery Managing Stage BoundariesManaging Stage Boundaries Closing A ProjectClosing A Project PlanningPlanning TECHNIQUES Product-Based PlanningProduct-Based Planning Quality ReviewsQuality Reviews Change Control ApproachChange Control Approach Project FilingProject FilingPlus: Exisiting techniques already in use. Business Case for the Project Existing Company Systems & Procedures ? (ISO 9000) ?

32 © Copyright BK-CPS 2002 EHAG Tools Tool characteristics Project Management Suites Process Management Software Schedule Management Software Cost Management Software Resource Management Software Communications Mgmt. Software Risk Management Software But remeber: But remeber: A fool with a tool is still a fool...

33 © Copyright BK-CPS 2002 EHAG Software-supported Portfolio Management: Example : IACO Assessment Easy to generate and handle

34 © Copyright BK-CPS 2002 EHAG Software-supported Portfolio Management: Example : IACO Assessment contd Project & process initilization and descriptions at a glance

35 © Copyright BK-CPS 2002 EHAG Software-supported Portfolio Management: Example : IACO Assessment contd Single sheets for each subsystem

36 © Copyright BK-CPS 2002 EHAG Software-supported Portfolio Management: Example : IACO Assessment contd See the rating and interaction for each system at ones

37 © Copyright BK-CPS 2002 EHAG Software-supported Portfolio Management: Example : IACO Assessment contd Set your individual dependencies and see the resulting relations without reassessment

38 © Copyright BK-CPS 2002 EHAG Software-supported Portfolio Management: Example : IACO Assessment contd Have an overview on all of your Systems in relation to eachother

39 © Copyright BK-CPS 2002 EHAG Support Material: Simple Process diagrams – on one page! Flow Chart DescriptionResponsibilitiesFrequencyInputOutput Flow chart, supplemented with detailed descriptions, definitions of the responsibilities, Frequency, Inputs and Outputs Process Diagram Customer Logo

40 © Copyright BK-CPS 2002 EHAG Agenda The responsibility for the project portfolio The responsibility for the project portfolio Branches of the portfolio-management Branches of the portfolio-management Facilities Facilities Abstract & critical factors for success Abstract & critical factors for success Motivation and Targets Motivation and Targets

41 © Copyright BK-CPS 2002 EHAG Critical Success factor # 1: The Cultur compatibility Exaggerated Formalism Paper and Document flood, bureaucracy Little usable content in the documentation How do I bypass the process? Recognize Quick wins Align the proceeding on the current problem definition Therefore

42 © Copyright BK-CPS 2002 EHAG Further Success Factors Management Commitment Exemplify and the will for enforcement Transparent communication as a chance The project protfolio is of interest to all No imaginary assessment accuracy Most modells require information, which doesnt exist in reality The courage to decide The transparent portfolio management makes clear that some management decsicions have to be made (e.g. to cancle projects)


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