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The five common project risk strategies
Importance of communication skills in organization
Role of communication skills in an organization
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Recommended: The five common project risk strategies
One of the lessons I have carried from this course as a project manager is that project management success in an organization is highly dependent on an effective organizational communication style, especially in the face of globalization of the project management profession. Organizational communications capabilities have great influence on how projects are conducted. As as a consequence, project managers in distant locations are able to more effectively communicate with relevant stakeholders within the organizational structure to facilitate decision making. In almost every study, communication-related issues are the most frequent problems a project manager has on a project, not leaving out my organization I work for. It is also vividly that …show more content…
I found out that as a project manager, I should not focus on dealing with problems but rather preventing them altogether. I can remember vividly some years back that even after a strong probability showed that an El Niño phenomena was about to hit our project area; our project manager went a head with a software installation project that we were working on as a team. Not withstanding, the floods were every where and our project that was to take a week came to a stand still and took four more weeks and also some of our work was damaged by the water. Technically, we had to start the project again, resulting in the decrease of the value of risk management. Consequently, if our project manager had an effective risk management in place, then it could have helped to increase the probability and impact of positive risks or opportunities. I also noticed that when we eliminate threats and increase opportunities, the estimate for work can decrease in terms of cost, time, scope and schedule/milestone. It is also necessary to determine at a high level the amount and areas of potential risk on the project. Nevertheless, the risk management efforts should be appropriate to the size and complexity of the project, as well as the experience and skill level of the project team. For example, in our organization, we use probability and impact matrix as a standard rating system to promote a common understanding of what each risk rating …show more content…
All along, I had a perception that they have the same meaning. So, a contract can be considered as an agreement but an agreement would not necessarily be a contract. Working in a retail industry, procurement management is the heartbeat of our organization. Any project that we carry has procurement management. Contracts are always signed between project manager and either with vendors, customers, government and/or other stakeholders. Procurement is the formal process to obtain goods and services (PMI, 2013, p. 355) and in our company, there is a department that handles and controls procurements. So, when a project is planned and scope analyzed, the procurement department gets involved in the project to manage the procurement process. Once the decision is finalized to procure goods or services from an outside source/ vendors, our project manager makes a plan of the process and a procurement statement of work. A procurement manager then decides what kind of contract and procurement document should be used. It is up to the procurement department to review the scope of work for completeness. Afterwards, the prospective sellers take action and the buyer (my company) waits for their responses. The prospective vendors carefully review our statement of work and all terms of the proposed contract and at the same time, vendor responds to the procurement documents. At
As project activities are directed and finished, risks components and events will be observed to figure out whether in certainty trigger occasions have happened that would show the risk is currently a reality. In view of trigger occasions that have been reported amid the risk investigation and moderation forms, the project group or project administrators will have the power to order emergency courses of action as esteemed suitable. Everyday risk relief exercises will be instituted and coordinated by the project managers.
For more than 25 years, The Little Black Book of Project Management has been introducing project managers to the incredibly effective and logical project management skill and methods to help them achieve their goal. This book has been flooded with very nee project management techniques as well as the latest standards of the Project management body of Knowledge (PMBOK) .accepted by PMI (Project Management Institute).
To me, in my projects, risk management is a key success factor. I think it 's never too early to start talking about risk in a project. People tend to be very optimistic. By really enumerating the risks and how the will be mitigated and what "plan b" might look like, I think you will have a better project. I always try to have what I can an "Eeyore" on my projects. This is the team member who always sees the cloudy side. I assign this person the job of risk management. This person will identify risks and mitigations and be responsible for ensuring all risks are mitigated as the project progresses.
Project and risk managers must allocate resources to mitigate those risks with a high probability of occurrence. The gain from the use of these resources should exceed any consequences of inactivity. A successful project manager is one who plans ahead for the unexpected and assesses the possible impact future risks can have on the overall project. In assessing the risk, it is important to identify events that could happen throughout the life of the project that would adversely impact it. An adverse effect is one that would cause the project to come in over budget, miss the deadlines, or fail altogether.
