The Change Execution Risk and Artificial Intelligence

Abstract

This abstract explores how Artificial Intelligence can be used in containing the Change Execution Risk Exposure of Organizations. Change Execution Risk is the risk that the Change that the Management wants to bring into the organization could fail resulting in Strategic Failure, Loss of Resources, Loss of Competitive Edge, Regulatory Action and much more due to the way change was executed. An organization executes changes [implementation of strategies] through the vehicles of – Projects, Programmes and Portfolios. Containing the Change Execution Risk is in the critical path of achieving the organizational goals. Classic Example of a Change Execution Risk Event: A Project overshot its schedule by 10 months unable to meet the reporting requirement set out by the Regulator which invited regulatory penalties. The objective of containing the Change Execution Risk would be to prevent Projects/Programmes/Portfolios from failing to deliver the outcomes for which they are initiated [achieving strategic goals]. Change Execution Risks are traditionally contained or controlled through Project Management Best Practices and through Senior Management Oversight. Artificial Intelligence [AI] can be leveraged to contain the Change Execution Risk Events. The Proposed approach would be to interlink the Project Portfolio Management [PPM] Tools deployed in the organization like Clarity, Rally, Jeera, MS Project to extract Artificial Intelligence based Status Reports across functions and value streams to give a real time or close to real time report on the effectiveness of the Change Execution in the Organization. The Report can be called the Change Execution Effectiveness Report and can show if the major initiatives are on track or off track and provide warning signals to Senior Management to respond appropriately. The Power BI Tool can also be leveraged to provide innovative reports to Senior Management for swift action. For example, the Change Execution Effectiveness Report can highlight if any of the High Impact Project is off track or going to be off track basis the progress percentage recorded against key milestones, which will help the Senior Management to take prompt appropriate action or escalation to bring the Project back on track.