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risk in a collaborative culture
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why risk matters risk and Conscious Competence mitigating risk
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why risk matters 3
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what is risk?
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what drives risk?
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Project Management how does risk change during a project?
Change Management
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what happens if we ignore risks?
I’m beginning to think it wasn’t such a good idea to turn off those unit tests
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what happens if we incorrectly define risks?
Safety is not to be messed with. Test, Test, Test Test again with real data
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at what levels should we assess risk?
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how is risk management different from change management?
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risk and the conscious competence learning model
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Consciousness Competence High Conscious Incompetence Conscious
Unconscious Incompetence Unconscious Competence Low Low Competence High From William Howell
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applied to profiling and
mitigating risk
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Consciousness Competence High Conscious Incompetence Conscious
Unconscious Incompetence Unconscious Competence Low Low Competence High
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Consciousness become aware Competence High Conscious Incompetence
Unconscious Incompetence Unconscious Competence Low Low Competence High
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learn Consciousness Competence High Conscious Incompetence Conscious
high churn~ afraid to make decisions~ uncertainty “agile” Consciousness Unconscious Incompetence Unconscious Competence Low Low Competence High
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Consciousness optimize. mentor. perfect. Competence High Conscious
Incompetence bureaucracy complexity optimize. mentor. perfect. Consciousness “lean” Unconscious Incompetence Unconscious Competence Low Low Competence High
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Consciousness develop a blind spot Competence High Conscious
Incompetence Conscious Competence Consciousness Unconscious Competence Unconscious Incompetence out of touch ~ process is king develop a blind spot Low Low Competence High
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becoming aware: profiling risk
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there are many models . . . most work well.
how about: Delivery risks Business case risks Collateral damage
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delivery risks Standish Group Study, reported by CEO Jim Johnson, CIO.com, ‘How to Spot a Failing Project’
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Standish Group Study, reported by CEO Jim Johnson, XP2002
business case risks Never or Rarely Used: 64% Always or Often Used: 20% Rarely 19% Sometimes 16% Often 13% Never 45% Project delivers but fails to deliver value. Always 7% Standish Group Study, reported by CEO Jim Johnson, XP2002 22
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collateral damage Project delivers but causes damage to the existing business.
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case study…
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express products Re-factor existing enterprise software products for the SMB market. The goal: make these products consumable by the SMB market.
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what are the delivery risks?
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what are the business case risks?
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what are the collateral damage risks?
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what tool can we use to improve our ability to profile risk?
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we collaborate to increase awareness
Leading Agile Collaboration Model Collaboration Process we collaborate to increase awareness
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Consciousness collaborate to become aware Competence High Conscious
Incompetence Conscious Competence collaborate to become aware Consciousness Unconscious Incompetence Unconscious Competence Low Low Competence High
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exercise…pick a project
Pick a project and profile your project’s risks.
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WHOSE input is important to create an accurate, project-level profile of the risk?
development sales product manager testing support
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business case collateral damage different risk perspectives for:
delivery business case collateral damage
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how does knowing this mitigate risks?
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how do we now reduce uncertainty to further mitigate risks?
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learn Consciousness Competence High Conscious Incompetence Conscious
high churn~ afraid to make decisions~ uncertainty Consciousness Unconscious Incompetence Unconscious Competence Low Low Competence High
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using the business value model to reduce churn and uncertainty
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Business Value Model Purpose Considerations Costs and Benefits 39
Now that we have framed our decision model, we start to make decisions. Costs and Benefits 39
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This models iterative decisions.
It helps us identify the “last responsible moment” to make decisions. With risk as a consideration, we decide what project tasks will deliver value and reduce uncertainty. We implement that iteration and then decide on the next iteration that will deliver value and reduce uncertainty.
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what project phases deliver value while reducing uncertainty?
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what decisions should be deferred until the last responsible moment?
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how can we reduce the tendency towards complexity and further reduce risks?
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Consciousness optimize. mentor. perfect. Competence High Conscious
Incompetence bureaucracy complexity optimize. mentor. perfect. Consciousness Unconscious Incompetence Unconscious Competence Low Low Competence High
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purpose-based alignment model
use purpose-based alignment model to reduce bureaucracy and complexity and to focus. 45
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Purpose Based Alignment Model
High Do we take this on? Innovate, Create Market Differentiating Achieve and Maintain Parity, Mimic, Simplify Minimize or Eliminate While there are many examples of Parity activities, it is helpful to point out some of the Differentiating activities of the team or group you are training. It is also important to emphasize that the Parity activities are important. They are as important as the Differentiating activities. However, their importance does not come from their uniqueness. It is important to emphasize that Purpose not only helps us stop over-engineering or over-investing in Parity activities, features, and functions, it also helps us focus our creativity and innovation on the Differentiating activities, features and functions. Low Low High Mission Critical 46
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exercise… for your project
Can you simplify What phases deliver value and reduce uncertainty What decisions can be deferred? How can we reduce the tendency towards complexity?
