Everything you need to know about DevOps

Everything you need to know about DevOps

DevOps is a set of practices that combines software development (Dev) and IT operations (Ops). It aims to shorten the systems development life cycle and provide continuous delivery with high software quality. DevOps is complementary with Agile software development, several DevOps aspects came from the Agile methodology.

Agile

The motivations for what has become modern DevOps and several standard DevOps practices such as automated build and test, continuous integration, and continuous delivery originated in the Agile world. Agile development teams using methods such as Extreme Programming couldn't "satisfy the customer through early and continuous delivery of valuable software” unless they subsumed the operations/infrastructure responsibilities associated with their applications, many of which they automated. Because Scrum emerged as the dominant Agile framework in the early 2000s and it omitted the engineering practices that were part of many Agile teams, the movement to automate operations/infrastructure functions splintered from Agile and expanded into what has become modern DevOps. Today, DevOps focuses on the deployment of developed software, whether it is developed via Agile or other methodologies. 

How DevOps Works

Under a DevOps model, development and operations teams are no longer “siloed.” Sometimes, these two teams are merged into a single team where the engineers work across the entire application lifecycle, from development and test to deployment to operations, and develop a range of skills not limited to a single function.

In some DevOps models, quality assurance and security teams may also become more tightly integrated with development and operations and throughout the application lifecycle. When security is the focus of everyone on a DevOps team, this is sometimes referred to as DevSecOps.

These teams use practices to automate processes that historically have been manual and slow. They use a technology stack and tooling which help them operate and evolve applications quickly and reliably. These tools also help engineers independently accomplish tasks (for example, deploying code or provisioning infrastructure) that normally would have required help from other teams, and this further increases a team’s velocity.

Decoding the DevOps Lifecycle

DevOps is primarily implemented in application development for e-commerce websites, cloud-native applications, and other large distributed platforms. It consists of multiple phases that collectively become the DevOps lifecycle. 

◉ Continuous Development

◉ Continuous Integration

◉ Continuous Testing 

◉ Continuous Feedback

◉ Continuous Monitoring

◉ Continuous Deployment

◉ Continuous Operations

These seven phases are the main constituents that ensure DevOps optimizes all development processes, right from proposal to production and the complete delivery. Here is a phase-wise, complete break-down & analysis of the DevOps lifecycle.

1) Continuous Development 

The first phase of the DevOps lifecycle is where the planning and software coding takes place. The planning involves understanding the vision of the project and envisioning a software based on those perceptions. 

Planning doesn’t involve any major tools, but maintaining the code entails the use of a range of tools. Developing the source code for the application begins by choosing from the different programming languages. JavaScript, C/C++, Ruby, and Python are prominently used for coding applications in DevOps. 

The process of maintaining the code is called Source Code Management (SCM), where version control tools such as GIT, TFS, GitLab, Subversion, and Mercurial, among others, are used. 

In the SCM process, GIT is a preferred tool that enables a distributed version control. It facilitates data assurance through circulated non-linear workflows. For large projects, where a vast number of collaborators are involved in the development activity, GIT establishes reliable communication between the teams through the Commit messages. 

With the help of a version control tool, a stable version of the application code is built in the continuous development phase. Developers can also package the code into .exe (executable) files by using Garden, Maven, and similar tools. 

2) Continuous Integration

The source code gets modified several times, and these frequent changes happen on a weekly or a daily basis. Code integration, the next phase, is the core of the entire DevOps lifecycle. In continuous integration, new codes that support add-on functionalities are built and integrated into the existing code. 

In this phase, bugs in the source code are detected early on. To generate new code that brings more functionalities to the application, developers run tools for unit testing, code review, integration testing, compilation, and packaging. 

The continuous integration of this new code into the existing source code helps reflect the changes that end-users would experience with the updated code.

Jenkins is popularly used as a reliable DevOps tool for procuring the updated source code and constructing the build into.exe format. These transitions occur seamlessly, and the updated code is packaged and proceeded to the next phase, which is either the production server or the testing server. 

3) Continuous Testing 

Some developers carry out the continuous testing phase before the continuous integration phase. Based on the updations in the application code, this phase can be repositioned around the continuous integration phase in the DevOps lifecycle.   

Here, the developed software is continuously tested for bugs. A test environment is simulated with the use of Docker containers. Through automated testing, developers save effort and time, usually lost in manual testing. Reports generated by automated testing improve the test evaluation process. Analyzing the failed test-cases becomes easy. After going through a UAT (User Acceptance Testing) process, the resultant test-suite is simpler and bug-free. TestNG, Selenium and JUnit are some of the DevOps tools used for automated testing. These tools can also arrange test-case execution in a pre-set timeline.  

Quality assessors (QAs) can use these tools for parallel testing of several other code-bases. 

It ensures the flawless functionality and inter-networking of the application. In the end, the tested code is re-sent to the continuous integration phase for updating the source code. 

4) Continuous Feedback

Continuous testing and continuous integration are the two crucial phases that ensure consistent improvements in the application code. Continuous feedback is a peculiar phase where these improvements are analyzed. 

Developers can gauge the outcome of these modifications on the final product. Most importantly, customers who tested these applications can share their experiences in this phase. In a majority of cases, this phase of the DevOps lifecycle provides a turning point to the application development process. The feedback is assessed promptly and developers begin working on the new changes. Sooner, there is a positive response in customer feedback, which paves the way for releasing new versions of the software application. 

5) Continuous Monitoring

Monitoring the performance of an application is of key importance for application developers. In this phase, developers record data on the use of the application and continuously monitor each functionality. “Server not reachable” or “low memory” are some of the common system errors resolved in this phase. 

Continuous monitoring helps in sustaining the availability of services in the application. It also determines the threats and root causes of recurring system errors. Security issues get resolved and problems are automatically detected and fixed. 

Compared to the software development teams, the IT operations teams are more involved in this phase. Their role is pivotal in supervising user activity, checking the system for unusual behavior, and tracing the presence of bugs. 

Sensu, ELK Stack, NewRelic, Splunk, and Nagios are the key DevOps tools used in continuous monitoring. These tools enable complete control in overseeing the performance of the system, the production server, and the application. The operations team can actively engage in increasing the reliability and productivity of the applications with the help of these tools. 

When major issues are detected in this phase, the application is swiftly rerun through all the earlier phases of the DevOps lifecycle. That is how finding a resolution to all sorts of issues becomes faster in this phase. 

6) Continuous Deployment

Conventionally, the phase of continuous deployment takes place before continuous monitoring. But, developers make sure that this phase is always active in the DevOps lifecycle, especially after the application goes live and starts receiving high traffic. 

