Project risks – Project Management Discussion Group

Organisational Excellence

Excellence is never an accident. It is always the result of high intention, sincere effort, and intelligent execution; it represents the wise choice of many alternatives – choice, not chance, determines your destiny.
Aristoteles

Recent conversations with colleagues made me think about the notion of ‘Organisational Excellence‘. I found the subject quite interesting and a little bit controversial.

What makes an organisation ‘excellent’?
Are there actionable levers for excellence?
Is excellence a durable attribute that stands against the changes in markets and society?
How can principles of excellence be passed on to the staff?
Can ‘excellence’ be taught and nurtured?
Would there be a relationship between project management and the company’s excellence?
And, importantly, how are the new generations seeing the matter? – these are just some of the questions that came up in conversation.

I did a little research and I also reflected on personal learnings – here is my take. I hope this is of interest!

Marco Bottacini, Senior Portfolio Manager at GALVmed

The views and opinions expressed in this blog are those of the author and do not necessarily reflect the views and opinion of GALVmed.

New year, new risks and a New Year’s resolution

For many, at the arrival of the New Year there is the tradition of making a “resolution”, a promise to oneself or a decision to do something. This is generally intended to improve one’s behaviour, profession, knowledge or lifestyle, in some way, during the year ahead. I have always had mixed feelings about this practice, but tried to do it anyway. The process for me always begins with a blank sheet of paper, a pen and a cup of coffee.

Due to personal and professional circumstances, this time I feel particularly uneasy about the process. Uncertainty, stressful situations at home and at work, unplanned changes have been the recurring themes for the last year and made me feel very insecure. In any case, I am making an effort this year and two things are on the radar for me, from a professional side.

The first is the intention to read more attentively the World Economic Forum (WEF) Global Risks annual report (link). I was used to reading this report in the past, but I did not pay much attention in 2020 and 2021. I think that the 2022 report will be very interesting in helping with the understanding of the wider context, in sensing what the experts are seeing and ultimately in providing guidance to projects and initiatives in “this time of unparalleled disruption and complexity“.

The second resolution is to reacquaint myself with the fundamentals in risk management. In the last issue of the “Enterprise Risk” magazine of the IRM (Institute of Risk Management) I read about the revision of the classic textbook, “Fundamentals of Risk Management”, now in its 6th edition. This book helped me in going through the training with the IRM. In the words of one of the authors now “the emphasis is much more on seeing risk as positive rather than a constant threat“. I think this is a real challenge and I am looking forward to seeing how this is approached. The shock on projects and companies’ operations caused by the pandemic is not over yet. It is going to be interesting to watch how the attitude of project managers and operations’ leaders toward risk management will change with the persistence of threats and uncertainties. It will also be interesting to see how other new, disruptive risks and technologies (digital, societal, new financing etc) are now covered in the book. [The challenge for me, first of all, is about .. saving the money to buy the book, as it is expensive…]

A refocus on risk management is going to be the priority for me for 2022. What is your New Year’s resolution?

Marco Bottacini, Senior Portfolio Manager at GALVmed

The views and opinions expressed in this blog are those of the author and do not necessarily reflect the views and opinion of GALVmed.

Three Burning Questions with … Donna Festorazzi

In the “Three Burning Questions” series we talk to experts, practitioners and professionals from sectors and disciplines that have a relevancy to the project management profession. We ask them three “burning” questions related to their area of expertise and competence.

In our first interview we have been talking about projct risk management with Donna Festorazzi (FIRM MAPM), Risk Director, Consultant.

Donna is an experienced risk management professional with over fifteen years’ experience within the construction, rail and water sectors. Starting out as a Project Risk Analyst, Donna is now responsible for designing and implementing Risk Management strategies. She has a strategic understanding of risk management frameworks, systems and risk insights, whilst understanding the importance of risk and commercial alignment. Donna has previous experience of working and leading teams and has been part of Teams that have had Alliance and behavioral coaches for improving performance. Donna has been recognised by the Institute of Risk Management and recently elected as Certified Fellow and Chair of the Scottish Regional Group. Donna has also been chosen as a Glasgow Caledonian University Alumni Inspirational Leader.

