PROF. ANN

Assignment 1: Assess Organizational Readiness

BUS 519 – Project Risk Management

by

Michell Waters

Submitted to: Dr. Paul Jaikaran

Winter 2017

Critical Success Factors are the number of limited characteristic, some condition or some variables that possess a direct or serious consequences on the effectiveness, the efficiency and the viability of an organization, some given program, or a project. The activities concerning the Critical Success Factors must always be done at the highest level that is possible to the overall intended objectives.

1. Analyze how the Critical Success Factors (CSFs) apply to the facts of the case study. Provide examples to support your analysis.

Answer: The mismanagement of the public issues is a planning process that is strategically aimed at identifying the current or the issues that are emerging and the trends that have the ability of causing an effect on the goals of the organization. The moments the issues are identified, the businesses are expected to take an analysis of these trends and put the necessary plans that will help in providing the best response to the impact caused by these issues. In general, the management of issues entails the handling of issues that are in the external environment and those which have a direct impact on the internal operation of the company. Public issues are the concerns that an individual may have and tends to act in a manner that he/she is trying to make others aware of the issue. In most cases, the issues arise from the problems that tends to affect the members’ interest in some society.

These issues may have an involvement of several parties, in most cases, the parties possess perspective and agendas that are different. What makes it important to manage public issues is that the company may never know how or who started the issues. It may not know for whom the issues are for or whom the issues will be a concern for, the effect that the issues may have on the firm currently or in the future and the methods that the firm may be required to give an adjustment to its operations. If there is a successful management of the firm’s issues, then this can make it easier for the firm to have complete trust and interaction from the stakeholders. These are the people who raised the concerns to give a guidance on the development and the resolution to the firm’s issues. This helps the firm to be part of the solution, but not the problem to be solved. This helps the firm to avoid being caught off-guard.

The public issue that is being faced by British Petroleum is the fact that all stakeholders are expressing a feeling of being fed up with the signs of the firm’s adherence to its traditional culture of risk (Peden & Bamberg, 2001). These are risks that has their origination from the cost-cutting by the firm that was over-zealous and the firm’s lack of contrition for the results that are tragic and deadly. It is also good to note that the issue was not because of the new people in the firm. The article states that people had become aware of the normality of British Petroleum to operate for so many years without regarding the safety of its employees and the consumers of their products. People also knew the habit of the British Petroleum to ignore penalties.

The disaster that occurred in the Gulf of Mexico, which was very terrible, is just a countable of the spills of oil that fixed by the British Petroleum, however, in this case, the firm could have continued with the fixation of their pipelines to prevent such disasters (Peden & Bamberg, 2001). In the case of the disaster in the Gulf of Mexico, there was rampant mismanagement of the public issues. This resulted to the stakeholders becoming outraged to the lack of transparency at the British Petroleum, the stonewalling of the firm and the noteworthy flippancy on the damage that was caused on the environment and the subsequent demise of around 11 individuals (Black, 2011). The poor management of issue at the British Petroleum has led to the facilitation of some sort of mushrooming of something that could have been an issue in the local setup into an issue in the global stage. This may make it very hard for the British Petroleum to have any survival chances.

2. Determine the project benefits, organizational readiness, and risk culture of the company in the case study. Provide justification for your response.

Answer: Estimating potential development project benefits inappropriately have not always been subjected to similar level of analytical rigor that doctors insist on applying in typical Six Sigma work. The responsibility lies in the absence of an analytical practice. Scheme teams can help themselves over this obstacle with a straightforward technique for calculating possible and actual advantage. Benefits Organization" is the process by which you safeguard that your schemes deliver what you poverty. Done efficiently, it helps safeguard that your project's deliverables give worth to the commercial, and the appropriate reappearance on investment.

Organizational readiness: The first stage to take before starting a pro bono scheme is to ensure that your group is ready to make the greatest of your skilled helpers’ time and expertise. Fruitful pro bono projects require organizational constancy, strong devotion to volume building, focus on connection building, and a secure time promise after your staff. The queries in this organizational readiness valuation created by Shared Impact will help you measure whether your group is ready to realize the full possible of a pro bono scheme and, if not, what you'll essential to do to get there. Change organization experts have highlighted the importance of founding organizational readiness for alteration and recommended numerous strategies for making it. Though the advice seems sensible, the technical basis for it is incomplete.

