risk in a collaborative culture

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Risk in a Collaborative Culture

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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. how does risk change during a project?. Change Management. what happens if we ignore risks?. - PowerPoint PPT Presentation

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Page 1: Risk in a Collaborative Culture

Risk in a Collaborative Culture

Page 2: Risk in a Collaborative Culture

Why risk matters Risk and

Conscious Competence

Mitigating risk

Page 3: Risk in a Collaborative Culture

why risk matters

Page 4: Risk in a Collaborative Culture

what is risk?

Page 5: Risk in a Collaborative Culture

what drives risk?

Page 6: Risk in a Collaborative Culture

Project Management

• Change Managementhow does risk change during a project?

Page 7: Risk in a Collaborative Culture

what happens if we ignore risks?

I’m beginning to think it wasn’t such a good idea to turn off those

unit tests

Page 8: Risk in a Collaborative Culture

what happens if we incorrectly define risks?

Page 9: Risk in a Collaborative Culture

at what levels should we assess risk?

Page 10: Risk in a Collaborative Culture

how is risk management different from change management?

Page 11: Risk in a Collaborative Culture

risk and the conscious competence learning

model

Page 12: Risk in a Collaborative Culture

Competence

Con

scio

usne

ss

Low

Low

High

Hig

h

UnconsciousIncompetence

ConsciousIncompetence

ConsciousCompetence

UnconsciousCompetence

From William Howell

Page 13: Risk in a Collaborative Culture

applied to profiling and

mitigating risk

Page 14: Risk in a Collaborative Culture

Competence

Con

scio

usne

ss

Low

Low

High

Hig

h

UnconsciousIncompetence

ConsciousIncompetence

ConsciousCompetence

UnconsciousCompetence

From William Howell

Page 15: Risk in a Collaborative Culture

Competence

Con

scio

usne

ss

Low

Low

High

Hig

h

UnconsciousIncompetence

ConsciousIncompetence

ConsciousCompetence

UnconsciousCompetence

From William Howell

become aware

Page 16: Risk in a Collaborative Culture

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”

Page 17: Risk in a Collaborative Culture

Competence

Con

scio

usne

ss

Low

Low

High

Hig

h

UnconsciousIncompetence

ConsciousIncompetence

ConsciousCompetence

UnconsciousCompetence

From William Howell

bureaucracycomplexity

optimize.mentor.perfect.

“lean”

Page 18: Risk in a Collaborative Culture

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

Page 19: Risk in a Collaborative Culture

decision making

Page 20: Risk in a Collaborative Culture

what do we do?when do we do it?

when do we decide?

Page 21: Risk in a Collaborative Culture

Business Value

Benefits

Value CalculationCosts

calculation

typical financial calculation

Page 22: Risk in a Collaborative Culture

Business Value

Guess

Value CalculationEstimate

calculation

however….

Page 23: Risk in a Collaborative Culture

we need some help !

Page 24: Risk in a Collaborative Culture

Purpose

Considerations

Costs and Benefits

Business Value Model

Page 25: Risk in a Collaborative Culture

where do

we

start?

Page 26: Risk in a Collaborative Culture

MarketDifferentiating

High

Low

Mission CriticalLow High

Differentiate

Parity

Partner?

Who cares?

Purpose Based Alignment Model

Page 27: Risk in a Collaborative Culture

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

Page 28: Risk in a Collaborative Culture

example

financial documentation system

Page 29: Risk in a Collaborative Culture

MarketDifferentiating

High

Low

Mission CriticalLow High

What goes here?

Anything here?

Anything here?

Most are usually here.

Purpose Based Alignment Model

Page 30: Risk in a Collaborative Culture

350 differentiators

Page 31: Risk in a Collaborative Culture

simplified the rest

focused

on

differentiators

Page 32: Risk in a Collaborative Culture

results: better product

cut time by 50% 60% cost reduction

Page 33: Risk in a Collaborative Culture

MarketDifferentiating

High

Low

Mission CriticalLow High

Differentiate

Parity

Partner?

Who cares?

Strategy?

Page 34: Risk in a Collaborative Culture

• Sustainable• Competitive advantage

strategy = sustainable

competitive advantage

Page 35: Risk in a Collaborative Culture

the “billboard” test…

Page 36: Risk in a Collaborative Culture

You Think My Products Are Good?

You Should See My Chart of Accounts!

Page 37: Risk in a Collaborative Culture

“To be the low cost airline.”

