Tuesday, 4 January 2011

Project Managers Risk Averse? - Part VII

 

The early bird gets the worm. Is this true in project management – or should project managers wait until they have a ‘Full Kit’? After all they would not go on an expedition to Everest without a ‘Full Kit’ or ‘Complete Kit’.

7. Start ASAP or Wait for Full Kit?

Is there pressure to start (a project) as soon as possible? Do project managers start work even if they do not have all the necessary elements (authorisations, specifications, scope, material etc.) assembled yet? Is it good practice to start as soon as possible – in order to minimize the risk of a late delivery? Is starting early a part of risk management by project managers in order to ensure a greater chance for an on time, within budget and complete delivery? Does the early bird catch the worm?

To start early is a sign of risk aversion – because of the belief that the sooner one starts the sooner the task or project will be finished. If I start early I will have less risk to deal with. But, is it really true?

What are the consequences of a too early start – before the project manager has all the necessary things he needs for the project?

  1. Will those that should deliver the necessary things feel pressure to deliver them on time? Or will they relax even more – after all the project has started so the information or materials I should deliver are really needed yet? Won’t starting early teach suppliers (of information and materials) that late delivery is not a problem? Won’t delays of necessary things tend to get longer and longer? What is your experience?
  2. If a project and its initial tasks start early, isn’t there a much greater risk of rework. If I don’t have the specifications I have to go with what I have – my knowledge of the target, preliminary specifications etc. If rework is sometimes necessary, will this add cost and time to the project?
  3. Is there a risk of compromising quality if rework becomes necessary? Rework costs time and there might be a (strong) temptation to cut corners when the pressure is on.
  4. Could it happen that missing materials or specifications etc. causes a project started early to be stopped? It is simply not possible anymore for the project to go on. Consider the consequences. Projects that lost resources in order to start yours have been delayed – and missing things did not yet block them. These projects are delayed as is the revenue they are expected to deliver.

There may be other consequences, but these seem to be quite important in time, reliability and their impact on the bottom line.

If we wait for ‘Full Kit’ what are the consequences

  1. Projects do start later, but will they finish later than they could (or should)?
  2. Multi-tasking will be reduced simply because new projects’ start dates are delayed until ‘Full Kit’ is achieved.
  3. If no project is started until ‘Full Kit’ is achieved supplying partners will be more concerned with delivery on time. Projects will be able to start with ‘Full Kit’. (Once ‘Full Kit’ is achieved there will remain the need to control the number of active projects.)
  4. Projects will probably not finish any later than otherwise. After all most projects spend a lot of time waiting in the queue for a resource (no matter how loudly the project manager can shout). If rework and multitasking are reduced (one or both) then the number of times a project has to wait in a queue is less and actual project advances become a greater portion of the total time – projects will be completed sooner.
  5. Can you come up with any truly valid negative outcome from applying the Full Kit tactic?

It looks to me that “Full Kit” should be standard practice for risk averse (actually all) project managers!

To read more on the ‘Full Kit’ principle look up the following article by Boaz Ronen (he calls it ‘Complete Kit’. http://www.boazronen.org/PDF/The Complete Kit Concept.pdf The principle, as you will see applies to production and project environments. Here is another article of the principle – applied to the healthcare industry. http://www.boazronen.org/PDF/The Complete Kit Concept - Implementation in the Health Care System.pdf

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