If Perceptions Are Everything

Recently I’ve done some work linking project risk management to information security risk assessments and enterprise risk management. An article in the November issue of PM Network magazine caught my attention. In her article entitled “It’s a Fine Line” Susan Ladika takes on the issue of how perceptions can affect project success.

One comment in the article resonates with me. It is that project managers need to “figure out what stakeholders perceive as success – and find a way to make the project live up to those expectations”.

This couldn’t be truer. If there is one thing a project manager is entrusted with it is the success of the project. We have wonderful processes, tools and best practices at our disposal. We’re full of knowledge on how to deliver on time, on budget and on scope. But no matter how closely we track to plan or deliver according to documented objectives, it’s what the stakeholders think that counts.

It’s the same with a company’s customers. Their perceptions are important. We’re all aware of how security breaches at major corporations have resulted in leaks of customers’ personal information. At the corporate governance level, this is dealt with by enterprise risk management programs. After all, what company, breached or not, would want its customers thinking their personal information was not safe? It’s like in the early part of the last century when people incorrectly thought their money might not be secure at the bank. A rumor would fester and, true or not, there’d be a run on the bank. Everyone would run to withdraw their cash and the bank would go under, whether it was in trouble or not. It’s a clear example of how perceptions, not factual information, can drive a failure.

Is taking a risk-based approach to managing perceptions starting to sound like a good idea?

When we analyze and assess risks, we develop a clearer understanding of the vulnerabilities of the project and the potential impacts of threats. We do this so we can make informed decisions on what to do about it. If an incorrect perception threatens the success of any part of the project, it behooves us to investigate and take action before it festers. Likewise, if negative perceptions already exist, why is this so? Perhaps there really is a problem.