There are five phases of a project – initiation, planning, execution, control and closure – and it can be like walking a tightrope to get through all of them on time and on budget.

That’s why it’s smart to identify potential “risks” that might throw your project “off balance” along the way.

A project, by definition, has a beginning and an ending. The key to success is in the planning, from start to finish. Good planning allows you to manage the project, instead of allowing it to manage you.

Here are potential project risks to be aware of, along with some tips for managing them.

Loss of budget or funding – If you implement phased billing, you can ensure your work efforts and milestones are aligned financially. This also allows your client to keep track of their budget and see the value in the deliveries along the way.

Impossible timeframe – If you really can’t make the deadline, don’t take the project. In reality, adding resources rarely helps get a project completed – not when the timeframe is impossible from the get go.

Loss of a dedicated client resource – When a company does not dedicate an advocate for a project, it’s more likely the project might die. Insist on a dedicated client-side resource as part of your agreement – make it mandatory.

Loss of dedicated internal resources – If your own company has higher-priority projects that can take your assigned resources away, you need to know that in advance and plan for it. Be sure of another recourse, or lengthen your project schedule – before the client ever sees it – to allow for internal workload fluctuation.

Huge technology hurdles – In my world of website development, we require IT audits of the hosting environment. This important step allows us to assess the compatibility of systems, tools, content management tool and the environment.

Other vendors on the team – This can increase your team’s time on a project for a variety of reasons: feature confusion, miscommunications and interim deadline delays. Be sure you have a clear, written Scope of Work document for your team’s responsibilities. Then strictly follow the use of change orders and approved add-ons for tasks beyond the project’s original scope.
As a wise manager, you’ll want to pre-plan and address these possible risks with your team and your client. By having contingency plans for potential problems, you’ll be ahead of the curve right from the first step.

Which means you’ll be walking that tightrope a little more confidently!