3. How to Plan and Manage a Project

In the previous Chapter we have discussed the development of a research concept, and the way in which this evolves into a specific plan that can form the basis of a research proposal. Now we start to discuss the ways in which research planning can be systematised, and used to manage the activities for one or many projects.

We start by considering simple projects where the process is linear, and then move to more complex situations involving interdependencies between components of activity. The simple case can be dealt with by a structured task list in an action plan. Once multiple strands of work are involved it becomes important to specify suitable intermediate goals, and to bring all the information on the project together to develop a clear time line. A powerful tool in this context is the Gantt chart, which summarises the resources available and the way that they can be deployed to achieve the ultimate goal. Effective planning requires the recognition of the way in which the different components of the work interact. The result of this interaction is that later activities can be strongly affected by earlier components without this being immediately obvious. The use of critical path analysis is designed to bring out the impact of such complications, and to aid the removal of obstacles. The necessary information can be extracted from the Gantt chart, but needs to be organised to provide the maximum information.

Since even the best-laid plans are subject to unexpected influences, it is important to be able to assess the real progress in a project, so that the project plan can be updated if needed. Assessing progress requires some pre-assigned markers against which the actual situation can be compared. Commonly two classes of markers are employed: (i) milestones that represent the achievements of the project that have to be accomplished by specific dates, and (ii) key performance indicators that set a range of criteria for which a quantitative measures can be developed. Milestones are generally closely linked to the intermediate goals of a project and are focused on outcomes. Performance indicators can be arranged to take more account of outputs such as publications

A component of planning that is receiving increasing attention in research contexts is the assessment of risk, which may be technical, financial or even involve reputation.

3.1 Project planning

In Chapter 2 we discussed the way in which a project plan can evolve as a concept is brought towards realisation and funding. The earliest stages of such a plan aim to gain an overview of the whole project so that the necessary resources can be brought to bear to achieve a successful outcome. In particular it is important to identify any dependencies between components of the proposed activities, so that not only are they carried out in the right order, but also bottlenecks are avoided. Normally, up to the point of proposal submission, one will be concentrating on the main features rather than the details. However, for very large programs with multiple components the program plan required for successful proposal submission will need to be developed in some detail.

Once a project is funded then the concepts have to be turned into a working plan, which will need to allow for change to ensure that the goals are actually met. The working plan needs to include more detail than is needed in a proposal, so that all the strands of activity can be brought together. It is important to recognise that the features recognised in the proposal may not represent the whole project, since there may be dependencies on, for example, external facilities whose scheduling is not under the control of the project. Further, the goals may have to be scaled back in the light of available funding.

The working plan should build on the information developed for the proposal, particularly for such issues as the way that different components of the project interact, and where bottlenecks may occur. Critical path analysis can help to recognise such features, and suggest ways in which they may be overcome.

The stages of planning need to encompass both an appropriate time line and effective use of resources:

Time lines.Based on an understanding of the whole project it is important to identify both intermediate and final deadlines. The final deadline may be externally imposed, but commonly the intermediate steps will be under your control and so some flexibility should exist in assigning deadlines. In the construction of a time line you need to think about whether there are aspects of the project where delays could occur. If so you need to build in contingency plans, so that the whole project is not held up waiting for a particular result. Commonly the main control on how fast work can progress comes from the availability of people, and how their efforts can be assigned across the necessary work.

Costing issues. It is always salutary to consider how much the project outcome is worth. This question is often difficult to answer, but it can help to put a disappointing funding result into perspective. You will know how much funding you would like to have and, if faced with lesser support from a primary funding source, you need to consider your courses of action. It may be possible to scale back the enterprise with reduced goals. Otherwise you need to seek other sources of support.

Resources. A successful research project makes good use of available resources. Issues that need to be considered are the availability of suitable infrastructure. If equipment is not accessible, do you need to build in acquiring and commissioning new equipment as part of the requirements? If so, you may need to develop a bid for infrastructure support in parallel with, or before, the main research proposal. Does the necessary expertise for experiments or analysis exist? Do you have to allow time for extended sample preparation or, in more theoretical work, the development of necessary software? Are there adequate personnel resources or will new staff have to be recruited? It takes time to advertise, recruit and start someone working on a project and this must be taken into consideration. If the final deadline is somewhat flexible, it may be best to delay the start until everything is in place. Otherwise you may be forced to start anyway, and pick up speed when the new staff arrive --- with a consequent update of the working plan.

