Hopefully the answer is both! Aren't you tired of seeing the obligatory slide or two in the project update deck that is titled "Risks"? The problem I have with this slide is it's not a slide on Risks We Are Taking, it's a slide on Risks We Are Managing. You need both, but rarely are both included. New rule: for every slide on Risk Management, I want two slides on Risk Taking.
I'll try to explain the difference between the two, because there's a huge difference that's important to understand. When I worked at a startup we talked in terms of what risks we were willing to take to be different, get ahead, push the envelope, be innovative, stretch our thinking, change the game, change the world, etc. The trend lately is to talk about risks in terms of obstacles that might prevent successful completion of the project on time. They are more of a cover-your-ass slide than a push-the-envelope slide. I care 100x less about the CYA story. I care about the push-the-envelope story, lead with those, have the others as backup!
Example of Risks We Are Taking slide:
- Risk: Using new (un-proven) algorithm
- Benefit: Early tests show 200% performance improvement
- Mitigation: Can quickly swap-in old algorithm if testing fails
- Risk: Adding new social features to the UI
- Benefit: Facebook users can connect to the app, potentially exploding adoption
- Mitigation: Adding configuration option that can toggle the feature off
Example of Risks We Are Managing slide:
- Risk: We need to hire more developers.
- Mitigation: Identified 4 people to move off of other projects if necessary.
- Risk: Marketing team needs training to deliver press release on time.
- Mitigation: Will work on a Saturday with the team if necessary.
Which one is more exciting? Which one tells you more? Both slides are necessary, but only the latter is usually given. Challenge yourself and your team to push the envelope and take some risks. Be proud of those risks and tell that story too!