- Southwest Airlines

Page 38: Risk in a Collaborative Culture

“Will this help us be

the low cost airline?”

- Southwest Airlines

Page 39: Risk in a Collaborative Culture

remember, parity is

mission critical

Page 40: Risk in a Collaborative Culture

and purpose is not priority

Page 41: Risk in a Collaborative Culture

differentiating

changes over

time

Page 42: Risk in a Collaborative Culture

• Leadership Influence

innovate!

Page 43: Risk in a Collaborative Culture

Purpose

Business Value Model

Page 44: Risk in a Collaborative Culture

other

considerations ?

Page 45: Risk in a Collaborative Culture

time

to

market

Page 46: Risk in a Collaborative Culture

risks

Page 47: Risk in a Collaborative Culture

Collaboration Model

flexibility

Page 48: Risk in a Collaborative Culture

Collaboration Model

dependencies

Page 49: Risk in a Collaborative Culture

team size and experiencemarket uncertainty

domain knowledge

team capacity

technical uncertainty

Page 50: Risk in a Collaborative Culture

Purpose

Considerations

Business Value Model

Page 51: Risk in a Collaborative Culture

costs

and

benefits ?

Page 52: Risk in a Collaborative Culture

Purpose

Considerations

Costs and Benefits

Business Value Model

Page 53: Risk in a Collaborative Culture

group chunks high – medium - low

Page 54: Risk in a Collaborative Culture

“build”

a

chunk…

Page 55: Risk in a Collaborative Culture

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

Page 56: Risk in a Collaborative Culture

applied to risk

Page 57: Risk in a Collaborative Culture

becoming aware: profiling risk

Page 58: Risk in a Collaborative Culture

There are many models . . . most work well.

How about: Delivery risks Business case risks Collateral damage

Page 59: Risk in a Collaborative Culture

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’

Page 60: Risk in a Collaborative Culture

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

Page 61: Risk in a Collaborative Culture

collateral damage

Page 62: Risk in a Collaborative Culture

example: express products

Page 63: Risk in a Collaborative Culture

• Re-factor existing enterprise software products for the SMB market.

• The goal: make these products consumable by the SMB market.

Page 64: Risk in a Collaborative Culture

what are the delivery risks?

Low• The development work is complete.• Depending on the requirements, some functionality might

be disabled.

Page 65: Risk in a Collaborative Culture

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

Page 66: Risk in a Collaborative Culture

collateral damage risks?

could be high

are there existing enterprise customers that will want to migrate to the SMB versions?

Page 67: Risk in a Collaborative Culture

Leading Agile

• Collaboration Model• Collaboration Process

we collaborate to increase

awareness

Page 68: Risk in a Collaborative Culture

Competence

Con

scio

usne

ss

Low

Low

High

Hig

h

UnconsciousIncompetence

ConsciousIncompetence

ConsciousCompetence

UnconsciousCompetence

From William Howell

collaborate to become

aware

Page 69: Risk in a Collaborative Culture

example: updated transaction engine

Page 70: Risk in a Collaborative Culture

WHOSE input is important to create an accurate, project-level profile of the risk?

development sales

product manager testing support

Page 71: Risk in a Collaborative Culture

different risk

perspectives for:

delivery business case

collateral damage

Page 72: Risk in a Collaborative Culture

how does knowing this mitigate risks?

Page 73: Risk in a Collaborative Culture

how do we now reduce uncertainty to further mitigate risks?

Page 74: Risk in a Collaborative Culture

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

Page 75: Risk in a Collaborative Culture

using the business value model to reduce churn and uncertainty

Page 76: Risk in a Collaborative Culture

Purpose

Considerations

Costs and Benefits

Business Value Model

Page 77: Risk in a Collaborative Culture

This models iterative decisions.

It helps us identify the “lastresponsible moment” to make decisions.

Page 78: Risk in a Collaborative Culture

example: customer retention

Page 79: Risk in a Collaborative Culture

Potentially great way to improve customer retention. However, lots of costs and guessed-at benefits.

How do we reduce uncertainty and make progress?

Page 80: Risk in a Collaborative Culture

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.

Page 81: Risk in a Collaborative Culture

reduce the tendency towards complexity and further reduce risks?

Page 82: Risk in a Collaborative Culture

Competence

Con

scio

usne

ss

Low

Low

High

Hig

h

UnconsciousIncompetence

ConsciousIncompetence

ConsciousCompetence

UnconsciousCompetence

From William Howell

bureaucracycomplexity

optimize.mentor.perfect.

