Project Risk Assessment and Decision Support Tools

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DECISION OPTIONS

IMPROVEMENT: A commitment to continue with a project.

Two options:

  1. Continue as is. This is undesirable if the project is failing.
  2. Continue with a recovery strategy (see below).
  • Look for opportunities that may not have been present or considered, initially.
  • Change the project’s approach. Take advantage of any opportunities that may occur.
  • Improve some aspect of the project’s performance (e.g., quality, technical, etc.).
  • Change the target market.
  • Change some attribute of the final product.
  • Increase the quantity and quality of resources to complete the project.
  • Look for favorable external events that may help justify the decision to improve the project.
  • Perform triage (see Section 5).

ABANDONMENT: A commitment to either change some aspect(s) or terminate the project.

Two options:

  1. Full termination (see Kill/Terminate pages in this section).
  2. Partial withdrawal or partial implementation (see Withdrawal Strategies in this section).
  • Perform the work in phases. Establish decision stage-gates (go/no-go criteria) and evaluate.
  • Reduce functionality.
  • Delay the deadline.
  • Remove people.
  • Split or merge the project as required.
  • Review current chance of meeting targets and then decide.
  • Meet and announce the formal decision.

CONSIDER: “When you abandon, you have nothing to show for the amount of money you have spent” (Thomas Fanning – CEO, Southern Company regarding the company’s Georgia nuclear power plant)