{"id":3439,"date":"2022-02-05T10:54:58","date_gmt":"2022-02-05T15:54:58","guid":{"rendered":"https:\/\/www.blog.greenprojectmanagement.org\/?p=3439"},"modified":"2022-02-05T12:03:25","modified_gmt":"2022-02-05T17:03:25","slug":"risk-inaction-roi","status":"publish","type":"post","link":"https:\/\/blog.greenprojectmanagement.org\/index.php\/2022\/02\/05\/risk-inaction-roi\/","title":{"rendered":"The Risk of Inaction (ROI)"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\">Investopedia explains Return on investment (ROI) as a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment\u2019s cost.\u00a0 <strong>This post is not about that.\u00a0 I am here to talk about the Risk of Inaction, a different kind of ROI.<\/strong><\/p>\n<p>One of the first exercises done during the\u00a0<a href=\"https:\/\/www.greenprojectmanagement.org\/prism-methodology\">pre-project phase<\/a>\u00a0of a project is to determine to proceed, analyze alternatives or assess what happens if we do nothing. I found this to be just a &#8216;tick the box&#8217; exercise early in my career. I started managing projects in the late &#8217;90s. In all my years in the field, it was more common than not that by the time a project reached my inbox, the decision to proceed was a foregone conclusion.\u00a0\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As I sit here typing this, I can recall several times when a project core team was first assembled to plan, and the discussion would begin. It would often go something like this:<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Me:<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0&#8220;Are we all clear on the business case?&#8221;<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Team:<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0&#8220;Uh-huh&#8221; [Heads nod while looking at each other for reassurance]<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Me:<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0&#8220;What are the alternatives?&#8221;<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Team:<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0[Blank Stares]<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Me:<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0&#8220;What if we do nothing?&#8221;<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Team:<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0[Blank Stares]<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Me:<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0&#8220;Ok then, we proceed.&#8221; [Proceeds to tick the box and mutters to myself &#8220;alternatives assessed&#8221;]<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Today though, the notion of &#8220;doing nothing&#8221; has a much different meaning, depending on how you look at it. When an opportunity to develop a project is presented, high-level planning is conducted to get the ball rolling. There are a thousand ways from an approach standpoint to begin. In PRiSM, the first significant step is for the Project Manager and Project Sponsor to be selected. Then the process continues as shown below.<\/span><\/p>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_3444\" aria-describedby=\"caption-attachment-3444\" style=\"width: 900px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/i0.wp.com\/www.blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/02\/PRiSM-Pre-Project.png\"><img decoding=\"async\" data-src=\"http:\/\/www.blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/02\/PRiSM-Pre-Project.png\" class=\"wp-image-3444 lazyload\" title=\"GPM Global Copyright 2022\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" alt=\"\" width=\"900\" height=\"477\" \/><figcaption id=\"caption-attachment-3444\" class=\"wp-caption-text\"><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"wp-image-3444\" title=\"GPM Global Copyright 2022\" src=\"https:\/\/i0.wp.com\/www.blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/02\/PRiSM-Pre-Project.png?resize=900%2C477\" alt=\"\" width=\"900\" height=\"477\" srcset=\"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/02\/PRiSM-Pre-Project.png?w=2640&amp;ssl=1 2640w, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/02\/PRiSM-Pre-Project.png?resize=300%2C159&amp;ssl=1 300w, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/02\/PRiSM-Pre-Project.png?resize=1024%2C543&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/02\/PRiSM-Pre-Project.png?resize=768%2C407&amp;ssl=1 768w, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/02\/PRiSM-Pre-Project.png?resize=1536%2C815&amp;ssl=1 1536w, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/02\/PRiSM-Pre-Project.png?resize=2048%2C1086&amp;ssl=1 2048w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/noscript><\/a> The GPM PRiSM Pre-Project Phase.