PRINCE2 Risk Management Overview

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Questions and Answers

What was the primary reason for selecting a modular pilot rollout plan?

To allow for rapid deployment across all installations

Because the project had already run for four years (correct)

To standardize all installations before implementation

To minimize the cost and time of the project

Which changeover method was used for the final system installation?

Complete direct changeover

Parallel changeover

Phased direct changeover (correct)

Gradual incremental changeover

Which of the following features were identified during the pilot rollout?

Installation timeframes

Overlooked new features (correct)

Budget constraints

Stakeholder feedback

What is the preferred method for organizational change management mentioned in the discussion?

McKinsey’s 7S Framework Signup and view all the answers

What type of installations were included in the pilot rollout plan?

Diverse types such as depots and arsenals Signup and view all the answers

What is the purpose of the Risk Management Strategy document in PRINCE2?

To define procedures for risk identification and management Signup and view all the answers

Which of the following actions is NOT included in the risk response planning phase?

Document Signup and view all the answers

What should a project manager include when assessing risk probability?

Impact on project objectives Signup and view all the answers

During which project phase is the Risk Management Strategy document created?

Project Initiation Signup and view all the answers

Which term describes the likelihood of a risk occurring soon in PRINCE2?

Proximity Signup and view all the answers

What role is responsible for implementing the agreed-upon risk response?

Risk Owner Signup and view all the answers

What type of report is NOT typically used for communicating risk information?

Budget Report Signup and view all the answers

Which of the following is a strategy for managing a threat?

Accept Signup and view all the answers

What is a critical aspect of introducing new information system (IS) initiatives?

Explaining the rationale for the new system Signup and view all the answers

What role do legitimisers play in IS initiatives?

They guard operational norms and are viewed as experts Signup and view all the answers

How can user resistance to change be addressed during IS implementations?

By managing resistance carefully and involving users Signup and view all the answers

Which group should be engaged early in IS initiatives to ensure successful implementation?

System owners and stakeholders at operational locations Signup and view all the answers

What is the best strategy for ensuring that users embrace a new IS implementation?

Appointing senior managers as system sponsors or champions Signup and view all the answers

Why is treating users as stakeholders important in IS initiatives?

It increases user engagement and buy-in for the system Signup and view all the answers

What factor is essential to successfully managing organizational change during IS initiatives?

Managing the effects of change on culture and systems Signup and view all the answers

What is the perspective on resistance to change during IS implementations?

Resistance is an opportunity for improvement and needs careful management Signup and view all the answers

What is the first step in Lewin's Freeze Change Model?

Create a climate for change Signup and view all the answers

Which element is NOT part of the McKinsey 7S Model?

Satisfaction Signup and view all the answers

What is the purpose of Kotter's Eight Step Model?

To strengthen change and build support Signup and view all the answers

In the McKinsey 7S Model, what does 'Shared values' refer to?

Core values of the organization Signup and view all the answers

Which step follows 'Create a guiding coalition' in Kotter's Eight Step Model?

Communicate the vision Signup and view all the answers

What does the 'Systems' element in the McKinsey 7S Model evaluate?

Processes and procedures in place Signup and view all the answers

Which aspect does NOT play a role in reducing resistance to change according to Kotter & Schlesinger?

Improving financial incentives Signup and view all the answers

What was one of the main reasons for the failures of the automated baggage system at DIA?

Not enough time was allowed for proper system development. Signup and view all the answers

What specific problem occurred due to airlines changing their business requirements?

Inaccurate power supply updates resulting in mechanical failures. Signup and view all the answers

What was a significant infrastructure issue with the baggage system designed by BAE?

Infrastructure was created for a much smaller system. Signup and view all the answers

What form of resistance involves blaming the system for difficulties?

Projection Signup and view all the answers

How long did the opening of DIA get delayed due to the baggage system issues?

16 months Signup and view all the answers

Which action is NOT recommended while implementing a new IS initiative?

Conducting training in isolation Signup and view all the answers

What technological element failed to function properly, contributing to misrouting of baggage?

Optical sensors for barcode reading. Signup and view all the answers

What was a financial consequence of the delays caused by the baggage system problems?

$1 million daily cost to taxpayers Signup and view all the answers

What is a key tactic in fostering a culture of change according to change experts?

Encourage open feedback Signup and view all the answers

Which of the following is NOT a suggested step in implementing a new IS initiative?

Limiting communication Signup and view all the answers

Which approach did DIA initially assume regarding the baggage handling system?

Each airline would manage their own baggage transport. Signup and view all the answers

Which tactic encourages involving various members of the organization in the IS planning process?

Encouraging broad involvement Signup and view all the answers

Which past experience of BAE was not directly comparable to the DIA project?

Creating a similar-sized airport baggage system. Signup and view all the answers

What should managers act as during an IS initiative implementation?

