The purpose of this session was to share the contents of the 2 hours workshop we designed to introduce Risk Profiling in eDreams ODIGEO teams. During the presentation we switch between Attendee view experiencing the same activity that teams do, Facilitator view sharing tips about the facilitation, and specially and for me the most important, the Coach view, explaining why we want to introduce this technique, what was its role in the overall strategy to improve demand management and why now.
8. Two envelopes are lying in front of you, one has 10 €, the
other one is empty.
What would you do?
Option 1- Pick one of the envelopes
Option 2- Leave the envelopes and receive 3 €
9. Two envelopes are lying in front of you, one has 10M €, the
other one is empty.
What would you do?
Option 1- Pick one of the envelopes
Option 2- Leave the envelopes and receive 3M €
22. Risk is not Uncertaintly.
Priorization vs Categorization.
At the same time, we collected 3 items they identify as ‘high
risk’. Keep them, we will use later.
23. Risk is not Uncertaintly.
Priorization vs Categorization.
At the same time, we collected 3 items they identify as ‘high
risk’. Keep them, we will use later.
Identify risks
Create ownership.
25. Visualizing Risks
Qualitative Taxonomies
4 to 6 categories
Fact-based
Cheap
Fast
Accurate
Consensus Forming
Managed Risk
Heterogeneous
Expensive
Time Consuming
Fake Precision?
May still be
High Risk
Homogenous
Cheap
Fast
High Risk
too simple too complex
26. Visualizing Risks
Qualitative Taxonomies
4 to 6 categories
Fact-based
Cheap
Fast
Accurate
Consensus Forming
Managed Risk
Heterogeneous
Expensive
Time Consuming
Fake Precision?
May still be
High Risk
Homogenous
Cheap
Fast
High Risk
too simple too complex
35. Dimensions
Lifecycle
UrgencyDelay impact
Tech risk
Table stakes
Cost reducer
Spoiler
Differentiator
Enthusiast
Majority
Laggard
Intangible
Standard
Fixed date
ExpediteExtinction level event
Major capital
Discretionary spending
Unknown solution
Known but not us
Done it before
Commodity
Market role
37. Work
Can you create the
dimensión for each
category?
Work
Can you create the
dimensión for each
category?
Please excuse it. Just do one of them
because of the time for the meetup.
39. Four types of dimensions:
- Nominal
- Ordinal
- Interval
- Ratio
40. Nominal
Nominal sets generally have classification but without any specific preference,
priority or ordinality. In other words, an item of one class isn’t more or less
risky than an item of a different class, e.g.
- Men-Women-Kids
- Red-Blue-Green
- …
In precense of nominal sets, hedge risk and shape demand to an acceptable
ratio using capacity allocation.
41. Ordinal
Ordinal sets have an implied order, sequence, priority, e.g.
- Spring-Summer-Fall-Winter
- High-Medium-Low [technical|delivery|business] risk
Ordinal sets provide us with more actionable risk information such as a
sequencing or scheduling preference, often with conflicting guidance
While capacity allocation is still useful for hedging, we now have sequencing
and scheduling information. We may also have urgency or class of service
information. An ordinal risk classification may have a relationship to a
deadline, delay cost function, or pattern of value decay.
42. Interval
A interval may be expressed as a numeric range on a linear, or logarithmic
scale
0 10000
1 205 102
1 50025 1005
1 10000100 100010
1 2010 137
43. Interval
Beware of the different scales
0 10000
1 205 102
1 50025 1005
1 10000100 100010
1 2010 137
44. Ratio
A ratio may be expressed as a %, or a fraction
Indicate the directionality of the risk. Is the lowest value least risky or most
risky?
0% 100%
1/100 100/11
45. Shaping demand
Lifecycle
UrgencyDelay impact
Tech risk
Table stakes
Cost reducer
Spoiler
Differentiator
Enthusiast
Majority
Laggard
Intangible
Standard
Fixed date
ExpediteExtinction level event
Major capital
Discretionary spending
Unknown solution
Known but not us
Done it before
Commodity
Market role
46. Shaping demand
Lifecycle
UrgencyDelay impact
Tech risk
Table stakes
Cost reducer
Spoiler
Differentiator
Enthusiast
Majority
Laggard
Intangible
Standard
Fixed date
ExpediteExtinction level event
Major capital
Discretionary spending
Unknown solution
Known but not us
Done it before
Commodity
Market role
47. Shaping demand
Lifecycle
UrgencyDelay impact
Tech risk
Table stakes
Cost reducer
Spoiler
Differentiator
Enthusiast
Majority
Laggard
Intangible
Standard
Fixed date
ExpediteExtinction level event
Major capital
Discretionary spending
Unknown solution
Known but not us
Done it before
Commodity
Market role
48. Shaping demand
Lifecycle
UrgencyDelay impact
Tech risk
Table stakes
Cost reducer
Spoiler
Differentiator
Enthusiast
Majority
Laggard
Intangible
Standard
Fixed date
ExpediteExtinction level event
Major capital
Discretionary spending
Unknown solution
Known but not us
Done it before
Commodity
Market role
49. Shaping demand
Lifecycle
UrgencyDelay impact
Tech risk
Table stakes
Cost reducer
Spoiler
Differentiator
Enthusiast
Majority
Laggard
Intangible
Standard
Fixed date
ExpediteExtinction level event
Major capital
Discretionary spending
Unknown solution
Known but not us
Done it before
Commodity
Market role
Life is not so easy
50. Shaping demand
Lifecycle
UrgencyDelay impact
Tech risk
Table stakes
Cost reducer
Spoiler
Differentiator
Enthusiast
Majority
Laggard
Intangible
Standard
Fixed date
ExpediteExtinction level event
