Opportunity research - Revision history

Tkokotas at 17:31, 16 November 2018

2018-11-16T17:31:58Z

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		''Developed by Ignasi Girones Cadiz''

S172781: /* Conclusion */

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Conclusion

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	=Conclusion=		=Conclusion=
	Opportunities are considered as risks by many authors and project managers, together they are included within the term uncertainties. Following the action and reaction principle, every opportunity generates a risk as for every opportunity, there needs to be created a modification of the already existing project, program or portfolio which leads to unknown situations. Opportunity is considered a positive risk that might bring extra profit to the expected outcome. This extra profit might be quantified in terms of value (economical profit) or benefit (non economical). The difficulty at the moment of exploiting opportunities come when there are stakeholders' crossed interests. What might be an opportunity for one group, might be a risk for other. In order to take profit of more opportunities, there needs to be more collaboration and agreements between stakeholders so the overall result is beneficial for all.		Opportunities are considered as risks by many authors and project managers, together they are included within the term uncertainties. Following the action and reaction principle, every opportunity generates a risk as for every opportunity, there needs to be created a modification of the already existing project, program or portfolio which leads to unknown situations. Opportunity is considered a positive risk that might bring extra profit to the expected outcome. This extra profit might be quantified in terms of value (economical profit) or benefit (non economical). The difficulty at the moment of exploiting opportunities come when there are stakeholders' crossed interests. What might be an opportunity for one group, might be a risk for other. In order to take profit of more opportunities, there needs to be more collaboration and agreements between stakeholders so the overall result is beneficial for all.
	The principles to take profit of an opportunity are: first identify it, which might be the hardest if project or risk managers do not have an entrepreneur mentality. Second, analyze it, find out risks related and quantify the profit. Third, plan it, establish precisely guidelines to integrate the opportunity in the existing project, program or portfolio. Forth and last, manage the changes and the uncertainty.		The principles to take profit of an opportunity are: first identify it, which might be the hardest if project or risk managers do not have an entrepreneur mentality. Second, analyze it, find out risks related and quantify the profit. Third, plan it, establish precisely guidelines to integrate the opportunity in the existing project, program or portfolio. Forth and last, manage the changes and the uncertainty. Risk managers play a special role, as they have to find the related risks at every stage and find potential solutions.

	=References=		=References=

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Conclusion

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	=Conclusion=		=Conclusion=
	Opportunities are considered as risks by many authors and project managers~~. Together~~ they are included within the term uncertainties. Following the action and reaction principle, every opportunity generates a risk as for every opportunity, there needs to be created a modification of the already existing project, program or portfolio. Opportunity is considered a positive risk that might bring extra profit to the expected outcome. This extra profit might be quantified in terms of value (economical profit) or benefit (non economical). The difficulty at the moment of exploiting opportunities come when there are stakeholders' crossed interests. What might be an opportunity for one group, might be a risk for other. The principles to take profit of an opportunity are: first identify it, which might be the hardest if project or risk managers do not have an entrepreneur mentality. Second, analyze it, find out risks related and quantify the profit. Third, plan it, establish precisely guidelines to integrate the opportunity in the existing project, program or portfolio. Forth and last, manage the changes and the uncertainty.		Opportunities are considered as risks by many authors and project managers, together they are included within the term uncertainties. Following the action and reaction principle, every opportunity generates a risk as for every opportunity, there needs to be created a modification of the already existing project, program or portfolio which leads to unknown situations. Opportunity is considered a positive risk that might bring extra profit to the expected outcome. This extra profit might be quantified in terms of value (economical profit) or benefit (non economical). The difficulty at the moment of exploiting opportunities come when there are stakeholders' crossed interests. What might be an opportunity for one group, might be a risk for other. In order to take profit of more opportunities, there needs to be more collaboration and agreements between stakeholders so the overall result is beneficial for all.
			The principles to take profit of an opportunity are: first identify it, which might be the hardest if project or risk managers do not have an entrepreneur mentality. Second, analyze it, find out risks related and quantify the profit. Third, plan it, establish precisely guidelines to integrate the opportunity in the existing project, program or portfolio. Forth and last, manage the changes and the uncertainty.