<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p><span data-preserver-spaces=\"true\">One of the activities that we encourage is a P5 Impact Assessment.\u00a0<a href=\"https:\/\/gpm.sharefile.com\/d\/s195c54ab66f942e49fdbad21c57bc070\">Note that this is a free tool that we offer.<\/a>\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The P5 analysis is conducted at a high level when alternatives are being analyzed to assess the impact on the environment, society, and the economy (macro and micro) based on the high level business case. Once this is conducted, it helps frame the &#8220;do we proceed&#8221; discussion as there is more information available to make an informed decision.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">When deciding to proceed, the decision must consider the risks, opportunities, and benefits. No one would argue that (except maybe a few people on LinkedIn who love to quarrel about everything.)<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Looking back at my career, not once did I hear the words,\u00a0<strong>&#8220;If we proceed, we must ensure that we take all measures to safeguard biodiversity ensure we are mitigating or at the least offsetting CO2 emissions while ensuring that we are being socially and economically responsible.&#8221;\u00a0<\/strong>Why? I could say we didn&#8217;t know any better, but we did. We were either not paying attention, didn&#8217;t care, or felt that it was someone else&#8217;s problem. Maybe it is a combination of all three.\u00a0 Normally, the emphasis was placed on a needs analysis, available budget, time and resources and social\/environmental considerations were only given to the extent of not breaking any laws or staying within bounds&#8230;\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">We\u00a0<a href=\"http:\/\/www.greenprojectmanagement.org\/insights\">recently published research<\/a>\u00a0that among 30,000+ respondents from 94 countries that <strong><em>38% of projects are being adversely impacted by extreme weather events related to human-induced climate change<\/em><\/strong>.\u00a0This was up from only 4% a few years prior.\u00a0<\/span><\/p>\n<p style=\"margin: 0in;\"><span style=\"color: #0e101a;\">This number should frighten you. Without a stronger commitment to start practicing project management in a manner that ensures biodiversity gains to combat climate chaos directly, our Risk of Inaction will exacerbate the problem and life as we know it will look nothing like it does today for our children.<\/span><\/p>\n<p><a href=\"https:\/\/www.weforum.org\/reports\/global-risks-report-2022\">According to the WEF<\/a>, Respondents to the Global Risks Perception Survey (GRPS) 2021\u20132022 rank \u201cclimate action failure\u201d as the most critical threat to the world in both the medium term (2\u20135 years) and long term (5\u201310 years), with the highest potential to severely damage societies, economies and the planet. Most also believe too little is being done: 77% said international efforts to mitigate climate change have \u201cnot started\u201d or are in \u201cearly development\u201d.<\/p>\n<p><span data-preserver-spaces=\"true\">Unfortunately, we can no longer bury our heads in the sand.<strong>\u00a0<\/strong>The\u00a0<strong>Risk of Inaction<\/strong> or <strong>&#8220;ROI&#8221;<\/strong> is too significant.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For more, download the P5 Standard for Sustainability in Project Management or take a short course on the subject at\u00a0<a href=\"https:\/\/courses.greenprojectmanagement.org\/\">courses.greenprojectmanagement.org<\/a><\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investopedia explains Return on investment (ROI) as a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment\u2019s cost.\u00a0 This post is not about that.