Why is it important to know the difference between risks, issues and impediments when setting up your OKR or projects? Let’s explore the differences in this article.
We hear the 3 following terms used a lot in Waterfall, Agile projects and OKR implementation
- Risk
- Issue
- Impediment
Risk
A risk is an event that has not occurred yet that could impact a OKR or project delivery. A risk response plan must be put in place before a triggering event materializes
Example
“Due to the a key development resource leaving the company, Development of the new app could potentially be delayed for 6 weeks.”
Triggering event: If a new person cannot be hired in the next 3 weeks, Development could be pushed out and 6 weeks.
Risk response plan: Hire a new dev resource with similar skill sets within 3 weeks.
Issue
An issue is an event that is happening right now and needs immediate action to resolve it. The issue could have an impact to the scope, time, cost of the project or OKR.
Example
“As a result of not being able to hire the new dev resource in 3 weeks, we will have a 6-weeks delay.”
The risk trigger event has materialized and the risk is converted to an issue.
Resolution: Continue to hire the resource. How to recover? Can we ask the existing resource to work overtime? Can we pull resources from other lower priority project to work on our current project?
Impediment
An impediment, a term usually used in agile projects, is any event that slows down or hinders the productivity of a team. There is no clear distinction if it is a risk or issue.
Due to Agile projects running on daily stand-ups, the impediment is continuously discussed until it is resolved.
However, make sure you identify a triggering event, i.e. if that triggering event happens, what are you going to do to resolve the issue? In terms of reporting to your Project Management or OKR stakeholders. No matter it is a risk, issue or impediment only escalate to your stakeholders, if you have not resolved it with your team.
By only escalating risks/ issues/ impediments you cannot resolve, you will be able to demonstrate your leadership skills and problem solving skills.
We will discuss more topics on appropriate escalation in the future.
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