Managing Acquisition Risk by Applying Proven Best Practices

Abstract : Data analysis from recent acquisition program assessments has identified common characteristics of successful programs and supporting organizations. First and foremost, organizations with successful acquisition processes must embrace risk management throughout the entire product life cycle. While risk management is ingrained within their culture, these organizations take active measures to sustain effective implementation across programs by routinely conducting assessments to maintain currency, applying proven best practices to address specific risks, and using historical lessons learned to improve future performance. These assessment results also revealed characteristics of unsuccessful programs, primarily a lack of understanding and distinction between acquisition and development processes. This confusion resulted in an increase in interface issues as well as observable impacts on product cost, schedule, and quality. As a result of their analysis, the authors conclude that successful acquisition risk management is based on the following: (1) providing educated leadership and a supportive organizational culture, (2) adapting proven best practices in response to specific circumstances, and (3) emphasizing the program environment rather than process maturity.