“Thanks Donna for talking to us today. I would like to start asking a slightly provocative question – All PM accreditations standards put a lot of emphasis on project risk management in their syllabus and today there is much awareness about the importance of effective risk management.

PMDG: In practice, do you think that Project Managers are managing risks in their projects in an appropriate manner?

Donna: I totally agree that there is a growing emphasis on project risk management and that comes from stakeholders, partners, investors, funders and clients’ expectations in driving value and efficiency into projects. However, from my experience, as an example, risk registers are completed for approval and governance purposes only, whereas personally I believe the key to successful risk management (and project success…) is active management. The APM released statistics stating that >80% of projects DO NOT meet their objectives; hence it is important that together we acknowledge that the earlier we identify risks the better chance we have of project success, and not retrospectively (focus on managing issues) which is common in the current workplace. In my opinion, Risk Managers are key, and they need to work collaboratively with Project Managers to understand all the challenges and constraints faced to ensure that there is a tailored and realistic project risk management process and procedures to enable threat minimisation and maximising opportunities.

PMDG: In your experience, what risk practices could the project risk management community utilise to manage their projects? Is there something that the Project Managers are systematically missing?

Donna: I would say that Risk Insights are underutilised and they are powerful tools in managing project risk. Risk Insights are key in understanding what we have learned and how we can use this to become more efficient and effective. For example, risk data integrated with other PM functions such as commercial, change, planning etc can provide great strategic insight. Working together, to gather quality risk data that a Risk Manager can interpret and analyse to provide early warnings indicators, enabling enough time to re-adjust to potentially still meet their objectives is a great step forward. If I were a Project Manager, I know this would be of great benefit to me! Converting this data into information and bringing it in to business as usual processes is crucial to supporting the delivery of project objectives.

Throughout the last 15 years + I saw many instances where the Project Manager and Risk Manager do not often see themselves as having the same goal, leading to a lack of accountability. In teams that I work within, a common approach, integration and alignment are key to success. The misconception that Risk Managers are compliance and assurance roles often exacerbate this issue. In contrast, successful Risk Managers are Advisors and Project Managers should seek to utilise their knowledge to their advantage.

PMDG: In your opinion, in the area of project risk management, what are the three main challenges you can see that will be key in 2020?

Donna: Within the project industry we are seeing a lot more rigorous performance metrics, cost and time challenges from the top management…..more for less! In this environment it is recognised that there is an urgent need for Risk Managers from being viewed as obstruction, hindrance or another step in Governance, to be considered enablers who can assist the Project Manager in driving successful project delivery. In this space it is imperative that we recognise that Risk Management is interlinked with the organisations’ risk appetite, culture and their willingness to enable and embed change. Currently, my team work on many transformational risk change ventures, as companies are quickly realising that having the correct processes, procedures, capability and advice they can maximise the return to their business and increase risk maturity for resilience purposes.

I believe in 2020 you will see many organisations adopting a ‘back-to-basics approach’, as many companies have introduced very sophisticated processes that are not embedded and adding no-value. The key is all about enabling informed decisions to be made, and the field of risk management is one of the best areas in a business that can help address that question.

Looking beyond 2020 I expect to see a shift from the traditional Risk Manager role in project delivery. I see the Risk Manager’s role evolving from a Risk Register “custodian” and moving to have a wider focus on investment planning with a Programme Focus; looking at ‘Are we promoting the right projects?’ as opposed to ‘Are we doing the projects right?’. Project Managers should be aware of this possible programme management evolution.

Thanks Donna. I hope that this post will be of interest for our followers and we look forward to seeing you again soon”.

We leave you here with Donna’s final thought:

“Risk is in everything we do…. challenge your thinking and others around you and success will follow.”
Donna Festorazzi

Should you need to contact Donna:
riskandvaluesolutions@hotmail.com
Risk & Value Solutions Ltd, tel: +44 (0)7470 320 086

Marco Bottacini, Senior Portfolio Manager at GALVmed

The views and opinions expressed in this blog are those of the author and do not necessarily reflect the views and opinion of GALVmed.