We’ve talked about some of the emotions we experience in the OSS industry earlier this week, the trauma of OSS and anxiety relating to OSS.
To avoid these types of miserable feelings, it’s human nature to seek to limit them. We over-analyse, we over-specify, we over-engineer, we over-document, we over-contract, we over-react, we over-estimate (nah, actually we almost never over-estimate do we?), we over-resource (well, actually, we don’t seem to do that very often either). Anyway, you get the “over” idea.
What is the one big factor that leads to all of these overs? What is the one big factor that makes our related costs and delivery times become overs too?
Have you guessed yet?
The answer is…… drum-roll please…… RISK.
Let’s face it. OSS projects are as full as a centipede’s sock drawer when it comes to risk. The customer carries risks, the supplier carries risk, the integrators carry risk, the sponsors carry risk, the end-users carry risk, the implementers carry risk. What a burden! And it is a burden that impacts in many ways, as indicated in the triple constraint of OSS projects.
Anyone who’s done more than a few OSS projects knows there are many risks and they tend to respond by going into over-mode (ie all the overs mentioned above). That’s a clever strategy. It’s called risk mitigation.
But today’s post isn’t about risk mitigation. It takes a contrarian approach. Let me explain.
Have you noticed how many companies build risk reduction techniques into their sales models? Phrases like “money-back guarantee” abound. This technique is designed to remove most of the risk for the customer and also remove the associated barrier to purchase. To be fair, it might not actually be a case of removing the risk, but directing all of the risk onto the seller. Marketers call it risk reversal.
I’m sure you’re thinking, “well that’s fine for high-volume, low-cost products like burgers or books, but not so easy for complex, customised solutions like OSS.” I hear you!
I’m not actually asking you to offer a money-back guarantee for your OSS, although Passionate About OSS does offer that all the way from our products through to our high-end consultancy services.
What I am asking you to do (whether customer, seller or integrator) is to run a planning exercise as if you MUST offer a money-back guarantee. What that forces is a change of mindset from risk mitigation to risk removal. It forces consideration of what are the myriad risks “in the system” (for customer, seller and integrator) and how can they be removed? Here are a few risk planning suggestions FWIW.
Set the following challenge for your analysts and engineers – Don’t come to me with a business case for the one-million-and-first feature to add, but prove your brilliance by showing me the business case for the risks you will remove. Risk reduction rather than feature-add or cost-out business cases.
Let me know what you discover and what your results are.