|
Novice project managers cannot progress through the world of project management without grasping the importance of risk management. Risk has the potential to affect all three sides of the cost-scope-time project triangle. A Guide to the Project Management Body of Knowledge (PMBOK) and formal training courses on risk management identify a set of processes for risk management that includes planning, identification, analysis, response, monitoring and control.
During the risk management process, risk identification follows planning. Risk identification is the iterative process of determining potential project risks that are provided as input into future risk analysis and response planning processes. Inputs to the risk identification process include the work breakdown structure, budget, schedule, statement of work, resource plan and past lessons leaned. All of these inputs are used with risk identification tools to develop a list of potential project risks.
There are a number of methods for identifying risk, including expert interviews, brainstorming, the Delphi technique and the Nominal Group Technique. The Delphi technique is a formal expert opinion process where experts review a problem statement and submit position papers. The Nominal Group Technique is an iterative, brainstorming process that encourages participation from all stakeholders. Common tools used to capture risks include large pads of paper, whiteboards, Microsoft Word or Excel. Because risk identification is nonlinear and iterative, a better tool to document identified risks is a mind map.
Mind maps are a graphical network diagram with nodes, branches, colors, and icons to help convey an idea. Mind maps, also known as brainstorm maps, are illustrated views of an idea. In " A Better Project Map" , I provided an overview of mind maps and recommended software tools. Although software isn't required to create mind maps, it can make documentation and knowledge sharing easier.
The iterative nature of the risk identification process makes it a perfect candidate for mind maps. Risk identification is a nonlinear process that often results in branching from one risk to the other. As one risk is identified, additional risks extend the original idea and generate new risks. Collecting and organizing these risks is difficult using a word processor; however, with mind maps a new risk is simply a new node that stems from another node.
The mind map tool is demonstrated in the following brainstorming process for an upcoming open-source customer management software development project. During a brainstorming session, a facilitator encourages team members to identify risks without any evaluation or critique. The facilitator uses a mind map to capture ideas and generate new thoughts from the team. Figure 1 depicts the result of the first phase of the risk identification brainstorming session.
Figure 1: Brainstorm Project Risks
In the second phase, the team evaluates each of the risks and groups them into common categories. Duplicate risks are consolidated or deleted from the mind map. The remaining risks are further defined for clarity for future assessment and prioritization. Figure 2 depicts the final mind map resulting from the two-phase brainstorm session.
Figure 2: Categorize Project Risks
The completed mind map categorizes project risks into the time, scope and resource categories. Using graphical arrows, related risks are also identified. Once the risks are appropriately categorized, the risks may be further defined for additional clarity.
The same tool can be applied to other risk identification methods such as the nominal group technique. In the first phase of this technique, team members develop their own list of risks without collaboration. Team members read one risk from their list until all the risks have been communicated. The results are organized and individually ranked. The tabulated risks result in the final risk list. Instead of using a list of risk, team members can create their own mind map to help organize their thoughts. The group facilitator can combine the risks into a consolidated mind map and project teams can privately prioritize the branches. Figure 3 represents the results of a NGT workshop using the mind map format.
Figure 3: NGT Results
Once project managers start applying mind maps to risk management, risk communication and recall is easier than the generic risk log. The project manager can translate the mind map into a formal risk log to meet formatting standards. Mind maps, however, enable the project manager to communicate risks in a creative format. Mind-mapping software supports collapsing and expanding branches to summarize or provide additional details. It is an effective tool to summarize project risks and communicate at different levels in the organization.
The same mind map can be used across the project lifecycle. As risks are further analyzed and addressed using risk response plans, the mind map can be updated for emerging risks during project control and execution. The risk mind map can be extended to include probability, impact analysis, expected value, and risk response strategies. These characteristics are simply an additional node attached to the root risk.
Give it a try, and you may be mind mapping your way to more effective risk management. Project managers can learn more about the applications and benefits of mind mapping tools, including related resources, at The Mind Mapping Software Weblog: http://mindmapping.typepad.com.
|
