Project Risk Assessment and Decision Support Tools

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PROJECT VARIABLE ANALYSIS

THEORY:  All known project variables are known.

 

ADVANTAGES:

  1. All variables can be considered impartially. Minimizes prematurely “Jumping to Cause (pointing in a pre-chosen direction)”.
  2. Easy to learn. Studies have shown that the brain finds information easiest to absorb through  pictures.
  3. Simple to present.
  4. Proper diagnosis combined with effectively implemented corrective action and senior management support will assure project success.
  5. Early problem detection buys management lead-time to weigh a wide range of choices.
  6. Can be used to evaluate a project in pre-mortem (what-if analysis) phase or any active phase or forensically, unraveling the subtle complex chain of events.
  7. Helps project teams to increase their intuition and evaluative abilities.
  8. Allows teams to pinpoint problem areas and critical success factors.
  9. Can serve as a pre-approval tool to identify/minimize risk.
  10. Reduces the amount of thinking to be done under pressure.
  11. Provides teams with a color tree analysis, which relies more on visual skills than on computing.
  12. Mapping allows the project picture to be filled in quickly, similar to a heat map.
  13. The model is built around a base of project management concepts.
  14. Results are used for objective, reliable, consistent decision making. By answering a large number of unbiased questions, grouping them by common attributes, responses become less arbitrary and less prone to subjective interpretation.
  15. Project Variable Analysis allows the team to think across many activities and provide a cross-sectional view of the project’s layers.
  16. Identifies concerns that might otherwise be overlooked in a less structured way.
  17. PVA is an inexpensive way to provide screening and diagnosis.
  18. Facilitates communication between individuals, using interactive yes/no questions, improving productivity.
  19. Serves as a reminder that project management is both an art and a science.
  20. Automating this process does not guarantee better accuracy. Many and most automated tools have prominent disclaimers.
  21. The model lets management (and less technical people) ask the right (and more intelligent) questions.
  22. The data, once in digital form, can be combined with other data, displayed, stored, reproduced and electronically transmitted.
  23. The model condenses large amounts of information.
  24. The variables act as a guide to show how not to do things, in order to understand how they should be done.
  25. Allows the firm to tighten procedures, practices and ethics rules.
  26. Model allows a project to be unpacked into its component parts, separating what is unforeseen, uncertain, known and unknown.
  27. Allows assumptions to be tested.
  28. Model is keyword/ fragmentary note searchable in .pdf format allowing evaluators to pinpoint potential issues.
  29. The model identifies the firm’s legacy processes/ ideas and actions/ customs, which could adversely affect the project’s outcomes.
  30. If used as part of a brainstorming process, should prevent individuals from exercising an outsized amount of influence on the rest of the team.
  31. The model helps SM/PM/team and contractors avoid making poor decisions