Turning Risk into Profit
Situation/Task: A Client had a project that was experiencing difficulty. Every month the forecasted schedule completion date extended and every month the forecasted final cost increased. The Client’s Customer was losing patience as the situation was now more than an inconvenience and was threatening the Customer’s production date and ability to deliver product. The relationship between the Client and his Customer was strained to the ultimate stage.
Action: We applied the ARTS Program (Wintergreen’s model for correcting situations such as this) to the situation which included an Analysis of the situation, an assessment of the biggest Risks remaining to the project’s outcome, brought the project Team into the process of buying into and understanding their roles in the recovery plan, and implementing the recovery plan for Success. The analysis revealed that the project’s database had been corrupted and their analyses and forecasts were based on inconsistent and faulty data. We forecasted a new completion date and a new final project cost based on my experience while we corrected the database and developed new benchmarks and trend curves and assisted the project team with their status tracking and trending as well as their short term scheduling to insure that the necessary steps and gains were accomplished to achieve the new forecasts.
Results: The project finished on the new forecasted date and within the new forecasted final cost. The plant startup went so smoothly and quickly (a testament to the project team) that much of the time lost from the original schedule was recouped. The Client’s Customer was so pleased with the startup and the consistency of the forecasts and performance in the latter portion of the project that he awarded the Client with an additional project at the plant on a sole sourced, non-compete basis. This is an excellent example of a Client taking a business risk and turning it into additional profit.