CAPM /PMP & & PMI- SP & PMI-RMP + PMI-APP

Transcription

1 Program/Project/Risk/Scheduling Management CAPM /PMP (Project Mgmt) & PgMP (Program Mgmt) & PMI- SP (Schedule Mgmt) & PMI-RMP (Risk Mgmt) Tips + PMI-APP Agile Jeff Hodgkinson, CAPM, PMP, PgMP, PMI-SP, & PMI-RMP Senior Program Manager Intel Corporation Chandler, Arizona / jeffrey.g.hodgkinson@intel.com Rev

2 Program/Project/Risk Management & CAPM /PMP (Project), & PgMP (Program), & PMI-RMP (Risk), & PMI-SP (Scheduling) Tips Presenter: Est. Time: Jeff Hodgkinson 1 hour Summary: This presentation focuses on the five (5) of the PMI Family of Credentials (CAPM, PMP, PgMP, SP, and RMP ). This is an overview of the credential requirements and benefits along with a brief training in each subject area. This presentation is intended to be informative and entertaining for all program/project manager experience levels. Questions in theses subject areas will be gladly answered as best as possible. Benefits: Attendees to the presentation should come away with a good understanding of the value and benefits of these credentials, the requirements to obtain, and some helpful tips on each. If an attendee is considering obtaining one or more of ether credential, the information provided and opportunity to ask questions should weigh inclusion into their decision to do so. Contact Info: jghmesa@gmail.com phxpmicredentials@yahoo.com LinkedIn:

3 Before We Begin to all you that attend this evening s session 4/20/2011 3

4 JEFF HODGKINSON I N S T R U C T O R B I O 31 year Intel Corporation employee. Currently Program Manager for the IT Internal Cloud Program. 28+ years of progressive Program/Project Management experience. IT@Intel SME, PM Domain Owner, and Open Port Blogger Managed numerous diverse global programs & projects in varying scope and budget. Received his Project Management Professional (PMP ) in 1991 (#713). Twentieth (20 th ) person to obtain the Program Management Professional (PgMP ). Obtained the PMI-RMP (Risk Management) credential in January 2010 (247 th ). Obtained the PMI-SP (Schedule Management) credential in November 2010 (387 th ). Obtained the CAPM in January 2011, per request of PMI (Five Credentialed) PMI Subject Matter Expert (SME) for Program and Project Management. PMI Phoenix Chapter Associate Vice President for Credentials & Certifications. PMI Phoenix Chapter Agile CER (Chapter Engagement Representative) nd Place Kerzner International PM of the Year Award. Group Administrator for two LinkedIn Groups and ten sub-groups PMI Distinguished Contribution Award recipient Published in numerous PM magazines, websites, and e-newsletters Ranked is the 51 st Top Networked on LinkedIn. 3 rd most recommended person on LinkedIn. jeffrey.g.hodgkinson@intel.com LinkedIn: 4/20/2011 4

5 LinkedIn Group & Sub Groups For PgMP applicants PgMP Founder and Group administrator for the 'PgMP Credentialed Networking Group' on LinkedIn and the twelve (12) related sub-groups. Including the 'PgMP Credentialed Only' sub-group with 69% (400/565) of all PgMP s worldwide are members. The main purpose of this group and sub-groups are to assist PgMP applicants by sharing information and providing support from those who have obtained the PgMP credential. Anyone in program/project management in earnest of obtaining their PgMP credential may apply to join. RMP SP Currently members Agile 4/20/2011 5

6 Agenda Introduction Announcements Project Management Tips & the CAPM /PMP Program Management Tips & the PgMP Schedule Management Tips & the PMI-SP Risk Management Tips & the PMI-RMP Summary Questions & Answers 4/20/2011 6

7 If you learn just one thing in today If you have a CAPM, PMP, PgMP, SP, RMP, and/or OPM3 from PMI, then you have a credential not a certification. Additionally Be sure you change your resume, signature, business cards and other documentation accordingly to reflect that please. Don t forget the PMI refers to all of their family of credentials as such and as a project and/or program management professional you are credentialed. A certification though always a good thing has a lesser connotation. Thank you PMI asks us to do that; so I m making you aware. A certificate is usually a piece of paper that validates the fact that you successfully completed something like a course. A credential is something that is represented as a part of your title which involves an element of experience or application of knowledge something you ve earned by navigating through something personally like an advanced degree (in which case, an internship or thesis often represents your application of the knowledge). 4/20/2011 7

