Monday, August 11, 2008

Assumptions are Risks

I reviewed a project schedule from another team that contained a list of 17 assumptions, any one of which would invalidate their plan if not held true. Naturally, they all referenced responsibilities or activities from other teams.

In other words, "we assume team X will do this, and team Y will do that. If they don't, we're not responsible when our plan fails."

How should a project manager respond to such a list?

Assumptions are risks. Replace assumptions with specific deliverables or activities to reduce risk. There should be no assumptions in a project schedule, only deliverables and their associated activities.

If there is any concern about whether team X or Y will deliver, add it to the risk list and manage it according to your risk management plan.

2 Comments:

Anonymous Glen B. Alleman said...

Micahel,
The notion that the project team is not responsible when another team - through the assumption - doesn't come true is of course nonsense.
Risk Management means one for four options for "handling" the risk.
(1) assumption, (2) avoidance, (3) control (mitigation or retirement), and (4) transfer.
Not being held responsible is not one of the options.
Nice try though for the forst team.

12:28 AM  
Blogger michael said...

They're trying to transfer the risk but from their schedule, it's unclear to whom. Consequently, in a weak matrix organization, this often becomes the PM's problem.

In this post, I'm suggesting that the PM buy down risk by adding deliverables and activities to the schedule, but you're right -- there are several options available.

Either way, however, a risk management process is crucial.

I appreciate the comment, thanks Glen.

12:59 PM  

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