In this phase, the finalized application code is deployed to the production servers. Configuration Management is a key process in this phase, and it carries out the precise deployment of application code on all servers. Consistency in the application’s performance and functional conditions is established and curated. Code is released to the servers, updates are scheduled for all servers, and these configurations are kept consistent throughout the production process. Ansible, Puppet, and Chef are some of the effective DevOps tools used for Configuration Management, where they frequently execute the quick and continuous deployment of new code. 

Containerization tools are used to achieve continuous deployment through the Configuration Management process. Vagrant, a containerization tool, develops coherence in different environments - from development and testing to staging and production. Similarly, the scalability of continuous deployment is handled by tools like Docker. These tools nullify all sorts of production failures and system errors by replicating and packaging the software couplings from testing, staging, and development phases. Ultimately, the application runs smoothly on different computers. 

7) Continuous Operations

The last phase of the DevOps lifecycle is the shortest phase and the least complicated one. The purpose of continuous operation is to automate the process of releasing the application and the subsequent updates. Development cycles in continuous operations are shorter, allowing developers to ongoingly accelerate the time-to-market for the application.  

DevOps toolchain

Followers of DevOps practices often use certain DevOps-friendly tools as part of their DevOps “toolchain.” The goal of these tools is to further streamline, shorten, and automate the various stages of the software delivery workflow (or “pipeline”). Many such tools also promote core DevOps tenets of automation, collaboration, and integration between development and operations teams. The following shows a sample of tools used at various DevOps lifecycle stages.

Plan. This phase helps define business value and requirements. Sample tools include Jira or Git to help track known issues and perform project management.

Code. This phase involves software design and the creation of software code. Sample tools include GitHub, GitLab, Bitbucket, or Stash.

Build. In this phase, you manage software builds and versions and use automated tools to help compile and package code for future release to production. You use source code repositories or package repositories that also “package” infrastructure needed for product release. Sample tools include Docker, Ansible, Puppet, Chef, Gradle, Maven, or JFrog Artifactory.

Test. This phase involves continuous testing (manual or automated) to ensure optimal code quality. Sample tools include JUnit, Codeception, Selenium, Vagrant, TestNG, or BlazeMeter.

Deploy. This phase can include tools that help manage, coordinate, schedule, and automate product releases into production. Sample tools include Puppet, Chef, Ansible, Jenkins, Kubernetes, OpenShift, OpenStack, Docker, or Jira.

Operate. This phase manages software during production. Sample tools include Ansible, Puppet, PowerShell, Chef, Salt, or Otter.

Monitor. This phase involves identifying and collecting information about issues from a specific software release in production. Sample tools include New Relic, Datadog, Grafana, Wireshark, Splunk, Nagios, or Slack.

Benefits of DevOps

Speed

Move at a high velocity so you can innovate for customers faster, adapt to changing markets better, and grow more efficient at driving business results. The DevOps model enables your developers and operations teams to achieve these results. For example, microservices and continuous delivery let teams take ownership of services and then release updates to them quicker.

Rapid Delivery

Increase the frequency and pace of releases so you can innovate and improve your product faster. The quicker you can release new features and fix bugs, the faster you can respond to your customers’ needs and build a competitive advantage. Continuous integration and continuous delivery are practices that automate the software release process, from build to deploy.

Reliability

Ensure the quality of application updates and infrastructure changes so you can reliably deliver at a more rapid pace while maintaining a positive experience for end-users. Use practices like continuous integration and continuous delivery to test that each change is functional and safe. Monitoring and logging practices help you stay informed of performance in real-time.

Scale

Operate and manage your infrastructure and development processes at scale. Automation and consistency help you manage complex or changing systems efficiently and with reduced risk. For example, infrastructure as code helps you manage your development, testing, and production environments in a repeatable and more efficient manner.

Improved Collaboration

Build more effective teams under a DevOps cultural model, which emphasizes values such as ownership and accountability. Developers and operations teams collaborate closely, share many responsibilities, and combine their workflows. This reduces inefficiencies and saves time (e.g. reduced handover periods between developers and operations, writing code that takes into account the environment in which it is run).

Security

Move quickly while retaining control and preserving compliance. You can adopt a DevOps model without sacrificing security by using automated compliance policies, fine-grained controls, and configuration management techniques. For example, using infrastructure as code and policy as code, you can define and then track compliance at scale.

DevOps Principles & Best Practices

Here are DevOps principles and best practices that you need to follow.

1. Version Control For All Production Artifacts

Both Dev and Ops should use version control for everything. And they should share the same single source of truth.

2. Continuous Integration and Deployment

Check-in code every day and check into the trunk every day, as opposed to hanging onto private code branches and integrating only at the end of the release. 

3. Automated Acceptance Testing

Stop the line not only when the build breaks but also when something breaks. This is true for all software testing, whether it's an automated user test, an integration test, or a system test. This step keeps things in an always-deployable state.

4. Peer Review of Production Changes

Use peer reviews for better quality; leverage your team’s familiarity, shared goals, and mutual accountability, as opposed to external change approval (such as a change advisory board).

5. High-Trust Culture

This is both a practice and an outcome result from a single source of truth, peer reviews, and shared goals.

6. Proactive Monitoring of the Production Environment

Monitor and communicate across the teams so everyone can see, understand, and affect end results and customer utilization.

7. Win-Win Relationship (and Outcomes) Between Dev and Ops

This approach counters the learned behavior that deployments hurt. By deploying code into production every day, you can change lives in Operations. Deployments don’t have to be done at midnight on Friday with Ops working all weekend to get things running. When Ops employees are working the same hours as Dev, there is a sense of teamwork and joint accomplishment.

Source: novelvista.com

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How ITIL and ITSM Are Protagonist In Process Improvement?

Organizations utilize ITIL and ITSM best practices to accomplish business process improvement, manage expenses, and improve efficiencies inside the association. ITIL is a set of processes and standards to assist organizations in practicing IT Service Management successfully.

As organizations change their plans of action and business procedures to contend in a computerized economy, IT service management and ITSM best practices like ITIL are changing alongside them. CIOs are adjusting ITIL and ITSM best practices to work in cloud computing - the best choice of today’s world. IT businesses are exploring different noo and corners of modern technologies regarding AI innovations. As an example,they are using Machine learning and virtual assistants to improve and robotize numerous parts of ITSM that were recently done physically. Moreover, departments like financial, legal and Human Resources are consulting with IT in order to utilize ITSM and ITIL procedures to improve their work processes.

How ITIL4 Framework Is Different?

Introduced in the 1980s, ITIL is a series of core books that give direction to improving the quality and adequacy of IT administrations. Organizations that utilization the ITIL procedures and best practices normally observe an improvement in consumer loyalty and profitability, yet the system can appear to be theoretical and the use of ITIL forms has demonstrated amazingly stimulating for some IT organizations.

ITIL 4 was developed in January 2019 and this section introduces us to the adaptations the new version handles to accommodate today's IT organizations. It also involves a downloadable chapter excerpt from ITIL 4 -- A Pocket Guide.

