Opportunity management: implementing a positive complement to risk management.
Developing Processes
Benefits associated with OM
* Rejected: opportunity may be reviewed and is actually also not envisioned to
ever end up being accepted pertaining to implementation. the opportunity would typically not
be expected to arrive back pertaining to extra review.
As a means to help address the program's interrelated cost,
schedule, and technical challenges, PMA 261 senior leadership sought to
institute an OM plan to become able to positively leverage virtually any achievable program
advantage so as to always be able to extend the particular productive life of the legacy CH-53s
while simultaneously working to rapidly develop and deploy the
desperately needed CH-53K capability for the warfighter.
Developing an OM Mindset
But momentum began to create in December 2006 when PMA 261 drafted
their opportunity management ideas guideline. This kind of first
OM-specific document served as helpful information to the people associated with documenting
and implementing opportunities also as those who get been actively
involved inside the management associated with opportunities on a day-to-day basis.
Broadus can always be a DAU professor associated with systems engineering along with acquisition
management. Kotzian is a DAU professor of acquisition management.
Littrell is a DAU professor regarding such as cycle logistics. Mallicoat will be the
DAU Mid-Atlantic dean for outreach and performance support. Muldoon is
the plan manager for PMA 261. Triplett is a danger management project
manager pertaining to L-3 Communications.
The authors welcome comments and concerns and also can be contacted at
willi am.broadus@dau.mil, mike.kotzian@dau.mil,
philip.littrell@us.army.mil, duane.mallicoat@dau.mil,
richard.muldoon@navy.mil, along with jacalyn.triplett@l-3com.com.
Going Beyond Risk
The procedure for developing and also coordinating your risk management
operating processes do raise discussions concerning the possible of
including an OM plan as a formal mechanism within PMA 261. Efforts
within the organization were made to formally initiate an OM program,
but assistance ended up being sporadic. Unfortunately, the actual current danger management
tool--Risk Management Info System, or perhaps RMIS--did not necessarily feature an OM
tracking capability. that shortfall hindered your continued use and
inclusion associated with an OM program within PMA 261. initial attempts in order to include
OM been dependent on people manually producing Microsoft(R) Excel
spreadsheets and status briefing charts, which proved to be resource
intensive and also inefficient. Keeping that will status quo has been nearly all likely
going to be able to result in the demise involving an OM plan initiative simply because
the affected workforce did not possess a feeling involving significance associated
with OM or possibly the required tools to be able to implement this type of program.
Even with this document inside place, it had been not until the summer
of 2007 that will PMA 261 tracked a certain plan chance in
accordance making use regarding their opportunity management rules guidance. What
became evident was that method improvements were required to make the actual OM
program a more viable tool for the PMA 261 workforce. 1 of the biggest
lessons learned has been that the danger operating group--an IPT-level group
chartered to be able to oversee danger along with chance management in itiatives--needed
to far better define the procedure goals as well as monetary resources that
could become utilized to implement decisions. Also, OM-related instructions and
training provided to the PMA 261 workforce necessary improvement to
decrease confusion. Throughout hindsight, Muldoon noted that will "while
everyone was encouraged that OM ended up being obtaining some targeted attention, it
was apparent that people are not but ready to completely implement an OM process
until roles and also responsibilities had been clearly identified."
If the actual IPT lead is convinced the prospective opportunity offers
some amount of advantage for the program, the particular IPT lead requires control by
discussing your opportunity among most IPT leads. An opportunity
coordinator facilitates your opportunity review method along with ensures
timely reviews.
As illustrated in the chance lifestyle cycle flow diagram (Figure
2), an chance can be defined by simply an chance originator, which could be
any part of the particular PMA 261 enterprise. The Actual chance originator
provides a new preliminary description as well as assessment whilst coming into the
opportunity in to become able to the automated ROMA monitoring tool. the opportunity
originator then socializes the particular chance with most the appropriate IPT lead
and topic matter experts regarding consensus.