3.2 Simple projects

Many projects appear to have a simple structure in which each element leads logically to the next. Nevertheless, it can be easy to overlook an apparently minor component that has a strong influence on the outcome.

An action plan represents a list of all the tasks that need to be accomplished to achieve an objective in the appropriate sequence. Such a simple list provides a framework to guide thinking about how to complete the project effectively. Once all the steps are laid out it is easier to recognise the relative importance of each component and where, for example, extra help may be needed. Alternatively some tasks may be downgraded in importance and ultimately carried out in parallel with the main activity.

To draw up such an action plan, list the tasks that you need to complete to deliver your project or objective, in the order they need to be completed. This requires careful consideration of the steps required to bring the project to completion. Once all the likely components are assembled see if any can be pruned, or alternatively require more than the expected availability of resources.

In parallel with the task list, consider the time line, so that simple milestones get attached to the tasks in the list. Further, take account of the availability of such items as equipment and people in relation to the time-line. At this point you may recognise that even a well-formulated project may not be simple in practice. As soon as you need to schedule people's time, or meet tight deadlines as part of your project, then it is worth using more formal project management techniques.

3.3 Project management tools

It is often feasible to get a good idea of the important aspects of a project without explicit use of project management tools. However, the use of such tools forces a very close inspection of what is required, and what is available. Indeed the work of building the project plan can reveal unexpected issues.

The process of organising and managing a project can be greatly aided by making use of standard tools for which there is well-developed methodology. Such use does not necessarily require significant expense because there is high-quality freeware available. The commercial software versions are geared to larger programs with a number of sub-components, and provide more sophisticated graphic output.

Management tools provide tracking of progress, based on assignment of tasks, personnel and resources. In all cases, effective use of the tools requires a good understanding of the specifics of the project. Indeed, the analysis required to set up the tools frequently provides significant insight into the project itself. It is important to understand the way in which different parts of the project interact. Such knowledge of dependencies allows the identification of the critical path, the set of steps that determine the rate of the whole project. If possible, effort can be directed to these critical steps to smooth the passage of the total effort.

The tools we are about to introduce enable the construction of a suitable project plan, and allow progress to be judged. However, it is important to remember this is just a plan, which needs to be adjusted as circumstances change. The plan should be updated from time to time as the project develops, but it is desirable to retain earlier versions for reference

3.3.1 Breakdown of tasks and resources

The first step in developing a good project plan is to identify the tasks to be accomplished to achieve the desired research outcomes, and the available resources. This is the point at which you start to estimate the time required to complete each task.

A way to begin is to write a set of headings for each of the desired outcomes, and under these list the components of the work that need to be done, subdividing if necessary where there are multiple components for a particular component. This can be achieved with paper and pencil, or with post-it notes on a whiteboard, which works well when a group of people are involved. You may find it easier to start with a simple list and then organise under headings. The final product should then be captured in a spreadsheet or similar style. At this stage the order in which the tasks are to be performed is not important --- that will come in the next step. It would be rare for a research project to need to go beyond a second level of sub-tasks. Large programs may need many more since the first level may well be aggregates of projects.

An example for a moderate-size project, with multiple strands of work including field data collection, experimental work and simulation, is shown in Figure 3.1. At this stage the major tasks that need to be accomplished for each strand of the work are identified. At the next stage you will start to include the interrelations between the strands.

Figure 3.1: Work framework for a multi-strand research project.

Once this framework for a project is assembled, check that all the elements of the necessary work are included. If not, add to the lists until all aspects are covered. Also start to think about any necessary cross-linkages between the different elements. This may sound complex but as the framework is sketched, many of the relevant issues tend to come to mind.

In parallel, you need to build a list of resources that will be required to enable the tasks to be accomplished. You need to think about the availability of people and equipment, the time frame needed for such aspects as data collection, laboratory analysis or fieldwork, and the way in which the various tasks may interact.

The identification of the various tasks helps you to assess how you can deploy the resources over the available time span. Such planning in the pre-proposal stage aids with developing an appropriate sense of the time and budget needed for a successful project.

