Project Consultants Capabilities in Projects Risks

•For your area of practice/research, carry out a limited review of the literature. Try to review between 8 and 12 key peer reviewed journal articles?

•Identify the key issues in your area of practice and research.

•Part A: Which ‘types’ of research predominate in this field? (this includes research philosophy and methodology). Why do you think that is the case?

•Part B: Evaluate what the key authors have said about these issues? What do you think of the coherence of their arguments? To what extent have they substantiated their arguments by using evidence? Compare and contrast approaches.

•Part C: In what ways has reviewing the literature affected your understanding of the subject area.

Introduction

Risks are defined as uncertain adverse condition that slow down the progress of a project and the role of the project manager is to identify those risks and suggest effective methods through which these adversities can be reduced (Lam 2014). In this essay, eight journal articles on the risk management and the situations are being selected for the purpose of analyzing the contents and their risks with their possible solutions. The primary objective of this essay is to evaluate three key areas- identification of the key philosophical and methodological approaches relating to the nature of the subject matter, identification of the key theme of all the selected journal articles and to analyze the content critically. The third objective is to implement the key themes in the topic area for the essay along with addressing the selected research philosophy, approaches to data collection techniques and research design and potential informants.

Part-A

Research philosophy is used for developing the knowledge, background and the nature of the research topic. Usually, research philosophies are of three types- positivism, interpretivism and realism (Collis and Hussey, 2013). In this section, the selected philosophies and methodologies of the eight articles that are considered will be discussed and the different methodological approach for carrying out the research. The primary reason for selecting different articles is to find an effective way to assess the risk of a project and the methods to overcome those risks by the project managers.

Articles used qualitative research methods and research philosophy is interpretivism

The reason behind that some authors used interpretivism is to highlights real facts based on some particular situations and hence only a small amount of data is sufficient to analysis the risk and their probable solution. In one article, small amount of data that is 11 global computer services providers and their 19 information systems projects is considered. The primary objective of the author is to evaluate the gap between the perception of the risk management and the practice the managers take in real projects. Moreover, the primary details are collected qualitatively where the managers of NPD projects are questioned. The engineers and the project managers depict their interest in descriptive form and articulated 5­-10 risks associated with a project. Another article followed the same philosophy by taking fewer samples from 17 leading technologic industry belong and their 35 vital development projects. Small samples highlight specific risk situation that can help to find out the reason for those risks. The data collected is evaluated qualitatively through conducting discussions, interviews and some surveys with project managers so that approaches for organizational dynamics, work processes, decision-making, management systems and associated with project risk management.

Articles used qualitative research method and positivism research philosophy

Huge numbers of sources are being taken into consideration for evaluating critical success factors and project risks/failure factors in one article. This research method is to evaluate previous research work regarding the critical factors of the risk within a project. Between 1999 and 2008, 95 articles was published in top IS journal and between 1983 and 2000, 65 research articles and 110 case studies was published. These sources help to analyse the different consultant's approach for identifying the risk factors in a project and then effective measures they take and this process makes the author rank the most influential risk factor in a project.

Articles used quantitative research methods and research philosophy is positivism

The some articles the research philosophy that is selected in this journal is the positivism. The basic difference between this philosophy and the one selected before is that, in positivism philosophy, a large amount of data is taken into consideration and the author intends to prove their believe by analysing those large data. Another article considered a large number of samples that is 72 of Spanish companies. Moreover, the data collection process in the articles is risk checklists and templates with recommended actions and indicators. Moreover, five different projects are also considered that is based on ICT implementation, management systems and innovation so that the author can evaluate the risk involved in various factors. Another article focused on IT industry where primary data is collected by formulating a questionnaire for self-assessment of the efficiency of project managers and their practices and suggests solution towards the risk. Interpretivism philosophy is used to conduct the analysis on that particular sector. The perception of managers regarding the importance of risk management in the project is evaluated as many of them believed that it is unnecessary.