As any very first order associated with business, a widespread nomenclature was sought to
ensure that since the chance moved by means of the actual opportunity lifestyle cycle,
all IPTs were capable of discuss the particular status without virtually any confusion. PMA
261's chance management rules guidelines ended up
defining 5 ranges involving an opportunity's status:
Will Bro adus * Mike Kotzian * Phil Littrell * Duane Mallicoat *
Capt. Rick Muldoon, USN * Jackie Triplett
So what can it take to implement an OM capability? that is actually exactly
what we'll discover as a part of this informative article through describing the actual path
followed by the CH-53 Hefty Lift Helicopters Plan office (PMA 261) in
establishing their OM program.
At the same period PMA 261 has been dealing with his or her OM program growing
pains, PEO(A) issued any policy memorandum which lay out to
institutionalize the best procedures framework throughout the PEO(A)
enterprise. Risk, issue, along with opportunity management had been all identified
within this policy memorandum as "key management resources necessary
for the development of credible cost, schedule, and performance
objectives." Clearly, OM had been attaining increased visibility.
Eventual ly, your POMB decides when the chance implementation is
adequately realized, needs to be further implemented (with possible
changes), or even should be closed. When the chance is actually fully realized, the
final outcome is actually documented within the ROMA and also the opportunity is
closed out.
The opportunity is next passed to the opportunity Operating Team to
ensure your benefits, chance of success, risk, and charges involved
with implementing your chance are generally adequately captured and also are
sufficient to become able to warrant review from the POMB. If the actual OWG deems the
opportunity unworthy, your chance can be closed as well as considered a
candidate requiring additional analysis.
* Deferred: your opportunity had been initially rejected however had been expected
to return pertaining to extra review with a later specified date.
Wit hin this environment, certainly one of the a variety of tools plan managers have
increasingly relied upon for you to accomplish an acquisition program's cost,
schedule, along with performance goals is actually risk management. Virtually every
defense acquisition program is now expected to be able to implement some type of
risk management method across each as well as every stage with the program's
acquisition lifestyle cycle through guaranteeing communication for you to and participation
from most stakeholders. Yet, program managers typically ignore a
potentially invaluable asset inside their plan management toolbox that
positively complements the particular danger management process: opportunity
management (OM).
Over the particular next six months, slow yet steady progress ended up being realized. A
more clearly defined threshold expense criteria has been revealed in the spring
of 2008 that will greatly aided the actual PMA 261 IPTs within the identification and
initial analysis of candidate opportunities. Nevertheless the real breakthrough
occurred throughout may 2008 when an improved automated instrument has been released to
support PMA 261's OM process.
For those keeping track, this is the actual third inside a group of four
Defense AT&L articles around the subject regarding OM. The initial article,
"Should opportunity Management become Extra to become able to my programs Acquisition
Strategy?" (Defense AT&L, May-June 2007), compared OM basics to
the much more familiar concept involving risk management. DoD acquisition programs
that possess a risk management plan will typically target solely upon the
negative aspects or threats needing program focus in which are
summarized by simply utilizing a graphic cube in order to plot each negative throughout terms of
likelihoods as well as consequences. The Particular OM approach relies upon a new similar
methodology, but in distinction towards the risk management approach, plots
likelihoods and also benefits. Since OM can be focused on getting benefits of
positive opportunities that will potentially advantage the program, the
larger the possible advantage equates for you to a much more substantial potential payoff. When
considering approaches to end up being able to handling opportunities, the plan has the
following strategies to decide on from: exploit it, reveal it, enhance it,
or accept it.
The Danger and also Chance Management Application (ROMA)[TM] software
tool runs in the very best procedures approach involving paralleling risk, issue, and
opportunity management by simply compiling information for all three areas into
one central management location. Getting this compilation capabilit y
through an automatic indicates greatly simplified the procedure along with provided
tailored reporting so that program managers as well as subject issue experts
could give focus to high-interest areas. Topic matter experts now had
easier as well as timelier access across the OM plan life cycle and, most
important, an elevated willingness to use an OM-related tool. The
increased use resulted inside benefits throughout the PMA 261 enterprise that
would not really happen to be achievable without ROMA's automated capability.
In addition, ROMA ensured a new swifter transformation associated with OM information
into tailored selection generating documents as well as briefings that allowed PMA
261 senior leadership to create far better informed strategic decisions.
Figure 1 illustrates an illustration involving this the actual ROMA user interface.