\u00a0 I [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3441,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1,35,3229],"tags":[63,3231,3230],"yst_prominent_words":[493,491,3119,2072,223,79,417,3148,1155,1999],"class_list":["post-3439","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entries","category-p5","category-risk-of-inaction","tag-p5-standard","tag-prism-methodology","tag-risk-of-inaction"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p6LBlt-Tt","jetpack_likes_enabled":true,"jetpack-related-posts":[{"id":4050,"url":"https:\/\/blog.greenprojectmanagement.org\/index.php\/2024\/01\/09\/balancing-value-friedmans-metrics-purpose-driven-impact\/","url_meta":{"origin":3439,"position":0},"title":"Balancing Value: From Friedman&#8217;s Metrics to Purpose-Driven Impact","author":"Dr. Joel Carboni","date":"January 9, 2024","format":false,"excerpt":"I am often asked about the most significant challenge GPM faces when explaining the value of sustainable project management. This question frequently comes from CFOs who have yet to embrace the benefits of sustainable practices beyond mere compliance with regulatory or stakeholder demands. In this post, I aim at a\u2026","rel":"","context":"In &quot;Entries&quot;","block_context":{"text":"Entries","link":"https:\/\/blog.greenprojectmanagement.org\/index.php\/category\/entries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2023\/12\/balancing-value.jpg?fit=920%2C613&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2023\/12\/balancing-value.jpg?fit=920%2C613&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2023\/12\/balancing-value.jpg?fit=920%2C613&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2023\/12\/balancing-value.jpg?fit=920%2C613&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":3526,"url":"https:\/\/blog.greenprojectmanagement.org\/index.php\/2022\/12\/05\/project-sustainability-impact-assessment-can-measure-value-social-environmental-efforts\/","url_meta":{"origin":3439,"position":1},"title":"What is a project sustainability impact assessment and how can it measure the value of social and environmental efforts?","author":"Dr. Joel Carboni","date":"December 5, 2022","format":false,"excerpt":"Do you measure and place value on Environmental, Social, and Economic impacts in your projects? If not, you should. While outcomes matter to project owners, impacts are what matter to stakeholders. Stakeholders are a person, group, or organization that has interests in, or can affect, be affected by, or perceive\u2026","rel":"","context":"In &quot;ESG&quot;","block_context":{"text":"ESG","link":"https:\/\/blog.greenprojectmanagement.org\/index.php\/category\/esg\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/12\/Impact-Valuation1.png?fit=800%2C387&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/12\/Impact-Valuation1.png?fit=800%2C387&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/12\/Impact-Valuation1.png?fit=800%2C387&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/12\/Impact-Valuation1.png?fit=800%2C387&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":4920,"url":"https:\/\/blog.greenprojectmanagement.org\/index.php\/2025\/09\/29\/time-count-carbon-growing-business-handprint\/","url_meta":{"origin":3439,"position":2},"title":"It\u2019s Time to Count More Than Carbon: Growing the Business Handprint","author":"Dr. Joel Carboni","date":"September 29, 2025","format":false,"excerpt":"This is a bit of a read, but I promise it is worth it. We need to keep shrinking our footprint. But we need, just as urgently, to grow our handprint\u2014the measurable positive we leave behind. That is the sentence I keep coming back to when I look at business\u2026","rel":"","context":"In &quot;Project Management&quot;","block_context":{"text":"Project Management","link":"https:\/\/blog.greenprojectmanagement.org\/index.php\/category\/project-management\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2025\/09\/Blog-Featured-Image-Carbon.jpg?fit=920%2C613&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2025\/09\/Blog-Featured-Image-Carbon.jpg?fit=920%2C613&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2025\/09\/Blog-Featured-Image-Carbon.jpg?fit=920%2C613&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2025\/09\/Blog-Featured-Image-Carbon.jpg?fit=920%2C613&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":1067,"url":"https:\/\/blog.greenprojectmanagement.org\/index.php\/2016\/09\/29\/gpm-p5-impact-analysis\/","url_meta":{"origin":3439,"position":3},"title":"How to Use GPM&#8217;s P5","author":"Peter Milsom","date":"September 29, 2016","format":false,"excerpt":"\u201cRisk comes from not knowing what you`re doing.\u201d Warren Buffett \u00a0 \u201cRisk is like fire: If controlled it will help you; if uncontrolled it will rise up and destroy you.