Risk culture: Many risk-management actions at the enterprise level are prejudiced by various weights. Some are outside, such as compliance or controlling changes, for example. Occasionally, unfortunate actions in one’s own company or in the manufacturing prompt internal soul penetrating regarding whether current risk-management methods are adequate. In additional and more bags, however, CEOs and commercial leaders take a more active. Risk culture is a term telling the values, politics, knowledge, insolences and understanding around risk shared by a group of persons with a common drive, in specific the workers of an organization. This smears to all governments from private businesses, public bodies, administrations to not-for-profit.

According to our answer these are all the footings are important for an group because they provide different-different roles in organization.

3. Develop at least three (3) project risk recommendations based on the analysis from criteria number 1 and 2 of this assignment.

Answer: There are several advantages that are attached with having a good and working risk management strategies. Like in this case, the British Petroleum could have gained so much money if they have dealt with the uncertain events of the projects in a manner that was proactive. This is because, it could have helped them in the reduction of the impacts that could have been caused by the threats on the project and make good use of the riding opportunities. The following are some of the recommendations that the British Petroleum could have used in the management of the risks that they were exposed to.

They needed to make risk management part of their project. This is a rule that has so much importance on the success of the risk management of the project. In our case, if the firm could have put risk management as part of their project, then they could have set money to help in tackling of the risks (10 Golden Rules of Project Risk Management, 2016). The firm could have identified the risks in the early stages of their project.

This is also the first step that should be undertaken in the process of managing risks in an organization. This could have helped the firm to foreshadow the chances of any risk occurring and providing solutions to it before it occurred (10 Golden Rules of Project Risk Management, 2016).

The firm should have considered both the threats and the opportunities of the project. The risks that are encountered in the projects tends to have some connotations that are negative. The opportunities of the organization are the events that uncertainly happen and are beneficial to the organizational projects. The threats are the things that tend to pull the organization behind. These are the things that happen to undermine the development of the organizational project.

4. Identify the initial categories of risk (RBS Level 1 and 2) that you see as being present in the case study using the Example Risk Checklist (Figure A-2, Hillson & Simon text).

Answer: There are several initial categories of risks that occurred in the management at the British petroleum. The first one are the tragic disasters that happened on the pipelines of the British Petroleum. This helped in the unveiling of the second risk that the organization was being faced with now, the risk of failing to fully tackle the disasters due to the lack of financial allocation that was set aside to help the fight of such calamities. The firm was also at a risk of being dysfunctional. This was after the state holders identified the mismanagement that was taking place at the firm and became outraged. The miscommunication that took place at the firm was also a great risk to the firm. This is seemed when the firm lied on the actual amount of oil that was being spilt and the danger that it was exposing the public and the environment to. Finally, the resignation by John Browne also exposed the firm to some risks (Black, 2011). He was a good leader and being lost by the company was very heartbreaking.

Example Risk Checklist:

At RBS level 1;

Practical risk.

Organization risk

At RBS level 2:

Scope meaning; Scope vicissitudes may arise throughout project. Jobless scope may be discovered. Requirements meaning Client may present significant change throughout scheme (positive or negative). Internal discrepancies may exist within supplies. Key supplies may be missing after formal requirement.

Estimates, expectations and restraints Basis of approximating may be incorrect. Planning molds may be invalidated throughout project. Imposed restraints may be reassured or detached.

References

Peden, G., & Bamberg, J. (2001). British Petroleum and Global Oil, 1950-1975: The Challenge of Nationalism. Albion: A Quarterly Journal Concerned with British Studies, 33(4), 699. http://dx.doi.org/10.2307/4052946 Black, E. (2011). British petroleum and the redline agreement. Washington, DC: Dialog Press. 10 Golden Rules of Project Risk Management. (2016). Project Smart. Retrieved 19 April 2016, from https://www.projectsmart.co.uk/10-golden-rules-of-project-risk-management.php