Upon POMB approval, an chance owner, operating along with appropriate
team members, will be accountable for implementing the actual chance in
accordance with just about all the approved achievement plan. Because scheduled through the
opportunity coordinator and under OWG guidance, the actual opportunity owner
periodically presents the actual opportunity's implementation status to
the POMB to get a selection for you to carry on as well as finish the particular implementation phase, or
even reassign the particular chance implementation. The Particular ROMA software program tool
acts as the important communication enabler throughout the particular opportunity's
life cycle (Figure 3).
* Closed: the opportunity's objective continues for you to be reached as well as is
now considered overcome by events.
As with m any programs, PMA 261 initially concentrated about the risk
management process. Beginning throughout June 2006 soon following the commence of the
CH-53K development contract, PMA 261's Joint risk Management Board
(JRMB) re-evaluated, strengthened, and documented the
organization's risk management approach through a new formal risk
charter and also risk management operating methods created specifically
for the newest CH-53K program. The Particular revised approach empowered risk
management in the lower-tier IPTs, who then elevated assessments for you to the
JRMB regarding consideration. Which ended up being viewed by simply PMA 261's senior
leadership as an integral development to ensure the entire organization
institutionalized risk management as section of every IPT's standard
work. Exactly what have been any top-down danger management approach became a
combination regarding top-down alo ng with bottom-up approach.
Establishing an OM Process
Upon POMB concurrence, the particular opportunity owner along with appropriate team
members are actually charged to build the achievement plan for your approved
opportunity. This particular program will identify the particular pair of steps and also timelines
necessary for you to increase the actual chance regarding achieving the actual opportunity's
benefit. Your opportunity owner presents the particular achievement plan and
associated spending budget to the POMB pertaining to review and also approval.
[ILLUSTRATION OMITTED]
* Open: the POMB opened the particular chance for immediate
implementation based on an approved strategy (open/executing).
Alternatively, the actual POMB could have got opened your opportunity pertaining to additional
information gathering having an expected return for the POMB for any go-ahead
decision (open/estimating).
So, is surely an OM method really worth the effort it will take to obtain them back the
ground? Your possible benefits of improved cost, schedule and/or
technical performance could be the particular greatest incentive in which might be offered in
the competitive world of DoD acquisition.
Tracking risk and also OM
These are stressful occasions with regard to most Department regarding Protection acquisition
programs. More Than the past 12 months, the U.S. Government Accountability
Office offers issued several studies that have criticized how DoD
acquisition programs get continued a trend associated with increased program costs
accompanied through lengthening schedules--and in many cases, from the
sacrifice of technical capability. in April 2009, Secretary involving Defense
Robert Gates announced a few main changes fo r the fiscal yr 2010
defense budget, stating DoD necessary to reform how along with what we should acquire by
overhauling of our own approaches to always be able to procurement, acquisition, and
contracting. This ended up being quickly adopted with a June 2009 Washington Times
editorial from Deputy Secretary of defense William Lynn III which stated
that time is currently for "a fundamental overhaul for the means the
Pentagon does business," which could be carried out simply by "aggressively
pursuing significant reforms associated with the way you develop, test, and also area the particular weapons
our troops need." Within July 2009, your Company Executives for
National security Process Force issued a new document that identified end-to-end
problems with the acquisition system, such as "requirements
creep, funding instability, poor cost estimating, immature technology,
and your not enough flexibility for you to solve problems." There's
definitely a new trend afoot.
[FIGURE two OMITTED]
The case regarding PMA 261 is just one illustration associated with an organization
implementing an OM process, nevertheless it will serve as a terrific starting
point for almost any organization seeking to implement an OM process.
Recognizing that a fantastic deal of organizations are generally unique, the actual PMA 261 OM process
is versatile adequate to ensure that additional organizations can tailor this
particular OM process to fit their particular situation. While extended as the
organization's leadership understand that your implementation of any
OM method requires upfront commitment and also continued follow-through,
there are positive program outcomes to become given to key stakeholders.