How AI Is Being Revolutionary For ITSM And Service Desks:

The best practices of Artificial Intelligence such as Machine Learning and natural language processing are being consolidated into ITSM processes. It's still just a beginning for ITSM vendors in this field, so CIOs must be ready to do hands-on testing of AI-imbued ITSM. Yet, as our setup of pattern stories, expert opinions and uses cases in this segment clarifies, AI is opening up new and energizing approaches to automate IT Service Management, help administration levels, and improve client assistance.

Service Desk and Service Catalogue In 21st Century Outlook:

Maybe more than some other part of ITSM, the conventional service desk area is experiencing quick change. Intelligent AI applications like chatbots, virtual assistants are serving customer needs in behalf of IT staff, and service desk workflow is being embraced by business divisions.

ITSM Fast-Paced Digital Businesses:

The IT businesses command to furnish the business with high-caliber, solid IT services continue as usual today as when the CIO job was imagined. What's changing drastically are the technologies and approaches used to convey those administrations and client requests.  IT specialists and professionals dive into how ITSM best practices and tools are advancing to serve the present quick moving computerized undertaking.

Key Takeaway:

With the dramatic change of IT Service Management, ITIL and ITSM best practices play the role of protagonists in this huge turnover. If you have recently seen some of the best ITSM Practices that amazed you, don’t forget to let us know in the comment section below!

Source: novelvista.com

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Remember these 10 tips for Lean Six Sigma

You may contest that some of the numbers of these content are straightforward, certain, and judgmental. The not so good news is that in the real world as we know where we're frequently expected to convey various continuous improvement tasks and proficiency gains, these important hints are effortlessly overlooked.

Read More: Six Sigma Certification

In organizations where measure improvement work is just given an empty talk and thought about an idea to have, any defects are regularly exacerbated. Subsequently, the edgy battle to keep constant enhancement for the corporate plan once in a while overshadows and systematic ways forward for those straightforwardly connected with CI programs. 

Here are top tips that could be valuable for your next Green or Black Belt tasks, Lean exercises, or critical thinking tasks. 

1. We all have customers and we all are customers

Always remember that you have customers, but, that you are additionally a customer. On the off chance that you need to control any task, it's critical to be forthright about what you need from your support, partners, project owners, related offices, or different providers. This incorporates timescales for when you need their assistance. Continuously convey these requirements obviously and clarify the effect on your task and the organization should any of your providers fall flat. That way the individuals who are basic to your prosperity can't embrace no effect so no issue if I don't convey' attitude. 

2. Keep your eyes open to progress opportunities

You won't generally deal with technique evolving projects, however, there's normally the chance to make little improvements all over. By consistently making little improvements, you'll witness a fundamentally more skilled cycle long haul. The total of the parts truly can be more outstanding than the entirety. 

Given advances in innovation, best practice, and changing customer needs, there will consistently be a superior way. So ensure you are continually paying special mind to these chances and urge others to do likewise. 

3. Everybody is busy effort exertion requires an explanation

On the off chance that you need someone to go the additional mile, you'll have to give them a valid justification. That indicates you must be completely clear about what you need and when you need it – and agree on these with why you need it and the immediate effect it'll have on partners. 

On the off chance that your colleagues don't comprehend the benefits of the objective you're chasing, they won't go along with you on the excursion and positively won't help share the load. 

4. Change requires you to catch both hearts and minds

In a universe of contesting projects and progressively limited resources, even great ideas should be sold and sold once more. Continuously keep your stakeholders and what is most important to them as a top priority, and consistently plot why your idea is attracting – especially to them. 

5. An complex examination requires a simple conclusion

Your analysis is your journey and your decisions on the objective. In any case, for business stakeholders, no matter how interesting your journey, it's the objective they have to know. The less complex your decisions, the more active you'll get their approval. Spread out our decisions first and go through your examination to back you. Continuously keep it straightforward and ensure your correspondence needs are in a specific order. 

6. Utilize an advocate to excel

When troubles arise even the intense need uphold. With ground-breaking advocates close by, executing authoritative change will be simpler. In a perfect world, your promoters ought to incorporate executives, senior management, project champions, and sponsors, as well as opinion formers at all levels.

If these potential supporters are not on your side, you have to discover why and see what should be possible to adjust their perspectives to yours. This will assist you with accomplishing your objectives faster and get the correct support from the beginning. Work on this as ahead of schedule as conceivable to stay away from future task slows down and limit dissatisfaction. 

7. Perseverance should be admired, but only up to a point

If it requires a great deal of effort and time to demonstrate your point, ensure it's justified, despite all the problems – for you and your support. Perseverance is a praiseworthy quality and pivotal to progress, however, it's critical to realize when to release it and proceed onward. You may here and there need to put your energy in elective tasks to guarantee long haul achievement, so ensure you remain adaptable. 

8. Communicate frequently and consistently look for input

The need to convey may appear to be obvious, however, it's essential to ensure it's a two-way measure. At times practically zero criticism demonstrates arrangement, yet it can likewise mean your message didn't break through to the correct level or has just been overlooked. Not handily acknowledged in organizations, change is frequently seen as just excessively troublesome or excused without thought. 

9. Point of view is significant and yours is one of numerous

If you don't investigate your stakeholder's perspectives you'll never comprehend their intentions. What's more, if you don't comprehend their thought processes, you're probably not going to induce change. It is essential to consider setting, experience, governmental issues, requirements, targets, personal circumstances, mistaken assumptions, and the shade of everybody's points of view. Frequently genuine plans can remain covered up. 

To become more acquainted with your stakeholders, investigate their viewpoints and in particular, show that you give it a second thought. You may not generally get every bit of relevant information or the entirety of their musings, yet you'll draw nearer if you inquire as to whether you don't. 

10. Use improvement tools to include admiration

Likewise, with most things throughout everyday life, it is critical to utilize the correct tools in your tool kit for Lean Six Sigma projects and not simply use strategies for it. You'll figure out how to utilize tools ideally through experimentation, post-preparing experience, and by exhibiting your grip of procedures for Belt accreditation. When you've chosen the correct tools, you'll be shocked at the quality and speed of progress you would then be able to make. Essentially, use DMAIC (Six Sigma strategy) just where it's justified. If the arrangement's unmitigatedly self-evident, at that point 'simply go do it'. 

Even though improvement projects and exercises should be strong, this doesn't infer the requirement for incredible intricacy or a profound investigation on all events. Less difficult is better – and consistently recall over-handling is classed as one of the seven savages wastes in Lean Six Sigma.

Source: novelvista.com

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How the pandemic has stalled our career development (and how to get it back on track)

A survey has found that 1 in 5 employees has had an appraisal or promotion postponed due to the pandemic! Fewer one-to-ones with managers, less employee investment and fewer opportunities for progression are stalling our career development. We’re taking a look at where the problem lies, and how we can work to get our careers back on track.

