What Is VIRT? Part II
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Visualizing Risk Management Rubin Jen, P. Eng, PMP Beyond Execution
description
VIRT (Visual Ishikawa Risk Technique) is a new project risk management technique!
Transcript of What Is VIRT? Part II
Visualizing Risk Management
Rubin Jen, P. Eng, PMPBeyond Execution
About The Speaker
• Rubin is a speaker, writer, teacher and consultant of project management – PM for 14 yrs across several industries– Presented at PMI Global Congress 2007 and
ProjectWorld Toronto 2009– Served on board of directors for the PMI
Southern Ontario Chapter from 2005-2007– Certified PMP trainer for Rita Mulcahy’s RMC
Risk Management Today
Risk Recap
• Risk – something bad
• Probability
• Impact
• Priority
Question
• How many of you perform project risk management on a regular basis?
• How many of you know people who do not perform project risk management on a regular basis?
• The reality is that it is not done by many project managers!
The Problems
• It’s not done at all by many PM’s
• It’s done once, at the beginning
• It’s not updated throughout the project
• It’s all done in the project manager’s brain
• It’s only done by the project manager
Common Excuses
• Takes too much time
• We know all the risks anyways
• Too many to deal with
• Administrative paperwork
• Just get going with the project!
And When Risk IS Performed…
• All the right risks have not necessarily been identified via brainstorming methods
• Analysis time is spent on non-priority risks
• Risks are not often re-used from other projects
• Risks do not come from all stakeholders
• Risks are neglected over the project
Another Way?
• What if we could make risk:– Easier to maintain?– Easier to identify?– Easier to report to management?– Easier to obtain buy-in and support?– Easier to see?
Why VIRT Was Created
• The need to see the big picture
• The need to see connections
• The distaste for tables
• To involve the project team and have them become more risk-aware
What is VIRT?
Visual
Ishikawa
Risk
Technique
• Rather than a long explanation, let’s jump to some examples
Example 1
• A new internal shared service is being introduced for project control services within a consulting company
• The shared service must make better use of resources than using expensive consultants for administrative responsibilities
VIRT
VIRT with Risks
Review
• Did you get a sense of the key risks?
• Did it take you much time to understand the overall project?
• Did you want to find out more detail?
• Did you wonder “what are we doing about these risks?”
Example 2
• An application outsourcing engagement is ending after 4 years. The incumbent must transition to 2 external companies, both offshore (India & Argentina)
• The project must be completed in 2 months to satisfy all relevant contracts
VIRT
VIRT with Risks
Risk Breakdown Structure
• The “classical” Risk Breakdown Structure (RBS) looks similar to an org chart and is usually created top-down.
• The VIRT diagram is basically an RBS that uses the fishbone diagram instead of an org chart and is created bottom-up
The Benefits
• You can see it!!
• Easy to present, particularly management
• Easy to create
• Helps find more risks
• Easy to maintain and update
• Easy to collect and re-use
How to Create a VIRT
• Step 1 – Use 2 VIRT diagrams, one for the product (WBS) and one for the project
• Step 2 – Create the VIRT diagram
• Step 3 – Identify critical failure points (red)
• Step 4 – Identify significant obstacles (yellow)
How to Create a VIRT
• Step 5 - Decompose points of failure into detailed risks
• Step 6 – Complete follow up risk management activities
• Step 7 - Apply to ongoing status reports and recurring status presentations
Getting More Out of VIRT
• Create a list of tracking metrics from risks
• Develop VIRT as a team building exercise
• Conduct risk lessons learned
• Harvest other VIRT diagrams
• Correlate project issues to VIRT
What You Learned
• Introduction to VIRT
• Why you should use VIRT
• How to create a VIRT diagram
Conclusion
• You have just learned an amazing new technique to manage risk that you can apply today
• It will make managing your project risk easier and simpler
Contact Information
• Name: Rubin Jen, P. Eng, PMP
• Email: [email protected]
• Phone: (416) 618-1734
Questions ?