\u201d Theodore Roosevelt What is the P5 ? The GPM Global PRiSM methodology advocates for the usage of the GPM P5\u2026","rel":"","context":"In &quot;Entries&quot;","block_context":{"text":"Entries","link":"https:\/\/blog.greenprojectmanagement.org\/index.php\/category\/entries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2016\/09\/analysis1.jpg?fit=800%2C369&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2016\/09\/analysis1.jpg?fit=800%2C369&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2016\/09\/analysis1.jpg?fit=800%2C369&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2016\/09\/analysis1.jpg?fit=800%2C369&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":3955,"url":"https:\/\/blog.greenprojectmanagement.org\/index.php\/2023\/09\/11\/sustainable-project-management-three-horizons-concept-looking-projects-different-perspectives\/","url_meta":{"origin":3439,"position":4},"title":"Sustainable Project Management and the Three Horizons Concept: Looking at projects from different perspectives.","author":"Dr. Joel Carboni","date":"September 11, 2023","format":false,"excerpt":"In the rapidly changing business ecosystem, organizations, now more than ever, are integrating sustainability into their strategic visions for long-term success. Among the tools helping businesses forecast and shape their futures is the \"Three Horizons\" concept. This model, coupled with GPM Global's P5 Standard, offers a potent framework for selecting\u2026","rel":"","context":"In &quot;Entries&quot;","block_context":{"text":"Entries","link":"https:\/\/blog.greenprojectmanagement.org\/index.php\/category\/entries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2023\/09\/blog-image-3horizons.jpg?fit=920%2C613&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2023\/09\/blog-image-3horizons.jpg?fit=920%2C613&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2023\/09\/blog-image-3horizons.jpg?fit=920%2C613&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2023\/09\/blog-image-3horizons.jpg?fit=920%2C613&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":4175,"url":"https:\/\/blog.greenprojectmanagement.org\/index.php\/2024\/05\/13\/interim-investing-esg-evolution-investment-strategies-projects\/","url_meta":{"origin":3439,"position":5},"title":"Interim Investing and ESG: The Evolution of Investment Strategies in Projects","author":"Dr. Joel Carboni","date":"May 13, 2024","format":false,"excerpt":"In recent years, Environmental, Social, and Governance (ESG) criteria have rapidly moved from the fringes to the forefront of global investment strategies, profoundly influencing how projects are evaluated, financed, and implemented. This seismic shift reflects a broader acknowledgment within the investment community of the significant impact that sustainable practices have\u2026","rel":"","context":"In &quot;Business Case&quot;","block_context":{"text":"Business Case","link":"https:\/\/blog.greenprojectmanagement.org\/index.php\/category\/business-case\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2024\/05\/Interiminvesting-blog-img.jpg?fit=920%2C613&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2024\/05\/Interiminvesting-blog-img.jpg?fit=920%2C613&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2024\/05\/Interiminvesting-blog-img.jpg?fit=920%2C613&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2024\/05\/Interiminvesting-blog-img.jpg?fit=920%2C613&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/blog.greenprojectmanagement.org\/wp-content\/uploads\/2022\/02\/Risk-of-Inaction.jpg?fit=717%2C400&ssl=1","_links":{"self":[{"href":"https:\/\/blog.greenprojectmanagement.org\/index.php\/wp-json\/wp\/v2\/posts\/3439","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.greenprojectmanagement.org\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.greenprojectmanagement.org\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.greenprojectmanagement.org\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.greenprojectmanagement.org\/index.php\/wp-json\/wp\/v2\/comments?post=3439"}],"version-history":[{"count":7,"href":"https:\/\/blog.greenprojectmanagement.org\/index.php\/wp-json\/wp\/v2\/posts\/3439\/revisions"}],"predecessor-version":[{"id":3452,"href":"https:\/\/blog.greenprojectmanagement.org\/index.php\/wp-json\/wp\/v2\/posts\/3439\/revisions\/3452"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.greenprojectmanagement.org\/index.php\/wp-json\/wp\/v2\/media\/3441"}],"wp:attachment":[{"href":"https:\/\/blog.greenprojectmanagement.org\/index.php\/wp-json\/wp\/v2\/media?parent=3439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.greenprojectmanagement.org\/index.php\/wp-json\/wp\/v2\/categories?post=3439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.greenprojectmanagement.org\/index.php\/wp-json\/wp\/v2\/tags?post=3439"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/blog.greenprojectmanagement.org\/index.php\/wp-json\/wp\/v2\/yst_prominent_words?post=3439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}