When it comes to risks, everyone usually knows that we need to care for them during the project, but how, when, and what is the main purpose is harder to understand. So let us focus on catching how risks impact the project price. How they differ project by project.
I will also compare risks in agile to traditional models giving you examples specifically for Salesforce projects. Last but not least is managing risks in Bodyshop or Fixed Time & Fixed Price contract model.
Do not underestimate risks in your projects. It is a key factor for successful delivery.
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How to work with risks in Salesforce projects?, Tomáš Holý
1. How to work with risks
in Salesforce projects?
by Tomáš Holy
2. #CD22
Delivery Director
Phone: +420 603 375 507
tomas.holy@enehano.cz
www.enehano.com
Address: Wenceslas Square 837/11, 110 00 Prague
The Czech Republic
Tomas Holy
3. #CD22
Definition of a risk
Why do we manage the risks?
How much do the risks cost?
Who owns the risks?
Risks in Agile and Waterfall
Salesforce projects’ common risks
Agenda
4. #CD22
Risk implies future uncertainty
Risk = not happened yet (has probability) / Issue = risk occurred (certainty)
Risk Management Problem Management
Risk
Identified
Risk
Occurred
Measures defined Solve issue / problem
Risks impact: scope, quality,
time, people, budget
5. #CD22
We manage risks to minimize the harm
Project
costs
Time
Risks are managed
Risks are not managed
Our goal is to maximize business value delivered
First risk occurs
Avoidable
extra costs
Effort to
manage
risks
6. #CD22
How much do risks cost us?
Risks
contingency
budget
Avoid, accept, transfer, mitigate
Effort to
manage
Project price = costs + margin + risks contingency
Plan B for handling a risk if it occurs
How much to put aside for
risk contingency?
7. #CD22
Who owns the risk?
vendor
client
Time and Material / Bodyshop
vendor
client
Fixed Time Fixed Price
• Unclear defined scope
• Contingency for penalties
• Change management
Higher
risk
• MVP lowering scope flexibility
• Limited (fixed) client budget
• Fixed Go live date
Higher
risk
In both contract models risks need to be managed!
Who is going to pay for
the risk?
8. #CD22
Most effort is at beginning of the
project / Predictive planning
Risks are in risk log
Risks in Agile and Waterfall
Most effort is before each sprint
Risks/Impediments are in backlog
Risks might be specific for each
sprint
In both delivery methods risks need to be managed!
9. #CD22
● Not having defined clear roles / responsibilities of team members
● Missing or weak business/product owner on the client side
● Wrong client expectation of Time and Material delivery
● Underestimated customization
● Data migration / low data quality
● Complex integrations to the client environment
● Project deployment during SF release
● Not defined SLA/Hypercare after the delivery
Salesforce projects’ common risks
Each project has specific risks!
10. #CD22
Managing project risks is a key factor for successful delivery!
Summary
Thank you for your attention!
Feel free to discuss this topic further and visit me
at our Enehano Solutions stand.
My profile
My name is Tomas, I am from Enehano solutions, responsible for projects delivery
Nice to meet you all here
What is our agenda for today
– here are the things we are going to talk about – you can read it on the screen
Do not be surprised there is a risk in each one of them
- we have 25 mins
- please keep your questions for the end
And so we are going through all of these points today
First of all let us have a common understanding what risk is.
Before we define risk let us take a look to one example here..
Imagine the client will not have enough people during for the project.
It has not happenned yet, it has a probability and impact
So what can we do about it ???
We can consider some mitigation actions such as
What do I mean by this..
first, secondly..
e.g. There is a risk that the client will not have enough people for the project. This could impact time, quality, scope.
Mitigation action:
We asked the client to book in advance all the resources at expected capacity.
Set the project priority high to management.
Set escalation matrix.
Set communication plan with deputies.
Plan some phases in parallel to avoid the dependencies.
Research within the company or use external hiring.
Plan all holidays in advance.
We mitigated the risk well but not fully. There is still probability it could happen.
Therefore, we also prepared contingency plan. If there is lack of resources the project will be postponed.
e.g. have prepared external person available immediately
This will generate extra costs.
Take place / occur / happens
why do we manage the risks? Because we can – we have time for it, and it will save money
Do we want to waste money or save them?
Because it has not happened, yet we still have a time to do something about it, right?
/ That is something we can anticipate beforehand.
We have time to get prepared
From the previous example – if we do not this – something will happen - TBD
As a result / this will lead to
We need to spend extra time to manage the risks but it results in such a better result.
Our example – without risk management
We start the project
after one week Tomas goes on holiday
Peter is going to another project with higher priority
What to do now? Hiring external resource – where?
Escalate it to who?
Project delay, other people waiting, recording time sheets
[Efrt / okrrr]
as you can see from the previous graph the risks costs money so it needs to be included it in the project price
The project price not only includes costs and margin but also.. Risk contingency
As in previous if there is no risk management the budget for issues will be much higher.
We always need to calculate risk contingency to project price.
Examples:
Avoid
the project takes place during summer holidays - we start after the holidays
Accept
We do not have detail analysis so there is a high probability of project changes
Complex processes on the client side which prolongs some milestones
Unknown customer
Transfer
Unknown technology – request subcontractor, sign contract
Insufficient resources on the client side – over assumptions
Mitigate
Design gap – by defining definition of done, by 4 eyes architecture..
inaccurate estimates – 4 eyes control, historical data from other projects
Let us look at the risk from the perspective of the contract. Who owns the risks and who is going to pay for it?
In both models we do the risk management – identify, assessing, monitor – however the risk contingency in case of FTFP is on our side, in case of TM on the client side
Our example: Who owns the risk if the the client does not have enough people for the project?
Each risk has some owner – so this one the client should be the owner, but from the project perspective if we do not transfer this risk to the client in a contract, we are responsible for the risk.
We are in charged / responsibile
What makes the risks higher in FTFP and TM?
In Waterfall everyone knows about risk management and having risk log. In Agile this is not as much experienced. Often risks are not managed.
the people do not view it as a priority, they view this as secondary
Have always in mind regardless of the delivery approach the risks need to be managed.
Both models needs to devote time for planning and risk identifying
In Waterfall
More up-front planning
lower user adoption, cumulative risks
In Agile
Repeated planning
more adaptive than predictive
Let us pick up few of them
Missing product owner – or more people, you do not want more people to make a decision and prioritize
Wrong client expectation of T&M – guaranteed deadline, budget.. Scope..
Underestimated customization – we want to use standard but.. In detail we realize we cannot use standard
Have always in mind each project has specific risks!
To sum up
To be able to follow the plan you always need to manage the risks
As you can see, it all comes down to effective risk managent
Je to na každém na projektu - všichni řídí rizika