Qantas
Brand Refresh
Kristy Dixon – Masters of Applied Project Management
University of Adelaide 2013
Results of Risk Analysis Plan
Hypothetical Project for Major Assignment
The project
 Refresh the brand of Qantas to reflect new
‘world’s greenest airline’ strategy
 $20m with 44 week (11 month delivery)
 Phases include approval, R&D, concept
approval, application and closure
 Internally project managed through marketing
communications team with market research and
creative agency contractors
 Sponsor – Qantas Executive Manager Marketing
Our presentation focus
1. Define context and risk management criteria
2. Identify the risks
3. Assess significance of risks
4. Identify, select, and implement treatment
options
5. Perform monitoring, review and corrective
actions
Bowden, Lane & Martin, 2001.
Risk management
 Uncertainty is inevitable
 To reduce exposure to the consequences of risk
events to levels that are considered acceptable
by Qantas
 It is a continual cycle reviewing criteria,
assessment, reduction and review
 RISQUE method and Critical Success Factor
approach
 It is everyone’s responsibility to continually
participate in risk management
Risk analysis
 Expert panel - knowledge experts who genuinely
understand the business and the risks associated with a
marketing exercise like the QBR
 Captured the cause, event and impact of the event in risk
descriptions
 Everyone needs to understand we may only know, what we
know in hindsight (unknown unknowns)
 Risk tolerances have been set in line with Qantas corporate
risk acceptance guidelines
 Risks have been analysed in relation to Critical Success
Factors (cost, schedule, performance and customer
satisfaction)
Risk drivers for the QBR
14
Number of risk drivers
12
10
8
6
4
2
0
People
Systems
Operations
Source of driver
External
Risk driver discussion
 People are key to the successful risk
management of this project. This is positive as we
have an influence on this through strong and
effective leadership
 Our systems and external drivers are equally
driving risks in the project (though not as much as
people)
 Our systems are robust, and accordingly, reflect
the lowest drivers of risk for the project
Who is responsible?
16
14
Number of project risksk
12
10
8
6
4
2
0
Project Manager
Project Team
Responsibility (minimum)
Company
Top risks by critical factors
 Cost: due to bad refresh design, customers could
abandon airline, resulting in poor sales (this is by far the
largest, potentially damaging risk on the project)
 Schedule: livery in use due to plane shortage (e.g.
weather delays, operating issues), cannot apply new
branding, delays
 Performance: Due to unclear requirements, miss objectives
of overall project, substandard delivery
 Customer satisfaction: Due to transition time between
brands, corporate identity weakened, confusing
customers about our brand
Variance
Variance gives a ratio of how each factor is affected
(variance = sum of risk / tolerance)
16
14
12
Variance
10
8
6
4
2
0
Cost
Schedule
Performance
Critical Success Factor
Customer Satisfaction
Risks during project phases
14
12
Number of Risks
10
8
6
4
2
0
Project Approval
R&D
Concept Approval
Project Phase
Application
Ongoing
Risks during phases discussion
 The application of the refreshed brand is the phase
of the project with the most risks
 We also identified a number of ongoing risks, these
are mainly people orientated and require a
continuous monitoring and evaluation to keep
within tolerable levels
 The project and concept approval risks do not post
as strong potential negative outcome as
application phases, however still require attention
 Our R&D (including customer market research) has
low risks in comparison to other phases of the
project
Acceptance of cost risks
 Through risk treatment we have managed to reduce the risks in
schedule, performance and customer satisfaction to an
acceptable level
 However, there are risks with costs consequences (total of
$1.08m) which require approval to accept (primarily related to
subjectivity of customer response and potential lost sales)
Risk Scenario as <cause>, <risk event>
could occur, resulting in <impact>.
Responsibility
Likelihood
Driver 1
Consequence
Risk Level (likelihood x
cost consequence)
Risk Treatment
Liklihood
Consequence
Revised Risk
Due to bad design, customers could abandon
airline, resulting in poor sales.
PM
0.5
X
11,000,000
5,500,000
Consult and liaise with customers at all times,
demonstrate ongoing commitment to customer
needs, use incremental commitment to guide
phases.
0.19
5,000,000
950,000
Due to digital upgrades (e.g. website), system
will be down, resulting in inconvenience to
customers booking and potentially less sales.
COMPANY
0.79
S
2,000,000
1,580,000
Offer telephone or other booking options for
customers at same rate as online, pre-warn
customers that website will be unavailable,
employ top talent to deliver upgrade.
0.18
500,000
90,000
Due to higher operational priorities, operations
and maintenance staff lack of support, resulting
in time/cost impacts.
PM
0.2
S
500,000
100,000
Onboarding exercises before rollout, manage
expectations and build in rewards through
KPIs, clear communications.
0.2
200,000
40,000
Opportunity analysis
 Positive risks (opportunities) have been identified, analyzed and
treated as part of the risk approach
 These have been featured as potential cost benefits to the
project
 As opportunities arise in the project the Risk Register and
associated documentation will be updated to track impacts of
opportunities
 We will also considering the benefits of cross-skilling, combined
employee activities with the launch and customer market
research integration (e.g. additional questions or data
gathering as part of the project)
Risk treatment themes
 Our system of risk treatment provide effective
operation of the project, effective internal
controls and compliance with laws and
regulations
 In most cases we have mitigated or accepted
the risks presented by the project
 We will evaluate the effectiveness of risk
treatments and identify trends for future
treatments (on this and other Qantas projects)
What we need from you today
 Confirmation you have understood and support the
process
 Confirmation of the acceptance of risks related to
costs ($1.08m regarding subjective nature of
customer responses to brand refresh, this is $580,000
above the general Qantas tolerance)
 Confirmation you have confidence in the expert
panel
 Confirmation you consider this process is
transparent and defendable to a third party
 Questions or requests for further information.