Articles used quantitative research method and philosophy positivism research

Another article that is based on positivism philosophy highlights the perspective of 1,296 responses is considered. Surveys are conducted with two questions with the help of risk professionals to evaluate the level of risk management practice to the other project management practices. In addition to that, enormous numbers of data are being taken for finding out the effective practices, risk factors and their solution for overcoming the risk and the recommendation for designing the future projects in every possible sector. However, all the articles that are selected are secondary and for the evaluation of all stages of the project risk management process, 29 articles from 149 are considered.     

Articles used quantitative research method and realism research philosophy

The basic difference between this philosophy and interpretivism or positivism is that no samples are considered but their facts are taken for a conclusion. In one article, the author only illustrates on real facts and analyzes the factors highlighted throughout the years. Various sensitivity metrics - criticality, cruciality, schedule sensitivity index evaluation are the steps assessed by the author to support the research study that to explore the uncertainty in project risk management.

Thus, it can be concluded that although some articles used qualitative research methods, most articles used positivism research philosophy. In this way biasness can be avoided through statistical analysis to find the exact scenario of the objective used in those articles. Large samples are used to proof the believe of author with proper evidence. Kendrick (2015) mentioned in his research work that no particular method for risk could be suggested as it depends on the requirement of each organization that varies in their objectives and procedures. Majority chooses the positivism philosophy, as more samples will suggest more effective the risk assessment can be made. However, the authors, who selected the interpretivism, have some strategies like they want to highlight a specific organization like Small enterprise of the Information technology industries. The methodological approach is qualitative in most of the case taken from survey for managers on the most effective risk management tools for their project management. The quantitative analysis also highlights the validity of the effective risk management tools.

Part-B

This section will discuss the major key concepts that are used in the articles:

Risk evaluation

Some managers do not think that risk evaluation is important while some of them considered it seriously and adopted tools to forecasting the risks. In the article “Bridging the Risk Gap” it is evaluated that highly risk regarding technical undertakings is involved in projects like new product development. These projects somehow suffer from the overrun from delivery time, budget, and outcomes. The method that is used in this article is qualitative that is to analyse the details of some company and is found that 94%  risk can be found through formal risk management process, while the 6% of the remaining risk can be excluded from further consideration and management. However, (Kutsch et al. 2014) depicts that the initial procedure is same for risk assessment in the very project and is comprises of three procedures- forecasting risks, assessing their importance and identifying the risk solutions.

In the article “Causes and remedies for the dominant risk factors in Enterprise System implementation projects: the consultants’ perspective”, through qualitative studies from extremely large data, it is found that most commonly occurred project failures factors are insufficient risk management, unclear project vision, lack of adequate user involvement, ineffective schedule planning, ineffective schedule planning. Additionally inappropriate choice of software and lack of effective project management skill are also the project failure factors. Moreover, in between 1999-2008, the most common approach for risk assessment for a project is to promote top management support and commitment; whereas, before that, a steering committee in every organization are liable for assessing the risk.

Marcelino-Sadaba et al. (2014) portrays that the size of the business is a crucial factor in business development, innovation is largely related with large enterprises than SMEs and hence plan better for the risk involved in the organizational proceedings. The research method that is used in this article is qualitative and it is evaluated that in small enterprises the common factor for the evolution of the risk is the lack of alignment of the project with the medium and long-term strategies of the company. However, Lech (2016) argued that, risks do not have to do much with its size but with the initiative taken by the project manager. Managers from small firms are not aware of the developing risk management tools like Market-Level (CAP-M), RIMS Risk Maturity Model (RMM), ISO, 2012, PMBOK, 2008 and TSO, 2009. These managers adopt traditional tools, which are less bureaucratic.

Thamhain (2013) argues that it is important to assess risk in in all stages of the project. The highest level of uncertainty occurred in the conceptual phase of a project development cycle and managers evaluate risk in this stage for approval of the project plan. Lastly, Rodrigues-da-Silva and Crispim (2014) states from his research that Risk Register and Risk Documentation Form are some effective tools for the risk identification and Risk Matrix/Risk Map, Project Risk Ranking and Multi-criteria analysis with fuzzy logic are tools that managers of the contemporary organization use it for analyzing and evaluating risks. Moreover, mitigation plan, contingency plan, planning and re-planning of the project are some methods used for the plan and act against the risks. Kraneet al. (2012) also depicts that periodic risk review, project raw data, customer satisfaction survey and monitoring using milestones are some methods for controlling the risk that can be reported and integrated through communication practices. Benchmarking, prototype or Mock-up are effective procedures for supporting risk management project that is used by the project managers to avoid risk in the project.

