Complexity and Volatility

Knowing how to navigate uncertainty, ambiguity, complexity, and volatility improves the ability to anticipate situations, make good decisions, plan, and solve problems. We’re talking about how to identify complexity and ways to navigate it.

CAPM, PMP and PMBOK are registered marks of Project Management Institute, Inc. 

Sign up to get updates on new episode.

Get ready to ace the PMP exam like never before with Interactive PMP! Our interactive course is a game-changer, combining fun games and bite-sized videos to help you conquer the PMP certification. From project planning to risk management, we've got you covered. Master complex concepts effortlessly, thanks to our engaging and interactive approach. No more boring textbooks or sleep-inducing lectures. With the Interactive PMP, you'll be on your way to PMP success in no time! Don't wait to turbocharge your career.

Email us: info@pmnotebooks.com

PMNotebooks.com
Facebook | Instagram | Twitter | LinkedIn | YouTube

About Kaye B
Medium | LinkedIn

CAPMP, PMP and PMBOK are registered marks of Project Management Institute, Inc.

Transcript

This is Kaye B and welcome to another episode of PMP in a Snap. 

Let’s start by talking about complexity as it relates to projects. Complexity is a characteristic of a program, project, or its environment, which is difficult to manage. This could be due to human behavior, like your front end developer is a diva and won’t work on when the sun lands in the libra solar system,  system behavior like your computer crashed and deleted all the files, or ambiguity. 

Complexity exists when there are many interconnected influences that behave and interact in diverse ways. In complex environments, it is not uncommon to see an aggregation of individual elements leading to unforeseen or unintended outcomes. With that, there is no way of making accurate predictions about your project and the likelihood of any potential outcome or even knowing what outcomes might emerge. Now you know what it means to have complexity on your projects here are three tactics you can use to help you manage them:

The first one is system-based, to see how the overall system works. If something is not working, you can use a technique called decoupling to disconnect parts of the system. This is to both simplify and reduce the number of connected variables. It can show you how a piece of a system works on its own and reduces the overall size of the problem. 

The second one is refraining. In using this technique you would look at the systems from diverse perspectives or using various data type to see different outcomes. 

The third technique is process-based. Within the process-based system, there are three subset techniques. One is iterate which you hear often in project management. This is to build incrementally and add one feature at a time. After each iteration, identify what worked, what did not work, customer reaction and what the project team learned from it. Another one is engage, and this is building opportunities to get stakeholder engagement. This reduces the number of assumptions and builds learning and engagement into the process. And finally, there is fail safe. Use this for elements of a system that are critical. Build in some type of redundancy just in case a piece of the system fails; that way, if something goes wrong, the system can keep going, even if it’s not at 100% until the ultimate solution is found.  

On the same wave as complexity on projects, there are also volatility. Volatility exists in an environment that is subject to rapid and unpredictable change. Volatility can occur when there are ongoing fluctuations in available skill sets or materials. Volatility usually impacts cost and schedule. 

If you are looking to address volatility, you can use alternative analysis such as looking at different ways to meet an objective like using a different mix of skills or outsourcing work.

Another way to address volatility is having a cost reserve to cover budget overruns due to price volatility. In some cases, you can also have a scheduled reserve that can be used to address delays due to volatility associated with resource availability. 

Knowing how to navigate uncertainty, ambiguity, complexity, and volatility improves the ability to anticipate situations, make good decisions, plan, and solve problems. 

That is your PMP in a Snap, we’ll talk next week.