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9 PMI Registry We Are Always Asked: How To Check the Registry? Here's the simplest way to get yourself the info. anytime you need: 1. Go to PMI's Online Registry link. Go to Type Registry in the Search Or which credential you want to check 2. Type "%" in the Last Name Column Choose "PgMP" in the Credential drop down menu. Click Search. You will get the list of everyone who had earned this credential - by city, country and the date credential earned. 4. Copy and paste into Excel and you will be able to sort the data. 4/20/2011 9

10 PMI CCR PDU Category Update (6 categories now from 15) Category 2A: Author/coauthor of article in refereed journal Category 2B: Author/coauthor of article in non-refereed journal Category 2C: Speaker/teacher at conference, symposium, workshop or formal course. Category 2D: Speaker on a project management topic at PMI component meeting Category 2E: Member or moderator of a project management panel discussion Category 2F: Author/coauthor of textbook Category 2G: Developer of courseware

11 Category A: Courses offered by PMI s R.E.P.s or Chapters and Communities Generally one PDU per contact hour of project management course work. The R.E.P. will have the PDU credits for each certified course defined. This category also includes most Chapter meetings and the PMI Publication Quizzes Category B: Continuing Education Generally one PDU per contact hour of project management course work. Options include: Completing an academic course being offered by a university or college Attending relevant educational courses offered by training organizations NOT registered with PMI. This may include training (or a Webinar) offered by your employer, another professional or membership association, or a non R.E.P. training organization. When only a portion of a course relates to your credential area of expertise, calculate PDUs by the percentage of the overall curriculum focused on the topic. you need to keep the transcript or grade report for an academic course, indicating a passing mark. If a non-pmi REP or Community course or conference you need to keep the registration form, certificate or letter of attendance, and a brochure or course materials (syllabus) outlining the subject matter covered and the qualifications of the instructor/lecturer. Category C: Self-Directed Learning A maximum of 30 PDUs per cycle for PMP and PgMP holders and 15 PDUs per cycle for PMI-SP holders may be earned through self directed learning activities. Qualifying activities must be relevant to project management, project scheduling, or program management, meet a specified purpose, and use knowledgeable resources. You earn 1 PDU per hour spent in self-directed study. PMI require you to keep evidence supporting your reported learning project, including notes from and dates of discussions or reading. Learning may include informal activities such as: reading articles, books, or instructional manuals; watching videos, using interactive CD-ROMs, Podcasts or other source material; having formal discussions with colleagues, coworkers, clients or consultants; being coached or mentored by a colleague, coworker or consultant Category D: Creating New Project Management Knowledge (a maximum of 45 PDUs can be earned from categories D, E and F combined, 20 for PMI-SP) Earn PDUs for creating new knowledge for the topic related to your credential area of expertise (project management, project risk management, project scheduling, or program management). Qualifying activities include: Authoring (co-authoring) a project management textbook, a peer-reviewed article or a non-peer-reviewed article for publication in any media, Presenting in a webinar or podcast Creating a course or developing course content for project management related courses Serving as a speaker or moderator of a relevant discussion Serving as a subject matter expert for a panel discussion 1 PDU is awarded per 1 hour of activity in this category. Category E: Volunteer Service (a maximum of 45 PDUs can be earned from categories D, E and F combined, 20 for PMI-SP) 1 PDU is awarded for 1 hour of volunteer (non-compensated) service. To claim PDUs for service as an elected officer or appointed committee member, you must serve in the role for a minimum of three months. this category includes serving as an elected volunteer officer for a project management organization or by providing volunteer, non-compensated project management, project risk, project scheduling, or program management services to non-employer or non-client organizations and mentoring support to individuals. For volunteer services you need a letter or certificate from the organization served acknowledging you for leading project tasks or participating as part of a project team. For coaching or mentoring services you need evidence supporting your coaching or mentoring arrangement, including notes from and dates of discussion or reading. Category F: Working as a Professional in Project Management (a max of 45 PDUs can be earned from categories D, E and F combined, 20 for PMI-SP) For working as a project management professional for a minimum of 6 months within a 12 month period, you can earn 5 PDUs per 12-month period if you hold the PMP and/or PgMP credential(s) and 2.5 PDUs per 12-month period if you hold the PMI-SP and/or PMI-RMP credential(s).