	=References=		=References=

S172781: /* Abstract */

2018-02-28T18:07:56Z

Abstract

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	This article is about the methodology of finding opportunities within the engineering/energy market. Project opportunities management is a set of techniques and tools to help a risk manager to identify and understand possible improvements to the project objectives <ref>Eric McConnell, ''My management guide'',Defining Threats And Taking Opportunities By Risk Management Strategy.</ref>.		This article is about the methodology of finding opportunities within the engineering/energy market. Project opportunities management is a set of techniques and tools to help a risk manager to identify and understand possible improvements to the project objectives <ref>Eric McConnell, ''My management guide'',Defining Threats And Taking Opportunities By Risk Management Strategy.</ref>.
	In following sections it will be explained ~~how to asses different situations keeping~~ in ~~mind~~ the ~~opportunity research~~. ~~Once identified~~ the ~~possible~~ opportunities, how to ~~estimate the profit and how to address resources to overtake competitors. Finally, it will be explained how opportunities can be converted into strengths~~.		In following sections it will be explained more precisely what an opportunity is and what types of opportunities can be found in the project management sector. Then, the reasons why opportunities are often dismissed and finally, how to proceed when an opportunity appears with some examples.

	=Opportunities as Risks=		=Opportunities as Risks=

S172781: /* 2) Analyze */

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2) Analyze

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	''If you know yourself, but not the enemy, for every victory gained, you'll also suffer a defeat.'' -Sun Tzu.		''If you know yourself, but not the enemy, for every victory gained, you'll also suffer a defeat.'' -Sun Tzu.

	Once identified the opportunity, it is time to analyze it and quantify the gains. What profit would it give? What are the associated risks? How much is going to cost? In this step it is established whether an opportunity is feasible or not. It is carried out by the adecuad team at the adecuad step as not all opportunities are the same (see types of opportunities). The correspondent team has to do a whole analysis of the opportunity, inform the stakeholders and carry out measures to approve or reject the idea. It is important to perform a good analysis because a non properly justified changes due to an opportunity, might end up being a threat<ref~~> Program Management:~~ "~~Managing Successful Programmes“ <~~/~~ref~~>.		Once identified the opportunity, it is time to analyze it and quantify the gains. What profit would it give? What are the associated risks? How much is going to cost? In this step it is established whether an opportunity is feasible or not. It is carried out by the adecuad team at the adecuad step as not all opportunities are the same (see types of opportunities). The correspondent team has to do a whole analysis of the opportunity, inform the stakeholders and carry out measures to approve or reject the idea. It is important to perform a good analysis because a non properly justified changes due to an opportunity, might end up being a threat<ref name="successful" />.



