allPM Newsletter Co-publisher's Letter, Judy Umlas
Did you all receive the email of recognition and praise that Frank Saladis, PMP and I sent to you on International Project Management Day - November 3, 2005? We hope you did! The initiative of a special day of recognition for PMs each year beginning this year was created by Frank, and was picked up by PMI Chapters and individual companies all over the world. Here in New York City, Mayor Michael Bloomberg proclaimed it International Project Management Day throughout the City of New York and said some fabulous things about you and people like you.
In his proclamation, Mayor Bloomberg said, "Project management has a long history in developing New York City's greatness, including the construction of such noteworthy landmarks as the Brooklyn Bridge, the Empire State Building, Madison Square Garden, Rockefeller Center, the Chrysler Building, the Woolworth Building -- the world's first skyscraper, the new Staten Island Ferry Terminal, and the recovery and reconstruction after 9/11/2001. Without project managers, our city wouldn't be the great city it is today."
This praise applies to all of you, no matter where you are located. We know — and hope you know — that you make a huge difference in the world! Next year, we expect even more people and organizations to be involved in this exciting recognition of project managers around the globe. If you want any details on this year's celebration, please contact judy.umlas@allpm.com and/or frank.saladis@allpm.com.
Many of you know that I love to take risks with this newsletter — going outside the boundaries of ordinary newsletter publishing. This past month we lost a member because of it, and this hurts because every single one of you matters to me. This former member thought we were going too far outside the box and that this detracted from the hard hitting, helpful PM core material that you need.
The beauty of allPM.com and our newsletter, though, is that there is no limit to what we can put into it. Putting in a PM crossword puzzle or a PM poem does not take away from the in-depth content that we have each month and day to day with our continually refreshed tips of the day on the subject of the month.
I do know and deeply appreciate that for ALL of you, though, time is one of your most precious commodities. I know some of you have asked me to "get to the point" quicker in my letters. Others have said how much it means to you that I speak as one human being to another. So ultimately it is your decision as to whether you will want to wade through all of this to get what you want and need from it, and to tell us what you want and need that we could provide you with. Once we know what it is, we certainly try to get it for you and give it to you! And we also love to have fun, be creative, proactive and somewhat obnoxious at times.
And part of this "personality" we have developed is that we are ALWAYS willing to grow and to continually improve. So don't just go away if you don't like what you see. Do what this (so far) former member did and COMMUNICATE — he, by the way, says that we can still get him back if we change in some ways. I don't know that we will be able to satisfy him or most of you all of the time, but we can try!!!
So speaking of taking risks (I was speaking of that about four paragraphs ago), our theme of the month is Project Risk Management. Sherry Higgins, PMP has written a clever article entitled "Risky Business" and Frank Saladis, PMP has created a PM crossword puzzle with the same title. Risk "Doctor" David Hillson, PMP writes about Why Risks turn into Surprises, and Advanced Project Risk Management specialist Michel Vachon critiques Chapter 11 of the Third Edition of the PMBOK® Guide on Project Risk Management. The title of his article is Risk Management: A Different View. Agree or disagree, we think you will find his assessment quite fascinating and enlightening. And please remember that the opinions expressed are solely those of the author, not of allPM.com.
We have some more PM Haikus this month by Everett Rodriguez of FedEx Ground (bless him, he wrote 10 such haikus for us in a half hour!), and allPM.com MVP David Brandon wrote an eye-opening feature for our Spotlight on Government column entitled Outsourcing Turns Project Managers into Contract Managers.
We also have another of George Pitagorsky, PMP's unique Zen of PM™ articles, this one called Decisiveness and Flexibility. The balance between the two is a hard goal to achieve, and this article should help you. Stay tuned for the new weekly Zen of PM Tips that we will be launching very soon. Maybe they will help us all stay balanced!
Now here's an exciting development. For months now, Australian allPM.com member Neville Turbit and I have been corresponding regarding a long-time pet project of mine, PM for Students. After I touched on this wish to have a PM curriculum for young people in one of our newsletters, Neville stepped up to the plate and created it! We are delighted to publish his PM tools in a new series, PM4Students™. Isn't this fascinating and fun!? Can you imagine what the world could look like if young people started managing projects in a professional way starting in elementary or middle school? Wow!!!
