FIGURE 2-16. Components of failure (optimistic planning).

• No functional commitment

• Delays in problem solving

• Too many unresolved policy issues

• Conflicting priorities between executives, line managers, and project managers

Although these quantitative and qualitative approaches still hold true to some degree, today we believe that the major component of planning failure is inappropriate or inadequate risk management, or having a project management methodology that does not provide any guidance for risk management.

Sometimes, the risk management component of failure is not readily identified. For example, look at Figure 2-17. The actual performance delivered by the contractor was significantly less than the customer's expectations. Is the difference due to poor technical ability or a combination of technical inability and poor risk management? Today we believe that it is a combination.

When a project is completed, companies perform a lessons-learned review. Sometimes lessons learned are inappropriately labeled and the true reason for the risk event is not known. Figure 2-18 illustrates the relationship between the marketing personnel and technical personnel when undertaking a project to develop a new product. If the project is completed with actual performance being less than customer expectations, is it because of poor risk management by the technical assessment and forecasting personnel or poor marketing risk assessment? The relationship between marketing and technical risk management is not always clear.

Figure 2-18 also shows that opportunities for trade-offs diminish as we get further downstream on the project. There are numerous opportunities for trade-offs prior to establishing the final objectives for the project. In other words, if the project fails, it may be because of the timing when the risks were analyzed.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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