	==3) Plan==		==3) Plan==

S172781: /* Contextual opportunities */

2018-02-28T11:20:36Z

Contextual opportunities

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	Strategic opportunities might affect not only a project but also a whole program. They usually have to be more with business and finance rather than project management due to the fact that most times they are related to industry forces. A good analysis of the market, business models, key trends and direction of the market is crucial in order to identify them. An example of these opportunities for project management might be the apparition of new machinery or IT software that can change the actual standards. On the other hand, it can be considered a threat if by not implementing those changes because the program might become obsolete etc. It is task of the project managers to identify them and implement changes downwards. Since these opportunities imply more than one change, these are often dismissed as the number of changes might be higher enough to consider the opportunity not worth it.		Strategic opportunities might affect not only a project but also a whole program. They usually have to be more with business and finance rather than project management due to the fact that most times they are related to industry forces. A good analysis of the market, business models, key trends and direction of the market is crucial in order to identify them. An example of these opportunities for project management might be the apparition of new machinery or IT software that can change the actual standards. On the other hand, it can be considered a threat if by not implementing those changes because the program might become obsolete etc. It is task of the project managers to identify them and implement changes downwards. Since these opportunities imply more than one change, these are often dismissed as the number of changes might be higher enough to consider the opportunity not worth it.
	==Contextual opportunities==		==Contextual opportunities==
	These are the highest opportunities and the ones that might affect a whole portfolio. They affect organizations as a whole and entire groups of stakeholders might be in favor or against taking it. An example would be the merge of two different portfolios to save production costs. They are controlled by the top managers of an organization and they are not easy to perform as they include several risks related. There might be the case where whole programs are affected by an opportunity, this is the case of entrepreneurial programes <ref>Program Management: "Managing Successful Programes“.</ref>		These are the highest opportunities and the ones that might affect a whole portfolio. They affect organizations as a whole and entire groups of stakeholders might be in favor or against taking it. An example would be the merge of two different portfolios to save production costs. They are controlled by the top managers of an organization and they are not easy to perform as they include several risks related. There might be the case where whole programs are affected by an opportunity, this is the case of entrepreneurial programes <ref name="successful">Program Management: "Managing Successful Programes“.</ref>



	==Opportunities according to the benefit==		==Opportunities according to the benefit==

S172781: /* 1) Identify */

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1) Identify

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	''A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.'' – Winston Churchill.		''A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.'' – Winston Churchill.

	The most difficult step to achieve, as explained earlier, project managers are not able to manage risks and opportunities because whatever that can be manageable is not a risk <ref~~>Stacy A. Goff, ''IPMA USA'', Revisiting Risks: Threats and Opportunities in Complex Projects.<~~/~~ref~~>. In order to identify opportunities, managers should have perfectly known current situation of both the project and external factors that produce risks or opportunities. The methodology is the same as for a risk, one must look with entrepreneur mentality the trends, political situation or legislation. Brainstorm is often performed to obtain proper results. Usually, this process is only done when there is a crisis and a way of success needs to be found, however, it is agreed that a more entrepreneur view should be put into practice on the daily life activities.		The most difficult step to achieve, as explained earlier, project managers are not able to manage risks and opportunities because whatever that can be manageable is not a risk <ref name="goff" />. In order to identify opportunities, managers should have perfectly known current situation of both the project and external factors that produce risks or opportunities. The methodology is the same as for a risk, one must look with entrepreneur mentality the trends, political situation or legislation. Brainstorm is often performed to obtain proper results. Usually, this process is only done when there is a crisis and a way of success needs to be found, however, it is agreed that a more entrepreneur view should be put into practice on the daily life activities.



	==2) Analyze==		==2) Analyze==

S172781: /* Abstract */

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Abstract

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	In the business world finding an opportunity at the right time might be the key to success. In the project management, an opportunity is an unexpected situation that will improve the quality of the project or the revenue, therefore, it is a key activity in the management level to be proactive and look constantly for opportunities. Opportunities might come from different ways and it is a manager's task to allocate and distribute resources into new targets <ref>Unkown, ''entrepreneur.com'', (How to research a business oportunity), https://www.entrepreneur.com/article/42940.</ref>. As described in the "Managing Successful Programes" book: "Every Opportunity to advance the program towards its goals should be welcomed and converted into constructive progress."		In the business world finding an opportunity at the right time might be the key to success. In the project management, an opportunity is an unexpected situation that will improve the quality of the project or the revenue, therefore, it is a key activity in the management level to be proactive and look constantly for opportunities. Opportunities might come from different ways and it is a manager's task to allocate and distribute resources into new targets <ref>Unkown, ''entrepreneur.com'', (How to research a business oportunity), https://www.entrepreneur.com/article/42940.</ref>. As described in the "Managing Successful Programes" book: "Every Opportunity to advance the program towards its goals should be welcomed and converted into constructive progress."

