Risk Analysis Toolkit

1. 5/31/2008
ERP
PROJECT
RISK ASSESSMENT TOOLKIT
[Type the document subtitle] | AUTHOR

2. 1. Using the Risk Assessment Tool
The Risk Assessment Tool should be used to assess the implementation risks created by the
organization’s leadership, by the ERP implementation team, and by the organization itself. All members
of the Leadership Team and Project Team should participate in the Risk Assessment process. The
Organizational Risk Assessments should focus on three groups:
Priority Group 1 All people with jobs, responsibilities, and work environments that will change
significantly during the ERP System implementation.
Priority Group 2 All people with jobs, responsibilities, and work environments that will change
significantly after the ERP System implementation.
Priority Group 3 All people who are process and/or material dependent upon groups one and
two. For example, people who either receive or provide the material and/or
information inputs they need to complete their jobs from people in groups one
and two.
The change team should implement organizational risk assessments by organizational unit (i.e., work
teams, divisions, business units, or any other unit of organizational design). Group one should be
assessed first, group two second, and group three third. To determine sample sizes for populations
within organizational units, see the Risk Assessment Sample Size and Frequency Guidelines.
The change team must determine the most appropriate timing for risk assessments. Typically, Risk
Assessments are completed with the Leadership Team once, during the Business Blueprint phase. The
Project Team and the rest of the organization are assessed every three to four months throughout the
ERP System implementation. Ultimately, the pace of the risk assessments should reflect the underlying
pace of the ERP System implementation. And since the primary objective of the Risk Assessments is to
anticipate implementation risks, the Risk Assessment processes will ideally begin no later than during the
Business Blueprint phase of the ERP System implementation.
2

3. Sample Risk Assessment Schedule
Leadership Project Team Organizational
Risk Assessments Team Risk Risk Assessment Risk Assessment
Assessment
Measure One
Baseline measurement as √ √ √
Blueprinting begins.
Measure Two
At the completion of Project
Realization workplan.
√ √
Post Implementation Measure
3-6 Months after Go Live date. √
3

4. 2. The Risk Assessment Tool
The Risk Assessment Tool is used to measure the project’s implementation risks at each point in the ERP
System implementation.
There are two approaches that can be used to develop the ERP Risk Assessment Tool. Both approaches
measure the same thing—the degree of implementation risk implicit in the ERP System implementation
—but the approaches differ in how they report risk scores.
• Approach A, reports risk scores on a numeric scale that ranges from one to one-hundred. Low
scores indicate a high degree of implementation risk. High scores indicate that implementation risk
is being managed.
• Approach B, reports risk scores on a numeric scale that ranges from –100 to +100. Negative scores
indicate a high degree of implementation risk. Scores close to 0 indicate that the organization is
neutral, neither supporting nor necessarily withholding support from the ERP System
implementation. Positive scores indicate that implementation risk is being managed.
Note the key difference. Approach A uses a five-point scale that measures implementation risk as low,
medium, or high. Approach TB uses a seven-point scale that measures implementation risk as low,
neutral, or high. A higher degree of granularity is afforded using this seven-point scale, requiring a
higher degree of interpretation.
When choosing their approach, the change team should factor in their experience using and interpreting
organizational metrics and the organization’s interest in and ability to understand different measures.
Regardless of the approach chosen, the change team should choose one approach and adhere to that
risk measurement approach throughout the ERP System implementation.
4

5. 3. Approach A
Question Set Development
Using Approach A, the change team develops and uses a hundred point scale with which to measure and
report risk scores.
The change team can use a standard set of 18 questions that cover the essential sources of project risk to
implement Approach A or can prepare their own customized question set. The standard set of 18
questions assesses the perceived credibility, organizational risk, and individual risk implicit in the ERP
System initiative. The customized set should also assess the perceived credibility, organizational risk,
and individual risk implicit in the ERP System initiative, but can be tailored to better reflect the
organization’s unique features and culture.
Regardless of whether the team chooses to use the standard question set or to construct a customized
question set, a 5-point scale is used for each answer. In this 5-point answer scale, 1 is the most negative
response, indicating an attitude which undermines support for the ERP System implementation, while 5
is the most positive response, indicating an attitude which advances support for the implementation.
Risk Assessment Tool , Standard Questions
Component – Category Question Answer Scale
Credibility – Ability/Skills/Resources Not at All ……. Very Much
To what extent does this organization have the ability/skills/resources to
complete this ERP System implementation? 1----2----3----4----5
Credibility – Motivation Not at All ……. Very Much
To what extent does this organization have the motivation required to
complete this ERP System implementation? 1----2----3----4----5
Credibility – Sponsorship Not at All ……. Very Much
To what extent has there been visible executive sponsorship of this ERP
System implementation? 1----2----3----4----5
Credibility – Commitment Not at All ……. Very Much
To what extent is the ERP System implementation important to management?
1----2----3----4----5
5