Once the project is funded the planning can become more detailed. We will see shortly how this information on the necessary tasks and their time relations can be presented in a readily assimilable form using Gantt charts that express both the time lines and the interdependencies of the project components.

3.3.2 Project schedule development

With the aid of the work framework you now need to consider the sequence of activities and the way in which the different elements interact. You also need to start to specify the duration of each activity so that the total nature of the project becomes clear. Estimates of project duration will depend on how many people are involved and what proportion of their time they can devote to the work, as well as availability of necessary equipment. It is easy to underestimate the time required for a particular task. You are therefore well advised at first to seek advice from those with more experience.

Figure 3.2: Work framework including time relations for the multi-strand project shown in Figure 3.1.

You also need to think about the temporal relations between tasks. Some can only start when other tasks have started, or when some other activity has finished. Completion of some aspect of the work can depend on other tasks finishing. A few components may exist separately and can then be slotted in where appropriate.

It is useful to rough out the sequence of activities in approximate chronological order, including the dependencies between tasks. This done in Figure 3.2 for the project we used in Figure 3.1.We see that it is important to get the fieldwork component completed early in the project so that the maximum time is available to analyse the samples returned from the field.

Once the time relations between the elements of the project are clear, the issue of the duration of each of the elements needs to be defined. This enables the time sequence to be refined so that the most effective use is made of resources. It is at this stage that you can often begin to recognise the critical path for the project representing the time-limiting steps.

3.3.3 Gantt charts and critical paths

Gantt charts provide an oversight of a project in the form of a calendar view, that allows the sequence and duration of the different tasks to be appreciated. They are a good tool to work out and display the minimum time required for a project, and which tasks need to completed before others can start. A Gantt chart also helps with recognising the critical path -- the sequence of tasks that have to be completed on time if the whole project is to meet the final deadline.

The Gantt chart provides an easy-to-read representation of the project at any point and can be used to monitor progress against the plan. In particular the chart enables one to see how project milestones link to the project components. However, if there is a need for change, it can be difficult to assess from a static chart the impact of what happens in one area on the rest of the project. Most Gantt charts are now produced using computer software and so it is possible to adjust the parameters and see what happens. It is, of course, desirable to work on a copy rather than overwrite the main description of a project!

Although simple Gantt charts can be constructed using a spreadsheet, considerable flexibility can be achieved by using specific software. A number of different styles of program are available, with varying levels of sophistication. For typical scientific projects the full power of major commercial software is rarely required. The example used in Figures 3.3--3.6 has been constructed using the freeware GanttProject, which is a Java-based program that can be employed on multiple operating system platforms.

The construction of a Gantt chart requires the specification of the beginning and end points of each component of the activity. In full use, the resources to be attached to each element of the work will also be included. Milestones can be superimposed on the basic information.

For many scientific projects the personnel available will remain constant over the course of a project, with perhaps some delay at the beginning where recruitment is necessary. However, access to equipment can represent a component that requires careful scheduling and management.

We continue with the example of the multi-strand project introduced in Figures 3.1-3.2, and now prepare the associated Gantt chart (Figure 3.3)based on a two2-year duration. I have used a similar colour scheme to that in Figure 3.2, so that the different strands of the work are clearly visible.

Figure 3.3: Gantt chart for the multi-strand project illustrated in Figures 3.1-3.2.

Figure 3.4: More detailed view of the project elements and timeline of the Gantt chart for the multi-strand project illustrated in Figures 3.1-3.2.

The time progression of the project and the interdependencies are developed in Figure 3.2, for example, field samples cannot be analysed until they get back to the laboratory. At the stage of development in Figure 3.2 the duration of the elements was not specified. Now we have to start putting in start and end dates for the different components of the project, so that the entire work program can fit into the specified duration. At this stage, you need to take into account not only constraints arising from the project itself, but also external influences, including staff leave. In Figure 3.3 I have included the strong effect of the southern hemisphere Christmas. The field work has to be completed in time for Christmas and shipping of samples is likely to be delayed until services start to resume in mid-January. Punctuating the project are the conference presentations, which I have specified as milestones, along with the formal end of the project.