12 Breaking News announced Weds 2/23/11 4/19/11: Over 5000 have applied so far PMI-APP (Agile Project Professional) 6 th credential (unofficial name) PMP hrs Agile +120 Q exam +21 hours training What is Agile? Agile is a philosophy that uses organizational models based on people, collaboration and shared values. The Agile Manifesto outlines tenets of agile philosophy. Agile is based on rolling wave planning; iterative and incremental delivery; rapid and flexible response to change; and open communication between teams, stakeholders and customers. There are many agile approaches that adhere to these tenets, such as Scrum, XP, Lean and Test-driven Development (TDD), etc. How many questions are in the exam? There are a total of 120 questions on the examination. Of the 120 questions, 20 are considered pretest questions. Exam time is 3 hours. $435 USD May Applic Sept - Exam PMI Agile CoP Agile Training Webinar List

13 FYI March 30, percent of executives surveyed claimed that project management is either critical or somewhat important to their operations, ducation/best-graduateschools/top-businessschools/articles/2011/03/ 30/mba-programs-focuson-projectmanagement?PageNr=2 4/20/

14 Project Management Institute (PMI) Is the world recognized organization for Project Management. Offers training, certification, standards, reference material, Sponsors PMI Chapters, and conferences 260 chartered and approximately 10 potential chapters Geographically dispersed over 90 countries Maintains the Project Management Body of Knowledge (PMBOK): The 9 disciplines a PM must master PMI is a not-for-profit global professional association for project management practitioners. Similar to the Certified Public Accountant (CPA), Certified Financial Planner (CFP) and the professional organizations that support these certifications, PMI currently administers five credentials as follows: Certified Associate in Project Management (CAPM ) Project Management Professional (PMP ) Program Management Professional (PgMP ) Scheduling Professional (PMI-SP ) Risk Management Professional (PMI-RMP ) PMI Family of Credentials 4/20/

15 CAPM / PMP Credential 15

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17 Program/Project Laws Work expands to fill the time allotted Parkinson s Law "If it can go wrong it will... - Murphy's Law "If it can't possibly go wrong, it will - O'Malley's corollary to Murphy's law "It will go wrong in the worst possible way - Sod's law When things are going well, something will go wrong Lee s Law "Murphy, O'Malley, Sod, Parkinson, and Lee are alive and well - and working on your project. 17

18 Program/Project Laws The 1st 90% of project takes 90% of the time and the last 10% of a project takes another 90%... Law of Integration The user will get less and less output when adding additional doses of an input while holding other inputs fixed - Law of Diminishing Returns You are most ignorant about the project at the beginning when you have to make firm decisions on costs and schedule Reality Bites 18

19 PMBOK The is the generally accepted standard for project management practices. Defined within the PMBOK are nine knowledge areas. These are: 1. Project Integration Management 2. Project Scope Management 3. Project Time Management 4. Project Cost Management 5. Project Quality Management 6. Project Human Resource Management 7. Project Communications Management 8. Project Risk Management 9. Project Procurement Management 19

20 Program vs. Project Manager PgMP PMP Manages a group of projects that are directed toward a common organizational objective Works to ensure ultimate success of the overall program Demonstrates sufficient knowledge and experience to make decisions that advance strategic objectives Defines and initiates projects and assigns project managers to manage them Responsible for leading and directing project tasks Responsible for overall project success Manages projects to stay within specified scope, budget and timeline (managing risk and quality as well) Responsible for individual projects 20