Major capital
Discretionary spending
Unknown solution
Known but not us
Done it before
Commodity
Market role
51. Shaping demand using
tresholds
Lifecycle
UrgencyDelay impact
Tech risk
Table stakes
Cost reducer
Spoiler
Differentiator
Enthusiast
Majority
Laggard
Intangible
Standard
Fixed date
ExpediteExtinction level event
Major capital
Discretionary spending
Unknown solution
Known but not us
Done it before
Commodity
Market role
52. Shaping demand using
tresholds
Lifecycle
UrgencyDelay impact
Tech risk
Table stakes
Cost reducer
Spoiler
Differentiator
Enthusiast
Majority
Laggard
Intangible
Standard
Fixed date
ExpediteExtinction level event
Major capital
Discretionary spending
Unknown solution
Known but not us
Done it before
Commodity
Market role
53. Shaping demand using
tresholds
Lifecycle
UrgencyDelay impact
Tech risk
Table stakes
Cost reducer
Spoiler
Differentiator
Enthusiast
Majority
Laggard
Intangible
Standard
Fixed date
ExpediteExtinction level event
Major capital
Discretionary spending
Unknown solution
Known but not us
Done it before
Commodity
Market role
54. Shaping demand using
tresholds
Lifecycle
UrgencyDelay impact
Tech risk
Table stakes
Cost reducer
Spoiler
Differentiator
Enthusiast
Majority
Laggard
Intangible
Standard
Fixed date
ExpediteExtinction level event
Major capital
Discretionary spending
Unknown solution
Known but not us
Done it before
Commodity
Market role
55. Shaping demand using
tresholds
Lifecycle
UrgencyDelay impact
Tech risk
Table stakes
Cost reducer
Spoiler
Differentiator
Enthusiast
Majority
Laggard
Intangible
Standard
Fixed date
ExpediteExtinction level event
Major capital
Discretionary spending
Unknown solution
Known but not us
Done it before
Commodity
Market role
56. Work
Can you create the
profiles for the 3
highest risk items you
identified at the
beginning of the
session?
57. Work
Can you create the
profiles for the 3
highest risk items you
identified at the
beginning of the
session?
Please excuse it. We will avoid
because of the time for the meetup.
58. Some examples
Lifecycle
UrgencyDelay impact
Tech risk
Table stakes
Cost reducer
Spoiler
Differentiator
Enthusiast
Majority
Laggard
Intangible
Standard
Fixed date
ExpediteExtinction level event
Major capital
Discretionary spending
Unknown solution
Known but not us
Done it before
Commodity
Market role
63. Idea 1 Idea 2 Idea 3 Idea 4
Idea 5 Idea 6 Idea 7 Idea 8
Idea 9 Idea 10
Some examples
64. Idea 1 Idea 2 Idea 3 Idea 4
Idea 5 Idea 6 Idea 7 Idea 8
Idea 9 Idea 10
▪ Are we managing housekeeping tasks as well as
differentiators?
▪ Are we targeting low-effort incremental gains and
higher impact projects too?
▪ Are the tactical projects balanced with feature
developments that will help us catch up with
competitors? etc
Some examples
65. Idea 1 Idea 2 Idea 3 Idea 4
Idea 5 Idea 6 Idea 7 Idea 8
Idea 9 Idea 10
Some examples Balanced and diversified portfolio
▪ Are we managing housekeeping tasks as well as
differentiators?
▪ Are we targeting low-effort incremental gains and
higher impact projects too?
▪ Are the tactical projects balanced with feature
developments that will help us catch up with
competitors? etc
73. Structure
What’s the
highest risk
…?
3 high risk
items identified
List the risks
Group the
risks into
categories
Create the
dimensions for
each category
Introduction
74. Structure
What’s the
highest risk
…?
3 high risk
items identified
List the risks
Group the
risks into
categories
Create the
dimensions for
each category
Profile some work
Introduction
75. Structure
What’s the
highest risk
…?
3 high risk
items identified
List the risks
Group the
risks into
categories
Create the
dimensions for
each category
Profile some work
Samples/ Conclusions /
Debriefing
Introduction
76. Structure
Introduction
What’s the
highest risk
…?
3 high risk
items identified
List the risks
Group the
risks into
categories
Create the
dimensions for
each category
Profile some work
Close
Samples/ Conclusions /
Debriefing
86. Risks when everything is priorized
Nothing is discarded
At some moment, everything becomes high priority
or
Queues start to grow and become unmaneagable
You may found yourself working in batches.
87. Irrefutable demand
“We’ve already committed to it”
“The boss (sometimes called “Business”) wants it”
It’s a legal or regulatory requirement
It’s part of an already committed Project.
It’s mission critical
88. Irrefutable demand
Pull requires that demand is refutable or at least delayable
Demand must be balanced against capability to supply
Demand can be shaped
89. It is irrefutable demand as irrefutable
as it seems?
Can we use policy to shape demand?
For example, sacrifice fidelity or quality on items of a given risk category or risk
profile to bifurcate demand to a shared sevice?
Can we smooth demand through better understanding of when to
schedule it or its cost of delay?
Schedule highest cost of delay items at optimal start time, and offset others to less
optimal start times
Do demand shaping thresholds and other policies explicit
91. Our strategy for demand management
improvement
Use the feedback loops of service delivery review & operations review
to adjust demand to capability
Use a holistic approach to managing the network of interdependent
services (blocker clustering, dynamic reservation systems, …)
Ensure decision making is informed & effective, combining Risk
profiling with making demand shaping thresholds and other policies
explicit.