Thanks so much for your contribution, Neville and let's see how we can develop it even further. The CEO of International Institute for Learning (IIL), E. LaVerne Johnson, has always wished to make such a PM curriculum for students available to schools everywhere, at no charge. Of course we would need a sponsor to make this happen in the most appealing way for teachers and students, so maybe one of your corporations would like to be involved in this worthwhile project, with Neville's concept as the springboard. Let me know if you or your company would like to explore this further and possibly become involved.
So as we move toward the close of this year, with all of the great risks and challenges we have faced in 2005, let us think about how we can become better able to prepare for and deal with the risks before they become challenges. And while I won't apologize for allPM.com not being able to be everything to everyone — an impossible task — I will thank those of you deeply for the time you take or have taken to communicate with Frank and me, with the intent of making allPM.com better. We value that tremendously. Have a great month!
Until the next time....
© 2005 allPM.com
Judy Umlas Co-publisher allPM.com
Judy.Umlas@allPM.com
From the Co-publisher's Desk - Frank P. Saladis, PMP
Risk. A word we are all familiar with. For most people the word relates to events of potential negative consequences, loss, damage or penalty. Only a hearty few actually look at risk in terms of possibilities and opportunity. If you think about it, we all take risks every day. In fact we all practice risk management every day, even though we may not be thinking about it at all. Over the years we develop risk management habits that are practiced without a second thought or subconsciously. A few examples would be wearing your seat belt when you are driving or avoiding a dimly lit street while walking home from work. We put extra money in checking accounts as a reserve, we take our cars for servicing to make sure the brakes are good, we purchase home alarm systems to protect our families and we visit our physicians for check ups to make sure we remain healthy. If an outdoor party or event is being planned, a contingency for bad weather is usually discussed. If you make a conscious effort to observe one full day of activities and make note of any action or activity associated with risk management you will probably fill a page in your notebook.
The fact is, risk management is a part of life. We do it because we know it's necessary. People also take risks without fully understanding the consequences of their actions. Consider the high roller at a casino. Sometimes huge amounts are lost due to a belief that the "odds" will soon change for the better. We use speed on the highway to make up time and push our speed beyond the limit and the tolerance of the local police. People invest millions of dollars in "get rich schemes" that cause more loss than gain.
Having said all of that, it is safe to say that most people are aware of the need to manage risk, that some risk management is "built into" all of us, and that we all take risks, some that are unnecessary, without fully preparing for the consequences.
Risk management is the process of measuring, or assessing risk and then developing strategies to respond to the risk. Most project managers will agree that it is necessary to manage risk regardless of the type of project. In some organizations, however, management views risk as "opportunity cost." They think that the resources and money spent preparing for and managing risk is better used on something more beneficial or profitable. This perception is associated with the belief that if nothing happens, the time and money spent managing risk was unproductive. The fact of the matter is that when "nothing" happens" it actually means that risk management worked perfectly. Take Y2K. On January 1, 2000, many people around the world saw that everything was basically the same, no major issues or infrastructure breakdowns. The thought was — "see, nothing happened! All of this worry about Y2K was just hype." But in reality, thousands of project managers and project team members worked for years to make sure that "nothing" happened. Sometimes effective risk management produces "nothing." That happens to be good news and proof that risk management is effective.
Today most organizations are spending more time and resources on the development of risk management plans. The natural disasters the world has experienced this past year are a signal (a "trigger" for you PMBOK® Guide readers) that much more has to be done to prepare for potential risk events, not just at the environmental level but right down to the desk top. Computers crash, data is lost, dishonest employees steal information, hackers break into information systems, personal data is compromised. Yes, there are lots of "negative" risks but let's not forget the opportunities associated with risk. If you can increase the probability of a positive event such as creating a work atmosphere that will attract the best and brightest employees or creating a reward program that will encourage higher productivity, you are practicing "positive risk management."