	For this case, an opportunity is considered a positive outcome of a project, program or portfolio development considering its uniqueness and attractiveness to customers. The purpose of the opportunity is to bring more value to the project by improving it. In the business world, an opportunity means something that helps you to "stand out from the crowd"<ref>Stacy A. Goff, ''IPMA USA'', Revisiting Risks: Threats and Opportunities in Complex Projects.</ref>. In the project management sector, the idea is the same but usually there is no crowd. It is how to improve a project so it gives either better results or more profit.		For this case, an opportunity is considered a positive outcome of a project, program or portfolio development considering its uniqueness and attractiveness to customers. The purpose of the opportunity is to bring more value to the project by improving it. In the business world, an opportunity means something that helps you to "stand out from the crowd"<ref name="goff">Stacy A. Goff, ''IPMA USA'', Revisiting Risks: Threats and Opportunities in Complex Projects.</ref>. In the project management sector, the idea is the same but usually there is no crowd. It is how to improve a project so it gives either better results or more profit.

	This article is about the methodology of finding opportunities within the engineering/energy market. Project opportunities management is a set of techniques and tools to help a risk manager to identify and understand possible improvements to the project objectives <ref>Eric McConnell, ''My management guide'',Defining Threats And Taking Opportunities By Risk Management Strategy.</ref>.		This article is about the methodology of finding opportunities within the engineering/energy market. Project opportunities management is a set of techniques and tools to help a risk manager to identify and understand possible improvements to the project objectives <ref>Eric McConnell, ''My management guide'',Defining Threats And Taking Opportunities By Risk Management Strategy.</ref>.

S172781: /* Opportunities in terms of quality */

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Opportunities in terms of quality

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	===Opportunities in terms of quality===		===Opportunities in terms of quality===
	This term is very broad and includes many topics not discussed in this article. Some authors classify quality as conformance to requirements (Crosby,1992) or fitness for use (Juran,1989). Following the norm ISO 9000;2000, quality is '‘the totality of characteristics of an entity that bear on its ability to satisfy stated and implied need’'. This kind of opportunities are found out by project quality managers, who look after that a project satisfies the needs for what was designed according to design quality (satisfy needs) and process quality (availability to the customer). The level of affection is not that important as the intention is that improves the overall quality. Some examples according to <ref> Ron Basu, The Definition and Dimensions of Project Quality, gpm first,http://www.gpmfirst.com/books/managing-quality-projects/definition-and-dimensions-project-quality </ref> are: safety and risks, stakeholder management, teamwork or project deliverables. Those examples have to be measurable according to physical appearance, responsiveness, availability, pleasantness and timeliness.		This term is very broad and includes many topics not discussed in this article. Some authors classify quality as conformance to requirements (Crosby,1992) or fitness for use (Juran,1989). Following the norm ISO 9000;2000, quality is '‘the totality of characteristics of an entity that bear on its ability to satisfy stated and implied need’'. This kind of opportunities are found out by project quality managers, who look after that a project satisfies the needs for what was designed according to design quality (satisfy needs) and process quality (availability to the customer). The level of affection is not that important as the intention is that improves the overall quality. Some examples according to <ref name="basu"> Ron Basu, The Definition and Dimensions of Project Quality, gpm first,http://www.gpmfirst.com/books/managing-quality-projects/definition-and-dimensions-project-quality </ref> are: safety and risks, stakeholder management, teamwork or project deliverables. Those examples have to be measurable according to physical appearance, responsiveness, availability, pleasantness and timeliness.
	[[File:quality.JPG\|500px]] Definitions of project quality.<ref~~> @Ron Basu, The Definition and Dimensions of Project Quality, gpm first,http:~~/~~/www.gpmfirst.com/books/managing-quality-projects/definition-and-dimensions-project-quality </ref~~>		[[File:quality.JPG\|500px]] Definitions of project quality.<ref name="basu" />