Page 83: Risk in a Collaborative Culture

use purpose-based

alignment model

Page 84: Risk in a Collaborative Culture

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

Page 85: Risk in a Collaborative Culture

example: business intelligence

Page 86: Risk in a Collaborative Culture

our product: superior analytics

engine

our competitor: superior UI

Page 87: Risk in a Collaborative Culture

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).

Page 88: Risk in a Collaborative Culture

our dynamic world

Page 89: Risk in a Collaborative Culture

what happens if…

Page 90: Risk in a Collaborative Culture

you accelerate

the timeline?

Page 91: Risk in a Collaborative Culture

the demand for the product shrinks?

Page 92: Risk in a Collaborative Culture

you fold-in an acquisition?

Page 93: Risk in a Collaborative Culture

part of the team is pulled away?

Page 94: Risk in a Collaborative Culture

your triggers to reassess your risk profile and mitigation

plans?

Page 95: Risk in a Collaborative Culture

we want to avoid …

Page 96: Risk in a Collaborative Culture

Competence

Con

scio

usne

ss

Low

Low

High

Hig

h

UnconsciousIncompetence

ConsciousIncompetence

ConsciousCompetence

UnconsciousCompetence

out of touch ~process is kingdevelop a

blind spot

Page 97: Risk in a Collaborative Culture

but how?

Page 98: Risk in a Collaborative Culture

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

Page 99: Risk in a Collaborative Culture

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.

Page 100: Risk in a Collaborative Culture

in other words . . .

there are no isolated decisions!

Page 101: Risk in a Collaborative Culture

What triggers should cause us to review and revise the risk profile and mitigation plan?

Page 102: Risk in a Collaborative Culture

macro leadership and risk

Page 103: Risk in a Collaborative Culture

Macro Leadership Cube

Mitigate Delivery Risks

Mitigate Business Case

Risks

Mitigate Collateral Damage

Results

Page 104: Risk in a Collaborative Culture

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

Page 105: Risk in a Collaborative Culture

example: network services to remote locations

Page 106: Risk in a Collaborative Culture

what are

the critical interlocks?

Page 107: Risk in a Collaborative Culture

construction schedulesnetwork design decisions

vendor schedules

Page 108: Risk in a Collaborative Culture

focus on any changes …

Page 109: Risk in a Collaborative Culture

Leading Agile

• Collaboration Model• Collaboration Process

throughcross-functional

collaboration

Page 110: Risk in a Collaborative Culture

summary

Page 111: Risk in a Collaborative Culture

profiling risk

Page 112: Risk in a Collaborative Culture

Competence

Con

scio

usne

ss

Low

Low

High

Hig

h

UnconsciousIncompetence

ConsciousIncompetence

ConsciousCompetence

UnconsciousCompetence

From William Howell

Page 113: Risk in a Collaborative Culture

collaborating to profile riskdelivery risk ~ business case risks ~ collateral damage risks

Page 114: Risk in a Collaborative Culture

bring the right people together

from the entire enterprise

in other words,

the affected and

affectors!

Page 115: Risk in a Collaborative Culture

MarketDifferentiating

High

Low

Mission CriticalLow High

Differentiate

Parity

Partner?

Who cares?

Purpose Based Alignment Model

Page 116: Risk in a Collaborative Culture

Purpose

Considerations

Costs and Benefits

Business Value Model

Page 117: Risk in a Collaborative Culture

risk management cannot be siloed

Page 118: Risk in a Collaborative Culture

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

Page 119: Risk in a Collaborative Culture
Page 120: Risk in a Collaborative Culture

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

Page 121: Risk in a Collaborative Culture

What Tool Do We Use For Decisions Today?

Page 122: Risk in a Collaborative Culture

Competence

Con

scio

usne

ss

Low

Low

High

Hig

h

UnconsciousIncompetence

ConsciousIncompetence

ConsciousCompetence

UnconsciousCompetence

BusinessValue ModelTo Reduce Uncertainty

Page 123: Risk in a Collaborative Culture

Competence

Con

scio

usne

ss

Low

Low

High

Hig

h

UnconsciousIncompetence

ConsciousIncompetence

ConsciousCompetence

UnconsciousCompetence

PurposeAlignmentTo Focus

Page 124: Risk in a Collaborative Culture

what triggers will cause you to reassess your risk profile and mitigation plans?

Page 125: Risk in a Collaborative Culture

Leading Agile

• Collaboration Model• Collaboration Process

collaborate!