6. Risk Assessment Tool, Standard Questions (continued)
Credibility – Rewards Not at All ……. Very Much
To what extent will people be rewarded for supporting the ERP System
implementation? 1----2----3----4----5
Credibility – Measurement Changes Will have Will not
to have have to
To what extent does this organization’s measurement systems need to change change
to accommodate the ERP System implementation? 1----2----3----4----5
Organizational – Customer Service Very Much ……. Not at All
To what extent will customer service be disrupted as a result of the ERP
System implementation? 1----2----3----4----5
Organizational – Process Change Not at All ……. Very Much
To what extent will work processes improve as a result of the ERP System
implementation? 1----2----3----4----5
Organizational – Competition Not at All ……. Very Much
To what extent will this ERP System implementation improve our competitive
position? 1----2----3----4----5
Organizational – Culture Not at All ……. Very Much
To what extent is this ERP System implementation consistent with the
organization’s culture? 1----2----3----4----5
Organizational – Compatibility Not at All ……. Very Much
To what extent is this ERP System implementation consistent with the
organization’s goals? 1----2----3----4----5
Organizational – Organizational Gain/Pain More Pain ……. More Gain
After completion, will the ERP System implementation deliver more pain or
more gain to the organization? 1----2----3----4----5
Individual – Roles/Responsibilities Very Much ……. Not at All
To what extent are you concerned that your job/responsibilities will change as
a result of the ERP System implementation? 1----2----3----4----5
Individual – Career Opportunities Not at All ……. Very Much
To what extent will the ERP System implementation increase career
opportunities for you and your co-workers? 1----2----3----4----5
6

7. Risk Assessment Tool, Standard Questions (continued)
Individual – Skill Changes Not at All Very Much
To what extent are you concerned that the skills needed to succeed will
change as a result of the ERP System implementation? 1----2----3----4----5
Individual – Training Not at All ……. Very Much
To what extent do you believe you will get the training you need as part of the
ERP System implementation? 1----2----3----4----5
Individual – Workload Not at All Very Much
To what extent are you concerned that your workload will significantly
increase as a result of the ERP System implementation? 1----2----3----4----5
Individual – Individual Gain/Pain More Pain ……. More Gain
After, completion, will this ERP System implementation deliver more pain or
more gain to you personally? 1----2----3----4----5
7

8. Risk Assessment Tool, Customized Questions
The Question Template lists the types of questions the change team is required to ask within the three
components—credibility, organizational impact, and personal impact—but does not dictate how the
team should ask those questions. In addition, the customized set allows the change team to add
questions at its discretion.
All scales should be ascending; that is, 1 is the most negative response, indicating an attitude which
undermines support for the ERP System implementation, while 5 is the most positive response,
indicating an attitude which advances support for the implementation.
8

9. Risk Assessment Tool – Question Template
REQUIRED CREDIBILITY QUESTIONS:
Component – Category
Add Question Text Answer Scale
Credibility – Ability/Skills/Resources Positive.........Negative
1----2----3----4----5
Credibility – Motivation Positive.........Negative
1----2----3----4----5
Credibility – Sponsorship Positive.........Negative
1----2----3----4----5
Credibility – Commitment Positive.........Negative
1----2----3----4----5
Credibility – Measurement Changes Positive.........Negative
1----2----3----4----5
Credibility – Resources Positive.........Negative
1----2----3----4----5
REQUIRED ORGANIZATIONAL QUESTIONS:
Organizational – Organizational Gain/Pain Positive.........Negative
1----2----3----4----5
Organizational – Customer Service Positive.........Negative
1----2----3----4----5
Organizational – Process Change Positive.........Negative
1----2----3----4----5
Organizational – Competition Positive.........Negative
1----2----3----4----5
Organizational – Culture Positive.........Negative
1----2----3----4----5
Organizational – Compatibility Positive.........Negative
1----2----3----4----5
9

