Managing_Project_Uncertainty_----_(3_Problem-Solving_Strategies_For_Managing_Uncertainty)
Managing_Project_Uncertainty_----_(3_Problem-Solving_Strategies_For_Managing_Uncertainty)
Problem-Solving Strategies
For Managing Uncertainty
It is not possible to solve a problem using the same thinking that created it.
– Albert Einstein, theoretical physicist.
Confrontation Modes
• novelty – projects which venture into new territory face greater unknown
challenges.
• complexity – large numbers of co-dependent tasks or events introduce
greater potential for uncertainty.
• affordability – the cost of managing uncertainty has to be balanced against
the threat. It may be uneconomic to tackle some areas of uncertainty.
• structure – the organization of the project into tasks and the choice of
delivery approach determine how uncertainty develops through different
project stages.
• capacity – projects have a higher capacity for uncertainty if the consequences
of failure are judged to be acceptable. For this to be justified, the rewards of
success must also be high. High capacity projects gamble that the benefits
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Taking these factors into account, a project manager must then decide how best
to confront uncertainty. For example, a risk averse project with a low capacity for
uncertainty will focus on suppressing as many sources of uncertainty as possible.
But it will also need to be responsive to new threats and find ways to avoid or
detour around these unknowns.
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38 Managing Project Uncertainty
pre-emptive steps to
reduce uncertainty
adaptive planning
lan
rep
start
DETOUR point uncertainty objectives
recognize
uncertainties
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insurmountable
uncertainty
start
REORIENT point objectives
recover and
replan varian
t plan new
objectives
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problem-solving strategies for managing uncertainty 39
Suppression
Adaptation
Detouring
Given the choice, we should like to detour around all areas of uncertainty. Avoiding
the source of uncertainty means that the consequences (that is, the unexpected
outcomes) are no longer relevant to the project. Thus there is no need to take costly
precautions to resolve unknowns or deal with their repercussions.
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40 Managing Project Uncertainty
Reorientation .
Our final option is reorientation. This is a more dramatic form of detour where
we aim for a modified set of objectives in the face of insurmountable uncertainty.
Highly novel projects sometimes require this. To plough on in the face of extreme
uncertainty risks total failure. The only alternative is to redefine the goals, that is,
reorient the project in a way that negates the worst of the uncertainty.
This is not a tactic for the faint-hearted. Convincing the client that a project cannot
be delivered as originally conceived is no easy task. But it is worth asking the
question, ‘Is it better to deliver something different (but equivalent), than nothing
at all?’
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problem-solving strategies for managing uncertainty 41
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42 Managing Project Uncertainty
Common experience tells us that we can’t find answers until we properly understand
the question. Problem-framing is the process for doing this. We take a particular
area of uncertainty (say, doubts over how a product will integrate into a client’s
infrastructure) and tease out the set of problems arising from this uncertainty. This
means asking sensible questions and challenging any unsubstantiated assumptions:
How do we find out if there are fundamental incompatibilities? What interface
design methods should be used? How should we test the integration? By defining
the questions that need addressing, we have taken the first step towards managing
the uncertainties.
Problems and uncertainty are just two sides of the same coin: a problem is a
restatement of a particular uncertainty. The point is, by taking an area of uncertainty
and restating it as a problem (or set of problems) – the process of problem-framing
– we can then apply classical problem-solving techniques to reduce the level of
uncertainty.
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Before we can look in detail at problem-solving techniques, there are three kinds
of traps to be wary of:
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problem-solving strategies for managing uncertainty 43
The human brain, although superb at pattern recognition, can be easily fooled.
Because of superficial similarities, it is not uncommon to mistake a novel situation
for a problem we have previously encountered. It is an instinctive reaction to
ask, ‘Where have I seen this before? What does this remind me of?’ Drawing on
experience and learning from previous successes and failures is undoubtedly a
good thing, but misinterpreting a fundamentally different situation has dangerous
consequences. We can end up trying to solve a different problem to the one we are
actually confronted with.
