It goes without saying that we are in challenging times; the future has never been less clear.  Whether you are an employee or an employer, there is risk all around you. Many people will say that they don’t want to take any risks; they will follow tried and true methods and repeat those things they have done in the past that have provided them with success.

As a project manager I have come to realize that there is no such thing as a project without risk. First, because a project normally involves doing something that has never been done previously. Second, because few of us have a crystal ball that allows us to see the future and make decisions on what we already know will happen.

So, are you a risk avoider, or a risk manager? It is important to remember that the biggest risk is taking no risk. To paraphrase Will Rogers, “Even if you are doing fine, if you are standing still you will get run over.” President Teddy Roosevelt once said, “In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.” Making no decision is a decision!  

As a Certified Quality Manager through the American Society for Quality, I believe in fact-based decision making, but don’t fall into the trap of analysis paralysis!

Jeff Holowieko of Stony Point Communications reminded us in the June issue of The Greater Lansing Business Monthly that we will never have all of the data and we will have to make decisions on less than total information.

None of us in our lifetime will have enough information to make the perfect decision—quit waiting for it. If you made a mistake, deal with it, learn from it, and move on—don’t second guess your decision.

In our instructor-led project management courses and webinars we provide special tools that may be used to manage the risk. However, there are some simple, specific things we can do to lessen the risk to an acceptable level.

• Utilize face-to-face contact with all of the players. In the information age of the 21st century it becomes very easy to have most of our communication become digital. However, don’t underestimate the power of face-to-face communication to build supportive relationships and create the opportunity for two-way dialogue. E-mail is great, but is insufficient by itself.

• Run small, pilot projects to identify problems before a full rollout. The use of small pilot efforts and beta releases is a great way to find problems early and correct them before your entire customer base is affected. This allows you to handle risk on a small scale.

•    Implement technologies that are not “bleeding edge.” Technology should be advanced enough to allow you to get a good return on investment during the product/system life cycle, but not so new that the technology is untried and increases the possibility of failure.

When General Motors opened the Delta Assembly Plant, they used the latest technology that was in use. As a representative told me, “We are using the latest technology and processes, but nothing for the first time. Everything we are putting in place is technology that has already been applied successfully in other plants.”

•    Ask the “what if ” question. What if ______ went wrong? Challenge yourself to examine each step of the operation and seek out the possible pitfalls that could occur. What preventive measures can you put in place to make sure that an unforeseen event doesn’t cause a failure?

As I write this article, I am on a flight to North Carolina that was delayed for an hour and half due to the late arrival of the aircraft, caused by bad weather.  
Because this is always a possibility and I cannot afford not to get to my destination on time, I try to never schedule myself on the last flight of the day. This way one missed connection will not cause me to be late. I answered the question, “What if a delay causes me to miss a connecting flight?”

•    Seek the advice of others. This is probably one of the simplest and best tips. Look to others who have dealt with the potential issues already. Find out what they have done.  Sooner or later, we all have to admit to ourselves that we are not the “brightest bulb in the chandelier.” There are a lot of people out there who are smarter than we are, especially in some of the technical aspects that we have to deal with.
Seek them out, ask for their input, and use their knowledge to the benefit of everyone.

Risk is present in life and there is no escaping it. However, we can eliminate or mitigate the level of risk by not ignoring it and being proactive in our risk management efforts.

		Robert Wangen, president of DeWitt-based Implement Improvement, LLC, is an internationally recognized trainer and consultant.  Implement Improvement assists companies and organizations to build effective teams and leaders and to improve their business processes. To learn more, visit www.ImplementImprovement.com.