Change champions Signup and view all the answers

Which of the following is NOT a form of staff resistance to a new IS initiative?

Acceptance Signup and view all the answers

What is emphasized as essential for effectively managing change in an organization?

Constant communication Signup and view all the answers

Study Notes

IAB305 Enterprise Systems Lifecycle - Wk12 Tutorial

The implementation of an enterprise-level information system (IS) project can be a wide-reaching, transformational change affecting many areas within an organisation.
Changes can notably impact:
- Customer relationships
- Supplier relationships
- Staffing levels
- Policies and procedures
- Business processes
Employees working within the organisation are directly impacted by these changes.
People generally resist change, especially in the workplace.
Common reasons for resistance include:
- Fear for job security
- Uncertainty about the unknown
- Disruption to established routines and habits
- Loss of control or confidence in their role
- Potential for embarrassment
Effective leadership and emotional intelligence are crucial in managing this resistance.
Change management must be meticulously managed and documented.
A formal "Request for Change" document is initiated to track change processes.
The document should include:
- Project name
- Request number
- Requestor
- Change description
- Reason for the change
- Impact of the change
- Proposed action to be taken
- Business priority of the change
People factors are the most challenging aspect of change management, often requiring significant time and effort to resolve.
Effective change management requires skilled change managers.
Key competencies for change managers include:
- Intrapersonal skills
- Interpersonal skills
- General consultation skills
- Understanding of organisation development theory
Organisational change management initiatives are critical for IS initiatives.
Staff education is essential in the successful introduction of new IS initiatives.
This should cover:
- Explaining the rationale for the new system
- Detailing the impact of the changes on staff
- Engaging staff as stakeholders in the development process
- Training staff on the use of the new system
- Encouraging feedback and input from users
Encouraging user involvement in IS initiatives requires proactive measures.
Key actions include:
- Appointing senior managers as system sponsors or champions
- Identifying and engaging system owners at all operational levels
- Understanding concepts like system legitimisers, opinion leaders, and associated change agents
- Involving all stakeholders early in the planning and development
Resistance to change is a normal part of implementing change.
This resistance can manifest in various forms, such as:
- Aggression (sabotaging efforts)
- Projection (blaming the system for problems)
- Avoidance (refusing to use the system)
Effective strategies for managing change must include addressing potential resistance. Targeted training and education are crucial.
Key steps in implementing a new IS initiative should include:
- Developing an action plan
- Assigning managers as change sponsors or champions
- Identifying and engaging system owners early in IS initiatives
- Identifying stakeholders at all operational locations for the new IS initiative
- Developing employee change teams
- Encouraging open communication and feedback about organisational changes
Key tactics for effective change management include:
- Involving many people in planning and development
- Making constant change an expected part of the company culture
- Communicating frequently, preferably face-to-face
- Using financial incentives and recognition
- Aligning with existing company culture
Implementing an IS solution requires organisational change management.
Frameworks and models can provide guidance for managing the process.
The ADKAR model focuses on activities that achieve results, and includes the following stages:
- Awareness
- Desire
- Knowledge
- Ability
- Reinforcement
The Six Change Model identifies six approaches for dealing with resistance to change:
- Education and communication
- Participation and involvement
- Facilitation and support
- Negotiation and agreement
- Manipulation and co-option
- Explicit and implicit coercion
Lewin's Freeze Change Model provides a three-stage approach for organisational change:
- Unfreeze (creating a climate for change)
- Change (moving to a new system)
- Refreeze (making the change a permanent part of the organisation)
The McKinsey 7S Model is an organizational change management model with the goal of improving decision-making effectiveness.
Kotter's Eight Step Model for change management.
Identifying and describing risks early in any project or program is crucial
Risk can be defined in terms of danger, harm, or loss.
Risk is a combination of likelihood and consequences.
Risk management is important throughout the life of any project
Risk = (probability of event) x (consequences of event)
Risks can be assessed by looking at trends during a project life cycle
There are risk management procedures for dealing with risk and potential impact.
PRINCE2 recommends a Risk Management Strategy document to be part of project initiation
The document details the procedures and steps to identify, assess, control, and communicate risk.
Techniques for risk assessment include these methods:
- Brainstorming meetings
- Expert opinions
- Past history
- Multiple or team-based assessments
- Delphi
- Inductive reasoning (e.g., HAZOP)
There are different categories of risk, such as:
- Technology risks
- People risks
- Organisational risks
- Requirements risks
- Estimation risks
- Internal risks
- External risks
Risk management strategies include:
- Avoid
- Transfer
- Reduce
- Accept .

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Description

Test your knowledge on the key concepts and methods of risk management in PRINCE2. This quiz covers topics such as modular rollout plans, risk response strategies, and the role of project managers in assessing risk. Prepare to understand the integral components of effective organizational change management.