• What are the key differences between this situation and similar problems I
have encountered in the past?
• Are these significant differences, for example, ones that act on the problem
differently or at a different tempo?
• Is the scope of the problem different? Are there a larger number of variables
at work?
• How timely is the previous experience? Circumstances change, methods
evolve, and commonly accepted wisdom is challenged. Has your previous
solution to this kind of problem become outdated?
Have you ever solved a problem only to find essentially the same issue cropping up
again a short while later? This typically happens when confronting a symptomatic
problem. Symptomatic problems appear to be discrete and self-contained but
actually conceal a deeper underlying problem. Because there are bigger issues
at work than those under consideration, not surprisingly, any solution to a
symptomatic problem tends to be ineffective or short-lived because it doesn’t deal
with the underlying or root problem.
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A doctor knows that it is more effective to treat the underlying cause of illness
than merely address the symptoms. The underlying illness (or root problem) can
be determined by using the symptoms as clues in the diagnosis. Tackling project
uncertainty requires the same approach: the symptoms of uncertainty hold the
clues. Why is this task running behind schedule? There could be many root causes:
lack of resources, a poorly skilled team, unforeseen dependencies or perhaps poor
planning and estimation.
When we get involved in the details of framing the problems arising from uncertainty,
we sometimes miss the bigger picture and mistake symptomatic problems for the
root problem. By focusing too closely on gathering missing information, so much
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44 Managing Project Uncertainty
When framing a problem it should be remembered that the nature of the parts are
not always representative of the whole – for example, a collection of springs and
cogwheels doesn’t tell us much about how a clock functions. The root problem is
not always obvious from a cursory examination of the symptomatic problems.
Breaking a problem down into smaller pieces is often seen as a good strategy,
since smaller problems are easier to deal with. However, by only addressing
symptomatic problems, the root problem – which lies at the heart of the uncertainty
– is untouched. As Figure 3.2 shows, not all problems are fundamentally divisible.
Even though each symptomatic problem has been addressed, some indivisible
aspect of the root problem remains. In this case, the sum of the parts is less than
the total.
Divisible problem
�
� � Solving all of the
constituent parts solves
the main problem.
� �
Indivisible problem
�
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� �
Figure 3.2 Complex problems are often more than the sum of their parts.
Breaking this kind of problem into smaller units and solving each
one individually will leave behind an unresolved root problem.
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problem-solving strategies for managing uncertainty 45
Figure 3.3 shows the steps needed to arrive at the root problem. First, collect as
many symptomatic problems as possible. (A major area of uncertainty will likely
give rise to quite a few.) It is important not to be too judgmental about what is
relevant or important; working from preconceived ideas carries the risk of missing
important implications. Avoid the temptation to filter out problems which appear
unrelated; crucial dependencies or relationships can be missed.
Next, comes the step of diagnosis. Are there common themes which point to
an underlying problem? Is there a pattern of association or causal links (that
is, a preordained sequence or behaviour pattern)? From this diagnosis it should
be possible to derive a clearer picture of the root problem at the heart of the
uncertainty.
The final step is an important one: test the root problem to see if it creates the same
set of observed symptoms. If not, it may not be the right root problem and a further
iteration of the process is needed.
1
collect
symptomatic
problems
4 2
validate root
problem diagnose
underlying
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against
observation causes
3
derive root
problems
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46 Managing Project Uncertainty
It is human nature to look for evidence which supports a preconceived notion and
to explain away items which don’t accord with the model. However, symptomatic
problems which don’t quite fit with the root problem should never be ignored.
Objectivity is vital: a symptom at odds with the model is indicating that there are
still more dimensions to the root problem to be uncovered.
This one crucial uncertainty gives rise to all sorts of symptomatic problems. What
trade-off should be made between speed and functionality? What size user base
should be supported? What growth in data volumes should be planned for?