21 Project Management Communicate (Intra-team) Plan (Documents) Execute (Meetings) Leadership (Matrix Team) 21

22 Communications People Lines 1 Lines of Communications # of project team members N(N-1) Team of 5 persons 5(5-1) = 10 2 Team of 10 persons 10(10-1) = Team of 20 persons 20(20-1) = Team of 50 persons 50(50-1) = Each person you add to a project exponentially increases the # of communications within the project team so try to limit your teams to core essential people 4/20/

23 CHANGES TO THE PMP EXAM Effective 8/31/11, the PMP exam will be changing. Below is a summary of the changes/impacts: The changes are based on an updated role delineation study performed by PMI and DOES NOT affect the PMBOK Guide 4 th edition. The educational and experiential requirements for the PMP exam will not change. The number of PMP test questions and time allowed for the exam will not change. The exam content and % of test questions will now be based on 5 domains: 1. Initiating the project 13% 2. Planning the project 24% 3. Executing the project 30% 4. Monitoring and Controlling the project 25% 5. Closing the project 8% 100% The number of exam questions will remain the same, however, approximately 30% of the exam content will change. Certain examination areas will be tested in a different way. Professional and Social Responsibility, (formally known as Domain VI), will now be tested in every domain. In addition, PMI s Code of Ethics and Professional Conduct should be viewed as integrated into the day-to-day role of the PM and important in every project lifecycle phase, and will now be tested in every domain. Based on the updated PMP role delineation study, new examination items are being added, and some old items that are being retired. More specifics about the revised PMP Examination Content can be found in the following outline (click here). 4/20/

24 I wouldn t be a good Project Manager if I didn t give you one good project management tip. The first activity in any project is to identify your scapegoat 4/20/

25 Program Management Tips & PgMP 4/20/

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27 Announced March 31, 2011 PgMP exam will change on January 1, 2012 To prepare you for inquiries and comments about the RDS, we are providing a PgMP Update Frequently Asked Questions (FAQ) document. This document is available at the Updates to the PgMP Certification Exam page on PMI.org which provides more detailed information about these changes. Please visit this web page for timely information regarding the PgMP RDS update. 4/20/

28 Program vs. Project Manager PgMP PMP Manages a group of projects that are directed toward a common organizational objective Works to ensure ultimate success of the overall program Demonstrates sufficient knowledge and experience to make decisions that advance strategic objectives Defines and initiates projects and assigns project managers to manage them Responsible for leading and directing project tasks Responsible for overall project success Manages projects to stay within specified scope, budget and timeline (managing risk and quality as well) Responsible for individual projects 4/20/

29 Program Management Communication (Vertical) Communicate (Intra-team) Communicate (Intra-team) Plan (Documents) Leadership (Matrix Team) Execute (Meetings) Plan (Documents) Communicate (Intra-team) Plan (Documents) Execute (Meetings) Leadership (Matrix Team) Execute (Meetings) Leadership (Inter-team, Organization) Leadership (Matrix Team) Impact (ΣResults) Strategy (Business Goals) 4/20/

30 Program Mgr Vs Project Mgr Program Manager Focus on interdependencies of the projects and feasibility of the deliverables and the business case Includes business and environment complexity as well as product/service PM drives requirements definition and includes work of all projects Allocated budget for the entire Program Many Project Managers and/or Team Leaders in multiple sites Program core team and extended project teams Integrated project schedules with summary level program milestones Definition Complexity Scope Budget Team Resources Schedule Project Manager Focus on deliverables, milestones, and tasks of a single project Typically limited to product/service complexity of a single project Limited to the work of one project with requirements pre-defined and handed off to the project manager Allocated budget for one project Single team Limited to a single project Contained to a single project schedule 30

