risk in a collaborative culture
Post on 25-Feb-2016
41 Views
Preview:
DESCRIPTION
TRANSCRIPT
Risk in a Collaborative Culture
Why risk matters Risk and
Conscious Competence
Mitigating risk
why risk matters
what is risk?
what drives risk?
Project Management
• Change Managementhow does risk change during a project?
what happens if we ignore risks?
I’m beginning to think it wasn’t such a good idea to turn off those
unit tests
how is risk management different from change management?
risk and the conscious competence learning
model
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
From William Howell
applied to profiling and
mitigating risk
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
From William Howell
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
From William Howell
become aware
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
From William Howell
learn
high churn~afraid to make
decisions~uncertainty
“agile”
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
From William Howell
bureaucracycomplexity
optimize.mentor.perfect.
“lean”
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
From William Howell
out of touch ~process is kingdevelop a
blind spot
decision making
what do we do?when do we do it?
when do we decide?
Business Value
Benefits
Value CalculationCosts
calculation
typical financial calculation
Business Value
Guess
Value CalculationEstimate
calculation
however….
we need some help !
Purpose
Considerations
Costs and Benefits
Business Value Model
where do
we
start?
MarketDifferentiating
High
Low
Mission CriticalLow High
Differentiate
Parity
Partner?
Who cares?
Purpose Based Alignment Model
MarketDifferentiating
High
Low
Mission CriticalLow High
Innovate,Create
Do we take this on?
Minimize or Eliminate
Achieve andMaintain
Parity, Mimic,Simplify
Purpose Based Alignment Model
example
financial documentation system
MarketDifferentiating
High
Low
Mission CriticalLow High
What goes here?
Anything here?
Anything here?
Most are usually here.
Purpose Based Alignment Model
350 differentiators
simplified the rest
focused
on
differentiators
results: better product
cut time by 50% 60% cost reduction
MarketDifferentiating
High
Low
Mission CriticalLow High
Differentiate
Parity
Partner?
Who cares?
Strategy?
• Sustainable• Competitive advantage
strategy = sustainable
competitive advantage
the “billboard” test…
You Think My Products Are Good?
You Should See My Chart of Accounts!
“To be the low cost airline.”
- Southwest Airlines
“Will this help us be
the low cost airline?”
- Southwest Airlines
remember, parity is
mission critical
and purpose is not priority
differentiating
changes over
time
• Leadership Influence
innovate!
Purpose
Business Value Model
other
considerations ?
time
to
market
risks
Collaboration Model
flexibility
Collaboration Model
dependencies
team size and experiencemarket uncertainty
domain knowledge
team capacity
technical uncertainty
Purpose
Considerations
Business Value Model
costs
and
benefits ?
Purpose
Considerations
Costs and Benefits
Business Value Model
group chunks high – medium - low
“build”
a
chunk…
obje
ctiv
es /
proj
ects
/ id
eas
Value Model
Valu
e M
odel
prio
ritiz
ed c
hunk
s
build highest value chunks
adjust VMif inputs changed
discuss value and value to
date
Enough value to go to market? ~ Yes? Deploy ~ No?
Continue? ~ No? Stop. ~ Yes?
using the value model
applied to risk
becoming aware: profiling risk
There are many models . . . most work well.
How about: Delivery risks Business case risks Collateral damage
delivery risks
0 10 20 30 40 50 60
Failed
Challenged
Succesful
20061996
Standish Group Study, reported by CEO Jim Johnson, CIO.com, ‘How to Spot a Failing Project’
Always or Often Used:
20%
Never or Rarely Used:
64%
Standish Group Study, reported by CEO Jim Johnson, XP2002
Sometimes16%
Rarely19%
Never45%
Often13%
Always7%
business case risks
collateral damage
example: express products
• Re-factor existing enterprise software products for the SMB market.
• The goal: make these products consumable by the SMB market.
what are the delivery risks?
Low• The development work is complete.• Depending on the requirements, some functionality might
be disabled.
what are the business case risks?
Business Case Risk: High
– IBM Sales teams for these products might not be experienced in reaching customers in this market
– Required new sales channels (telesales, business partners etc)
– Required new support structures (IBM L1/L2/L3 and support methods were accustomed to enterprise customers)
– Marketing material needed targeting at this market
collateral damage risks?
could be high
are there existing enterprise customers that will want to migrate to the SMB versions?