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problem-solving strategies for managing uncertainty 47
Launching a new drug onto the market typically costs around €750m and takes 12
years of exhaustive clinical trials before its efficacy and safety can be established
beyond reasonable doubt. Collectively, pharmaceutical and biotechnology firms
annually invest in the region of €70b in research and development. Much of the
cost comes from conducting extensive trials which are designed not only to verify
the drug’s effectiveness, but to detect complications if different drugs are taken
in combination, or where side-effects may be caused by certain environmental
factors. Unfortunately, problems can still occur and a surprising number of drugs
are withdrawn on safety grounds, despite receiving full approval for clinical use.
of failure. These are the safety procedures, good working practices and proven
management processes developed over the years to avoid preventable problems.
However, these barriers are peppered with tiny holes (like a Swiss cheese) arising
from the little uncertainties that can never be totally eliminated: the risks we
haven’t foreseen, the variables we hadn’t considered, etc. Normally, these don’t
matter too much. These uncertainties fall within acceptable tolerances, and if one
defensive barrier is breached, there are other lines of defence.
But suppose the holes in each successive barrier just happen to line up? The chance
alignment of a whole series of minor uncertainties suddenly combines to cause a
major (and potentially disastrous) outcome.
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48 Managing Project Uncertainty
The difficulty is, there is no underlying root problem to be discovered. Our only
chance of detecting such a vulnerability is to work back from a disaster scenario
and identify the circumstances (no matter how unlikely) which could give rise to
it. By understanding the causal factors, we can identify which areas of uncertainty
require attention.
This is not unlike brainstorming around how to achieve the project’s objectives,
except the aim is to identify (and then avoid) negative project outcomes. It requires
‘backward thinking’ – starting with an end result (in this case, a highly undesirable
one) and thinking backwards to identify the conditions which must exist to create
it. We will explore this further in the anticipation strategies of Chapter 5.
Problems often aren’t what they seem at first sight, particularly when information
is incomplete. Their implications may be more far-reaching than we realize or
have an impact that is felt in an unexpected way. We therefore need a formal
method of formulating and evaluating the possible solutions. One such approach
is shown in Figure 3.4.
• controllable variables;
• uncontrolled variables;
• constraints acting on the variables;
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problem-solving strategies for managing uncertainty 49
Imagine the following problem scenario. Whilst driving along a minor road, a
motorist comes up behind a large tractor chugging slowly along. The driver is
already late for a meeting and anxious not to be delayed further, but unfamiliarity
with the road means the driver can’t be certain if there are safe passing places
ahead, whether there are short-cuts or, indeed, if it is likely the tractor will reach
its destination shortly. Using this simple example, we will examine each of the
problem components as an exercise in framing the problem.
do research to find
missing data
uncontrolled evaluate
variables
possible
relationships outcomes
select
of the
constraints model
controllable
variables
validate
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solution
undesirable
evaluation
implications
criteria
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50 Managing Project Uncertainty
Controllable variables
Controllable variables are the things which we, as the principle decision-maker,
can alter or influence. In arriving at a solution, we are effectively deciding which
controllable variables to adjust, and by how much. This set of variables defines
our options. Although other solutions exist which aren’t governed by controllable
variables, these are by definition beyond our influence and therefore cannot form
part of our decision-making process. In other words, we can only make decisions
about things we have some element of control over.
In the example above, both the speed and direction of our vehicle are controllable.
By manipulating these, one possible solution is for the driver to overtake the
tractor. Another solution, arrived at by controlling the same variables in a different
way, is for the driver to wait patiently behind the tractor. The most satisfactory
solution will depend on the relative importance of the objectives – to make the
meeting on time, or to travel safely above all else.
Uncontrolled variables
• The geography of the road. (Are there places wide enough for
overtaking?)
• Forward visibility. (How far can the driver look ahead to see if it is safe to
overtake?)
• The presence of oncoming traffic. (Are there gaps which would allow safe
overtaking?)
Although we can’t directly affect uncontrolled variables, they are still an important
consideration. They define the boundary of what is within our control and what
lies outside.
