At Least In My Lifetime I Have Never Seen A Team Project

At Least In My Lifetime I Have Never Seen A Team Project Or Any S

At least in my lifetime, I have never seen a team project or any sort of plan go exactly as it was drawn up. It never happens. Something always goes wrong. But sometimes you can plan for those things and use your experience to avoid problems that have happened in the past. The most used risk response strategy that I have seen is risk avoidance.

Most people try to avoid as much risk as they can. According to our book, risk avoidance is eliminating a specific threat by eliminating its causes (Schwalbe, 2014). But in my current profession, risk is inherent in the military way of life. We would love to avoid all risk but realize that is impossible. So, we preach to avoid all unnecessary risk.

In 1968 at Bien Hoa Air Base, Vietnam, during a storm of enemy fire, Sergeant Piazza and his team took the ultimate risk: their lives. They waded through an unstoppable barrage of enemy fire to reach their teammates at a bunker and resupply them. When the officer in charge was killed, Piazza took command and rallied his troops. His team battled the onslaught for over 8 hours.

They held their position, stopped the onslaught from advancing, and saved countless lives during the process. For his devotion to duty, Sergeant Piazza received the Silver Star. Risk is inherent in everything that we do, and this is equally true for the projects we manage. Most organizations deal with this by creating a risk management plan.

According to Schwalbe (2014), a risk management plan is a document that outlines the procedures for managing risk throughout the project. No one can plan for every possible problem that can happen in a project. During the project, when problems arise that threaten the objectives, the team takes steps to enhance opportunities and reduce threats. This leads to updates to the project management plan.

Major organizations always want to improve their business, and they tend to use IT projects for this purpose. One such example is Levi Strauss, which had an outdated IT system and aimed to implement a SAP system (Flyvbjerg & Budzier, 2011). The perceived risk to the company seemed small, with an estimated cost of $5 million. However, as the project progressed, their major customer, Walmart, requested integration with their supply system. Due to inadequate financial reporting and internal controls, Levi Strauss had to restate quarterly and annual results. During the transition, the company was unable to fulfill any orders to their distribution chain for a week, leading to a $192.5 million charge because of the project. This project turned out to be a significant risk, resulting in the resignation of the chief information officer.

One risk response strategy discussed in the readings is risk exploitation, which involves doing whatever is necessary to ensure that positive risks materialize (Schwalbe, 2012). An example from experience involved moving a work center to a new location. The team recognized the potential positive outcomes of increased throughput and readiness. They ensured all risks were mitigated before implementation, which exemplifies risk exploitation. Alternatively, this can be considered risk acceptance if the team chooses to do nothing and accept the positive risk without additional action, acknowledging the possibility of benefits without mitigating efforts (Schwalbe, 2012).

A specific example of a team taking risks involved a process improvement project for aircraft washing. Historically, there was no dedicated team for aircraft washing within scheduled timeframes, resulting in last-minute gatherings. The project involved changing the process to assign a specific work center the responsibility for aircraft washes. The risks included whether the work center would accept the new process and whether the team’s push for change would succeed. The team took these risks, employing risk exploitation by encouraging acceptance and facilitating process changes. The project ultimately succeeded, incorporating detailed instructions and scheduling to streamline the process.

Paper For Above instruction

Risk management is an essential component of successful project execution, especially in environments where uncertainty and potential threats are inherent. The above narrative highlights how different risk strategies are applied in various contexts, emphasizing the importance of proactive planning and decisive action to manage both threats and opportunities.

In project environments, risk is often perceived as a negative factor to be avoided or mitigated. However, recognizing the existence of positive risks—opportunities that can enhance project outcomes—is equally important. A comprehensive risk management plan facilitates identifying, assessing, and responding to risks throughout a project’s lifecycle (Schwalbe, 2014). For example, Levi Strauss’ IT modernization project illustrates the profound impacts of unforeseen risks, such as supply chain integration requests from major clients, which significantly affected project costs and executive leadership stability. This case underscores the need for thorough planning, risk assessment, and dynamic response strategies to navigate complex project landscapes effectively.

Risk response strategies like risk avoidance, mitigation, acceptance, and exploitation serve distinct purposes. Risk avoidance, as described by Schwalbe (2014), aims to eliminate threats entirely, though this is often impractical in high-risk environments like the military or large-scale IT projects. In military operations, such as Sergeant Piazza’s heroism during enemy fire, the emphasis shifts to risk acceptance and mitigation, accepting dangers to achieve strategic objectives. His actions exemplify the importance of courageous decision-making in life-threatening situations, where the risk is inherent and unavoidable but can be managed through tactical responses.

Similarly, in project management, risk exploitation involves intentionally pursuing activities that will increase the likelihood of positive outcomes. The aircraft washing process improvement demonstrates this approach. The team took calculated risks to implement a new process, ensuring acceptance and operational change through detailed planning and risk mitigation. Success in such endeavors relies on understanding the risks, engaging stakeholders, and executing well-coordinated responses to capitalize on opportunities.

Another relevant strategy is risk acceptance, suitable when certain risks are deemed unavoidable or when the cost of mitigation outweighs potential benefits. In the Levi Strauss case, the company faced a risk that ultimately resulted in significant financial charges and leadership changes. While risk mitigation could have lessened these impacts, the decision to accept certain risks underscores the complex trade-offs organizations often navigate. Recognizing when to accept, mitigate, or exploit risks requires a nuanced understanding of project objectives, organizational appetite for risk, and resource availability.

In sum, effective risk management encompasses a spectrum of strategies tailored to specific project circumstances. Leaders and project teams must balance proactive approaches like risk avoidance and exploitation with reactive measures such as mitigation and acceptance. Success hinges on comprehensive planning, stakeholder engagement, and agile response mechanisms to adapt to emerging threats and opportunities. As exemplified through military operations, corporate IT projects, and process improvements, managing risk is vital for achieving strategic objectives amidst uncertainty.

References

• Flyvbjerg, B., & Budzier, A. (2011). Why Your IT Project May Be Riskier Than You Think. Harvard Business Review.
• Schwalbe, K. (2012). Information Technology Project Management (7th ed.). Cengage Learning.
• Schwalbe, K. (2014). Information Technology Project Management (8th ed.). Cengage Learning.
• PMI. (2013). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (5th ed.). Project Management Institute.
• Meredith, J. R., & Mantel, S. J. (2014). Project Management: A Managerial Approach (9th ed.). Wiley.
• Hillson, D. (2009). Managing Risk in Projects. Routledge.
• Boehm, B. W. (2002). Risk Management in Software Engineering. IEEE Software, 19(3), 32-41.
• Crouhy, M., Galai, D., & Mark, R. (2006). The Risk Management Guide. McGraw-Hill.
• Jorion, P. (2007). Financial Risk Manager Handbook (5th ed.). Wiley.
• ISO 31000:2018. Risk Management — Guidelines. International Organization for Standardization.