10. REQUIRED INDIVIDUAL QUESTIONS:
Individual – Individual Gain/Pain Positive.........Negative
1----2----3----4----5
Individual – Roles/Responsibilities Positive.........Negative
1----2----3----4----5
Individual – Workload Positive.........Negative
1----2----3----4----5
Individual – Skill Changes Positive.........Negative
1----2----3----4----5
Individual – Training Positive.........Negative
1----2----3----4----5
Individual – Career Opportunities Positive.........Negative
1----2----3----4----5
The following optional questions can be added to the customized question set to further probe the extent to
which Credibility, Organizational Impact, or Individual Impact are affected in various categories.
OPTIONAL CREDIBILITY QUESTIONS:
Credibility – Enabling Technology Positive.........Negative
For example, ”To what extent are you confident that this organization has 1----2----3----4----5
the technology it needs to complete this ERP System implementation?”
Credibility – Partners Positive.........Negative
For example, ”To what extent are you confident this organization has 1----2----3----4----5
secured the outside assistance the organization needs to complete the ERP
System implementation?”
Credibility – Change History Positive.........Negative
For example, ”To what extent has this organization been successful 1----2----3----4----5
completing other large-scale change projects in the past?”
Credibility – Consequences Positive.........Negative
For example, ”To what extent have people received benefits for supporting 1----2----3----4----5
past large-scale change projects?”
OPTIONAL ORGANIZATIONAL QUESTIONS:
Organizational – Expectations & Metrics Positive.........Negative
10

11. For example, ”To what extent will this ERP System implementation actually 1----2----3----4----5
help your organization meet performance expectations?”
Organizational – Resources Positive.........Negative
For example, ”To what extent are you concerned that the ERP System 1----2----3----4----5
implementation will claim resources that could be used for better
purposes?”
Organizational – Information Positive.........Negative
For example, ”To what extent have you heard consistent messages about 1----2----3----4----5
the ERP System implementation?”
OPTIONAL INDIVIDUAL QUESTIONS:
Individual – Support Positive.........Negative
For example, ”Are managers providing the support this organization needs 1----2----3----4----5
during this ERP System implementation?”
Individual – Job Security Positive.........Negative
For example, ”To what extent are you concerned that the ERP System 1----2----3----4----5
implementation will cause downsizing in your organization?”
Individual – Rewards Positive.........Negative
For example, ”To what extent are you confident you will be rewarded when 1----2----3----4----5
you do a better job for your customers?”
Individual – Staffing Changes Positive.........Negative
For example, ”To what extent are you concerned that the staffing of your 1----2----3----4----5
department will change as a result of the ERP System implementation?”
11

12. Risk Scoring
Under Approach A, risk assessment scoring is done in several steps to provide various views of the data
and allow the Core Change Team to gain as much useful information as possible from the process.
Step A: Risk Score Calculations
(1) Develop an average total score for each question by adding all of the individual responses to each
question and then dividing the total by the number of respondents. Note: Remember that in the 5-
point answer scale, 1 is the most negative response, while 5 is the most positive.
Example: In a risk assessment session, 15 people respond to the credibility question ”To what extent
is the ERP System implementation important to management?” Three respondents answer 1, five
answer 2, three answer 3, one answers 4, and three answer 5 for a total score of 41 and an average
score of 2.73.
(2) Develop an average score for each of the components (credibility, organizational impact, and
personal impact). To do this, add the average question scores for all questions within each
component and divide the total by the number of questions in that component. These scores can be
compared to one another to identify areas that should be leveraged and areas which need more
attention, and can also be tracked over time to measure the impact of project activities.
Example: The average scores for each of the six credibility questions are 2.73, 2.45, 3.78, 3.21, 4.12,
and 2.03 for an average credibility score of 3.05.
12

13. (3) Add the three component scores and divide the total by three. Then multiply the resulting number
by twenty to adjust the score to fit a 100-point scale. This is the Risk Score. This score serves as a
benchmark for project progress and may be tracked over time.
Example: The three component scores are; Credibility 3.05, Organizational Impact 2.89, and Personal
Impact 2.30. The average of these three components is 2.75. Multiplied by twenty this yields a Risk
Score of 55.
Step Two: Question Ranking
Once the risk score has been calculated, rank the individual questions from highest to lowest according
to their average score. The three lowest ranked questions are potential implementation risks and will be
used as the discussion points in the Risk Workshop.
Example: The average scores for the 18 questions in the risk assessment range from 1.84 to 4.64. The
three lowest averages are; 1.84 for ”To what extent do you believe you will get the training you need as
part of the ERP System implementation? , 1.90 for ”To what extent are you concerned that the skills
needed to succeed will change as a result of the ERP System implementation?”; and 2.03 for ”To what
extent do this organization’s measurement systems need to change to accommodate the ERP System
implementation?”.
13

