Systems Engineering Implementing Risk Management in Your Organization: What to Consider Lubna Khaled-Noveloso Systems Engineering Directorate Tank Automotive Research Development and Engineering Center (TARDEC) August 9 th 2018 1 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited.
Systems Engineering Objective • Understand factors to consider for implementing Risk Management DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 08/09/2018 2
Systems Engineering Layout • Reality • Factors for successful Risk Management 1. Questions to address 2. Workflow and stakeholders 3. How does risk management help meet program objectives 4. Normalize activities • Conclusions, Closing & Acknowledgements • Questions 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 3
Systems Engineering Reality for Risk Management 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 4
Systems Engineering Risk Management is Painful “ Risk Mitigation is painful, not a natural act for humans to perform ” - Gentry Lee, Chief Systems Engineer at Jet Propulsion Laboratory [Ref] Managing Risks: A New Framework by Robert S. Kaplan and Anette Mikes, Harvard Business Review, June 2012 Issue 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 5
Systems Engineering Risk Averse Risk Averse [Ref] www.processrenewal.com 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 6
Systems Engineering No Incentive to Innovate No innovation Not think outside the box [Ref] Randy Glasbergen / glasbergen.com 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 7
Systems Engineering Factor 1. Questions to Consider Prior to Implementation 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 8
Systems Engineering Have We Defined Rollout Plan? • Expectations • Process and Stakeholders • Schedule • Pilot Programs & Program Objectives • Resources • Review progress with leadership 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 9
Systems Engineering What Are We Communicating? Rollout Expectations Plan All Stakeholders Importance Frequency Impact of Tailor Change Message [Ref] stuartduncan.name 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 10
Systems Engineering Are We Mentoring? Determine Process Root Cause Define Risks Define Risk & Assess Mitigation Severity Plan Correlate Facilitate critical risks Risk Review to program Meetings objectives [Ref] kbmanage.com 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 11
Systems Engineering Do We Provide Recognition? [Ref] pixshark.com 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 12
Systems Engineering Do We Share Lessons Learned? SUCCESS STORIES SHARE Risk Program 1 Successfully Mitigated Program 2 Risk Turned Program 3 into Issues FAILURES [Ref] quotesgram.com 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 13
Systems Engineering Factor 2. Notional Workflow & Stakeholders Involvement 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 14
Systems Engineering Notional Workflow 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 15
Systems Engineering Stakeholders & Roles and Responsibilities - extract Team Leads & Subject Matter Experts Management Functions Different Program Product Communicate Importance Objectives of Risk Management X X Define expected behaviors X X Mentoring X X Identify Risks X X X Define Root Cause, Analyze risks and define and review risk X X X mitigation plans 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 16
Systems Engineering Factor 3. How Risk Mitigation Helps Meet Program Objectives 17 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited.
Systems Engineering Meeting Program Objectives Mission critical risks Risk Mitigation Value creation – resources Eliminate Value Cost expended to mitigate risk duplication and should be less than the streamline Creation Reduction consequence of inaction schedule and costs • [Ref] Turning Risks Into Results: How Leading Companies Use Risk to Fuel Better Performance, Ernst & Young • [Ref] Risk Management, https://en.wikipedia.org/wiki/Risk_management 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 18
Systems Engineering Case Study TAKEAWAY Positive relationship between matured & established risk mgmt process and performance. [Ref] Turning Risks Into Results: How Leading Companies Use Risk to Fuel Better Performance, Ernst & Young (EY) EY is a tax advisory and financial services company. Quantitative survey of 576 interviews with companies all over the world. 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 19
Systems Engineering Factor 4. Normalize Risk Mgmt Functions 20 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited.
Systems Engineering Normalize Risk Mgmt Functions 1. Link critical risks to top performance indicators – Availability, Number of vehicles repaired over time 2. Link risk mitigation activities to Integrated Master Schedule 3. Common Risk Management Process – Workflow, Stakeholders, Roles and Responsibilities 4. Track risk mitigation progress regularly 5. Use common technology tool (for example Project Recon) 6. Communicate lessons learned and success stories in quarterly reviews 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 21
Systems Engineering What We Covered, Conclusion, Closing & Acknowledgements 22 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited.
Systems Engineering What we covered • Reality • Factors to consider to implement Risk Management – Questions to address – Workflow and stakeholders – How does risk management help meet program objectives • 20% of top companies perform better – Normalize risk mgmt activities 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 23
Systems Engineering Conclusion • Organizational Change is hard • Consider a number of factors for implementation • Positive relationship between matured risk management and meeting program objectives • Long term focus to normalize risk management activities • Share Lessons Learned 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 24
Systems Engineering Closing Crises Driven & Reactive No Performance Improvement [Ref] www.cartoonstock.com [Ref] www.timoelliott.com 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 25
Systems Engineering Acknowledgements Tank Automotive Research Development & Engineering Center (TARDEC), Systems Engineering Directorate (SED) • Ms Rebecca L. Addis • Mr Arthur T. Griffin Jr • Ms Nonna I. Shane Program Executive Office for Combat Support & Combat Service Support (PEO CS&CSS), Program Management Transportation Systems (PM TS) • Ms Michelle L. Kovacs 26 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited.
Systems Engineering Questions [Ref] blog.credit.com 08/09/2018 DISTRIBUTION STATEMENT A. Approved for public release; distribution unlimited. 27
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