Leadership and the management of project risk, quality and people

This study material explores the concepts of leadership and project risk management. It covers topics such as risk specifications, mitigation and contingency plans, and the budgetary implications. It also discusses the application of Pareto analysis in decision-making. The material provides insights into the challenges faced by organizations and offers strategies for effective management. Suitable for students studying project management or related courses.

Leadership and the
management of
project risk, quality
and people project 2

Task 1
1. Build up the relevant risk specifications
Risk Item Description: Accidental risk is
considered to be the crucial risk which was
faced by Max. The reason that came in front
is because company was specifically
looking forward to deliver the items by the
customers in one day only 500 experienced
bikers.
Risk ID: 1
Author: Analyst
Risk Statement Condition: Max may go through different legal issues in relation to over
speeding and so on (Nicholas and Steyn, 2017).
Risk Statement Consequences: Number of penalties in relation to over speeding and so on
are said to be some of the crucial problems that can be faced by Max.
Probability: V.Low / Low / Medium / High /
V.High
Impact: V.Low / Low / Medium / High / V.High
Earliest the risk could have an effect: Due
less traffic, delivery man (Bikers) no
response to the accidents.
Latest the risk could have an effect: Due to
heavy traffic, bikers who are delivering
products and services offered by company on
the purchased address my go through different
range of difficulties.
Mitigation Plan: Selection of the route based on the developed application and considering
the Google map would lead Max to deliver the products on the delivery address in specified
time frame without risking the life and so on.
Contingency Plan: Going for the second alternative biker nearby delivery biker that has
already been stuck in traffic fancy drink another route will help Max in meeting their goal just
to deliver the product which has been purchased by their client in a particular time frame that
is one day.
Risk History: Lagos, images of Nigerian City is growing day by day where it has made citizens
to purchase different vehicles and this has raised traffic related issues. it is may be possible
that time management cannot be done by the company in relation to the delivery time frame
(Gemünden, Lehner and Kock, 2018).
Date: Event: Author:
May 9th Risk management through
focusing upon the best route
for the particular delivery
which is both traffic less and
easy to reach to the delivery
address by the bike riders
who are the delivery man for
Max.
Analyst
May 10th Proper communication in
between the delivery man in
order to reach to the client’s
address in correct time.
Coordinator
Current date May 11th
Risk Item Description: Privacy and security
risk of the clients information where there
Risk ID: 2

are many cases that came in front in
relation to malfunctioning within Lagos.
Author: IT department
Risk Statement Condition: Data leak related concern of clients.
Risk Statement Consequences: Max might go through one of the crucial problem which is
faced by most of the clients not only in Lagos but among different countries as well that are
continuously growing which is data leak done by hackers in order to take rivalry or for any
other reasons.
Probability: V.Low / Low / Medium / High /
V.High
Impact: V.Low / Low / Medium / High / V.High
Earliest the risk could have an effect: As
number of clients were less, can be said
that this risk was not that high due to
company was not that much famous as a
brand (Silver and et. al., 2016).
Latest the risk could have an effect:
Malfunctioning can take place at any moment
at any chance therefore, it is required by IT
department to take into consideration of high
security technology in order to improvise the
benefits towards different concerns of clients of
the company.
Mitigation Plan: Taking into consideration of high security based cyber security software air in
order to reduce the chances of data leaking and so on. If this is not done then it is maybe
possible that company might go through different range of problems where society may also
dislike the service offered by them because of data leaking.
Contingency Plan: Asking clients to change their passwords of the application on regular
basis as this will help company in sustaining within the market for a longer period of time
because there will be less chances of cyber crime towards customers like data leaking and so
on.
Risk History: Over the years, cybersecurity has been one of the crucial concern which has
been faced by not only the small companies but organisations that are dealing at international
level as well. Therefore, considering a cyber security software which is much more would help
Max in delivering the best services to the customers based on their requirements.
Date: Event: Author
May 10th Consideration of Cyber-
Security Software would help
Max to enhance privacy and
security concerns of clients.
IT Department
May 10th Spreading awareness
through notifications to
customers to change their
passwords regularly
(Maqbool and et. al., 2017).
IT Department
Current date May 11th
Risk Item Description: Time management
related risk
Risk ID: 3
Author: Risk Management Team
Risk Statement Condition: Max is delivering products to the customers in one day only within
Lagos. It will be required by company to you have more experience bikers in order to deliver
the products right on time if it is looking forward to expand its business.
Risk Statement Consequences:
Probability: V.Low / Low / Medium / High /
V.High
Impact: V.Low / Low / Medium / High / V.High