Since Figure 3.3 includes a large amount of information in a small format, I have extracted just the time block information in Figure 3.4, with now the time blocks annotated with nature of the work. We now have the time-line for the project adequately specified, but have not yet included the way in which the elements of the work interact, even though this can be sensed by the way that the strands of the work are organised.

In the project description we can now specify the predecessors of a project element, including how they are related, for example, the start of one element depends on the completion of another. Alternatively you may wish to have two elements finishing simultaneously. Time delays can be incorporated to allow for such effects as the Christmas break. Also the strength of the relationship between project elements can be specified, where this is strong then the second project is forced to move to accommodate the first. The software endeavours to adjust the specified start and end dates so that the work can be accomplished in the desired order. This may mean that the end date of the last element pushes out beyond the completion date. In which case, you need to be able to work out where adjustments can be made.

This brings us to the concept of the critical path, which represents the combination of tasks that must be completed on time for the whole project to be completed on time. Once this critical path has been identified, then one can see which tasks can be delayed if resources need to be reallocated to catch up on missed or overrunning tasks.

In Figure 3.5 I have introduced the interrelations between project elements for our illustrative multi-strand project, using the relations indicated in Figure 3.2. Some adjustment of delays between elements was needed to avoid awkward time shifts from the plan specified in Figure 3.4.The presentations at conferences have been included as simple milestones, and thus distinct time markers for progress, though it would be possible to include links from the project elements

Figure 3.5: Gantt chart with dependencies and critical path for the multi-strand project. The critical path is indicated by the shaded project elements and heavier line.

The critical path in Figure 3.5 is shown by a heavier line between project elements and the critical elements are themselves shaded. Although the writing of a journal article was intended to be the culmination of the project, the planning made it clear that delaying until all analyses and simulations were complete would lead to a rather rushed scenario. Consequently the preparation of the journal article preparation was split into two parts; the first building up the framework of the article, and the second which depended explicitly on the analyses. The critical path, as is common, is controlled at first by a single strand of the work (in this case the Fieldwork strand leading to return of samples) and then moves over to the experimental work, before ending on the write-up of the project in the journal article. Notice that the Modelling strand has, at this planning stage, no influence on the critical path. This is because it has been assumed that all aspects will be accomplished within the specified time frame. If, however, the software development takes longer than expected then the displacement of time-lines could lead to a change in the critical components for the actual project.

PERT (Program Evaluation and Review Technique) charts provide an alternative way to represent the dependencies and interactions of more complex projects. They include the information on start and end dates for each component, and the way that these feed into each other. Commonly such PERT charts can be produced using the same software as the Gantt charts. The example in Figure 3.6 for our multi-strand project was produced using GanttProject, making use of the interactive feature that allows improved layout over that produced automatically.

It may seem to be too much effort to go to the trouble of creating such a framework for a project, rather than proceeding and adjusting as necessary in an ad hoc way. Nevertheless, there is considerable value in trying to set up a detailed project plan. Frequently the thinking required to identify the elements of a project and their interrelations reveals potential stumbling blocks or bottlenecks that can be addressed before they become a problem. The time line can form a useful discussion point for the members of a project, and feedback can often help to improve the project outcomes.

The software packages that enable the construction of Gantt charts and the critical path, also allow these aids to be used dynamically to include the progress of the work through the project elements. It is best to save the original version for reference. Then a working version can be used to monitor progress and to make necessary adjustments when project elements fall behind, or indeed get ahead of the expected schedule. Whilst valuable, this approach is probably more appropriate to a large program with many sub-components, rather than a typical research project. For moderate-size projects, I have generally found it adequate to have a look at progress every couple of months or so and then, if need be, prepare a revised summary of the project development with an update of the Gantt chart and reconsideration of the critical path.

Figure 3.6: PERT chart for the multi-strand project. The critical path is here marked by the yellow project symbols.

3.4 Tracking real progress

Even if project management tools are not being employed it is important to keep track of the progress of a project, so that problems can be identified before they get out of hand. In all cases it is important to maintain good records of activity, and documentation of both successes and problems. In the beginning this may seem excessive, but when one has to juggle multiple time commitments, even brief notes can be of considerable value.