Leading Agile
• Collaboration Model• Collaboration Process
we collaborate to increase
awareness
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
From William Howell
collaborate to become
aware
example: updated transaction engine
WHOSE input is important to create an accurate, project-level profile of the risk?
development sales
product manager testing support
different risk
perspectives for:
delivery business case
collateral damage
how does knowing this mitigate risks?
how do we now reduce uncertainty to further mitigate risks?
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
From William Howell
learn
high churn~afraid to make
decisions~uncertainty
using the business value model to reduce churn and uncertainty
Purpose
Considerations
Costs and Benefits
Business Value Model
This models iterative decisions.
It helps us identify the “lastresponsible moment” to make decisions.
example: customer retention
Potentially great way to improve customer retention. However, lots of costs and guessed-at benefits.
How do we reduce uncertainty and make progress?
What project “chunks” make sense?
Phase 2, measure the value of improving retention in each segment.Results? Focus the big project on the segments with high retention value.
Phase 1, segment the market while delivering value.Four segments each with a unique buying trigger.How does this generate value? Advertising hits oneOf the buying triggers. Results? Lower marketing costs with higher return at a fraction of the big project costs.
Phase 3, no need to continue.Overall results? Increased retention where it made sense ata much lower project cost and risk.
reduce the tendency towards complexity and further reduce risks?
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
From William Howell
bureaucracycomplexity
optimize.mentor.perfect.
use purpose-based
alignment model
MarketDifferentiating
High
Low
Mission CriticalLow High
Innovate,Create
Do we take this on?
Minimize or
Eliminate
Achieve andMaintain
Parity, Mimic,Simplify
Purpose Based Alignment Model
example: business intelligence
our product: superior analytics
engine
our competitor: superior UI
What do we do about a new user interface?
• Differentiating for us? Analytics Engine• Differentiating for our competitor? User
Interface• What is the purpose of our user interface
project? PARITY!• How does this help us reduce complexity? (we
“go to school” on competitors UI and just try to keep pace).
our dynamic world
what happens if…
you accelerate
the timeline?
the demand for the product shrinks?
you fold-in an acquisition?
part of the team is pulled away?
your triggers to reassess your risk profile and mitigation
plans?
we want to avoid …
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
out of touch ~process is kingdevelop a
blind spot
but how?
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
out of touch ~process is king
collaborate broadly to maintain awareness
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.
in other words . . .
there are no isolated decisions!
What triggers should cause us to review and revise the risk profile and mitigation plan?
macro leadership and risk
Macro Leadership Cube
Mitigate Delivery Risks
Mitigate Business Case
Risks
Mitigate Collateral Damage
Results
Shared Boundaries
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
ResultsInterlock Interlock
DevelopmentSales Support
example: network services to remote locations
what are
the critical interlocks?
construction schedulesnetwork design decisions
vendor schedules
focus on any changes …
Leading Agile
• Collaboration Model• Collaboration Process
throughcross-functional
collaboration
summary
profiling risk
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
From William Howell
collaborating to profile riskdelivery risk ~ business case risks ~ collateral damage risks
bring the right people together
from the entire enterprise
in other words,
the affected and
affectors!
MarketDifferentiating
High
Low
Mission CriticalLow High
Differentiate
Parity
Partner?
Who cares?
Purpose Based Alignment Model
Purpose
Considerations
Costs and Benefits
Business Value Model
risk management cannot be siloed
Shared Boundaries
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
ResultsInterlock Interlock
DevelopmentSales Support
Collaborative Leadership and Risk Mitigation
The collaborative leadership tools are designed to improvedecision making.
This includes decisions about risks.
These tools are:The Purpose Alignment Model The Business Value Model
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
BusinessValue ModelTo Reduce Uncertainty
Competence
Con
scio
usne
ss
Low
Low
High
Hig
h
UnconsciousIncompetence
ConsciousIncompetence
ConsciousCompetence
UnconsciousCompetence
PurposeAlignmentTo Focus
what triggers will cause you to reassess your risk profile and mitigation plans?
Leading Agile
• Collaboration Model• Collaboration Process
collaborate!
top related