Greater challenges, same pay

There’s no doubt about it, COVID-19 created vast challenges for every business. It was sink or swim for many, and those who have managed to pull through owe their success to their employees. Without good leadership and teams ready to rally around, innovate and adapt, many organizations could have collapsed.

Beyond having to adapt to working from home and all its associated challenges, professionals have faced even more demands throughout the pandemic. Companies have been loading staff with new responsibilities. Often these are not in line with their skill set and go unrewarded financially. Taking on greater tasks, beyond your role, may keep your job interesting and satisfying as you rise to the challenge. However, increased duties should also mean increased pay.

The solution: Now is the time to have those tough conversations about your salary. A quarter of employees report having fewer 1-2-1s with line managers during the pandemic. If you fall into this category, then request a meeting as soon as possible. Regular check-ins like these are vital for discussing your role with your superior. A 1-2-1 is your opportunity to set goals for progression and highlight where you have gone above and beyond. They also offer an opportunity to review your position. If you have been a key influencer or decision maker for your company through these challenging times, then you deserve reward and recognition.

Hesitancy in an uncertain world

As the pandemic wears on, much of the business world is still facing disruption. Over the last 18 months, companies have had a crash course in change management, and not to take things for granted. The issue lies in that businesses are still navigating uncertainty and this is having a knock-on effect on our career development. Companies are reluctant to promote employees as they try to keep overheads down, in many cases as a way of clawing back lost business. Similarly, businesses are prioritising spending in other areas and are not investing in their employees in order to advance their careers.

The solution: Be frank with your boss. Organizations are becoming more transparent, and leadership is becoming more open. If finances are a sticking point due to uncertainty in the market, then work together with your superiors to explore other ways in which you can progress. Does the company have any untapped training resources you could try? Or how about a lateral move to a new position to deepen your experience and broaden your skills?

Doing what’s right for your career development

If you are among those who feel that the pandemic has put your aspirations on the back burner, then now is the time to take action. Change is required in order to progress, and as we learn to live with the coronavirus, you must take back control over your career.

If, after talking honestly and openly with your current employee, you still feel stunted in terms of career progression, it could be time to take matters into your own hands. Gaining a professional development certification is a perfect way of evidencing and enhancing your skills. Courses such as PRINCE2 Agile will broaden your skills as you discover this more flexible methodology.

The good news is that, if you are looking elsewhere and considering alternative employment, employers are increasingly looking for individuals with a wide skill set. Companies who had to make redundancies during COVID-19 lockdowns are now stabilising and looking to rebuild. And an industry-wide shake up is opening exciting new opportunities for those who are able to demonstrate an extensive variety of competencies.

Approached strategically, you can get your career progression back on track and continue climbing that ladder. Ultimately, you must do what is best for your career, and should not let the pandemic cause any further standstill. Take back those reigns, reshape, drive, and direct your career!

Source: prince2.com

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Best Tools and Techniques for Six Sigma

Six Sigma is a business theory focused on improving the quality of goods or services an organization produces by reducing differences in the production cycle. Six Sigma managers realize that when a production process comes up short on the strength to make high quality reliably, it will keep delivering damaged products until somebody intercedes and improves the process. Decreasing variation requires steady measurement and estimation as frameworks will in general disintegrate if not held under tight restraints. Throughout the long term, Six Sigma professionals have built up a lot of tools and techniques that address control, and critical thinking and improvement to dispense with imperfections and waste. Here is a couple of the most fundamental. 

Best Tools and Techniques for Six Sigma

1. Standard Work 

Standard work is the documentation of the accepted procedures for any process or undertaking at that given second. It is made and refreshed by the people who accomplish the work. It shapes the benchmark for development and assures measure consistency. 

2. 5S Workplace Organization 

An organized and well-stocked working environment fundamental in the mission to eliminate variety. The procedure includes completing 5 things that all beginning with S in both English and Japanese. They comprise of seiri (sort), seiton (set), seiso (Shine), seiketsu (standardize), and shitsuke (Sustain). 

3. Control Charts 

A process control outline is a chart used to chase how a process carries on overtime. Data points are plotted in a chart with an upper line for the normal (once in a while a middle), an upper line for the upper control limit, and a lower line for the lower control limit. Process control diagrams assist leaders with abstaining from freezing over each up and downswing. They avoid issues made about by just seeing normal outcomes, rather than the varieties of results. 

4. Gemba Walks 

The Japanese word "Gemba" signifies the real place. During a Gemba walk, the manager goes to where work is done regarded for the employees, asks inquiries, and conceivably identify open doors for development.

5. Hoshin Kanri 

Hoshin Kanri (in any case called, Policy Deployment) is a key strategic planning to adjust the organization and guarantee that everybody is progressing in the same objectives. The methodology adjusts the need to accomplish day by day gradual improvement while advancing toward the organization's three to five-year advancement targets simultaneously. 

6. Kanban 

Kanban is a visualizing standard dependent on expanding the progression of goods and work without extra stock or transportation. While at first utilized with physical cards at Toyota, Kanban has now moved to the cloud, and numerous organizations utilize advanced Kanban sheets to follow the progression of work. 

7. Problem Solving and Improvement 

Despite amazing control, now and then issues will occur, or open doors for development will be recognized. All things considered, at least one of the accompanying Six Sigma instruments can be conveyed. 

8. A3 Problem Solving 

A3 is an organized critical thinking approach that gets its name from the size of paper that was utilized before digital tools opened up. An A3 report is the consequence of an improvement cycle like DAMIC or PDSA. 

9. Catchball 

The Six Sigma process of Catchball includes passing ideas starting with one person to others for input and action. The idea (ball) is gotten underway whenever somebody characterizes a test or opportunity. 

10. DMAIC 

DMAIC is a five-stage improvement cycle; define measure, analyze, improve, control. It carries structure to the improvement process and ensures that each change depends on cautious investigation and valuable data. It begins with the Standard Work and repeats whenever a new opportunity exists. 

11. PDSA 

PDSA is an optional improvement cycle that represents Plan, Do, Study, Act. It is an easy version of DMAIC that works best for improvement projects that are not heavy on statistics.

12. The 5 Whys 

The 5 Whys is a well straightforward strategy for getting to the root of the cause. By asking, "why?" the basis of an issue can usually be found in five iterations.

13. Value Stream Mapping (VSM) 

Value Stream Mapping is a Six Sigma apparatus for characterizing and surveying the development of raw materials and work from the earliest starting point of the process to conveyance to the client. It is how the present status of a process is archived, and the reason for figuring out where waste can be dispensed with or esteem included. 

This outline doesn't cover each Six Sigma instrument, yet these are the necessities of the tool kit. You may find that you utilize every one of them, or just a couple, however some the combination will probably assist you with accomplishing less variation, and the ability to respond when challenges emerge.