Role of a consultant

Use of consultant is the common category in both of these eras; however the difference lies on the fact that after 2000 only the vendor support was valued as an avoidance of risk; whereas, prior to this years, not only the vendor support is being emphasized but a vendor's tools and the partnership was also handled.  This information is gathered from the detailed research done by Lech (2016). In an article “Causes and remedies for the dominant risk factors in Enterprise System implementation projects: the consultants’ perspective”, it is stated that, change management can make the risk under control within a given scope, budget and schedule. An effective consultant reports the scope of the compatibility of the project with the company’s core business with the change management system. They are also responsible for reduce the communication gap with the clients for reducing the project risk if the client do not have knowledge for the soft skills required to handle the project. The client is liable to make their client understand that the risk in the project is more probable in front-end/initiation and planning/development phases and hence need to be assessed carefully. In the article “The paradox of risk management; a project management practice perspective”, it is said that in IT industries, ERS is divided into three main areas- project control, Security, Resilience and Testing and data analytics. 

Risk analysis

In the article “Bridging the risk gap”, traps and deterrents are considered to have an adverse impact on the final input of the project. However, the author here suggests that with awareness and proper attention, these risks can be overcome. The qualitative study in this article also concludes that most managers only looks for the familiar and the measurable risks and overlooks the new risks involved in the project and this highlights the gap between the risk evaluation and analysis. Brustbauer (2016) for the article “Project risk management methodology for small firms”, suggest that SME managers first have to identify the difficulties they are facing by detecting deviations and their possible causes as this organization intends to overlook initial and the final project phases and hardly pay attention to the closing phase of the project. A project closure is the crucial section, where small firm’s managers have to focus as these parts is rarely performed by any manager. Manager’s both quality- commercially and non-commercially exploitable results that highlights their technical, production, results protection and strategic and management skills ability.

In addition to that, a temporary way for risk analysis in the organizational projects is Activity-On-Node (AON) diagram. (Acebes et al. 2014) mentions that this image provides a visual representation of the project logic and information about its network. Every deadline can be denoted as different nodes the activity duration can be denoted in the table for calculating the variable cost and the fixed cost of the entire projects. In this way, a rough idea can be formulated. These activities have durational risks and calculation of the probability distribution at any given time, their risks for the project pending tasks can be calculated and overcome in due time. Moreover, compared to the contemporary organizations, small firms suffer from most of the risk like innovation and meeting the objectives or overcome the risk of the market shares. Raz and Michael (2001) however, mentioned the importance of risk classification criteria that comprise of risk indicator, danger margins and frequency review and suggest giving more importance to the closure phase of the project.

In the contemporary world, Besner and Hobbs (2012) conducts the evaluation of the IT industries and evaluates the risk management procedures and tools used by different managers. The problem created when there is a communication gap between these managers and is overcome through regular meetings and projects discussion. Taken for instance, uncertain project contexts can be evaluated effectively through PERT model; however, in the same organization there are managers, who think the tools as planning tools rather than risk management tool. Furthermore, project stage is also used as another dimension for using risk management tool and is important to use in the early phase of the project. Through the quantitative study carried in “The paradox of risk management; a project management practice perspective”, it is found that the most probable risk factors are- Multi-project program and Front-end initiation phase. The Engineering & construction and availability of competent personnel followed the risk factors in a project.

