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Project Risk Management

Avoid cost and schedule overruns on large, complex projects.

The Problem

Everyone's been on at least one. The big project that goes way over budget or is months late. The project that doesn't live up to the expectations of the people paying for it. And at the end, lots of blame goes around. Issues weren't raised early enough. Expectations of success were unreasonable. Half the team was out of touch with what was going on. A supplier or contractor didn't deliver. Contingency planning was poor or misinformed.

Many project failures are caused by gaps in timely and accurate information for project managers and sponsors. These failures cost organizations millions, not to mention the impact on shareholder value, morale, and competitive positioning. Specifically:

  • Office politics influence the quality of information conveyed about projects to leadership
  • Risks related to scope change, 3rd party dependencies, and market forces are difficult to gauge
  • Lack of awareness of project risks and mitigation strategies means 11th hour "fire drills"
  • Collaboration platforms and project management tools are assumed to close all information gaps

The Solution

One of the most challenging aspects of running a large project is trying to avoid informational "blind spots" such as unforeseen risks or missed milestones that will cause problems down the road. You have status reporting and communication processes defined, a well defined delivery methodology, yet you are still caught by surprise on a regular basis.

Diversity

We aggregate people's opinion about what they think the chances are something will occur. These participants could be from the project, from other groups in the organization, or even from other companies in a value chain or business partnership.


Using the Inkling Markets platform, you can collect anonymous and continuous input about project milestones and the likelihood of risk factors occurring from your entire project team, subject matter experts, business partners, and consultants. There is no system integration necessary, no transfer of data, and little learning curve.

An Example

From global energy to telecommunications, large organizations across multiple industries are using our solution to be aware and act on risk factors deemed likely by the collective wisdom of their employees and partners. For example, an energy company recently posed these questions about an offshore oil rig project. They immediately began obtaining actionable information their program management office used as input for guiding the project:

Question Chances
Will stress testing of the semi-submersible rig's anchor cables be completed by June 15th? 78%
Will the holding tank sensors being delivered from ACME pass quality assurance testing? 22%
Will the dynamic positioning equipment team be fully staffed by April 1? 89%

Using this information, project management is re-allocating resources to make sure a deadline is met, resetting expectations with project sponsors, or simply asking follow-up questions about risks that have more than a nominal chance of occurring.

In addition to these quantitative expressions of opinion, we encourage participants to express themselves in words, so you get insight in to what their thinking is. Why do people believe a milestone is ahead or behind schedule? Why is a project risk likely or not likely to happen? Further, every question asked is accompanied by a discussion forum where people often share new information.

Benefits

A robust technology platform is only half the battle. You've likely never run a prediction marketplace before, so we help you ask the right questions, involve the right people, and provide the appropriate incentives. But most importantly, we help you understand how to incorporate the information you glean in to your decision making processes. Specifically we help you accomplish:

  • Process Improvements: Augment your project delivery methodology by enhancing your schedule and risk management approach.
  • Increased Transparency: Enable constant information flow among multiple teams, business partners, and consultants.
  • Valuable Insights: Produce behavioral insights about the project and its players that would not have been available otherwise.

Helping you make these improvements are where the business case for our project risk mitigation solution comes from. Each time you gain actionable information that helps you avoid a risk or missed milestone you have the opportunity to avoid budget and schedule overruns which have a direct financial impact, either in cost savings or revenue generation from having your product or service available on time.

Contact us to learn more...