Earliest the risk could have an effect: Since,
Max only targeted customers within Lagos,
the risk of time management was not that
much and company has gained success in
the same thing (Zhao, Hwang and Lee,
2016).
Latest the risk could have an effect: due to
Business expansion, it will be e not easy for
Max to deliver the products and services right
on time because of the traffic and for few other
reasons as well.
Mitigation Plan: It will be required by company to recruit a number of bike riders who are
experienced where it is may be possible that Max would required to pay much more to the
bikers as per their requirements.
Contingency Plan: Consideration of management related tools and techniques would help
Max to sustain in the growing market of E-commerce because many companies has targeted
the same market to serve better to customers.
Risk History: Over the years, time has been a crucial element for every single aspect when it
comes to do business therefore it will be required by Max to deliver the best to customers in
the promised time so that they can promising position within Lagos and in among other cities
as well of Nigeria in order to expand business.
Date: Event: Author
10th May Taking into consideration of
Gantt chart in order to
perform every single activity.
Management Team
10th May Utilising work breakdown
structure in every single
operation that is being done
by Max in order to satisfy
their customers through
delivering products right on
time.
Management Team
Current date May 11th
2. For each risk
a. Choice of impact and probability ratings.
Accidental Risk: This is considered to be one of the crucial that is being faced by Max in
order to serve the best to customers through delivering their purchased products in one day
only. Reducing this risk will help Max in delivering products to customers without facing any sort
of issue i. Relation to over speeding and all. If it is talked about probability ratings then they
were high in nature and the reason that came in fund was the traffic in Lagos (Laureani and
Antony, 2017).
Privacy and Security related risk: If it is talk about the choice of impact then it may put
direct and negative impact upon company’s performance level because if the customers are not
getting full security and they have the concern that their information is going to get leak then
Max may not sustain in the market of Lagos for long period of time. This type of risk is medium
in nature because there is low probability of getting into any sort of problem like that because
company has already taken into consideration of high ranged cyber security software (Meredith,
Mantel and Shafer, 2017).
Time management: Probability indication directly shows that the risk of time management
is really very high for Max. It may impact upon company’s performance in both negative and
positive manner if company does not follows the set time frame for each and every activity then
it is mainly possible that company might lose its potential customers in a short time frame.

b. Potential mitigation and contingency plans and consider the budgetary implications of these
plans.
 Accidental risk: Choice of the course dependent on the created application and
considering the Google guide would lead Max to convey the items on the conveyance
address in indicated time period without taking a chance with the life, etc.
 Privacy and security related risk: Contemplating of high security based digital security
programming air so as to lessen the odds of information spilling, etc. On the off chance
that this isn't done, at that point it is perhaps conceivable that organization may
experience diverse scope of issues where society may likewise disdain the
administration offered by them in view of information spilling.
 Time Management related risk: It will be required by organization to enroll various riders
who are experienced where it is might be conceivable that Max would required to pay
considerably more to the bikers according to their prerequisites.
Budgetary implications is done underneath:
Particulars Amount
Income:
Sales 2500
Other income 1000
Total income 3500
Expenses:
Rental charges 1500
Wages 500
Other cost 500
Total expenses 2000
Net surplus (3500-1500) 1500
Actual budget:
Particulars Amount
Income:
Sales 2000
Other income 500
Total income 2500
Expenses:
Rental charges 1500
Wages 1000
Other cost 1000
Total expenses 3500
Net deficient (2500-3500) -1000
Task 2
PARETO analysis
It is a technique that is used by companies for decision-making and is based on the
80/20 rule. In addition to this, Pareto analysis statistically separate number of factors, which
have a high impact on the outcome (Marchewka, 2016). The 80/20 rule states that 80% of
benefits can be attained by performing 20% of the work in an effective manner. Pareto analysis
help an entity to find out the problems and the reason behind the occurrence of problem. Along
with this, it involve the actions taken by higher authorities in order to solve group problems in an
effective manner. It include six stages, which is described below:

1. Identify & List problem: It is important for an organisation to identify the problems in
order to solve it rapidly that leads to attainment of growth and success at marketplace. In
relation to MAX, one of the major problem arise is due to change in technology. Nowadays,
technology is changing rapidly and impact on the overall buying behaviour of customers. The
other that is identified from the given case study is Legal restrictions, Ineffective management,
Security issue, increase in cost, unethical behaviour of employees, lack of trust of staff
members and many more.
2. Identify the reason of each problem: In order to solve the issue, it is important for
managers to gain knowledge about the root cause of problem so that it can solve effectively and
rapidly. The given case study involve several problems and for this the causes are ineffective
time management skills, change in technology, poor organisation management, lack of
knowledge, change in preferences and taste of customers government policies, no high security
system, ineffective relationship with staff members, lack of training and many more. One of the
major reason of arise of problems is change in the external factors. It is determine that this
factors are uncontrollable and influence directly on the business activities as well as
performance of an organisation (Williams, 2016).
3. Score the identified problems: In the third stage of this analysis, it is required to
give score to each and every problem examined and faced by company. This is one of the most
essential element where scores are mainly given to the issues and problems faced by
organizations so that they can easily reduce them on the basis of their cause and effect. It has
been said that the scoring method adopted by higher authorities mainly depends on the type of
problem which is trying to be resolved by them. For instance, if an organization wants to
enhance their profitability, managers need to score the problem on the basis of overall cost and
expenses of the company. In relation to the present context, higher authorities decides to
enhance the customer services for which they score it on the basis of complaints received by
them.
4. Group all the problems together: All the problems arise in front of the organization
needs to be grouped by higher authorities which falls under similar cause. This helps in
identifying common category problems arise at the environment and requires similar sort of
treatment. In relation to the present report, technological and government interference problems
fall under similar group which is external cause (Lourenço and Lebensztajn, 2018). On the other
hand, privacy, trust issue and lack of time management skills comes under similar categories.
All these problems requires similar kind of attention and treatment so that these problems can
be resolved by them in an effective manner.
5. Add scores to each group: At this phase of this analysis, it is required by the
management team to add score for each and every group which has been identified by them in
the above stages. With the help of such scores, it can easily be understood that which issue
needs to be resolved on priority basis. One of the highest scores group is the highest priority of
the company whereas one with low score comes under least priority. In reference to the present
report, highest score is mainly given to the external group as they highly influence the overall
performance and decision making process of the company. Along with this, if managers can
easily cope up with such problems by adopting this method, it will provide highest amount of
positive response.
6. Take appropriate action: At last, it is the stage where appropriate actions needs to be
taken by the higher authorities of the organization. It is essential for companies to take effective
decision in order to solve the problems in an effective manner as it help an organization to
maintain a balance between demand and supply. In addition to this, it also assist an entity to
gain higher growth and success at marketplace effectively. It has been identified that the highest
scoring problem will pay off the huge amount once it will be fixed in an effective manner. For this
context, management life cycle is a method which is chosen by the top management authorities