After the results have been reviewed, determinations are made to prioritize the risks according to their level of impact. The eradication of every risk is impossible therefore the risk acceptance strategy is commonly employed in business. Money, time, and resources are probable reserve measures which are applicable to unknown opportunities and threats. High-risks techniques can be substituted to reduce the impact of risks. A change in the project management plan which results in the elimination of a risk is defined as an avoidance response strategy.
The projects in today’s world are given a lot of importance and it will continue to grow in the coming years. There are a lot of companies which do not have production, but all of them do have projects. There are a lot of books which have been published on which related to planning and managing the projects. The one of the most important one was published by the author Eli Goldratt in his book ‘Critical chain’. This book basically talks and shows how the application of theory of constraints in the field of project management. The novel is basically based on one of the MBA classes in America where a number of ideas are developed in discussions among the students and the lecturers. The lecturer is basically fighting for a tenure with the president of the university who expects a downturn in the executive MBA. The lecturer who teaches project management has a word with one the senior colleagues and project management was the right topic to teach. There were three students who were placed in the project management team of their company which manufactures electronic products. The students are enrolled in this MBA class along with other students, here they discover a new approach to project management which is known as the
Contracts and agreements have many key differences. A contract is an agreement between two parties that is legally binding. In order for a contract to be valid and have legal standing, it must have four requirements; consideration, contractual capacity, and legality. Without all four of these requirements it is not considered a contract and has no legal standing. An agreement is an understanding or some type of arrangement between two or more parties and does not need to have the four requirements that a contract must have. Most of the time, agreements are informal and not enforceable by law.
Project management is a discipline based on careful planning, organization, motivation and control of resources to achieve specific goals and meet specific success criteria. Since every project is unique in nature, a project manager must learn to adapt and identify key areas to drive success. Thus, as a learning initiative, we were given a project to manage through a simulation program named Sim4Project. The emphasis of this simulation was on learning-by-doing, just like in a real-life project. Sim4Project provided a good mix of theoretical knowledge as well as hands-on experience. Professor Leonie gave feedbacks at the end of each period to ensure we were incorporating the project management principles learned in the classroom.
The topic of my group (group 4) was “How to totally float through your project for free” and the presentation was held by Roger Goodman who works for PMI NZ and Ernst & Young supply chain management with many years of working experience in many different countries such as Saudi Arabia and China.
Operation mangers should also have the same skills as functional manager but they are responsible in managing day to day operations and they should also possess the authority to hire and fire employees.
Communication is a crucial part of project management. Project managers should be able to communicate clearly, simply, effectively and frequently. As good communication skills are vital in comprehending what is expected by clients and help to convey that goal to the project team. Also it helps to receive essential information from the project team and take the corrective steps when in process.
This paper will reflect on the different uses of Project Risk Management and ways in which it can benefit organizations to have the ability to identify potential problems prior to the problem occurring. Risk, this is not something to be taken lightly whilst dealing with matters that include high end projects meeting specific details, deadlines and expectations for the end client. Project risk management teaches one to be aggressive early on in the phases of planning and implementing the tools for a project. This is usually easier as costs are less and the turnaround time to solve the issues at that present moment is beneficial rather than later. The result in a successful project for one’s self and other key people involved in the process is also another requirement. Stakeholder satisfaction is important because the
When planning a new project, how the project will be managed is one of the most important factors. The importance of a managers will determine the success of the project. The success of the project will be determined by how well it is managed. Project management is referred to as the discipline that entails the processes of carefully planning, organizing, controlling, and motivating the organization resources so as to foster and facilitate the achievement of specific established and desired goals and meet the specific criteria of success required in the organization (Larson, 2014). Over the course of this paper I will be discussing and analyzing the importance of project management.
Identifying the various probabilities of uncertainties associated with any activity, analyzing its impacts on the project objective and the steps taken to circumvent its possible impacts whether long term or short term, objective or subjective is the key in risk management. In other words, risk management is the process of handling of risks through specific methods and techniques within the bounds
Risk Management allows us to identify the problems which are unknown during the start of the project but may occurs later. Implementing an efficient risk management plan will ensure the better outcome of the project in terms of cost and time.