	=Opportunities missed=		=Opportunities missed=

S172781: /* Missing opportunities due to stakeholders */

2018-02-28T11:14:05Z

Missing opportunities due to stakeholders

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	In theory, opportunities are to be always taken, however, in practice, projects and project managers fail to identify them and take use of them. Project analysis show that the number of found threats is between eight to ten times higher than the number of found opportunities <ref>Rolstadås, A.; Hetland, P.W.; Jergeas, G.F.; Westney, R.E. A new approach to project risk navigation. In Risk Navigation Strategies for Major Capital Projects—Beyond the Myth of Predictability; Springer-Verlag London Limited: Location, UK, 2011; pp. 39–50.</ref>. The reason of this, is because brainstorm usually focus more on how mitigate the risks and threats rather than in finding opportunities. This is due because every opportunity might come with more risks to mitigate and the present situation is assumed "favorable". There are several factors that lead to the rejection of a visualized opportunity. Following sections explain the most common ones:		In theory, opportunities are to be always taken, however, in practice, projects and project managers fail to identify them and take use of them. Project analysis show that the number of found threats is between eight to ten times higher than the number of found opportunities <ref>Rolstadås, A.; Hetland, P.W.; Jergeas, G.F.; Westney, R.E. A new approach to project risk navigation. In Risk Navigation Strategies for Major Capital Projects—Beyond the Myth of Predictability; Springer-Verlag London Limited: Location, UK, 2011; pp. 39–50.</ref>. The reason of this, is because brainstorm usually focus more on how mitigate the risks and threats rather than in finding opportunities. This is due because every opportunity might come with more risks to mitigate and the present situation is assumed "favorable". There are several factors that lead to the rejection of a visualized opportunity. Following sections explain the most common ones:
	==Missing opportunities due to stakeholders==		==Missing opportunities due to stakeholders==
	Not taking profit of a localized opportunity might be due stakeholder's conflict. Specially, in larger projects, when there are more stakeholders, finding common solutions that do not prejudice others might be a big challenge. In order to find common solutions for everyone, the terms of value and benefit described by <ref~~>Agnar Johansen, Petter Eik-Andresen, Andreas Dypvik Landmark,~~		Not taking profit of a localized opportunity might be due stakeholder's conflict. Specially, in larger projects, when there are more stakeholders, finding common solutions that do not prejudice others might be a big challenge. In order to find common solutions for everyone, the terms of value and benefit described by <ref name="norwegians" /> should be explained. Value is referred to economical profit whereas benefit includes non-economical rewards. This takes into account the socio-economic analysis and private economic. A project can be beneficial but not valuable. In order to consider an opportunity, it is to be set in advance the possible value and benefit of the opportunity. What makes it even more difficult is that for what some might be a beneficial alternative, for others might be a threat or a non beneficial. When changing a project, program or portfolio, all parts need to agree.
	~~Anandasivakumar Ekambaram and Asbjørn Rolstadås, ''Administrative Sciences'',Value of Uncertainty: The Lost Opportunities in~~
	~~Large Projects.<~~/~~ref~~> should be explained. Value is referred to economical profit whereas benefit includes non-economical rewards. This takes into account the socio-economic analysis and private economic. A project can be beneficial but not valuable. In order to consider an opportunity, it is to be set in advance the possible value and benefit of the opportunity. What makes it even more difficult is that for what some might be a beneficial alternative, for others might be a threat or a non beneficial. When changing a project, program or portfolio, all parts need to agree.
	There are three groups of stakeholders to be taken into account during a project: Contractor, client and users. Each of them have different interests that might differ and contradict from the others. The image below shows the relation influence/interest. Both the client and contractor are in the highest position whereas the users are usually in high interest low influence.		There are three groups of stakeholders to be taken into account during a project: Contractor, client and users. Each of them have different interests that might differ and contradict from the others. The image below shows the relation influence/interest. Both the client and contractor are in the highest position whereas the users are usually in high interest low influence.