31 Benefits Management and Program Management Life Cycles The Standard for Program Management, p

32 PgMP Credential Summary Area Objective: Comment Provide information on PMI s new PgMP credential. Scope: PMI has a new credential available to apply for after October Experience Required: Application Process: Costs: Min 8 years with 4 years of Program Management experience and 4 years of Project Management with BA degree / 7yrs w/no degree. Three major steps: Verified Application > Compressive multiple choice Exam > Multi Rater Assessments (MRA s). *$1,500 (USD) for the credential only *note: PMI Members cost. Clarifications: Don t have to be a PMP already. PDU s for recertification count cumulatively 3 years). Difficulty: Intense as it s designed, not to be easy so to have impact in the job market. Several have spent over 250 hours overall. 50% fail the exam on the first try. On average, 14 people a month obtain the PgMP. Benefits: Worth $25 40K US in the job market. Respect and global credibility. Assistance: I ve offered to assist anyone interested, seriously interested! 32

33 Three Step Evaluation Process Summary 1.Application Review Work Experience Verified and Assessed Project & Program Management Experience Verified by PMI may be audited Program Management Experience Assessment by Program Manager Panel Based on Eight Experience Summary Statements 2.Examination 170 Multiple-Choice Questions 150 scored & 20 in pretest 4-hour Time Limit Primarily Scenario-Based describe situation and ask questions about it Primarily Program Management Questions with some Project Management 3.Multi-Rater Assessment Similar to 360 o Review PgMP Credential Self / 1 Manager / 4 Peers / 4 Direct Reports / 3 Prof. References Assessor list is built from Application (but you can change them) 74 Questions Relating to Program Management Competencies 33

34 PgMP Credential Process Overview Step 1: Pass the Application Review Step 2: Pass the PgMP Exam Step 3: Pass the MRA Process Fill out Application PgMP Application online If you meet the criteria, PMI s validation forms Hard copy mail to verifier and get signed & sealed then mail to PMI PMI reviews History & Questions then gives Test info & code The questions are based on the blueprint contained in the PgMP Examination Specification. The percentage in each of the program management domains are: 14% - Defining the program 12% - Initiating the program 20% - Planning the program 25% - Executing the program 21% - Controlling the program 8% - Closing the program Take exam at local Prometric Test Center (4 hour time limit) Test is 170 questions all multiple choice (4 answer options) - 30 to 40 questions are subject expertise - All other questions are based on given scenarios on all types of Programs with 2-4 questions per scenario Minimum of 13 MRA s (Multi Rater Assessments) need to be returned in a 3 week period with successful or better rating: 1: Manager 4-7: Peer 4-7: Direct Report 1: Yourself PMI sends out Letter and PgMP Credential (6-8 weeks) At best figure two months and most likely 5 months to obtain you PgMP 34

35 Program Management Process Groups (5) and Knowledge Areas (12) 35

36 Composite Profile of Credential Holder Age Category Location years of age Likely lives in North America Description Salary Salary range of USD $131,000 - $140,000 PgM Experience PM Experience Position Education Credentials Future Satisfaction Career Benefit Nine years (9) of program management experience Fifteen years (15) of project management experience Functioning as a Program Manager in an Information Technology related discipline. Likely has a Bachelors Degree and may have a Masters Degree. Holds the PMP credential as well and is considering other credentials. Would likely be interested in a Portfolio Management credential in the future. Has realized some intrinsic value in attaining the PgMP credential. Likely has not received a promotion or improved opportunity, primarily due to the state of the global economy. Is still struggling to realize tangible benefit from the credential due to its newness and relatively unknown nature. 4/20/

37 LinkedIn Group & Sub Groups For PgMP applicants PgMP Founder and Group administrator for the 'PgMP Credentialed Networking Group' on LinkedIn and the twelve (12) related sub-groups. Including the 'PgMP Credentialed Only' sub-group with 69% (400/555) of all PgMP s worldwide are members. The main purpose of this group and sub-groups are to assist PgMP applicants by sharing information and providing support from those who have obtained the PgMP credential. Anyone in program/project management in earnest of obtaining their PgMP credential may apply to join. RMP SP Currently members Agile 4/20/