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mitigating complexity risk
use the Purpose Alignment Model to identify ways to reduce complexity risks and improve focus.
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our dynamic world 49
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what happens if… 50
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you accelerate the timeline?
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the demand for the product shrinks?
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you fold-in an acquisition?
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part of the team is pulled away?
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your triggers to reassess
your risk profile and mitigation plans?
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we want to avoid … This is to reinforce the notion of treating exceptions like exceptions. 56
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Consciousness develop a blind spot Competence High Conscious
Incompetence Conscious Competence Consciousness Unconscious Competence Unconscious Incompetence out of touch ~ process is king develop a blind spot Low Low Competence High
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but how? This is to reinforce the notion of treating exceptions like exceptions. 58
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collaborate broadly to maintain awareness
High Conscious Incompetence Conscious Competence collaborate broadly to maintain awareness Consciousness Unconscious Competence Unconscious Incompetence out of touch ~ process is king Low Low Competence High
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Scenario In order to respond to a competitor, Product Management announces an early release. In order to meet the release date, Development shrinks the time allocated to the quality plan. Technical Sales now requires a SAR and a service engagement. The product releases but Support is not prepared for the required support levels. Support shifts some support tasks to Development. Development no longer has the resources to meet the next planned release date or content.
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in other words . . . there are no isolated decisions!
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exercise… for your project
Who are the members of the broader team
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who is this broader team?
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what triggers should cause us to review and revise the risk profile and mitigation plan?
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what tools can we use to maintain this broad awareness and communicate changes?
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right people foster innovation step back open environment
What is the hardest part???
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macro leadership and risk
This is to reinforce the notion of treating exceptions like exceptions. 67
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Macro Leadership Cube Mitigate Collateral Damage Results
Mitigate Delivery Risks Mitigate Collateral Damage Results Mitigate Business Case Risks 68
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Shared Boundaries Sales Development Support Mitigate Collateral Damage
Mitigate Delivery Risks Mitigate Business Case Risks Mitigate Collateral Damage Results Mitigate Delivery Risks Mitigate Business Case Risks Mitigate Collateral Damage Results Mitigate Delivery Risks Mitigate Business Case Risks Mitigate Collateral Damage Results Interlock Interlock 69
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exercise… for your project
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what are the critical interlocks?
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how can you maintain the interlock as things change?
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add these activities to your risk mitigation plan
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focus on any changes … 74
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through cross-functional collaboration
Leading Agile Collaboration Model Collaboration Process through cross-functional collaboration
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summary
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profiling risk 77
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Consciousness Competence High Conscious Incompetence Conscious
Unconscious Incompetence Unconscious Competence Low Low Competence High From William Howell
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collaborating to profile risk
delivery risk ~ business case risks ~ collateral damage risks
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bring the right people together from the entire enterprise
in other words, the affected and affectors! 80
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Purpose Based Alignment Model
High Partner? Differentiate Market Differentiating Who cares? Parity Differentiate is how to gain market share. Parity is how to hold market share. Low Low High Mission Critical 81
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Business Value Model Purpose Considerations Costs and Benefits 82
Now that we have framed our decision model, we start to make decisions. Costs and Benefits 82
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risk management cannot be siloed
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Shared Boundaries Sales Development Support Mitigate Collateral Damage
Mitigate Delivery Risks Mitigate Business Case Risks Mitigate Collateral Damage Results Mitigate Delivery Risks Mitigate Business Case Risks Mitigate Collateral Damage Results Mitigate Delivery Risks Mitigate Business Case Risks Mitigate Collateral Damage Results Interlock Interlock 84
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Collaborative Leadership and Risk Mitigation
The collaborative leadership tools are designed to improve decision making. This includes decisions about risks. These tools are: The Purpose Alignment Model The Business Value Model
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What Tool Do We Use For Decisions Today?
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Business Value Model To Reduce Uncertainty Consciousness Competence
High Business Value Model To Reduce Uncertainty Conscious Incompetence Conscious Competence Consciousness Unconscious Incompetence Unconscious Competence Low Low Competence High
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Consciousness Purpose Alignment To Focus Competence High Conscious
Incompetence Conscious Competence Purpose Alignment To Focus Consciousness Unconscious Incompetence Unconscious Competence Low Low Competence High
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what triggers will cause you to reassess
your risk profile and mitigation plans?
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Leading Agile Collaboration Model Collaboration Process collaborate!
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