Risk Management
Vignesh Sivadass
2022MANG6463slidesWeek11v2.pptMANG 6143
Project Risk Management
Mario Brito
Part three – more detail about the SPPs in lifecycle stages which precede and follow the E&D strategy progress stage
- Start by considering roles for SPPs in all four of the strategy progress stages, the way the seven Ws goals-plan relationship structure focus shifts as strategy evolves, and some of the key implications.
- Consider the strategy gateway stages following each strategy progress stage as a performance uncertainty management process stage which is very different to the basic SPP.
- Consider the overall strategy gateway as a watershed.
- Then consider the detailed tactical planning and all following lifecycle stages, working through implementation and utilisation until the end of the termination stage.
Roles for SPPs in the first three strategy stages
| Lifecycle stage | Stage purposes | Roles for the associated variant of the SPP |
| Concept strategy progress stage | Concept strategy clarification, clarifying the project objectives and developing the business case in corporate strategy terms. | Confirm the initial concept from a corporate perspective. Identify stakeholders and their expectations. Identify appropriate performance objectives. Provide unbiased initial estimates of business case outcomes. Evaluate the concept and business case in corporate strategy terms. |
| Concept strategy gateway stage | Consolidation Governance | Consolidate the base plans, fit-for-purpose contingency plans and commitment plans. Confirm expectations about the deliverables. |
| DOT strategy progress stage | Design strategy clarification plus operations and termination (DOT) strategy development from a design and operations management perspective. | Confirm the design basis from a design and operations perspective. Develop lifecycle operations performance criteria. Assess the feasibility of the design strategy. Assess the likely costs and benefits of design changes. Evaluate the operations and termination strategy. Test the reliability of designs and their operations effectiveness. |
| DOT strategy gateway stage | Consolidation Governance | Consolidate the base, contingency and commitment plans. Confirm expectations about the deliverables. |
| E&D strategy progress stage | Execution and delivery (E&D) strategy development from a project management perspective. | Confirm the execution basis from an execution perspective. Estimate the resources required at a strategic level. Identify and allow for regulatory constraints. Assess contracting strategy at an overview level. Assess the feasibility of plans. Assess the likely duration of execution. Assess the likely cost of execution and delivery. Determine the appropriate milestones. Determine the appropriate levels of contingency funds. Assess the effect of changes to plans. |
| E&D strategy gateway stage | Consolidation Governance | Consolidate the base, contingency and commitment plans. Confirm expectations about the deliverables. |
The need for a D&A (devils and angels in the detail) progress stage prior to an overall strategy gateway version of the earlier strategy gateway process, and what the D&A progress stage should involve.
Strategy gateway specific tasks
to
the next
progress
stage
capability-culture
assets
capability-culture
liabilities
from
an earlier
progress
stage
deliverables
fit for
purpose?
gateway maybe
gateway yes
gateway no
consolidate and
explain earlier progress
stage deliverables
board level
support and convince
process
commitment plans
contingency plans
base plans
summary report
stop
the
project
back to
an earlier
progress
stage
Gateway stage processes viewed from an uncertainty management perspective and the key governance issues which need to be addressed before moving to the next process stage as discussed in Enlightened Planning (2019) is very important. The key role of the overall strategy gateway stage commitments is also very important, but it is more obvious and less subtle in nature.
Adapting the basic SPP used in the execution and delivery (E&D) strategy stage to the design, operations and termination (DOT) strategy stage
- The PetroCanada liquefied natural gas storage example and the Yukon River pipeline crossing example as two illustrations.
- The terminology changes which are important.
- The modelling concerns which stay the same.
- Interaction with different people with different perspectives and agendas.
- Safety as a special case, and the questions raised by trade-offs between fatalities and cost, environmental impact and cost, other political/military impacts and cost.
- Integration with the formation and shaping of overall operations strategy and wider corporate strategy.
Adapting the basic SPP used in the E&D strategy stage to the concept strategy stage
- UK Nirex example (nuclear waste disposal), and simpler examples as illustrators of the scope of spectrum, using the UK Nirex example as a useful illustration when high clarity is worth while.
- Terminology/concept issues which may be important.
- Modelling concerns which stay the same.
- Different people with different perspectives and agendas.
- Integration with the formation and shaping of corporate strategy.
- Constraints imposed by broader strategic goals and the importance of key multiple attribute and multiple criteria trade-offs.
- Whole lifecycle issues, including the discount rate used.
Next lecture: Risk Management in Portfolio, Programme and Projects
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Head of Business Risk NATS (formerly known as National Air Traffic Services, UK)
