Mitigating risks in projects is troublesome and doing so from the project portfolio perspective is like taming a wild bear. Risk mitigation meetings go on for hours and senior management must sit through numerous slides. It is a wasted effort if nothing useful pans out. How do you address this situation? In this article at Kanbanize, Daniel Doiron discusses smart tips to mitigate project portfolio risks.
Project Portfolio Risks: How to Deal with Them?
Convincing the upper management for more resources when the project is in the brink of extinction takes courage. Managers would plead their cases but might not win majority buy-ins. The hurt would demotivate employees as well as waste company productivity. Use the following smart tips to address your project portfolio risks:
The CCPM Buffers: Eliyahu M. Goldratt introduced CCPM as a project management approach. It uses the Theory of Constraints (TOC) to solve issues related to tasks and deliverables. Critical Chain Project Management (CCPM) has 3 buffers—project, feeding, and resource. A project buffer is unique and is created to prevent overshooting project deadlines. A feeding buffer is a set of buffers that you use to protect some portions of the critical project management chain. A resource buffer is an artificial one that warns you of resource unavailability. Based on the decided critical project path, use these buffers to management project portfolio risks.
Use the Minimum Marketable Release (MMR) buffer from Steve Tandon’s Tameflow Kanban to escalate the critical path as a challenge. With these CCPM buffers, you can identify common and special risks later. You can even take action before composing the Cumulative Flow Diagram (CFD).
The MMR/MVP Buffers: MMR and MVP (Minimum Viable Product) are the same. Unlike common misconceptions, an MMR buffer can be used alongside the CCPM ones. The purpose of this buffer is to identify variations in project portfolio risks to mitigate them early. The Tameflow-Kanban MMR buffer tracks the average service flow time. You can divide the buffer into expected, normal, and abnormal variations. Utilize them as a Fever Chart, align them with a CFD, and later apply to a Bubble Chart.
The Fever Chart format displays buffer consumption as per MMR completion. Since the MMR consumption buffer scaling is similar to CFD, you can convert the Fever Chart to a Buffer Control Chart. As you have better visibility in risk probability, you can act on it faster now. Your next task is to collect project information and convert it into an MMR Bubble Chart. It will light up the projects or areas that require the maximum resources to mitigate project portfolio risks.
To view the original article in full, visit the following link: https://kanbanize.com/blog/mitigate-risk/