14. Risk Assessment Results
♦ Using Approach A, the Risk Score indicates the degree to which the project is at risk based upon
people’s perceptions of project credibility, organizational impact, and individual impact. This score
ranges from 0 to 100.
♦ The highest and lowest ranked questions from the risk assessment (see above) are the specific views
that build or undermine organizational support for the ERP System implementation. The change
team should focus in particular on the perceptions that undermine the Risk Score. These negative
perceptions are the implementation risks that need to be the central focus of the change program.
Subsequent measures will show the extent to which the change program addresses these key
concerns.
The degree of implementation risk attached to each range of risk scores produced by Approach One is
shown in the following table.
Range of Risk Scores Implementation Risk Level and
Action Implication
Low Range High
Scores from 0 to 40 Change program needs
to focus on the key
negative perceptions
Middle Range Moderate
Scores from 41 to 70 Change program needs to
keep negatives in check
and build on positive views
High Range Low
Scores from 71 to 100 Change program needs to
continue to build on
positive views
14

15. 4. Approach B
Question Set Development
Using Approach B, the change team develops and uses a numeric scale ranging from –100 to +100 with
which to measure and report risk scores.
As with Approach A, the change team can use a standard set of 18 questions that cover the essential
sources of project risk to implement Approach B or can prepare their own customized question set. The
standard set of 18 questions assesses the perceived credibility, organizational risk, and individual risk
implicit in the ERP System initiative. The customized set should also assess the perceived credibility,
organizational risk, and individual risk implicit in the ERP System initiative but can be tailored to reflect
the organization’s unique features and culture better.
Regardless of whether the team chooses to use the standard question set or to construct a customized
question set, a 7-point scale is used for each answer. In this 7-point answer scale, 1 is the most negative
response, indicating an attitude which undermines support for the ERP System implementation; 4 is a
neutral response, indicating that survey respondents do not know or have not yet formed an attitude or
opinion about that question; and 7 is the most positive response, indicating an attitude which advances
support for the implementation.
15

16. Risk Assessment Tool , Standard Questions
Component – Category Question Answer Scale
Not…….. ….No…………Very
Credibility – Ability/Skills/Resources
At All.... ….View……..…Much
To what extent does this organization have the ability/skills/resources to
complete this ERP System implementation? 1---2---3---4---5---6---7
Credibility – Motivation Not…….. ….No…………Very
At All.... ….View……..…Much
To what extent does this organization have the motivation required to
complete this ERP System implementation? 1---2---3---4---5---6---7
Not…….. ….No…………Very
Credibility – Sponsorship
At All.... ….View……..…Much
To what extent has there been visible executive sponsorship of this ERP
System implementation? 1---2---3---4---5---6---7
Credibility – Commitment Not…….. ….No…………Very
At All.... ….View……..…Much
To what extent is the ERP System implementation important to management?
1---2---3---4---5---6---7
Not…….. ….No…………Very
Credibility – Rewards
At All.... ….View……..…Much
To what extent will people be rewarded for supporting the ERP System
implementation? 1---2---3---4---5---6---7
Credibility – Measurement Changes Very…….. ….No…………Not
Much.... ….View……..…At All
To what extent does the organization’s performance measurement system
need to change to accommodate the ERP System implementation? 1---2---3---4---5---6---7
Very…….. ….No…………Not
Organizational – Customer Service
Much.... ….View……..…At All
To what extent will customer service be disrupted as a result of the ERP
System implementation? 1---2---3---4---5---6---7
Organizational – Process Change Not…….. ….No…………Very
At All.... ….View……..…Much
To what extent will work processes improve as a result of the ERP System
implementation? 1---2---3---4---5---6---7
16

