Balanced Risk Management Keeps CRM Projects On Time, On Budget, and Within Scope

All projects carry risks, everything from customers losing interest to "scope creep" that complicates the project and blows its budget. But perhaps the greatest risk is a tight timeline, like the one faced recently by a professional association with almost 600 affiliate chapters globally that was working to deploy Microsoft Dynamics CRM. With no flexibility in the timeline or budget, the team was left with only one way to realistically deliver a successful solution. So with just a few months before the go live date, they presented their client with their one remaining option - prioritizing the capabilities that would make it into the first release. And they awaited the client's reaction.

Risk management on a complex IT project like a major CRM overhaul requires an entire toolbox of skills - and a trained eye from project leaders.

The key to risk management is a balanced approach, says Kristen Knox, Director of Consulting Services at Cobalt and a certified project management professional (PMP). In a recent blog post, Knox described some typical pitfalls of risk management, two of which are 1) ignoring risk and expecting experienced implementers to ensure a smooth implementation, and, alternatively, 2) overkill; adding so much risk management overhead to a project that the time, effort and cost overruns to manage the risk contribute to the project's failure.

Completing a risk assessment can be a very time-consuming project of its own, involving sponsors, department managers and end users in anticipating every possible pitfall. This high-level project had no lack of input; it was a cross-functional project of considerable visibility, priority and ...