As section of the particular U.S. Navy's program Executive Workplace pertaining to Air
Anti-Submarine Warfare, Assault along with Unique Mission programs (PEO[A]),
PMA 261 is actually made up of a couple of main helicopter programs: in-service
aircraft (CH-53D, CH-53E, and also MH-53E) sustainment, support, and
capability improvement projects; and in addition the CH-53K Hefty Lift Helicopter
development program. The Particular Marine Corps' CH-53E heavy lift helicopter
is relied onto move troops, vehicles, and also supplies. However, along with a
deployed operations tempo 3 times your planned utilization rate, the
CH-53E legacy systems are generally incurring elevated airframe along with component
repair costs. In Which can be increasing the strain in order to area the actual CH-53K with
its increased range, payload, survivability, reliability,
maintainability, and improved total ownership expense as quickly as practical.
The OWG will recommend possibilities which are sufficiently scoped
to the month-to-month POMB, which has three options: approve the particular opportunity,
assign ownership, and supply funding to construct an achievement plan;
request further investigation and provide funding in order to accomplish such an
action; or even defer the opportunity pending a later on review. Just About All relevant
IPTs are participating all through this decision-making process.
* Candidate: not necessarily yet reviewed, and/or more facts are needed
and/or is actually being gathered prior to recommending the likelihood to the
high-level Plan opportunity Management Board (POMB), which can be the
group responsible for general useful oversight. While appropriate,
the POMB perform can be delegated down to the JRMB for increased
efficiency and timeliness.
It Begins Along With Leadership
[FIGURE 3 OMITTED]
[FIG URE one OMITTED]
In addition, just like many plan offices, PMA 261 will be facing tight
cost as well as timetable constraints interrelated using technical challenges,
and the organization is also reliant upon a new geographically dispersed workforce separated through a massive selection of miles. the PMA 261 program manager
and co-author regarding this article, Navy Capt. Rick Muldoon, conducted an
organizational climate survey when he very first took command inside 2007 to
determine the organization's health, and again throughout 2009 to be able to determine
where progress ended up produced and what areas nevertheless necessary attention.
The 2nd article, "Opportunity Management; deciding to Make
it Portion associated with The Program's Acquisition Strategy" (Defense
AT&L, July-August 2007), defined a new notional framework for an OM
program composed of seven main steps: empower the integrated product
teams (IPTs) in order to implement OM, identify chance candidates, assess
the chance candidate pertaining to benefits and disadvantages, establish
the implementation plan, validate most assessments and also plans, maintain
control/oversight, along with communicate and document. When effectively applied,
this framework supplies a solid basis for an efficient OM program.
Expect your organization to become able to navigate unfamiliar territory if you
decide to implement an OM process, as the newness involving OM fairly much
guarantees the learning curve although attempting in order to achieve your full
benefits afforded by OM. Right After that great connected expanding pains
and some journeys down blind alleys, the particular conclusion involving PMA 261's
senior leadership is the actual fact that OM can be right for their organization. While PMA
261's program manager in ch arge of implementing an OM process,
Muldoon stated in which "the OM method is 1 thing each and every program
should significantly consider like a complement towards the much more familiar risk
management process. Presently there are great cost, schedule, and also technical
performance advantages being had having a well-established OM process. We
view OM as a new possible integral a component of plan management and additionally have realized
significant rewards through its use about the CH-53K development
program."
In addition in order to browsing with an active OM program being fully
accepted within PMA 261, an obvious along with concise OM process needed to be
developed. The Actual document in which captured and also communicated PMA 261's OM
process has been t he actual opportunity management ideas guidelines, which
institutionalized OM treatments within PMA 261. Developed along with input
from just about all IPTs, this document was obviously a important enabler associated with OM acceptance across
the PMA 261 enterprise.
Jackie Triplett, danger management project manager pertaining to L-3
Communications supporting PMA 261 plus a co-author regarding this article, said,
"Introducing ROMA has been most likely the actual main purpose that will lower-tier
IPTs finally embraced OM as a portion of an each day plan management
approach. It would become a vivid illustration that will any workforce wants the
proper tools prior to the enterprise can be able to again your potential
benefits--especially a fresh management capability which experienced some
initial workforce uncertainty."
The contents began at a huge picture overview of OM a nd drilled
down to cover how OM has been heading to be particularly structured inside PMA
261, such as management process, roles, oversight, process flow, and
metrics. Within short, PMA 261 developed an OM implementation program to be able to guide
their workforce as a way of standardizing an OM program throughout the
organization.
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