Source: novelvista.com

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Benefits of PMP Certification

The benefits of PMP certification are immense. You will realize them once you become a PMP.    

I often receive emails from readers who want to know if applying for the PMP certification is worth it. They want to understand the advantages of the PMP certification and if it is a good investment of time and money.

They compare the PMP certification with others, such as PRINCE2, hoping to find the quickest and most cost-effective route to their career goals 

So, to layout the comparative benefits, I am writing this blog post. I hope this will give you a better understanding of the benefits of the PMP certification.

Let’s get started.

Benefits of PMP Certification

Before discussing the benefits of PMP certification, let’s discuss the PMP certification and how to achieve it. Afterward, we will look at the PMP benefits.

What is the PMP Certification?

PMP stands for Project Management Professional. This is a credential offered by PMI (USA), to professionals working in project management.

The PMP is the most popular certification for project professionals with global recognition.

You can apply to become a PMP no matter what industry you’re in.

The PMP Certification Process

Becoming a PMP is a straightforward but somewhat lengthy process. If you are eligible for the PMP exam and attend a 35 contact hours PMP training program, then you can apply.

Once you pass this exam, you are a certified PMP.

This is a difficult exam if you do not prepare well. You must commit time to study and understand the exam concepts and practice questions.

The PMP exam has 180 questions, and you have 230 minutes to take it. As soon as you submit the answers, you will know your result. The exam is closed book, meaning you cannot use any reference book, so adequate preparation and study are vital.

PMI designed the PMP certification process to familiarize you with the best industry practices.

This certification is respected among your peers. It also boosts your self-confidence and fills your knowledge gaps.

To date, there are more than half a million professionals who have earned this prestigious certification, and many more are in the process.

Next, let’s look at seven reasons why the PMP certification is worth it.

PMP Benefit I: You Will Learn Many New Skills

This is the most important benefit of PMP certification.

The PMP certification is designed to make you a better project manager. The certification process provides you with the required knowledge to complete projects with minimal obstruction and optimal success.

Passing the PMP exam is not an easy task. You must have project management experience and a bachelor’s degree or diploma. You also have to attend a 35 contact hours PMP training program. You can apply only if you fulfill these conditions.

While challenging, once you have gone through this rigorous process, studied, and passed the exam, you will have learned new tools and techniques to help further your career.

PMP Benefit II: You Will Stand Out from the Crowd

Getting a call back for a job interview is difficult, and human resource departments constantly have new resumes coming in. The job market is tough, and many candidates are fighting for a single position.

Having the PMP certification gives you a competitive edge. It shows that you have mastered the knowledge that others may not have.

If you go through any popular job portal and search for “Project Manager” or “Project Engineer,” you will notice that many postings require you to be a PMP. Many others highly recommend this certification.

In short, the PMP certification helps you get a good job.

I often receive emails from professionals who are jobless and applying for the PMP exam. They wonder if they will immediately land a job after getting the PMP certification. Please note that getting the PMP certification does not guarantee you a job, but it certainly helps.

PMP Benefit III: Your Knowledge Gaps Will be Filled

This is again a great benefit of the PMP certification. I felt it myself.

Your knowledge may have some gaps. Partially remembered techniques often cannot be recalled or applied with confidence.

You may even find yourself clueless about what your next step should be. No professional wants to be in that situation.

This won’t happen once you have passed the PMP exam because you will have gone through a process developed by industry experts. Your knowledge is aligned with standard international practices, and you won’t have gaps.

The PMP certification provides the best industry-standard know-how to manage the project. You know your next step. This lifts you above a non-credential holder.

PMP Benefit IV: You May Get a Pay Raise

Some surveys say that PMPs have higher salaries than non-PMPs with similar qualifications and experience. The difference is around 10% to 20%, a significant and desirable increase.

Please note that having the PMP certification does not guarantee a pay raise, but it gives you a competitive advantage. 

PMP Benefit V: It Establishes Your Credibility

You are PMP; this establishes that you have demonstrated your competency and skill. It shows you can work within guidelines to lead and direct a project to completion.

Your peers will respect you, and your opinion will have greater weight.

PMP Benefit VI: Global Recognition

These days, international certification is necessary for working in a multinational company. Complex projects may require you to work in a variety of places and even countries. Therefore, you should know the best global practices.

The PMP is an internationally recognized certification. Many large organizations have endorsed this certification throughout the world. No one will question your skills, and clients will trust in your ability to lead large projects.

PMP Benefit VII: Professional and Social Behavior

This final benefit is the gold-standard advantage.

PMP certification holders abide by an industry-accepted code of ethics and show their ability to conduct themselves professionally. Employers appreciate that you will not get involved in anything unethical. You will be known to work with integrity.

The PMP certification is a sign of your professional behavior and helps build your reputation as a capable and honest manager.

Is the PMP Certification Worth it?

To put it simply, yes.

Attaining the PMP certification is a costly process that requires a lot of effort and time.

Training, reference materials, and practice questions are time-taking processes.

The cost of the PMP exam is 555 USD, and the cost of the training, study materials, and simulators are separate. It is not a cheap process.

However, the benefits make this certification well worthwhile.

Do not attempt this exam if you are not serious and dedicated to learning new skills and filling your knowledge gaps.

Source: pmstudycircle.com

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What to Focus on When Picking Six Sigma Software

Putting resources into the software to help your Six Sigma activities is a successful method to ensure that you capitalize on the approach. Setting up a structure for development makes it more straightforward for individuals all through the association to take an interest in, and viably manage ceaseless improvement endeavors. 

Read More: Certified Manager of Quality/Organizational Excellence (CMQ/OE)

Associations that influence Six Sigma software gather more open doors for development, actualize more arrangements, and see a higher ROI for Six Sigma. There are various arrangements available that were either evolved as Six Sigma the board instruments or repurposed accordingly, so we figured it may be useful to recognize the absolute most significant abilities that you should search for while assessing this sort of innovation.

So, How to pick the right Six Sigma Software:

Capture Opportunities for Improvement

Any arrangement you consider should make it simple for each individual in the association to recognize and record open doors for development. This is vital to the Six Sigma approach and ought to be at the core of the arrangement you pick. 

Cloud-based software that is accessible 24 x 7 and on any gadget is the most legitimate arrangement choice. It will make it feasible for individuals to report what they discover from any place they happen to be and for chiefs to react to circumstances regardless of whether they don't occur to be in the workplace. 

The arrangement ought to permit clients to include any records or pictures that may be pertinent to the open door for development and it ought to make a review trail that will store the subtleties of what befalls every open door after some time.

Accelerate Improvement Workflow

When an open door for development is caught in the framework, there ought to be a characterized work process for what occurs straightaway. Who will assess and organize the chance? By what method will the individual who announced the open door realize what's going on with it? 