17. Risk Assessment Tool , Standard Questions (continued)
Organizational – Competition Not…….. ….No…………Very
At All.... ….View……..…Much
To what extent will this ERP System implementation improve our competitive
position? 1---2---3---4---5---6---7
Not…….. ….No…………Very
Organizational – Culture
At All.... ….View……..…Much
To what extent is this ERP System implementation consistent with the
organization’s culture? 1---2---3---4---5---6---7
Organizational – Compatibility Not…….. ….No…………Very
At All.... ….View……..…Much
To what extent is this ERP System implementation consistent with the
organization’s goals? 1---2---3---4---5---6---7
Organizational – Organizational Gain/Pain More……………..……. More
Pain……………………Gain
After completion, will the ERP System implementation deliver more pain or
more gain to the organization?
1---2---3---4---5---6---7
Individual – Roles/Responsibilities Very…….. ….No…………Not
Much.... ….View……..…At All
To what extent are you concerned that your job/responsibilities will change as
a result of the ERP System implementation? 1---2---3---4---5---6---7
Not…….. ….No…………Very
Individual – Career Opportunities
At All.... ….View……..…Much
To what extent will the ERP System implementation increase career
opportunities for you and your co-workers? 1---2---3---4---5---6---7
Individual – Skill Changes Very…….. ….No…………Not
Much.... ….View……..…At All
To what extent are you concerned that the skills needed to succeed will
change as a result of the ERP System implementation? 1---2---3---4---5---6---7
Not…….. ….No…………Very
Individual – Training
At All.... ….View……..…Much
To what extent are you confident that you will receive the training you need
as part of the ERP System implementation? 1---2---3---4---5---6---7
Individual – Workload Very…….. ….No…………Not
Much.... ….View……..…At All
To what extent are you concerned that your workload will significantly
increase as a result of the ERP System implementation? 1---2---3---4---5---6---7
Individual – Individual Gain/Pain More……………..……. More
Pain……………………Gain
After, completion, will this ERP System implementation deliver more pain or
more gain to you personally?
1---2---3---4---5---6---7
17

18. Risk Assessment Tool, Customized Questions
The Question Template lists the types of questions the change team is required to ask but does not
dictate how the team should ask those questions. In addition, the customized set allows the change
team to add questions at its discretion.
All scales should be balanced; that is, 1 is the most negative response, indicating an attitude which
undermines support for the ERP System implementation; 4 is a neutral response, indicating that survey
respondents do not know or have not yet formed an attitude or opinion about that question; and 7 is the
most positive response, indicating an attitude which advances support for the implementation.
Risk Assessment Tool – Question Template
REQUIRED CREDIBILITY QUESTIONS:
Component – Category
Add Question Text Answer Scale
Credibility – Ability/Skills/Resources
1---2---3---4---5---6---7
Credibility – Motivation
1---2---3---4---5---6---7
Credibility – Sponsorship
1---2---3---4---5---6---7
Credibility – Commitment
1---2---3---4---5---6---7
Credibility – Measurement Changes
1---2---3---4---5---6---7
Credibility – Resources
1---2---3---4---5---6---7
18

19. REQUIRED ORGANIZATIONAL QUESTIONS:
Organizational – Organizational Gain/Pain
1---2---3---4---5---6---7
Organizational – Customer Service
1---2---3---4---5---6---7
Organizational – Process Change
1---2---3---4---5---6---7
Organizational – Competition
1---2---3---4---5---6---7
Organizational – Culture
1---2---3---4---5---6---7
Organizational – Compatibility
1---2---3---4---5---6---7
REQUIRED INDIVIDUAL QUESTIONS:
Individual – Individual Gain/Pain
1---2---3---4---5---6---7
Individual – Roles/Responsibilities
1---2---3---4---5---6---7
Individual – Workload
1---2---3---4---5---6---7
Individual – Skill Changes
1---2---3---4---5---6---7
Individual – Training
1---2---3---4---5---6---7
Individual – Career Opportunities
1---2---3---4---5---6---7
19