Tracking the progress of a project is helped by well-conceived milestones and targets. One is then able to judge whether important stages of the project have been achieved on time or, if not, what action is required to catch up. In a multi-year project you may need to revise the milestones and targets for later years to reflect changing circumstances as the project develops. This is certainly feasible if the project is under your full control, but may not be possible without renegotiation if milestones have been agreed with an external funding agency.

In assessing progress it is important to be realistic about project successes and delays. The progress of research is uneven and, by its nature, carries with it the risk that a concept may not be feasible. It may be necessary to retreat and abandon an unproductive approach, before trying a new way around a problem. In consequence, contingencies should be built into the plan, particularly for stages where the development of the plan suggests that progress is not guaranteed.

In a multifaceted project not all components can proceed at the same pace. It is therefore important to crosscheck progress against earlier estimates. You need to recognise potential bottlenecks, for example, via critical path analysis, and to concentrate on the performance with respect to such issues. As the project develops the nature of the critical points will change, and so management has to be dynamic rather than static.

Financial progress

Alongside the progress of the scientific aspects of the projects, there is a need to ensure that the financial state is sound and that the `burn rate' for funds is not too high to be sustainable.

Many financial systems are geared to institutional needs and legal requirements. As a result they may not be well suited for tracking the detailed progress of a project. Personnel costs will normally be a major component and these are the most predictable. Other items may take time to enter into the financial system. Financial reports tend to be retrospective so that the current state is difficult to determine. The treatment of future commitments is tied to the specific accounting system being used. Where this is cash based, items only appear when an invoice is raised or paid. Systems with an accrual component are more complex. It is worthwhile making some effort to understand how the accounts are handled so that you do not reach the embarrassing, and difficult, situation of running out of funds on a project.

3.5 Measures of performance

There is a well developed set of criteria in project management for measuring performance against agreed goals. The main components employed in assessment of research programs or research infrastructure programs are the specification of milestones and key performance indicators. Such material may be required for major programs as part of the contractual obligations for funding, and indeed continuation of funding may be conditional on performance.

When first encountered such performance measures seem to be alien to the research environment. Yet, thinking explicitly in terms of the major steps in a project and the desired outcomes can be of considerable value when framing a research proposal, and in tracking progress.

3.5.1 Milestones

Milestones indicate the key dates to be met during the execution of the project. They should mark specific phases of a project. It is best to choose the timing of the achievement of clear tangible outcomes, rather than the preparation of outputs, such as publications, even though these may be important. Reporting deadlines also form important milestones.

In many cases specification of both start and finish dates is required, which are then to be compared with the actual situation. Even where a milestone lies well into the future, intermediate reporting is possible through the percentages of accomplishment of the task.

When the time interval for a component of the work lasts longer than a financial year it may be necessary to introduce sub-milestones, for example, once again based on achieving a fraction of the desired results. For large programs, milestones are commonly agreed with the funding sponsor and take on greater significance.

When well chosen, milestones can be an effective tool to maintain momentum in a project. Too often they are regarded as a nuisance or `millstone'. Yet, in the early stages of planning you will have identified the major steps and the milestones are just the link to effective scheduling.

3.5.2 Key performance indicators

Performance indicators provide another way of assessing the progress of a project. They are designed to measure the extent to which the goals are achieved, and so tend to look outward from the project, whereas milestones are more inwardly focussed. In consequence, performance indicators can take a broader perspective than used for milestones, and also be more oriented to outputs. A simple example of a performance indicator is what percentage of milestones are achieved on time (and/or within budget)? For an infrastructure project, suitable indicators can be the level and nature of usage as well as the tangible products such as publications

The author was heavily involved in the planning and execution of a major infrastructure program in Australia in the Earth Sciences. The AuScope infrastructure program formed part of the National Cooperative Research Infrastructure Strategy (NCRIS).The Department of Education, Science and Technology of the Australian Government put forward a range of performance indicators that could be adapted to the specific circumstances of the different capabilities being funded under the scheme. These indicators were to be used in monitoring annual performance across the various strands of the infrastructure development and provision to users. The list is given in Box 3.1 and covers a broad range of aspects of the program, not just the building of the equipment but also its quality. A major emphasis of NCRIS was on fostering collaboration. As a result collaboration plays a significant role in the performance criteria, but notice how it has been coupled with the need to achieve world-class research.