of the organization. With the assistance of management life cycle method, all the issues and
problems can effectively reduce in an effective manner (Wu and et. al., 2016). Along with this, it
has also been identified that the highest scoring problem needs to be resolved by them on a
priority basis which produces high amount of positive results. The table of the overall analysis
that include problems and causes is given below. The score given to the problems is out of total
score 30.
Items Problems Cause Score
1 Adoption of changing
new technology
Poor organisation
and preparation
24
2 Legal restrictions Government
restrictions
20
3 Ineffective time
management in order
provide on-time
services
Lack of time
management skills
18
4 Lack of employee trust Not able to develop
effective relationship
with staff members
20
5 Data Security issues
of customers
The company have
no high security
system as is not able
to protect the data of
customers
24
6 Increase in cost Due to customer
preferences and
changing technology
23
7 Unethical behaviour of
employees while
serving customers
Lack of training to the
staff members
21
Riskit analysis graph
The Riskit strategy characterizes hazard as an exact and unambiguous. The regular
definitions are likelihood of loss, the genuine loss, factor related with a danger etc. The two
principle qualities of hazard are: Probability and Loss. The Loss relies on desire which thus
relies on the partner. Present contacts, case study of Max Riskit analysis graph is been taken
into consideration which consists of five different stages and these are given underneath:
Step 1: Risk Identification: In the given case study of Max, there are three different
that came in front and these are time management, accidental risk, security and privacy related
risk. These are said to be some of the risks that are required to be maintained by Max in order
to gain competitive advantages within the city that is Lagos, Nigeria (Lin and et. al,., 2018).
Step 2: Risk Analysis: Basically, there are three different case scenarios that came in
front and these are:
 Scenario 1: If all the risks will be maintained then the company will gain competitive
advantages and reach to a sustainable position within Lagos.
 Scenario 2: If these risks that are mentioned above specifically get mitigated by Max
then it will help company in expanding its business at international level.
 Scenario 3: Reduction of the risks will help company that is Max to enhance its
profitability and productivity within Lagos through delivering products to customers in one
particular day.

Step 3: Risk Control Planning: Performing the cost analysis through all the risks that
will be mitigated to the desired goal where the company that is Max will directly gained the
strong position in the market of Lagos (Li and et. al., 2019).
Step 4: Risk Control: implementation of the overall planning is effectively going to take
place where company which is Max can effectively look among different aspects of getting the
lost position and to reduce the risk that may affect their overall productivity and profitability in
near future.
Step 5: Risk Monitoring: Continuation in monitoring the overall situation of the
implementation of the program to reduce the existence of all the rest will help company in
sustaining within the market of Lagos in much effective and efficient manner. If any
modifications are required to take place then this is the phase where Max can effectively take
into consideration of the changes in order to gain the maximum benefits out of the risks through
reducing them (Bajaj, Garg and Sethi, 2018).

REFERENCES
Books and Journals
Gemünden, H.G., Lehner, P. and Kock, A., 2018. The project-oriented organization and its
contribution to innovation. International Journal of Project Management. 36(1). pp.147-
160.
Laureani, A. and Antony, J., 2017. Leadership characteristics for lean six sigma. Total Quality
Management & Business Excellence. 28(3-4). pp.405-426.
Maqbool, R and et. al., 2017. The impact of emotional intelligence, project managers’
competencies, and transformational leadership on project success: An empirical
perspective. Project Management Journal. 48(3). pp.58-75.
Marchewka, J.T., 2016. Information technology project management: Providing measurable
organizational value. John Wiley & Sons.
Meredith, J.R., Mantel Jr, S.J. and Shafer, S.M., 2017. Project management: a managerial
approach. John Wiley & Sons.
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and
technology. Taylor & Francis.
Silver, S.A and et. al., 2016. How to begin a quality improvement project. Clinical Journal of the
American Society of Nephrology. 11(5). pp.893-900.
Williams, T., 2016. Identifying success factors in construction projects: A case study. Project
Management Journal. 47(1). pp.97-112.
Wu, C and et. al., 2016. How safety leadership works among owners, contractors and
subcontractors in construction projects. International journal of project
management. 34(5). pp.789-805.
Zhao, X., Hwang, B.G. and Lee, H.N., 2016. Identifying critical leadership styles of project
managers for green building projects. International Journal of Construction
Management. 16(2). pp.150-160.
Bajaj, S., Garg, R. and Sethi, M., 2018. Total quality management: A critical literature review
using Pareto analysis. International Journal of Productivity and Performance
Management.
Li, R., and et. al., 2019. Cooperative planning model of renewable energy sources and energy
storage units in active distribution systems: A bi-level model and Pareto
analysis. Energy, 168, pp.30-42.
Lin, Z., and et. al,., 2018. Coordinated pitch & torque control of large-scale wind turbine based
on Pareto efficiency analysis. Energy, 147, pp.812-825.
Lourenço, J. M. and Lebensztajn, L., 2018. Post-pareto optimality analysis with sum of ranking
differences. IEEE Transactions on Magnetics, 54(8), pp.1-10.