Part-C

I conclude from the above analysis of the eight articles that every project has a life cycle and in order to complete the cycle flawlessly, risks have to avoided in each cycle for a successful evaluation of a project. I also found that the most effective research method is to use the research work of other professionals and obtain a result quantitatively to avoid the biasness. Qualitative study sometimes neglects the statistical outcome that proves a situation. However, a huge amount to data samples will add more accuracy and precision in the research work. Prior to this research, it is my perception that the risk is involved majorly during the execution of a project; however, I came to know that the initiation process has a high probability of more risk than other phases. The risk of the projects not only affects the final execution of the project but it also affects budget, schedule, scope and the agreed level of quality of the project. Moreover, from this assessment I gather the knowledge that risk also evolved in a project due to change in requirements like changing market or customer needs, technology changes and changed social/economic conditions, contractor relations and management commitment. After reading, all the articles I can also conclude that the risk mitigation plan is the approach that is the consultant must suggest to their clients. These plan includes the root causes of risks that are quantified in earlier phases of the project and then evaluate risk interactions for the identification of the appropriate risk approach for overcome the risks.  Thus, according to the concepts that I possess from studying eight articles is to identify the risk, their events and the relationship with some of the project sections. The second step that I will follow is to assess the impact of the risks to the entire project and then evaluate the consequence of the cost, schedule, and technical performance on the entire project. I will also use decision-analytic rules to identify the events on which the risk can be occurred and then track the risk of the project through modern and developed instruments and noting down the daily activities. Risk mitigation is the last step that I will follow in any project evaluation according to their criticality and can be tracked on a watch list. Lastly, I will take appropriate risk mitigation steps and evaluated new risk events so that precaution can be taken effectively.

Conclusion

There is no particular way to finalize a particular approach for overcoming the risk related to a project. Most of the author implemented the secondary research while only some of them emphasize on the primary data collection through designing a questionnaire. However, seven of the articles are evaluated qualitatively and only one of the articles evaluated the collected data quantitatively. Thus, it can be concluded that most influential risk factors are Unclear goals of the project, lack of client team dedication, communication gap between the team members, poor project management, poor scheduling, lack of change management procedures, consultants overscheduled, lack of decision-making capabilities of the client and improper/insufficient client team expertise. Different authors depicted their perception in a different way of the methodology used for assessing the effective met9ds for handling risk in the project. Risk identification, analyzing the problem in the project and regular monitoring of the project outcomes and use of effective risk management tools to mitigate the risk are the most common factor adopted by a risk manager and is suggested for all managers irrespective of the business size.

Reference List

Acebes, F., Pajares, J., Galán, J.M. and López-Paredes, A., 2014. Exploring the Influence of Seasonal Uncertainty in Project Risk Management.Procedia-Social and Behavioral Sciences, 119, pp.329-338.

Brustbauer, J., 2016. Enterprise risk management in SMEs: Towards a structural model. International Small Business Journal, 34(1), pp.70-85.

Collis, J. and Hussey, R., 2013. Business research: A practical guide for undergraduate and postgraduate students. Palgrave macmillan.

Kendrick, T., 2015. Identifying and managing project risk: essential tools for failure-proofing your project. AMACOM Div American Mgmt Assn

Krane, H.P., Olsson, N.O. and Rolstadås, A., 2012. How project manager–project owner interaction can work within and influence project risk management. Project Management Journal, 43(2), pp.54-67.

Kutsch, E., Browning, T.R. and Hall, M., 2014.Bridging the risk gap: The failure of risk management in information systems projects.Research-Technology Management, 57(2), pp.26-32.

Lam, J., 2014. Enterprise risk management: from incentives to controls. John Wiley & Sons.

Lech, P., 2016. Causes and remedies for the dominant risk factors in Enterprise System implementation projects: the consultants’ perspective.SpringerPlus, 5(1), p.1.

Lech, P., 2016. Causes and remedies for the dominant risk factors in Enterprise System implementation projects: the consultants’ perspective.SpringerPlus, 5(1), p.1.

Marcelino-Sadaba, S., Perez-Ezcurdia, A., Lazcano, A.M.E. and Villanueva, P., 2014.Project risk management methodology for small firms.International Journal of Project Management, 32(2), pp.327-340.

Raz, T. and Michael, E., 2001. Use and benefits of tools for project risk management. International journal of project management, 19(1), pp.9-17.

Rodrigues-da-Silva, L.H. and Crispim, J.A., 2014. The project risk management process, a preliminary study. Procedia technology, 16, pp.943-949.

Thamhain, H., 2013. Managing risks in complex projects.Project Management Journal, 44(2), pp.20-35.

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