3.6 Reporting requirements

For most research projects the primary outputs are publications in research journals, and these constitute the main way in which the work is reported. However, many funding agencies require a final report at the end of the project, and for larger programs intermediate annual reporting is common. When applying for new funding, you will normally have to submit a summary of the results of previously funded work, including that which is in progress. Maintaining adequate records makes such reporting much easier.

Specifications from funding source

It is particularly important to follow the requirements from the funding agency with respect to the provision of intermediate and final reports. Failure to do so can result in ineligibility for further funding.

Box 3.1: NCRIS performance indicators for Infrastructure capabilities • Providing Research Infrastructure • Value of new infrastructure by location • Include cost and description of facilities and equipment • Value of all infrastructure made available under NCRIS by location • Include cost and description • Meeting Researcher Needs • Number, type and location of applicants for each facility • Number, type and location of users for each facility • User types are university, publicly funded research agencies, industry, other • User location in institution • Percentage utilisation of facilities • Based on available capacity • Breakdown per specific capability node and/or instrument if applicable • Measures of user satisfaction • Quality of Research Infrastructure • Benchmark against other Australian and overseas infrastructure, benchmarks may include: • Specific comparisons and instruments or facilities where available • Independent reviews • Collaborative Infrastructure Provision • Extent and duration of collaborative agreements / relationships established for managing and developing research infrastructure • Include type of agreement and parties involved • Fostering Collaborative and World Class Research • Number and nature of Australian research collaborations that involve use of NCRIS infrastructure • Include type of collaborative activity and parties involved • Number and nature of international collaborative research activities supported by NCRIS infrastructure • Include type of collaborative activity and parties involved

For a simple research grant the reports are likely to comprise a description of the work accomplished with emphasis on outcomes, together with a compilation of outputs such as publications. The format will be specified by the funding agency and needs to be followed carefully. Large programs generally have more complex requirements with detailed reporting against milestones and key performance indicators in addition to the scientific component.

Needs for internal documentation

You should not neglect the benefits to be obtained by preparing effective internal documentation that can supplement the material submitted to the sponsor of the project. Such material will be a major aid when you are preparing publications and presentations. For example, it is worthwhile capturing the metadata associated with the work in detail, so that there is a good record of what has been done as well as the results. In addition to common forms of record keeping, such as laboratory notebooks, it is desirable to keep notes on the packages used and maintain documentation of the inputs to software. Another class of information that is often neglected is to make a record of the problems encountered, and the way in which they were tackled. This can be particularly helpful when framing future projects.

In a multi-stranded project, brief reports of progress can be helpful to maintain cross-communication between investigators. These may just consist of an exchange of e-mails, but should be preserved for reference.

Intermediate reporting

Intermediate reports normally represent a concise account of progress, since the previous report. For large programs, reporting is commonly aligned to the milestones and performance indicators agreed at the time of funding, and may include only brief accounts of the scientific endeavour. In all cases one should be realistic about actual progress and not be tempted to make exaggerated claims, which can come back to haunt you. If you are struggling to maintain progress at the rate envisaged, it may be possible to renegotiate targets or at least provide a warning to the sponsor.

Final reports

The character of a final report depends on the style of research and the funding sources. Particularly in the case of commissioned research, you may need to provide full documentation of results and the means by which they were derived. The final report will normally be the reference point for future funding, and so adherence to the requirements of the funding sponsor is critical.

It is worth remembering that the final report may be your main record of a research project, and that you may need to revisit it for your own purposes. The report provides an opportunity to reflect on what has been achieved, but in a busy life may be put together in a hurry in parallel with applications for further funding, so some of the value to you can be lost.

Even where a short formal report is needed, this is a good point to bring together and organise the materials developed in the project. As noted above, such information can substantially aid in the preparation of publications

Interface between financial and scientific reporting

Often the discharge of financial and scientific reports to the same funding agency are undertaken separately. Yet, frequently, no funds settlement is made until the final scientific report is tendered. It is therefore important to ensure that your financial office is aware of the submission of the final report.

3.7 Risk analysis

The risks associated with a project have to be judged in context. Formal risk analysis is now common for large projects, and may be required by institutions before committing to take on a major new research activity of program.