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problem-solving strategies for managing uncertainty 51
Complex relationships may exist between the problem variables. For example, the
greater the driver’s speed, the swifter the overtaking manoeuvre but less time is
available to avoid oncoming traffic, so the driver’s reactions need to be quicker,
etc. We also need to understand which variables have the greatest influence over
the outcome. There are three main types of relationship:
it is possible that the egg has not been fertilized. The majority of causal
relationships are weak. Our objective is to establish not only the nature of
the relationship (that is, the causal chain of events) but the factors which
determine the probability of each event in the chain occurring.
3. Association. An association exists where we can use one variable to
predict the value of another, but changing the value of one variable doesn’t
necessarily bring about a change in the other. An oft-quoted example is
the association between a person’s height and their weight. We can predict
with reasonable accuracy a person’s weight given their height. However, it
doesn’t follow that reducing a person’s weight will reduce their height, as
might be expected if there was a causal relationship. An association enables
us to predict certain aspects of variables but it won’t necessarily explain
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52 Managing Project Uncertainty
Evaluation criteria
The fourth criterion ensures that the success of the solution doesn’t depend on
external (and unpredictable) factors. For example, the ‘success’ of overtaking on a
blind bend depends on whether or not there is an oncoming vehicle which clearly
isn’t under the driver’s control, and is therefore not an acceptable solution.
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problem-solving strategies for managing uncertainty 53
The value of the outcome can only be judged in relation to the project objectives.
Does this solution move the project closer to its objectives? Is this a cost-effective
way to address the uncertainties around which the problem has been formulated?
A high value outcome will be able to answer yes to both these questions. There are
usually many possible solutions, but only a very small number which deliver high
value outcomes. The art of problem-solving is therefore to arrive at the ‘maximum
value’ outcome.
In some cases it may be necessary to devise a scoring scheme so that the value
of each potential solution can be quantified objectively. In fact, defining the
evaluation criteria right at the start of the problem-solving process is a good idea
because it demands a clear understanding of the objectives in order to get started.
Any scoring scheme needs to be kept simple. What matters most is that each
potential solution is evaluated against the same criteria, and that these criteria are
directly related to the project objectives.
Remember also that project stakeholders don’t always share common objectives,
particularly on large projects where there are diverse stakeholder interests.
Consequently, what may appear to be a high value solution to the project manager,
sometimes receives only lukewarm support elsewhere. In extreme cases, this
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1. Does it achieve the objectives within the context of the framed problem?
(Does it have high intrinsic value?)
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54 Managing Project Uncertainty
2. What are the implications of adopting the solution? (Does it also have
extrinsic value?)
The first of these requires assessment within the context of the problem (including
all the different stakeholder perspectives). But the second needs a broader view.
Are there undesirable consequences which could impact on the project objectives
in a different way? If so, the end of one problem may only be the beginning of
another.
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problem-solving strategies for managing uncertainty 55
This can lead to new problems arising from unforeseen consequences. In focusing
on the thing we want to get rid of, some wider implications are missed. One
example is the use of biological controls, that is, the introduction of a species to
control the threat from a particular type of pest. In some cases, this has led to a
much worse problem, that is, the control has become a virulent pest in its own
right. In 1935, cane toads were introduced into the sugar-cane producing regions
of Australia to keep down cane beetles which were eating the crops. However,
the cane toad’s own voracious eating habits, poisonous skin and ability to rapidly
colonize, left a legacy of problems which continue today, causing major ecological
damage as the cane toads own voracious eating habits.
One way of avoiding such difficulties is to refocus the problem on achieving what
can be called an idealized outcome. An idealized outcome is an aspiration, often
a restating of the project objectives. Discussions which begin with, ‘If only we
could …’ are usually focusing on idealized outcomes. They aren’t always within
reach, but sometimes just the act of turning away from negative objectives and
identifying idealized outcomes will suggest new possibilities.
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Cleden, David. Managing Project Uncertainty, Taylor & Francis Group, 2016. ProQuest Ebook Central,
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Copyright © 2016. Taylor & Francis Group. All rights reserved.
Cleden, David. Managing Project Uncertainty, Taylor & Francis Group, 2016. ProQuest Ebook Central,
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