20. The following optional questions can be added to the customized question set to further probe the extent to which
Credibility, Organizational Impact, or Individual Impact are affected in various categories.
OPTIONAL CREDIBILITY QUESTIONS:
Credibility – Enabling Technology
For example, ”To what extent are you confident that this organization has
1---2---3---4---5---6---7
the technology it needs to complete this ERP System implementation?”
Credibility – Partners
For example, ”To what extent are you confident this organization has
1---2---3---4---5---6---7
secured the outside assistance the organization needs to complete the ERP
System implementation?”
Credibility – Change History
For example, ”To what extent has this organization been successful
1---2---3---4---5---6---7
completing other large-scale change projects in the past?”
Credibility – Consequences
For example, ”To what extent have people received benefits for supporting
1---2---3---4---5---6---7
past large-scale change projects?”
OPTIONAL ORGANIZATIONAL QUESTIONS:
Organizational – Expectations & Metrics
For example, ”To what extent will this ERP System implementation actually
1---2---3---4---5---6---7
help your organization meet performance expectations?”
Organizational – Resources
For example, ”To what extent are you concerned that the ERP System
1---2---3---4---5---6---7
implementation will claim resources that could be used for better purposes?”
Organizational – Information
For example, ”To what extent have you heard consistent messages about the
1---2---3---4---5---6---7
ERP System implementation?”
20

21. OPTIONAL INDIVIDUAL QUESTIONS:
Individual – Support
For example, ”Are managers providing the support this organization needs
1---2---3---4---5---6---7
during this ERP System implementation?”
Individual – Job Security
For example, ”To what extent are you concerned that the ERP System
1---2---3---4---5---6---7
implementation will cause downsizing in your organization?”
Individual – Rewards
For example, ”To what extent are you confident you will be rewarded when
1---2---3---4---5---6---7
you do a better job for your customers?”
Individual – Staffing Changes
For example, ”To what extent are you concerned that the staffing of your
1---2---3---4---5---6---7
department will change as a result of the ERP System implementation?”
Risk Scoring
Step One: Risk Score Calculations
Under Approach B, risk assessment scoring is done in several steps to provide various views of the data
and to help the Core Change Team gain as much useful information as possible.
1. Re-scale responses for each question so that all responses equal to 1 are now given the value –3; all
responses equal to 2 are now given the value –2; all responses equal to 3 are now given the value –1;
all responses equal to 4 are now given the value 0; all responses equal to 5 are now given the value
1; all responses equal to 6 are now given the value 2; all responses equal to 7 are now given the
value 3.
Example: Ten survey respondents provided numeric responses to the first question on the risk
assessment as follows. The change team re-scaled the seven responses as follows:
Original Re-scaled
Respondent # Response, 7- Responses To The
point scale First Question
Respondent 1 1 -3
Respondent 2 2 -2
Respondent 3 3 -1
Respondent 4 4 0
Respondent 5 5 1
Respondent 6 6 2
21

22. Respondent 7 6 2
Respondent 8 7 3
Respondent 9 1 -3
Respondent 10 4 0
2. Average the re-scaled responses for each question.
Example: The average re-scaled score for the first question on this illustrative risk survey is shown at
the bottom of the following table.
Original Re-scaled
Respondent # Response, Responses, scale
7-point scale –3 to +3
Respondent 1 1 -3
Respondent 2 2 -2
Respondent 3 3 -1
Respondent 4 4 0
Respondent 5 5 1
Respondent 6 6 2
Respondent 7 6 2
Respondent 8 7 3
Respondent 9 1 -3
Respondent 10 4 0
AVERAGE -- -0.1
3. The average re-scaled score for each question must range from –3 to +3. If average re-scaled scores
are found outside of this range, repeat steps one and two. Add the average re-scaled scores for each
question together to produce a summary score.
Example: The illustrative risk survey had five questions. Average re-scaled scores for each of these
five questions are included in the following table. The net, or summary score, is shown as well.
22

23. Question Average Re-scaled Score
Number
1 -0.1
2 1.3
3 2.4
4 -1.8
5 -0.6
Summary
Score 1.2
4. Produce a risk score by dividing the Summary Score produced in step three by the maximum possible
re-scaled score. The maximum possible re-scaled score is calculated by multiplying the number of
questions included in the survey by 3, since 3 is the maximum score for each re-scaled question.
Risk scores are typically reported as whole numbers, not fractions. As a final step multiply the
decimal risk score by 100 in order to convert the decimal value to a whole number.
Example: The net, or summary of re-scaled scores for the five questions on our illustrative survey
was 1.2. The maximum possible re-scaled score equals 15 (5 questions x 3).
Question Average Re-scaled Score
Number
1 -0.1
2 1.3
3 2.4
4 -1.8
5 -0.6
Summary of Re-
scaled Scores 1.2
Risk Score 1.2 ÷ 15 = 0.08
Decimal Value
Re-stated Risk 0.08 * 100 = + 8
Score
23