Risk is an inherent part of scientific research, if any new results are to be obtained. Most projects are based on a conjecture about the nature of a problem, which may not be true. Thus, rather than attempt to suppress risk, we need to learn how to manage it. Careful preparation can enhance the probability of success.

3.7.1 Aspects of risk relevant to research programs

We can classify the main types of risk associated with research programs under a group of headings:

Technical risks

• • is approach appropriate?
• • is necessary expertise available?
• • is the timeline feasible?

Infrastructure risks

• • dependencies on particular pieces of equipment
• • contingencies in event of critical failure

Financial risks

• • is costing realistic?
• • delivery timing?
• • foreign exchange risks?
• • withdrawal of support (what are the full range of commitments you are obliged to meet?)
• • are there reserves?

Information risks

• • availability of critical information
• • intellectual property issues
• • management of data and metadata

Reputational risks

• • what constitutes failure in the project?
• • is the institutional reputation likely to be affected by such failure?

3.7.2 Assessment and mitigation of risk

Recognising the existence of risk helps towards the mitigation of its consequences. The checklist we have just presented can be used as a template to run through the issues associated with a particular project, so that the critical issues can be identified.

It is worthwhile to analyse the nature of risks and to provide a rating as high, medium or low. The rating should be based both on the impact of the risk on the project, and on the likelihood that the event might be triggered. Typically low-impact scenarios can be ignored, but for high- and medium-impact events a contingency plan should be developed and included in the risk management toolkit.

Reaction to risk can focus on either taking action to reduce the risk, by reducing its likelihood or impact, or alternatively to control the impact if the event is triggered. The identification of specific risks allows the possibility of planning alternative approaches that avoid this class of event. Contingency planning should proceed far enough that the steps required to secure the most positive result for the project have been identified.

In infrastructure projects it may be possible to adopt some form of risk transference so that, for example, a supplier is required to give a fixed price or guaranteed delivery with the possibility of penalties in the case of noncompliance. Alternatively, it may be appropriate to take out insurance against a risk occurring.

Box 3.2: Risk Management Strategy - AuScope AuScope Ltd will assess and develop risk management strategies in the Interim Implementation Plan, and these strategies will be updated and further developed through successive Annual Business Plans. AuScope will recognise the following areas as key risks requiring management: • Technical Risks associated with science and engineering issues • Cost Uncertainties, including • Infrastructure and planning risk • Foreign exchange risk • `Market' Risks, including • Demand-related risk • Joint venture risk (including membership) • Physical Infrastructure risk • Long-term Sustainability risk • Including availability of key personnel • Information security.

The AuScope national infrastructure project in the Earth Sciences in Australia developed a set of issues which were regarded as key factors for risk. The resulting risk management strategy is detailed in Box 3.2. The individual components and institutions involved in this large program were asked to develop assessment of risk against these criteria. They were then required to present their mitigation strategies at the beginning of the funding period so that these risk-reduction concepts were in place before major investment was made.

Among the most important issues identified were the impact of foreign exchange volatility, the impact of operational costs at the end of the initial phase of funding and the finite lifetime of many pieces of equipment, at least as top-quality facilities.

3.8 Intellectual property issues

The primary goal of research is the creation of new knowledge, which may have potential value in the marketplace. Such value may, in some cases, be exploited explicitly through seeking patent rights. In general the entire set of ways in which a project interacts with prior knowledge and the creation of new knowledge is subsumed under the heading of intellectual property.

It can be important to identify the suite of information and understanding that is brought into a project by different project partners. This background intellectual property is generally easy to identify, but not necessarily easy to gather together since it may involve know-how that an individual or group brings into the work. This knowledge is not necessarily expressed in any formal way, but may represent cumulated experience that is hard to quantify.

The intellectual property generated by the project may need to be identified in intermediate and final reports. This requires careful consideration of what has been achieved, and whether there are results that are clearly generated by the project that do not depend on either what has been brought into the project in the beginning, or drawn in from outside during the course of the work.

When dealing with government agencies and commercial entities, intellectual property issues tend to play a prominent part in agreements and contracts. It is important to understand any restrictions on rights in intellectual property, and legal advice is likely to be needed to make sure that your interests are protected in any formal agreement. It is all too easy to lose control of your own work without adequate compensation.