The best Six Sigma arrangements have savvy cautions and warnings with the goal that the individuals who will survey and support openings are advised promptly when another one is entered. They would then be able to appoint related assignments to the correct individuals and groups. 

When deal with an undertaking begins, extra cautions advise fitting faculty when assignments are finished, or due dates are missed. This quickens the movement of progress.

Measure Impact

Six Sigma brings a proof-based, logical way to deal with business management. Each cycle is just changed after a furrowed assessment and pre-characterized improvement cycle like PSDA or DMAIC. It just bodes well, in this way, to carry that equivalent accuracy to estimating the effect of the progressions that are actualized. 

Your Six Sigma software arrangement should assist you with detailing the effect of your improvement work regarding cost decrease, expanded income, improved consumer loyalty, diminished process duration, or whatever other measurements that are imperative to your business. This will help legitimize the interest in Six Sigma programs, keep representatives spurred, and drive chief commitment.

Visual Management

Numerous Six Sigma strategies include representation. Value stream planning, Kanban, A3, Kaizen sheets, and others all assistance individuals in a flash comprehend complex data in a moment. Search for Six Sigma software that takes visual management to the following level, enabling clients to set up dashboards and reports that rapidly mention to them what they have to know. 

Heads ought to have the option to effectively survey the strength of Six Sigma in the association. Project Managers should see the progression of work and perceive detours right away.

Improvement Broadcasting

Six Sigma requires a collaboration. The methodology takes care of most when it turns out to be important for the way of life and goes past a specific device or strategy to supply each representative with a solid sense that they are crucial to the achievement of the association and the steady improvement is a key duty of each and every person. Six Sigma software arrangements with worked in progress broadcasting capacities help strengthen the significance of Kaizen. This kind of acknowledgment is additionally intensely propelling and something that representatives reliably tell specialists they need more from businesses. 

Six Sigma can significantly change an association to improve things, however, it doesn't generally do as such. Achievement needs chief help, interest in important instruments and assets, and an ability to grasp steady change. Six Sigma software doesn't ensure results, however, it puts the association on the correct balance to quicken improvement, settle on shrewd choices, and gain from past understanding. Choosing one with solid abilities in every one of these territories will help guarantee that you get an answer and an accomplice that can smooth your way toward better business brings about terms of the measurements you care about most.

Source: novelvista.com

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PMI Certifications: How Many Certification Courses Does the PMI Offer?

Today we will talk about PMI certifications.

When I passed my PMP exam in 2010, PMI offered only a few other certifications: PMI-RMP, PMI-SP, and PgMP.

These days, that number has grown dramatically. The PMI offers seven certifications in addition to the PMP certification, and a few more are under the process of launching.

If you have passed the PMP exam, you might be thinking about expanding your skills and wondering what other certifications have to offer.

To give you an idea about these other opportunities, this blog post will cover additional PMI certifications found here.

PMI Certifications

PMI offers eight certification courses:

1. CAPM

2. PMP

3. PgMP

4. PfMP

5. PMI-ACP

6. PMI-PBA

7. PMI-RMP

8. PMI-SP

Besides these certifications, PMI is launching new Agile certifications; you can find more details by clicking here.

CAPM (Certified Associate of Project Management)

This PMI certification is for entry-level professionals. It has lenient eligibility requirements, and you can apply for it even if you don’t have project management experience.

The CAPM certification is valid for three years and requires 15 PDUs to renew it for a further three years.

PMP (Project Management Professional)

This is the most sought-after certification for project professionals. If you are in project management, you should definitely go for this certification. This credential will help you take your career to the next level and requires the following prerequisites:

If you have a secondary degree (high school diploma, associate degree, or the global equivalent), a minimum of five years or 60 months of unique non-overlapping professional project management experience is required.

If you have a four-year degree or equivalent, a minimum of three years or 36 months of unique non-overlapping professional project management experience is required.

If you have a bachelor’s or post-graduate degree from a GAC-accredited program or global equivalent, you should have a minimum of two years or 24 months of unique non-overlapping professional project management experience.

This certification is valid for three years. You can renew it by earning 60 PDUs in three years and notifying the PMI. This is known as the Continuing Certification Requirements (CCR) cycle.

PgMP (Program Management Professional)

You can apply for this certification if you are managing similar projects.

To apply for this certification, you should have a diploma or a bachelor’s degree. Diploma holders need 6,000 hours of project management experience and 10,500 hours of program management experience.

If you have a 4-year degree, you will need 6,000 hours of project management experience and 6,000 hours of experience in program management.

This certification is valid for three years. You can renew it for another three years after completing the CCR program.

PfMP (Portfolio Management Professional)

You should go for this certification if you are managing diverse projects or programs.

To apply for this certification, you should either hold a diploma or a bachelor’s degree.

The portfolio management experience requirement for diploma holders is 10,500 hours and 96 months of professional business experience.

If you have a 4-year degree, you will need 6,000 hours of portfolio management experience and have 96 months of professional business experience.

If you have a 4-year degree, you will need 6,000 hours of project management experience and 6,000 hours of experience in program management.

This certification is valid for three years. You can renew it for another three years after completing the CCR program.

PMI-ACP (PMI–Agile Certified Practitioner)

This certification is for Agile professionals and is the second most popular PMI certification after the PMP.

To apply, you should hold a secondary degree and have 1,500 Agile project management experience hours. Additionally, you should have 2,000 hours of experience in project management. 

This certification is valid for three years. You must earn 30 PDUs in Agile practice to renew for a further three years.

PMI-PBA (PMI Professional in Business Analysis)

This certification is for business analysts.

If you have a secondary degree, you should have 7,500 hours of experience in business analysis. For a bachelor’s degree holder, the requirement is 4,500 hours.

The necessary project management experience is 2,000 hours, and you also have to attend a 35 contact hours training program in business analysis.

This certificate is valid for three years. You can renew it for a further three years after earning 60 PDUs in business analysis topics.

PMI-RMP (PMI Risk Management Professional)

You should go for this certification if you want to take your career to the next level in risk management.

Diploma or degree holders can apply for this certification. If you have a diploma, you should have 4,500 hours of experience in risk management. If you are a degree holder, the requirement is 3,500 hours. 

The training program is 40 hours long for diploma holders and only 30 hours for those with 4-year degrees.

This certification is valid for three years. You can renew it for a further three after completing the CCR program, which includes earning 30 PDUs in risk management.

PMI-SP (PMI Scheduling Professional)

This certification is for professionals working in project planning and scheduling.

You will need a diploma with 5,000 hours of experience in project scheduling. Afterward, you must attend 40 contact hours of training in scheduling management. Then you will be eligible for this certification.

If you have a 4-year degree, you should have 3,500 hours of experience in project scheduling. Then you should attend a 30 contact hours training program in scheduling management.

