Assessing Risks In Strategic Goal Planning

It’s easy as a PM to only focus on the upside. But you'll notice: more experienced PMs actually spend more time on the downside. The reason is simple: the more time you’ve spent in Product Management, the more times you’ve been burned. The team releases “the” feature that was supposed to change everything for the product - and everything remains the same. When you reach this stage, product management becomes less about figuring out what new feature could deliver great value, and more about de-risking the choices you have made to deliver the needed impact. -- To do this systematically, I recommend considering Marty Cagan's classical 4 Risks. 𝟭. 𝗩𝗮𝗹𝘂𝗲 𝗥𝗶𝘀𝗸: 𝗧𝗵𝗲 𝗦𝗼𝘂𝗹 𝗼𝗳 𝘁𝗵𝗲 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 Remember Juicero? They built a $400 Wi-Fi-enabled juicer, only to discover that their value proposition wasn’t compelling. Customers could just as easily squeeze the juice packs with their hands. A hard lesson in value risk. Value Risk asks whether customers care enough to open their wallets or devote their time. It’s the soul of your product. If you can’t be match how much they value their money or time, you’re toast. 𝟮. 𝗨𝘀𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗥𝗶𝘀𝗸: 𝗧𝗵𝗲 𝗨𝘀𝗲𝗿’𝘀 𝗟𝗲𝗻𝘀 Usability Risk isn't about if customers find value; it's about whether they can even get to that value. Can they navigate your product without wanting to throw their device out the window? Google Glass failed not because of value but usability. People didn’t want to wear something perceived as geeky, or that invaded privacy. Google Glass was a usability nightmare that never got its day in the sun. 𝟯. 𝗙𝗲𝗮𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗥𝗶𝘀𝗸: 𝗧𝗵𝗲 𝗔𝗿𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗣𝗼𝘀𝘀𝗶𝗯𝗹𝗲 Feasibility Risk takes a different angle. It's not about the market or the user; it's about you. Can you and your team actually build what you’ve dreamed up? Theranos promised the moon but couldn't deliver. It claimed its technology could run extensive tests with a single drop of blood. The reality? It was scientifically impossible with their tech. They ignored feasibility risk and paid the price. 𝟰. 𝗩𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗥𝗶𝘀𝗸: 𝗧𝗵𝗲 𝗠𝘂𝗹𝘁𝗶-𝗗𝗶𝗺𝗲𝗻𝘀𝗶𝗼𝗻𝗮𝗹 𝗖𝗵𝗲𝘀𝘀 𝗚𝗮𝗺𝗲 (Business) Viability Risk is the "grandmaster" of risks. It asks: Does this product make sense within the broader context of your business? Take Kodak for example. They actually invented the digital camera but failed to adapt their business model to this disruptive technology. They held back due to fear it would cannibalize their film business. -- This systematic approach is the best way I have found to help de-risk big launches. How do you like to de-risk?

Risk Management Made Simple: A Straightforward Approach for Every Project Manager Risk management is crucial to project success, yet it's often seen as complex and intimidating. Here’s a simple approach to managing risks in your projects: 1/ Identify Risks Early: → Start with a risk brainstorm: technical, operational, financial, and external risks. → Collaborate with your team to identify potential threats and opportunities. → Involve diverse team members to gain different perspectives on possible risks. → Use historical data and past project experiences to spot risks that may arise again. 2/ Assess and Prioritize: → Use a risk matrix to assess impact and likelihood. → Prioritize high-impact risks that could derail your project’s success. → Make sure you reassess risks periodically to capture any changes in impact or probability. → Don’t forget to consider opportunities as well—these should be prioritized, too! 3/ Develop Mitigation Plans: → For each priority risk, develop a strategy to minimize or avoid it. → Plan for contingencies to stay prepared for the unexpected. → Ensure the mitigation plans are realistic and actionable. → Set up early-warning systems so you can act quickly if needed. 4/ Assign Ownership: → Assign a team member to own each risk, ensuring accountability. → Ensure they track progress and adjust strategies as necessary. → Empower the risk owner with resources and authority to implement mitigation plans. → Ensure a straightforward escalation process if the risk owner needs help. 5/ Monitor and Update Regularly: → Schedule regular risk reviews and status updates. → Keep an eye on emerging risks and adjust plans as your project evolves. → Maintain an open feedback loop with stakeholders on the evolving risk landscape. → Use project management tools to automate risk tracking and reminders. 6/ Communicate Effectively: → Keep stakeholders informed about risk status and changes. → Be transparent about potential impacts and solutions. → Ensure communication is clear and consistent across all levels of the team. → Adjust your communication style based on your stakeholders' needs and preferences. Managing risk doesn’t have to be complicated. Focus on 𝗶𝗱𝗲𝗻𝘁𝗶𝗳𝘆𝗶𝗻𝗴, 𝗽𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘇𝗶𝗻𝗴, and 𝗮𝗰𝘁𝗶𝗻𝗴 𝗲𝗮𝗿𝗹𝘆; you'll set your project up for success. What’s one risk management tip you live by? Let’s share some wisdom!

