RelativeResourceManager11 - Strategic Planning SPA-04-8384...

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GartnerGroup Entire contents © 1998 by Gartner Group, Inc. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner Group disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner Group shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice. Strategic Planning, SPA-04-8384 M. Light Research Note 30 June 1998 AD Project Risk: Get a Grip Chartering risky AD projects with proper assessment of their risk can be strategically sound. But often risk is neither assessed or tracked, nor is potential impact on other projects evaluated. Project sponsors’ business cases typically draw attention to all the benefits of their proposed projects, but cost/benefit analyses seldom seek to identify the risk to the overall portfolio that a project could pose. Danger signals around risky projects often go undetected well into a project’s life, even as resource and duration requirements become clear. As a result, IS and AD organizations typically expend substantial resources on eventually canceled projects — wasted effort that is preventable with proper risk management, by which we do not mean managing schedule risk (e.g., via Monte Carlo-style simulation to anticipate critical path schedule slippage), but assessment of both project and portfolio risk. Any tardy or canceled project in the portfolio is comparable to a delay on the critical path of a project: A late project draining vital resources can throw off several other projects’ plans. Therefore, prior to chartering a project, IS/AD management should make a disciplined risk assessment of any project likely to take more than a person-
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This note was uploaded on 12/05/2011 for the course IST 352 taught by Professor Staff during the Fall '10 term at Syracuse.

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RelativeResourceManager11 - Strategic Planning SPA-04-8384...

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