This certificate is valid for three years. To renew it for another three, you will have to earn 30 PDUs in scheduling management.

Source: pmstudycircle.com

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8 Types of Organizational Structure

Today, we will discuss the types of organizational structures.

Every company has an organizational structure built around its goals and business objectives. If the work is short-term, the structure should allow for temporary hires and seasonal employment.

However, if the company relies mainly on repeat business and regular tasks, the structure should support activities that help maintain its operation.

Read More: PMI Certifications

Organizational structure is a system that determines employee hierarchy, functions, and workflow, and also provides a transparent and fair reporting system. It is an enterprise environmental factor guiding how an organization runs its operations.

As organizations grow, their requirements change, and the structure must adapt to support its objectives.

Now you might wonder about the relative significance of the organizational structure, the invisible yet vital scaffolding supporting business activity. 

The market is competitive; therefore, organizations must rapidly adapt to market demand and be responsive to shifting business objectives.

Companies with poor organizational structures will not survive.

A well-defined organizational structure helps businesses realize their potential and support their objectives.

For example:

Let us say your company is producing a good. Your customers are satisfied and not very demanding, so what kind of organizational structure would you select?

The functional organizational structure serves this company best because it supports production operations.

Let’s consider another case.

Suppose your organization has ten employees and deals with small projects. As soon as you complete a project, you start looking for the next one.

In this case, what kind of structure would you select?

You would opt for the projectized organizational structure since your company mainly works with temporary projects.

Now, the final case.

Your organization is enormous. The work environment is dynamic and diverse. Customer requirements and market demands frequently change.

What kind of structure would you select?

The functional structure won’t work because it does not allow for quick changes to its operations and isn’t as responsive to market nuance.

You also cannot select the projectized structure. Although it supports a dynamic nature, this isn’t adequate for a large organization. Your company is big, and you need permanent departments to keep your organization functioning smoothly. This is not possible with the classic projectized structure.

Hence, you will select a matrix organizational structure. It combines the qualities of both functional and projectized organizational structures and will support your operations and help achieve your business objectives.

Types of Organizational Structure

An organizational structure guides how activities in your company are carried out to achieve its goals. It determines how information flows within the organization and between departments. It defines the chain of command and job responsibilities.

The organizational structure depends on many factors, such as governing style, leadership style, workflow, hierarchy, and many more.

The PMBOK Guide defines eight types of organizational structures:

1. Organic or Simple Organization

2. Functional or Centralized Organization

3. Multi-divisional Organization

4. Matrix Organization

5. Project-oriented (Composite or Hybrid) Organization

6. Virtual Organization (Network Structure)

7. Hybrid Organization

8. PMO (Project Management Office)

Wikipedia lists six types of organizational structures:

1. Pre-bureaucratic Structure

2. Bureaucratic Structure

3. Post-bureaucratic Structure

4. Functional Structure

5. Divisional Structure

6 Matrix Structure

Some other sources divide them into the following categories:

◉ Simple Organization

◉ Functional Organization

◉ Divisional Organization

◉ Matrix Organization

◉ Team-based Organization

◉ Network-based Organization

◉ Modular Organization

On the Internet, you will find many different types of organizational structures. However, the classifications above are the most popular.

Since this blog follows PMI’s guidelines, we will focus on the PMBOK Guide’s classification and explain the other organizational structures briefly.

Organic or Simple Organizational Structure

Here, you work alone or side by side with another employee.

You may be the only employee in your company.

Instances of this type are a solopreneur, OPC (One Person Company), or a freelancer.

Functional (Centralized) Organizational Structure

Functional organizational structure is the most commonly used organizational structure. Here, the organization comprises various departments; each department has workers with similar skills: sales, marketing, finance, to name a few.

This helps organizations maximize the efficiency of each functional group.

Multi-Divisional Organizational Structure

Here, you may have many functional divisions with a little centralization. Generally, these divisions are independent. Although they will guide a part-time staff, project managers do not have much authority.

Under a multi-divisional structure, the organization is divided into various divisions. Employees with diverse skills are kept together in groups based on a similar product, service, or geographic location. Each division has the resources required to function and can work independently.

Matrix Organizational Structure

Matrix organizational structure is a hybrid of a functional and projectized organizational structure. Here you have two command structures: vertical and horizontal. An employee may belong to a functional group and work on a project, so this structure combines the best of both worlds.

A matrix organizational structure can be of three types:

1. Strong Matrix Structure

2. Balanced Matrix Structure

3. Weak Matrix Structure

Strong Matrix Structure

Strong matrix organizations are closer to a projectized organization. The project managers have the highest authority, control over the budget, and a full-time team reporting to them.

Balanced Matrix Structure

A balanced matrix has properties of both functional and projectized structures. Here, project managers have a low-to-moderate authority and a part-time team. Both the project manager and the functional manager manage the budget.

Weak Matrix Structure

A weak matrix is closer to a functional structure. With a weak matrix, project managers have low authority and no control over the budget; they will have a part-time team.

Project-Oriented (Composite or Hybrid) Organizational Structure

As its name suggests, projectized organization deals with projects. Project managers have a full-time role and comprehensive authority to complete the project successfully. They control the budget and have a full-time team report to them.

A team-based structure is another name for a projectized organizational structure.

Virtual Organization or Network Structure

Many experts call this a virtual corporation. The central organization is connected to outside firms via the internet. The outside firm can be a vendor, client, or associate. This structure helps businesses achieve corporate growth and a greater profit. In a network structure, the organization keeps its core business to itself while adjunct processes are outsourced. 

This structure is also known as a hollow corporation, hollow organization, or network structure.

In a virtual organization, the project manager has a low-to-moderate authority, mixed control over the budget, and they may or may not have a full-time team reporting them.

Hybrid Organizational Structure

True to its name, this structure may use any combination of the organizational structures.

Suppose yours is a functional organization whose typical needs are easily met by conventional departments In some cases, however, your organization will create a separate project team to complete unique tasks.

Hybrid Organization is a mixed structure that serves organizations with diverse needs. Responsibility, authority, and other factors are also mixed depending on the structure.

PMO (Project Management Office)

PMO is also a mixed organizational structure. Here, project managers have the highest authority. They control the budget and have a full team reporting to them.

This concludes the summary of organizational structures.

Next, we will discuss those organizational structures not mentioned in the PMBOK Guide. Note that I am describing these organizational structures for your information only. You will not see any questions in your PMP exam about these types of structures. 

The Simple Structure

This organizational structure is suitable for small organizations in their early stages. They have just started and are still in the development phase. In these companies, authority rests in a single person. These structures have few rules, and work is relatively straightforward.

Some scholars call this a pre-bureaucratic structure.

The Modular Structure

In this structure, the organization outsources some parts of a product.

Note that in the network structure the company outsources the processes, while in a modular structure outsources only a few parts of the product.