Risk taking is necessary to make progress in any form of business. A quick look around any major city and you can see the positive effects of risk. The buildings, bridges, tunnels, stadiums, and overall skyline were all made possible by taking risks that resulted in greater opportunity.
As you go forward with your projects, consider risk to be "the likelihood of an event happening with potentially beneficial or harmful outcomes for your self, others, and your organization. Pay equal attention to both sides of risk management but try to focus a little more attention on the "positive side of risk."
allPM.com focuses on the positive side by providing you with a wide range of topics and information to assist you with your decisions and your project planning activities. Risk management is about considering alternatives and, in some cases, using innovation and creativity to arrive at a solution. allPM.com is a source of creative ideas and solutions. Try it "risk free" when you need advice.
© 2005 allPM.com
Frank P. Saladis, PMP
Frank.Saladis@allpm.com
October Poll Results
What is the most significant challenge encountered when managing an international project?:
Obtaining qualifed people 18.75% (15)
Adjusting to local cultures 47.50% (38)
Negotiating contracts 21.25% (17)
Developing a schedule 12.50% (10)
Total votes: 80
********************
The November poll question is:
What is the most frequent and major risk facing Project Managers today?:
a) Lack of / inadequate authority or control
b) Lack of / inadequate scheduling and or funding
c) Lack of / inadequate / inappropriate resources
If you have not already done so, please stop by allPM.com and add your opinion today.
Theme of the Month: Risky Business By Sherry Higgins, PMP Senior Consultant International Institute for Learning
Everything seems to be a project. The definition states that a project "is a temporary endeavor undertaken to create a unique product or service" per the Project Management Body of Knowledge (PMBOK® Guide). A more common layman's definition includes the words "has a beginning and an end." So, if you think about a project in that context, and it fits the layman's definition, then the first statement applies! As every good Project Manager knows, every project must have a Risk Management Plan. It is my belief that moving forward without a Risk Management Plan is truly Risky Business!
Risk Management is made up of two important elements — likelihood and impact. The intent of risk management is to manage each of these factors so that you can minimize the negative impact or maximize the positive impact. Before you can manage them, you have to identify and then assess them.
© 2005 allPM.com
********************
Since 1991, Ms. Higgins has been industry-certified as a Project Management Professional, and a 1996 Computer World Magazine article featured her as one of its six "Top Gun Project Managers" in the world. Prior to joining IIL she was the FBI acting Assistant Director of the Program Management Office and was tasked with bringing the FBI IT infrastructure into the 21st century. Ms. Higgins began her career at AT&T in the early 1970s and also held many positions with Lucent Technologies, including Director of the Office of Global Program and Project Management. She was also the Program Manager for Voice Services for the 1996 Centennial Olympic Games.
Project Management Poetry™: Haikus by Everett Rodriguez
Time stands still again.
Our project status meeting.
At least there's donuts.
Hush!! Quiet!! Listen!!
The sound of leaves rustling, the
sound of scope creeping.
Pyramids and Space
Shuttles. The common thread is
Project Management.
© 2005 allPM.com
********************
Everett Rodriguez has 25 years of experience in Information Technology covering a variety of roles including application development, systems and business analysis, and project management. He has been with FedEx Ground, formerly "RPS, Inc." for the past 18 years and is currently the Senior Manager of the Project Management and Business Systems Analysts group within the Information Technology department at FedEx Ground in Pittsburgh, PA.
Risk Doctor Briefing: Why Risks turn into Surprises © 2005, Dr David Hillson PMP FAPM
It is often said that successful risk management should lead to fewer surprises. Risk management acts as a "forward-looking radar", scanning the uncertain future to identify things which might pose a significant threat to be avoided or an important opportunity to be explored. Even though it may not be possible to discern every last detail of the uncertain future, the risk process aims to expose areas of particular uncertainty and indicate the best path to follow.
Despite this aim, the future does still contain surprises, both good and bad. Some future uncertainties seem to be unforeseeable. There are four reasons why it is not possible to identify all risks in advance.