24. 5. Develop a risk score for each of the components (credibility, organizational impact, and personal
impact). To do this, add the average re-scaled scores for all questions within each component.
Divide these sums by the maximum possible re-scaled score developed in step four.
Example: Of the five questions in our illustrative survey, questions 1 and 2 probe the perceived
credibility of the ERP System implementation; question 3 probes the perceived organizational impact
of the ERP System implementation; and questions 4 and 5 probe the perceived personal impact of
the ERP System implementation.
The average re-scaled scores for questions 1 and 2 are added together (-.1+ 1.3= 1.2) and divided by
15 (15 is the maximum possible re-scaled score developed in step 4) and multiplied by 100,
producing a credibility score equal to +8; the average re-scaled score for question 3 (2.4) is divided
by 15 and multiplied by 100, producing an organizational impact score of +16; the average re-scaled
scores for questions 4 and 5 are added together (-1.8+ -0.6) is divided by 15 and multiplied by 100,
producing a personal impact score of –16.
As a final check, we add the three component scores together to ensure that this sum equals the
overall risk assessment score of +8.
Question Average Re-scaled Score
Number
1: Credibility -0.1
2: Credibility 1.3
3: Organizational 2.4
4: Personal -1.8
5: Personal -0.6
Component Scores
Risk Score,
Credibility ((-0.1+1.3) ÷ 15) x 100 = +8
Questions
Risk Score
Organizational (2.4 ÷ 15) x 100 = + 16
Impact Questions
Risk Score
Personal Impact ((-1.8+ -0.6) ÷ 15) x 100 = -16
Questions
Overall Risk Score + 8 +16 –16 = +8
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25. Step Two: Question Rankings
Once the risk score has been calculated, rank the individual questions from highest to lowest according
to their average re-scaled scores. The three lowest ranked questions are potential implementation risks
and will be used as the discussion points in the Risk Workshop.
Example: The average scores of the 18 questions over all three components in the risk assessment range
from –2.3 to 1.85. The three lowest averages are; -2.3 for ”To what extent do you believe you will get
the training you need as part of the ERP System implementation? , -1.9 for ”To what extent are you
concerned that the skills needed to succeed will change as a result of the ERP System implementation?”;
and –1.8 for ”To what extent does this organization’s measurement system need to change to
accommodate the ERP System implementation?”.
3. Risk Assessment Results
♦ Using Approach B, the Risk Score indicates the degree to which the project is at risk based upon
people’s perceptions of project credibility, organizational impact, and individual impact. This score
ranges from -100 to +100.
• Negative scores (risk scores from –100 to –10) indicate a high degree of implementation risk.
• Scores bracketing 0 (risk scores from –10 to +30) indicate that the organization is neutral, neither
supporting nor necessarily withholding support from the ERP System implementation.
• Positive scores (risk scores from +31 to +100) indicate that implementation risk is being
managed.
♦ The highest and lowest ranked re-scaled questions from the risk assessment (see above) are the
specific views that build or undermine organizational support for the ERP System implementation.
The change team should focus in particular on the perceptions that undermine the Risk Score. These
negative perceptions are the implementation risks that need to be the central focus of the change
program. Subsequent measures will show the extent to which the change program addresses these
key concerns.
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26. The degree of implementation risk attached to each range of risk scores produced by Approach B is
shown in the following table.
Range of Risk Scores Implementation Risk Level &
Action Implication
Low Range High
Change program needs
Scores from –100 to -10 to focus on the key
negative perceptions
Middle Range Moderate
Change program needs to
Scores from –10 to +30 keep negatives in check
and build on positive views
High Range Low
Change program needs to
Scores from +31 to +100 continue to build on
positive views
Applying the Risk Assessment Results
The process of applying Risk Assessment results is the same regardless of the risk measurement
approach used by the change team.
Implementation risks identified in the Risk Assessment are primary inputs to the Risk Workshops and are
used to drive action planning.
The Change Team uses Risk Assessment and Risk Workshop results to shape the communications and
sponsorship programs. Results pinpoint how project sponsors should spend their time as well as clarify
project messages to ensure relevancy and credibility.
It is important to note that Risk Assessment is an ongoing process. Repeated measures give the Core and
Extended Change Team the real-time insight needed to accelerate organizational acceptance of ERP.
Repeated Risk Assessment sessions also provide an objective measurement of the effectiveness of the
team’s change management activities.
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