In my experience at Finance Industry, I have seen many times volatile environment, for example when - important people came and when they go - or when a strategy changed recently.
First of all, as a certified Project Managers we need to handle our emotions and just stay relaxed - but we need to assess the situation rapidly. Especially when we are using adaptive approach. When the requirements are subject to a high level of uncertainty and volatility and are likely to change throughout our projects.
Even a crystal clear vision established at the start of the project but you know - priorities changed meantime, requirements refined, changed or replaced in accordance with user feedbacks or unexpected events happened. Iterative or Incremental approaches are still great solutions to lead back these changes rapidly. In 1-2 weeks our teams will be ready to plan the next sprint, and demonstrate the accomplishments at the end of each iterations.
By definition the Volatility is the possibility for rapid and inpredictable change. Volatility can occur when there are ongoing fluctuations in available skill sets or materials. Volatility usually impacts cost and schedule.
Solutions: Alternative analysis and use of cost or schedule reserve address volatility.
Alternative analysis: finding and evaluating alternatives, such as looking at different ways to meet and objectiv, such as using a different mix of skills, resequencing work, or outsourcing work. Alternatives analysis may include identifying the variables to be considered in evaluating options, and the relative importance or weight of each variable.
Reserve: Cost reserve can be used to cover budget overruns due to price volatility. In some circumstances, schedule reserve can be used to address delays due to volatility associated with resource availability.
Effectively navigating volatility improves the ability to anticipate situations, make good decisions, plan and solve problems.
Volatility could come from many directions: economic factors, in prices, availability of resources (for example: Local System Analyst in a Data Program), ability to borrow funds, inflation and deflation, technical considerations such as new or emerging technology (for example: AI), complexity associated with systems, and interfaces, legal and legislative constraints or requirements, physical environment as it pertains to safety, weather and working conditions. This special uncertainty is not limited to ambiguity associated with current of future conditions, social and market influences shaped by opinion, media, and political influences, either external or internal to the company.
Do not worry, just simply collect information, prepare for different outcomes, design alternatives and be adaptive.
I would encourage your company to hire certified project managers and make them responsible to handle these risks. Contact here
Source: PMBOK 7th Edition
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