PM4SD European Summer School

Management tools to reduce the risk of failure

Napoli, 10 July, 2013

Outline: 2 points one tool

1. Project management has to be contextualized

2. Institutional and context analysis (at glance)

3. Don’t forget risk management

PRICE 2/PM4SD is a good start

3

in most organizations and settings, project management is not truly effective without sound

programme management

UNDP oversees 6,000+ development projects in 177 countries and worldwide…

Enterprise resource planningUNDP invested in PRINCE2 to professionalize how we manage

projects. PRINCE2 was adapted to UNDP environment and served to develop the Results Management Guide and our ERP software, ATLAS

ATLAS

PROJE

CT M

ANAGEMEN

T

MODULE

INSTITUTIONAL AND CONTEXT ANALYSIS

“…. focuses on political and institutional factors as well as processes concerning the use of national and external resources

in a given setting, and how these have an impact on the implementation of programmes and policy advice.”

• Development requires a change in power relations and/or incentive systems. Expect actors to support changes only when it does not threaten their own privileges

Be aware of the political economy

• The powerful reward their supporters before anyone else. Those in power must reward those who put them there before they can reward anyone else• All actors have interests and incentives. Some actors face incentives that potentially create conflict between their private and public interests

• Resources shape incentives. Sources of revenue shape the incentives of power holders to be more responsive to some groups than others

• All stakeholders face constraints. The presence of an incentive does not mean an ability to act. Traditions and institutions shape actors’ ability to act

• Power relations • Clientelism, patronage networks • Grand, petty corruption • Implications of informal institutions (e.g.

traditional leaders) • Risk factors caused by the above• Entry points taking these factors into account

What issues are picked up?

• Step 1: Defining scope of the analysis

• Step 2: Mapping formal and informal rules and institutions

• Step 3: Stakeholder Analysis

• Step 4: Identification of entry points, risks and risk mitigation strategies

Four steps

• Determined by management based on goals and available resources

• Define the scope in terms of development problems and or questions

“What can be done to support the employability of women in tourism”

“why interventions to strengthen tourism institutions had limited impact?”

“why and how is corruption impeding development in the tourism sector?”

Step 1: Defining the scope

STEP 2 Mapping rules and

institutions

STEP 3Stakeholder analysis

• Based on findings, what are the most feasible entry points (individual partners, processes)?

• What are the main risks involved in making progress? What can be done to avoid this? how can we mitigate adverse effects (lack of engagement by stakeholders, blockages by political/economic vested interests )?

• What actions should be prioritized?

Step 4: entry points, risks…

Source: WEF, 2012

the unwantedis jeopardizing achievement of

our targets

devaluation does not allow me to

implement activities

…if it goes wrong, you can blame poor risk

management

# Description Date Type Impact and probability

Mgmt response

Owner Updated by

Last update

Status

1 Enter a brief description of the risk

When was the risk first identifi-ed?

EnvironFinancialOperation.Organizat.PoliticalRegulatoryStrategicOther

Describe the effect on the project if it occurs. Enter probability and impact on a scale from 1 (low) to 4 (high)

What actions have been taken/will be taken

Who keeps an eye on this risk

Who updated the log?

When was the status of the risk last checked?

Reduci-ng, increa-sing, no change

Risk Log

massim

iliano.riva@undp.org