Much of the information generated in an expert interview is used in transitional or new project settings as it rarely bears fruit for the project on which it's being collected until long after that project is under way. The only advantages from risk methodologies for new projects stem from information generated on past projects. As methodologies are put into practice, the history that they create becomes valuable only as it is applied.
The old axiom, 'Those who do not learn from history are condemned to
repeat it," applies in both the business world and the project world just as readily as it applies to governments and civilizations.
Information from methodologies ~rovides the background and history that allows a new team member to integrate into the project more quickly.
It also permits a replacement project manager to better understand the breadth of what has transpired. The information should clarify the strengths of the relationships, as well as the weaknesses, and should afford
the project team visibility on what is going on with other divisions, functions, and partners serving the same project. The methodology facilitates communication and does so in a fashion that ensures that everyone in the organization knows where certain data types are stored and how they can be accessed.
Resource Requirements
Although resource requirements for following methodologies are methodology-specific, two critical roles are the manager responsible for implementation and the project archivist. The project manager should ideally be someone who clearly understands both the informational requirements of the methodology and the rationale for collecting that information. Without a clear understanding of why the information is being collected, the project manager will have difficulty defending what is frequently a time-intensive process. The archivist's role, as cited earlier, is in many ways the cornerstone of a successful methodology. Capturing information thoroughly and in a timely fashion leads to a much higher probability of success. Archivists who write in bullets and cite oblique references may satisfy the technical requirements of the methodology but will fall short in terms of serving most methodologies' intents. Com- plete sentences and exhaustive references to external sources build organizational memory, which is a key goal of a comprehensive risk methodology.
Reliability
Methodologies are as reliable as their historians. If an organization rewards their practice and uses information from the methodologies, then the methodologies are highly reliable. If instead the information is perceived as data for data's sake, then reliability will drop significantly as fewer and fewer team members actively pursue the support information.
Methodologies are frequently the fruit of a self-fulfilling prophecy. When maintained and used well, they tend to attract better information and more thorough inputs. If, however, they are not maintained well, fewer people will see their value and will actively make contributions. Weak inputs can
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drive a downward spiral from which a methodology cannot recover. If there is evidence that team members are actively investing time and energy in data entry, the reliability of the methodology, on the whole, is probably high.
Selection Criteria
As with each chapter on techniques, the risk methodology technique is assessed using selection criteria relating to resource requirements, applications, and outputs for the technique. To compare risk practice methodology with other techniques, review Table 6.
Resource Requirements
Some resource requirements for methodology applications are actually somewhat more abstract than for some other tools and techniques discussed in this volume. Specifically, the methodology infrastructure should be in place, a management champion should exist for that infrastructure, and time and personnel must be allotted to meet the methodology's
requirements.
The infrastructure requirements are both physical and documentation based. The physical infrastructure requirements include a common data storage facility for risk information (and ideally, a data administrator to maintain the facility). The documentation infrastructure includes any program forms and formats that become the conduits for data entry.
The second key resource requirement is a management champion.
Without executive support, the long-term implications of a risk meth- odology can easily be lost in the short-term demands of a project. A n effective management champion will know the reasons behind the methodology and the implications of subverting it. He or she will defend the application of the methodology in the face of adversity and will encourage peers to do likewise.
The other key resources are time and personnel. The archivist and project manager responsible for data gathering and data entry have weighty responsibilities to support the methodology, and without clear support and time, they will be unable to carry out those responsibilities.
w Cost for methodology implementation largely depends on the project.
In a large-scale, multiyear effort, the costs of implementation are negligible. In a short, multiweek intervention, the costs of imple- mentation may be perceived as significant. The more consistent the organization is in implementing the methodology and the more effective the organization is in facilitating quick, clear data entry, the less time is required to generate the same level of benefit.
Proper facilities and equipment for a methodology generally include a network server or Internet-based interface that allows for consistent data collection and storage. Any forms or formats that have been developed will also be required, but they will ultimately be part of the interface itself. The system and organizational demands on facilities are initially moderate, becoming easier over time.
w The time needed to implement a risk methodology is methodology- dependent but, in the ideal, should be in proportion to the magnitude of the project. If the infrastructure is already in place, the time needed to implement should be limited.
Ease of use on a methodology is moderate. While the steps should be clearly spelled out, the actual application and documentation
requirements take time and energy. The documentation requirements also require a deft touch for ensuring that all critical information has been captured. Again, the longer a methodology has been in place and the more consistent its application, the easier it becomes to use.
The project manager's time commitment is largely based on the skills and abilities of the individual identified as project archivist. A skilled archivist will guide the project manager to fill any informational gaps and will reduce the time and energy involved in research and analysis.
A less skilled archivist may need extensive support from the project manager and may significantly increase the amount of time the project manager will have to invest in data gathering and recording.
Applications
The methodology can be applied most effectively when it brings con- sistency from project to project and from project manager to project manager. The applicability of the methodologies is assessed on a scale of high, medium, and low.
w Project status reporting refers to monitoring plans, costs, and schedules.
The monitoring process is frequently a key function of the methodology and is a basic rationale as to why such methodologies are put in place.
Project status reports rely heavily on methodologies, particularly for comparative analyses.
w Major planning decisions should be rooted in history. Where is the history gathered? In the repositories the methodology supports. Thus, the methodology and major planning decisions should be inextricably linked.
Contract strategy selection does not rely heavily on methodologies, although any documentation or history on the application of the
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various types of strategies may prove advantageous to those responsible for contract strategy selection. Still, the relationship between the methodology and contract strategy selection is extremely limited.
w Again, methodologies play a tangential role in milestone peparation.
There is only limited information about milestones captured in most methodologies, and unless that is a focus of the methodology in question, there will be very limited applicability.
w Methodologies do not directly support design guidance, although the insights from past data collection efforts may prove fruitful.
w Methodologies do not support source selection unless there are specific elements built into the methodology to address procurement or contracting processes.
w The methodology may support budget submittal if there are specific risk perspectives reflected in the methodology that focus on building contingency reserves or establishing budgetary practices.
Methodologies also serve other applications. Perhaps most importantly, they focus on the organization's lessons learned. They ensure consistent data collection and a clear means to report risk activity and to catalog specific project risk behaviors. As a tool, methodologies allow organizations to capture information that would otherwise be lost.
Outputs
Outputs of the methodology take on the forms prescribed within the methodology itself. Many organizations generate such information in electronic copy, storing it on the organization's server or Web site. The outputs can include both qualitative data and individual perspectives on quantitative data.
w Accuracy of information from the methodologies is generally perceived as high, even though it is frequently borne out of a variety of quali- tative techniques. The reason for this perception of high accuracy is that the information is generated in a consistent fashion and is stored in a common repository. That works to create a sense of order (that might not exist if a single project manager simply generated the information for a single project).
w Level of detail is a strength of methodologies as the descriptions of the steps within the methodology work to drive information to the level of detail appropriate for the information concerned.
Utility is a subjective factor that takes into account both the effort involved and the value of the information. Because organizations have
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seen fit to collect whatever information is gathered under the methodology, the utility of the data must be assumed to be high.
Summary
Methodologies are not the result of the work of an individual project manager. Whereas the inputs reflect a single-project experience, the structure is a direct reflection of the informational needs and the vision of the supporting organization. And although an organization may have no long-term goals for the information, even a short-term rationale (such as multiproject resource management or risk contingency reserve determi- nation) can make development of the methodology a sound, reasonable business practice.
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