In blackjack, there is a strategy known as doubling down, in which players double their bet to get one more card in addition to their two card hand. Doubling down increases players’ chances of winning, just like risk management increases the chances of success during a contract’s lifecycle.
Risk is an inevitable part of any contract—as Murphy’s Law says, “anything that can go wrong, will.” Tight budgets, short timelines, and technological complexity in today’s acquisition environment, make risk more prevalent than ever. Adverse situations, including protests, can cause schedule delays, cost growth, performance degradation, and other intangibles which can have a large, negative impact on the success of a program. Being aware of risks and developing a risk mitigation strategy early in the contract lifecycle, prevents risks from becoming crises.
As presented at the National Contract Management Association’s (NCMA’s) 2014 World Congress, here’s a look at how doubling down early and in all steps of the contract lifecycle can reduce source selection risk and increase chances of success. [Read more...]