********************
Dr. David Hillson (PMP, FAPM, FIRM, MCMI) is an
international risk management consultant, and Director
of Risk Doctor & Partners ( www.risk-doctor.com ).
His speciality is risk technology transfer, assisting
organisations to develop in-house risk processes, and he
is a popular conference speaker and author on risk,
winning several awards for his papers. He is recognised
internationally as a leading thinker and practitioner in
risk management, and his recent emphasis has been the
inclusion of proactive opportunity management within the
risk process, which is the topic of his latest book
"Effective opportunity management : Exploiting positive
risk", published in 2003 by Dekker of New York.
David is an active member of the global Project
Management Institute (PMI) and was a founder member of
its Risk Management Specific Interest Group. He received
the 2002 PMI Distinguished Contribution Award for his
work in developing risk management over many years. He
is a Fellow of the UK Association for Project Management
(APM) and a Fellow of the UK Institute of Risk
Management (IRM), as well as being a member of the
Chartered Management Institute.
To provide feedback on this Briefing Note, or for
more details on how to develop effective risk
management, contact
the Risk Doctor (info@risk-doctor.com),
or visit the Risk
Doctor website (www.risk-doctor.com).
Zen of PM: Decisiveness and Flexibility By George Pitagorsky, PMP
In managing projects, as in government, decisiveness is an important quality. But when does decisiveness turn into closed mindedness and when does open-mindedness and willingness to change cross over into "flip flopping"?
Decisions are made by combining experience-based intuition with analysis to reach a point at which there is a deep "knowing" that the decision is right. But once the right decision is made, are we bound to carry it out under any circumstances? From the Zen perspective, flexibility based on a completely realistic assessment of the situation is critical.
Let's look at this question in the context of project and project portfolio management and the critical interplay between managing risk and uncertainty and the incremental reviews and decisions regarding project selection and direction.
© 2005 allPM.com
********************
George Pitagorsky, (PMP), is Senior Enterprise Solutions Advisor for International Institute for Learning (IIL). He is an expert in project management, and process improvement and facilitator. George authored IIL's Project Management Basics™, a multimedia interactive browser based course, and has authored or directed development of all of IIL's core PM courses. He has written numerous articles on Project Management, organizational development, conflict resolution and personal development subjects. George is the author of IIL's IT Project Management System, a multimedia product, and co-creator and director of IIL's The Unified Project Management Methodology (UPMM™), Web PM knowledge tool. He is a meditation teacher with over thirty years of experience in Yoga and meditation practice and co-creator of both the Conscious Living and Working Wisely workshops.
Spotlight on Government: Outsourcing Turns Project Managers Into Contract Managers By David Brandon, PMP
The drive toward outsourcing as a cost containment measure has introduced the private sector into government operations, often with disastrous results for both parties.
Government Project Managers are turning into Contract Managers. This is the future of Government Project Management. As more and more projects are outsourced, the Project Manager must serve as procurement manager, contract manager, vendor manager. More and more "getting the job done" means overseeing the contractor's efforts.
But the laws regarding government procurement and contracting continue to require a level of professionalism not found in your typical government project manager. As career civil servants, government project managers often have little or no exposure to standard project management practices. (There are exceptions. And I don't mean to belittle government project managers.) Good project managers are hard to find in government. Good contract managers are even more rare. As a practice, project managers assume the Legal Department or the Purchasing Department are managing the contract and the vendor. They're not.
© 2005 allPM.com
********************
David Brandon is an award-winning Project Manager who has practiced the craft within (and consulting to) the public sector for 15 years. He is an experienced writer and trainer on the topic of Project Management. He is a Project Manager at the Texas Department of State Health Services in Austin, Texas. He is PMI certified (PMP) and holds the PMO Certificate of Added Qualification (PMO CAQ). He recently became a Certified Texas Purchaser (CTP). He currently serves the Project Management Institute (PMI) Government Specific Interest Group (GovSIG) as Communications Director and is the GovSIG Magazine Senior Editor. Prior to joining the State of Texas, David was a project management consultant to the public sector. David is an allPM.com MVP (Most Valuable Professional).