38 PgMP Study Resources Amazon PgMP Exam Review: Flashcards PgMP Exam Review: Mindmaps Placemat PgMP Exam Review: Processes Placemat Program Management for Improved Business Results PgMP Flashcard Quicklet: Flashcards in a Book for Passing the Program Management Professional Exam PgMP: Program Management Professional Exam Study Guide Program Management For Improved Business Results Program Management Professional (PgMP): Implementing Program Management FYI: There are other study guides, books, & materials available that are not listed here. We suggest you join our LinkedIn groups and get feedback information from other PgMP applicants and PgMP' as to the quality and value of each book and/or study tool before purchasing. You are welcome to contact us for suggestions. 4/20/2011 Crosswinds Crosswinds Placemat for Version 2 ESI PgMP Study Guide LinkedIn PgMP Networking Group on LinkedIn PgMP Practice Questions & Answers Subgroup PgMP Credentialed Networking Only Subgroup PgMP Certified Community Website PMI The Standard for Program Management, PMI PgMP Credential Handbook PgMP Exam Specification Continuing Credential Requirements Handbook PMI PgMP Helpline 38

39 PgMP Training AMEGroup ApolloGroup Bay3000 CBTPlanet CrosswindsPM FACT Ginger Levin PgMP IIPMChannai IKOMPASS KnowledgeCentric MethodCorp SpringBok Mosiac Old Dominion University PgMP Exam Tools Protrain-Canada Terminus FYI: There are other training and bootcamps available and we are not recommending, suggesting, or endorsing any as preference. We suggest you join our LinkedIn groups and get feedback information from other PgMP applicants and current PgMP' as to the quality and value before purchasing. You are welcome to contact us for suggestions. As always, you should ask if the course is from an REP approved by PMI. We also advise checking with your local PMI Chapter Professional Development Team for local resources available to you. 4/20/

40 PMI-SP Credential 4/20/

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42 Start with the basics EV (Earned Value) The value of the work performed in terms of the approved budget X SV (Schedule Variance) The measure of the schedule performance vs. the baseline schedule X SPI (Schedule Perf. Index) The measure of progress achieved vs. progress planned X PV (Planned Value) The authorized budget assigned to the work being evaluated SV = EV PV SPI = EV / PV CV = EV AC CPI = EV / AC AC (Actual Cost) The total cost incurred to perform the work (actual funds spent) X CV (Cost Variance) The measurement of cost performance CPI (Cost Perf. Index) The measure of the value of work completed, vs. actual cost 4/20/

43 Schedule Performance Minus (-) PV (Planned Value) BWCS (Budgeted Costs of Work Scheduled) Then know the calculations EV (Earned Value) BCWP (Budgeted Costs of Work Performed) Divided By (/) Cost Performance Minus (-) AC (Actual Costs) ACWP (Actual Costs of Work Performed) Equals (=) SV (Schedule Variance) SV = EV-PV + is good = ahead of schedule - is bad = behind schedule PV (Planned Value) BWCS (Budgeted Costs of Work Scheduled) Equals (=) SPI (Schedule Performance Index) SPI = EV-PV Sc AC (Actual Costs) ACWP (Actual Costs of Work Performed) Equals (=) CPI (Cost Performance Index) CPI = EV-PV Equals (=) CV (Cost Variance) CV = EV-AC + is good = under budget - is bad = over budget Good Warning At Risk >= <=.75 >1 is ahead/under = 1 is on track <1 is behind/over Ideal Manageable Mis-managed <.50 > /20/

44 EAC (Est. At Completion) An estimate of what the total project will cost, based on current performance ETC (Est. To Complete) An estimate of the cost of the remaining work to be completed VAC (Variance At Comp) An estimate of how much more or less the project is to cost in comparison to the BAC TCPI (To-Complete Perf. Index) The rate at which the remaining work must be performed, in order to finish at the BAC. Then You Can Forecast Calculations: EAC = AC + (BAC EV) If performing at the budgeted rate EAC = BAC / CPI If performing at a steady rate EAC = AC + ((BAC EV) / (CPI x SPI)) If considering both SPI and CPI ETC = (BAC EV) / CPI VAC = BAC EAC TPCI = (BAC EV) / (BAC AC) If based on BAC TPCI = (BAC EV) / EAC AC) If based on EAC 4/20/