🚀 𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝗳𝗼𝗿 𝗘𝗮𝗿𝗹𝘆-𝗦𝘁𝗮𝗴𝗲 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 🚀 As a fractional CIO, I've witnessed firsthand the ups and downs of launching and scaling new ventures. While early-stage companies prioritize innovation and growth goals, effective risk management is frequently overlooked despite the severe consequences of neglecting this crucial area. Startups face many obvious and hidden risks, including cybersecurity threats, operational issues, financial instability, and changing market conditions, which can disrupt even the most promising ventures. Understanding and preparing for these risks is not just about protection - it's a strategic advantage that can give your company a competitive edge. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝗳𝗼𝗿 𝗥𝗶𝘀𝗸 𝗠𝗶𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻: 1️⃣ 𝗖𝗼𝗺𝗽𝗿𝗲𝗵𝗲𝗻𝘀𝗶𝘃𝗲 𝗥𝗶𝘀𝗸 𝗔𝘀𝘀𝗲𝘀𝘀𝗺𝗲𝗻𝘁: Start by identifying potential risks across all facets of your business, including operational, financial, strategic, and compliance risks. Understanding the breadth of what might go wrong is the first step toward mitigation. 2️⃣ 𝗣𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘇𝗲 𝗕𝗮𝘀𝗲𝗱 𝗼𝗻 𝗜𝗺𝗽𝗮𝗰𝘁: Not all risks are created equal. Prioritize them based on their potential impact on your business and the likelihood of occurrence. This will help you allocate resources effectively, focusing on what matters most. 3️⃣ 𝗖𝘆𝗯𝗲𝗿𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸: In today's environment, cybersecurity is a cornerstone of risk management. Implement robust security measures, conduct regular audits, and ensure your team is educated on the importance of cybersecurity hygiene. 4️⃣ 𝗗𝗲𝘃𝗲𝗹𝗼𝗽 𝗮 𝗥𝗶𝘀𝗸 𝗠𝗶𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻 𝗣𝗹𝗮𝗻: For each identified risk, develop a mitigation strategy. This could range from insurance to diversifying your supplier base, implementing strict financial controls, or having a crisis management plan. 5️⃣ 𝗙𝗼𝘀𝘁𝗲𝗿 𝗮 𝗖𝘂𝗹𝘁𝘂𝗿𝗲 𝗼𝗳 𝗥𝗶𝘀𝗸 𝗔𝘄𝗮𝗿𝗲𝗻𝗲𝘀𝘀: Risk management should be a part of your company's DNA. Encourage open discussions about risks and ensure your team can proactively identify and respond to them. 6️⃣ 𝗥𝗲𝗴𝘂𝗹𝗮𝗿 𝗥𝗲𝘃𝗶𝗲𝘄 𝗮𝗻𝗱 𝗔𝗱𝗮𝗽𝘁𝗮𝘁𝗶𝗼𝗻: The startup ecosystem and its risks are not static. Regularly review your risk management strategies and adapt them as your company grows and new risks emerge. As startups aim to innovate, incorporating risk management into your core strategy ensures preparedness for potential obstacles and a path toward sustainable growth. Being risk-aware doesn't mean being risk-averse. It's about making informed decisions and safeguarding your company's future without hindering innovation. Interested in fortifying your startup's future while fueling innovation? Reach out to me to learn how. 💡

If you're in the business of leading projects, then at least 10% of your time should be spent on identifying and planning around risks. At least, this is what I was taught in my first PMI project management course years ago. And while reasonable people can disagree on the specific amount of time needed, the point is solid - one of the major roles anyone in production or program management type roles is assigned to take on is risk assessment and mitigation. Unfortunately, for a lot of producers in the game industry, this isn't something they were formally trained on, particularly if you came into the role from another discipline in games (such as QA or Design) or if your only formal training came from a two day Scrum course. I saw the subject come up in the Building Better Games Q&A call and I was actually excited when Aaron Smith brought up the same techniques I was trained on years ago and have adopted (and adapted) ever since. It's the way I teach my own teams and while it requires dilligence and consistency, it's not hard to pick up (it's easier than the rules for the board game "Risk"). 1 - Identify risks On a regular basis, you should be asking your team what are the risks they see. Every time a decision needs to be made, a story is written, or a feature is spec'd, you should think about what could go wrong. Those are your risks. 2 - Document Keep the risks written down in a doc everyone has access to (Gdocs, Confluence, etc). The way I prefer (and what I saw Aaron advocating) is a spreadsheet. Each risk gets a line item and a category (if the risk happens, what would be impacted - costs? security? people? players?). 3 - Impact You should also track the potential impact - how bad is this risk if it happens? Is it a trivial risk or a catastrophic one? Would it involve some work to reboot a service or would it potentially take down your entire data center? Assign these risks a score. I prefer 1 to 5, Trivial to Catastrophic. 4 - Probability You should score out how likely each risk is to occur. Is it highly unlikely or nearly certain? Score these out also on the same scale, typically 1 to 5. 5 - Prioritize Multiply the Impact and Probability to come up with your score, somewhere between 1 (something trivial that is highly unlikely) to 25 (a nearly certain, catastrophic event) and then sort or at least color range your spreadsheet accordingly to show your risks in a way that prioritizes your attention. 6 - Action Plans The last column I make sure to include is what type of plan is in place to address the risk. Something with a minor impact may be something we just accept where something more serious may require a full mitigation plan. The value here is that you've documented these risks and can communicate them out (as well as what needs doing). You're addressing risks before they become real problems in this way. #production #risks #gamedev #bettergames