Qantas Brand Refresh

1. QantasBrand Refresh Kristy Dixon – Masters of Applied Project ManagementUniversity of Adelaide 2013 Results of Risk Analysis Plan Hypothetical Project for Major Assignment

2. 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

3. Our presentation focus • Define context and risk management criteria • Identify the risks • Assess significance of risks • Identify, select, and implement treatment options • Perform monitoring, review and corrective actions Bowden, Lane & Martin, 2001.

4. 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

5. 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)

6. Risk drivers for the QBR

7. 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

8. Who is responsible?

9. 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

10. Variance Variance gives a ratio of how each factor is affected (variance = sum of risk / tolerance)

11. Risks during project phases

12. 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

13. 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)

14. 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)

15. 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)

16. 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.