45 Analyze Task Cancel Compile Create Contact Usually begins with a verb Describes work in progress Is not tangible Deliverable Usually begins with a noun or adjective Describes a completed state or output Passes the Look Ma! test Measured for quality, timeliness, etc. Milestone Past Tense ZBB Wait Update Schedule Train Verbs Revise Capture Review Complete Provide Determine Develop Investigate Obtain Identify 4/20/2011 Intel <> Jeff Hodgkinson 45

46 Project Schedule or team consensus on how to go about scheduling the project to make the deadline Probably the best example I ve seen of a schedule. Recall the 1965 movie The Flight of the Phoenix where after a plane crash in the Sahara, one of the survivors says he's an airplane designer and they can make a flyable plane from the wreckage. They have limited food and water and need to complete the airplane before the water runs out or they will perish. What do you notice about the schedule they create? How can we apply this thinking to our project scheduling today? Would doing this bring a clearer understanding among the team members? Let s check it out Chapters: Sandstorm Dorfmann s Idea 5 th Day Take-Off 4/20/2011 PMI Phoenix Chapter <> Jeff Hodgkinson 46

47 PMI-RMP Credential 47

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49 Risks 49

50 What is Project Risk Management? Project risk management is actively managing the risks on your project The goal of risk management is to be more proactive and less reactive 50

51 What is a Risk? A risk is an uncertain event that could have a positive or negative effect on your project. This means there is a probability between 1-99% that the event could occur If there is a 0% chance of an event occurring, there is no risk (example; there is a 0% chance your project will be adequately funded, this is not a risk, it is a reality) If there is a 100% chance of an event occurring, this would be an issue, not a risk Risks with negative consequences are called threats Risks with positive consequences are called opportunities (Yes, risk can be good! Stop thinking of risk as bad, and start thinking of it in terms of probabilities!) Mitigated risks are called watchlist items 51

52 Types of Risk Risks can be broken out into two primary types 1. Pure Risk (hazard) risk with potential loss only ex. Fire, theft, personal injury 2. Business Risk (speculative risk) risk with potential loss or gain ex. A highly skilled employee becomes available to work on your project, reducing your schedule time, the tax rate changes, a new server costs less (or more) than you budgeted for 52

53 Risk Management Processes There are six project risk management processes Go ahead and learn them now (in order), this is the only knowledge area in the Project Management Body of Knowledge (PKBOK) that must be completed in successive order 1. Plan Risk Management 2. Identify Risks 3. Perform Qualitative Analysis 4. Perform Quantitative Analysis 5. Plan Risk Response 6. Monitor & Control Risks 53

54 Risk Management Processes 1. Risk Planning this is how you plan on conducting risk management. You wouldn t start managing your project without a plan, so why would you approach risk management that way? * Remember Plan the work, and work the plan? Applies to risk management as well. 2. Identify Risks this is the phase where you attempt to identify most of your risks 3. Qualitative analysis this is a subjective analysis of your risks that produces a risk ranking, usually in the order of high, medium, low, or on an ordinal scale. Rankings are by agreement of your project team, sponsors and key stakeholders. 54

55 Risk Management Processes 4. Quantitative Analysis a numerical analysis of the probability and impact of the risk on your project 5. Plan Risk Response a course of action you will take to deal with your risks should they go from risk to issue 6. Monitor & Control Risks monitoring your lists (there are two lists which I will discuss later) of risks to enact a risk response plan, to move a risk from one list to the other, or to remove a risk because it is no longer a risk 55

56 Risks on a 5 level scale Example 56

57 Know Your: Formulas Knowledge Areas Processes

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59 I wouldn t be a good Program Manager if I didn t give you one good program management tip. 08/21/09 Jeff Hodgkinson 59

60 Questions? If you have any in the future please feel free to contact me: Jeff Hodgkinson, CAPM, PMP PgMP, PMI-SP, PMI-RMP Senior Program Manager - Intel Corporation -Chandler, AZ jeffrey.g.hodgkinson@intel.com AVP for Credential & Certifications Phx PMI Chapter Agile CER (Chapter Engagement Rep) Phx PMI Chapter jghmesa@gmail.com phxpmicredentials@yahoo.com /20/

61 Final Thought If you don t know where you are going any path will take you there and if you don t know where you are a map won t help 61