PM4Students™ (PMFS): Project Management for Students by Neville Turbit
Working as a project manager you take a lot for granted. Sure, we understand all about tasks and milestones, scope and risks. We do however sometimes need to remember that non project management types see projects as "just another piece of work" with no special requirements other than to get on with it. We should also remember that the jargon we use is only partially understood outside our domain.
Having a 14 year old son, it soon became evident that, in spite of my background, he had little idea how to apply project management principles to a school project. Worse still, he was receiving no guidance from his teachers.
This got me thinking about where people should learn about project management. It was timely that allPM.com Co-Publisher Judy Umlas was travelling down the same thought path at the time and we had a few conversations.
© 2005 allPM.com
********************
Neville Turbit has over 15 years experience as an IT consultant and almost an equal time working in Business. He is the principal of Project Perfect - a project management software, consulting and training organisation based in Sydney, Australia. Their Project Administrator software, which is sold worldwide, is a unique and pragmatic solution that links to Microsoft Project, and manages project activities such as issues, risks, documents, scope, budgets, etc.
Neville is also past chairman of Software Engineering Australia, a co-convener of the Australian Computer Society PM group and sits on the Standards Australia committee developing a new PM terminology standard. For more information visit the web site at http://www.projectperfect.com.au
Risk Management A Different View By Michel A. Vachon, PMP
Chapter 11 of PMBOK® -- Third Edition - discusses Risk Management.
PMBOK® Chapter 11
Project Risk Management
In general, PMBOK® Guide new version of Project Risk Management is a vast improvement over previous editions.
In this commentary, text in italic fonts (Arial 10 points) belongs to the Third Edition to "A Guide to the Project Management Body of Knowledge (PMBOK® Guide). My comments are written in regular font (Arial 12 points).
Let's begin with a common understanding of 'risk': a Future Uncertain Event with a Loss (FUEL). If the event is past, we should talk about lessons learned. If the event is present, we should think in terms of a management issue which requires immediate attention. The uncertainty factor deals with the probability: the event lies between 0 and 100% probability. Without a loss, there is not much risk to consider.
The objectives of Project Risk Management are to increase the probability and impact of positive events, and decrease the probability and impact of events adverse to the project. (Page 237)
© 2005 allPM.com
********************
Michel Vachon, PMP is an experienced, highly motivated senior executive with a successful track record in professional corporate management. He is recognized for leadership and organizational skills as well as the ability to manage successfully across cultural barriers. He has extensive experience in project management, quantitative methods applied to business, risk management, and business development consulting in diverse industries ranging from engineering to information technology.
Currently a Vice President at L-3, Titan Group, Mr. Vachon is responsible for strategic initiative. His first priority has been to set up an enterprise PMO and to establish a quantitative risk management practice.
PM Crossword Connections™ - Having Fun While Learning the PMBOK® Guide: "RISKY BUSINESS",
by Frank Saladis, PMP
(Click here or the image above for a larger, printable crossword in a new window. )
RISKY BUSINESS
Across
4 common heading for a group of risks
8 focus on the opportunity
10 list of identified risks
11 organized structure of risk categories
13 action taken to address risk
15 type of review
16 next on the priority list
17 cause and effect diagram
18 capital of Monaco or simulation
20 eliminate or stay away from
24 current condition
28 shows how systems work
31 increase probability
32 extra provision
33 risks that provide opportunity
36 use this for reviewing
37 rapid analysis
38 runs from risk
Down
1 technique using anonymous experts
2 no action
3 opposite of threat
5 moderate risk condition
6 number of knowledge areas
7 condition that contributes to risk
9 shift to a third party
12 generate many ideas
14 deal with it
18 reduce probability
19 measure of uncertainty
21 deviation
22 view of available choices
23 back up plan
25 Roy's horse or a symptom
26 4 perspectives of risk
27 Likelihood
29 place in order of importance
30 left over risk
34 probability x impact
35 high risk condition
© 2005 allPM.com
********************
Click here to view/print the crossword solution: http://www.allpm.com/Crosswords/November2005answers.htm
