{"id":3195,"date":"2009-10-08T11:38:42","date_gmt":"2009-10-08T18:38:42","guid":{"rendered":"https:\/\/svapm.org\/?p=3195"},"modified":"2019-08-07T14:30:06","modified_gmt":"2019-08-07T21:30:06","slug":"risk-management-what-about-the-opportunities","status":"publish","type":"post","link":"https:\/\/svapm.org\/?p=3195","title":{"rendered":"Risk Management &#8211; What about the Opportunities?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-3276\" title=\"all-thumbs-up\" src=\"https:\/\/svapm.org\/wp-content\/uploads\/all-thumbs-up.jpg\" alt=\"all-thumbs-up\" width=\"128\" height=\"92\" \/>Continuing on the project risk vs. opportunity concept, <em>Tom Kendrick&#8217;s <\/em>presentation dove into the identification and management of opportunities that exist in all projects.\u00a0 Called &#8220;<strong>Disentangling Project Opportunities and Risks<\/strong>&#8220;, opportunity is  defined as a &#8220;favorable juncture of circumstances&#8221; while risk is just &#8220;bad&#8221;.<\/p>\n<p>Some key points of his talk were:<\/p>\n<ul>\n<li>Scope Opportunity Management is about <strong>merging <\/strong>a deep understanding of the user needs with available technical capabilities to <strong><em>create the best deliverable<\/em><\/strong> &#8211; not necessarily with one first envisioned<\/li>\n<li><strong><em>Involve <\/em><\/strong>Project \/ Program management during the<em> <\/em><strong>objectives and project selection phases<\/strong>; Planning is a fertile source for risks as well as opportunities<\/li>\n<li>(Opportunities)\u00a0 This is about <strong>choice<\/strong>, not uncertainty.<\/li>\n<\/ul>\n<p>When dealing with uncertain project opportunities &#8220;Luck is what happens when preparation meets opportunity.&#8221;\u00a0 This has happened in my product development experience when my team had suggested an opportunity to reduce the material cost.\u00a0  We created small experiments and evaluated  the results to our criteria and demonstrated that we could lower the product cost without affecting the performance.\u00a0 Win-win for everyone!<\/p>\n<p>Once the opportunities are identified the management is similar to those of risks, but with a different attitude (more positive rather than negative):<\/p>\n<ol>\n<li><strong>Assessment <\/strong>is in terms of Likelihood and <strong>Gain <\/strong>(instead of Loss)<img loading=\"lazy\" decoding=\"async\" class=\"alignright size-thumbnail wp-image-850\" src=\"https:\/\/svapm.org\/wp-content\/uploads\/2008\/01\/juggle.thumbnail.gif\" alt=\"juggling\" width=\"128\" height=\"83\" \/><\/li>\n<li>Tactics now become <strong>Exploit \/ Enhance \/ Share<\/strong> (instead of Avoid \/ Mitigate \/ Transfer)<\/li>\n<li>Opportunities <strong>can increase or decrease risk<\/strong>.\u00a0 There may be uncertain probabilities, uncertain impacts or\u00a0 both and should be assessed and managed.<\/li>\n<\/ol>\n<p>Are there <strong>benefits <\/strong>for you (the PM) if you look for opportunities in your project?\u00a0 <em>Possibly<\/em>. With uncertain project opportunities,\u00a0 Tom&#8217;s observations  (for most projects):<\/p>\n<ul>\n<li>&#8220;<em>Success has many fathers, while failure is an orphan.<\/em>&#8221;\n<ul>\n<li>Credit for something that goes well is grabbed by those in power<\/li>\n<li>Blame for disasters falls on the PM and team.<\/li>\n<\/ul>\n<\/li>\n<li>&#8220;<em>No good deed goes unpunished&#8221;<\/em>\n<ul>\n<li>Delivering miracles may result in unrealistic future expectations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>I&#8217;d choose to delight my customer and exceed their expectations.\u00a0 If this is can be accomplished by identifying opportunities as well as the risks, count me in.<\/p>\n<p>Tom, thanks for your insights into the other side of Risk.<\/p>\n<p><em>Next, The Paradox of Risk Management from Payson Hall&#8230;<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The approach to Risk Management can also be used for Opportunity Management by using a different point of view.<\/p>\n","protected":false},"author":1481,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"give_campaign_id":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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