Pre-Bureaucratic Structure

Pre-bureaucratic organizations do not have standard procedures and policies. Small-scale and young companies use this structure. This organizational structure has a few employees who handle simple tasks. It has a central command with one decision-maker in the top position.

Communication takes place on a one-on-one basis, and it usually is informal.

Bureaucratic Structure

This organizational structure is suitable for huge organizations with complex operations that need smooth administration. They have standard procedures and processes.

An example of this organizational structure is the food and beverage industry, with strict rules and regulations that govern processes.

Post-Bureaucratic Structure

Post-bureaucratic organizations are quite developed and have complex standards and procedures. These organizations have a central command comprising several board members; decisions are made through a democratic process. 

This encourages employee participation, trust, responsibility, and respectful interpersonal relationships.

Key Elements of Organizational Structure

The followings are five key elements of an organizational structure:

1. Job Description

2. Division of Department

3. Chain of Command

4. Span of Control

5. Formalization

Job Description

A job description defines the task managed by each employee of the organization. 

It is the most important element of organizational structure as it distinguishes one role from another and separates and defines the responsibilities.

Division of Department

An organizational structure can have many departments, such as finance, human resources, and quality control.

Each department has a unique set of activities and a department head. Sometimes, departments are known as sections and led by the section head.

Chain of Command

This shows the line of command from top to bottom.

For example, quality control supervisors report to quality control engineers, and quality control engineers report to the quality control head.

However, the head of quality control and human resource are equal and report to the organization’s CEO. 

Span of Control

This shows how many departments the organization has; moreover, it defines how many employees a manager or department head can control.

The span of control determines the chain of command and provides shape to the organizational structure.

Formalization

Formalization defines how employees should behave and communicate through the chain of command. 

Formalization standardizes the workflow in organizations.

The Impact of Growth on Organizational Structure

The structure of an organization cannot be fixed, especially when the business is growing. 

When the company is small or starting up, it will have a simple structure.

As it grows bigger, but still handles a single project at a time, it can function well with a pure projectized organization. 

If the company is creating products and growing, it may shift to a functional organizational structure.

But as the business continues to grow, it cannot rely on a pure project or functional structure. It will require elements of both structures to support its needs. In such cases, the business can have a strong matrix or weak matrix structure.

As the company expands, it will need to have a hybrid structure to support its business objective.

The Advantages of an Organizational Structure

An organizational structure has a well-defined reporting structure, reducing friction among employees by clarifying roles and responsibilities.

Having a proper organizational structure can bring immense benefits to any organization. A well-chosen structure

◉ Allows an organization to grow.

◉ Focuses attention on your strategic goals, instead of each department focusing on its agenda.

◉ Unites a group of people and points them towards a common goal.

◉ Encourages employees to enhance their skills.

◉ Makes the decision-making process efficient, smoother, and faster.

◉ Facilitates the specialization of employees.

◉ Empowers better control and use of resources.

◉ Establishes a proper reporting system.

◉ Enables easier and effective communication, which helps reduce conflicts.

◉ Allows employees to perform better.

◉ Equips employees to grow their careers and streamlines new employee onboarding.

◉ Identifies clear roles and responsibilities.

Source: pmstudycircle.com

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Types of Risks: Different Types of Risks in Risk Management

If you are in project management, you’ve probably heard about most types of risks. But, do you know all of them? Are you sure? Let’s find out with this post about the types of risks that can come up in risk management.

The term “risk” makes us wary; we think about the potential for harm; however, this is not the full story. Sometimes, risks can be positive. In modern project management, all types of risks are taken into consideration when planning.

Let us get started.

Types of Risks

◉ Risks

◉ Positive Risks

◉ Negative Risks

◉ Issues

◉ Known Risks

◉ Unknown Risks

◉ Residual Risks

◉ Secondary Risks

◉ Risk Tolerances

◉ Risk Thresholds

Risks

A project risk is an uncertain event that will positively or negatively affect one or more objectives if it occurs.

Risk is acknowledging that uncertain events may happen, allowing the project manager can equip themselves and their team to manage risks better. 

A risk can be of two types: positive or negative. The former is also known as an opportunity and the latter is called a threat.

Negative Risk

A negative risk is an unfavorable condition or situation that will negatively impact one or more of your project objectives.

Because they harm your project objective; therefore, you must mitigate their impact. Your strategy will be to either avert the negative risk or minimize its chance of happening.

For example, let us say that there is a possibility that a piece of equipment may break due to overuse; this will hurt your project.

Positive Risk

Positive risk is a condition or situation that will have a good impact on any of your project objectives.

Since these risks are favorable, you should try to encourage them. The response strategy is to increase the likelihood of the event happening or increase the impact.

For example, let us say that if you complete your project a few days before the scheduled date, you will get another gig.

Negative and positive are the two main types of risks.

Issues

This is a hot topic or a disputed matter. When project stakeholders have a disagreement, it is known as an issue. As a project manager, it is your responsibility to manage and note issues in an issue log with their resolution.

Known Risks

These risks have been identified.

For example, you know that there is a chance that one of your team members may go on leave during the peak of your project. This is a known risk; to manage it, you make a plan to bring in an identified employee.

You will use the contingency reserve to manage known risks.

Unknown Risks

These are unidentified risks; they are unknown until they happen. Since you cannot create a response plan, you cannot proactively manage these risks.

Unknown risks are managed through workarounds. Use the management reserve for these types of risks.

Risk Tolerance

This is the sensitivity of stakeholders or organizations towards risks.

High tolerance means people are willing to take risks, while low tolerance is an unwillingness unless the benefit outweighs the fear.

Tolerance is shown in limits.

For example, a 5% cost overrun is acceptable for an organization but anything above is not.

Risk Threshold

This is the amount of risk that an organization or individual is willing to accept.

The risk threshold is usually a definitive figure.

For example, your organization allows you a cost overrun of 10,000 USD. Anything more than that is not acceptable.

The risk threshold is a further step in risk tolerance. You could say that it quantifies the risk tolerance with a more precise figure.

Residual Risks

These are risks that are expected after implementing the planned risk response.

For example, let us say you are constructing in an earthquake-prone area. You design the building with the assumption that the largest magnitude possible is a 6 on the Richter Scale. 

What if an earthquake of a greater magnitude occurs?

This is an example of residual risk.

Secondary Risks

These arise as a direct outcome of implementing response to an identified risk.

For instance, assume you are constructing a building and, for security reasons, you installed electrical wire along the boundary wall. What will happen if someone accidentally touches the wire or if the wall is soaked during a storm?

Someone might get an electric shock.

This is an example of secondary risk.

Risk Triggers

Triggers indicate that risk is about to occur. They are sometimes called warning signs or risk symptoms.

For example, dark clouds can be a risk trigger for rainfall.

Source: pmstudycircle.com

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