Your Reliability Engineering Professional Development Site
“Well, there was the kidnapping. Is that something you’re interested in?”
It was our last day of a week-long site security survey. We were meeting with the site manager to wrap up our visit but this was the first time we had heard anything about something as serious as this.
So yes, a kidnapping was something we were very, very interested in learning about….
Organisations cannot afford to have a faulty strategy, a faulty strategy execution, or both. Getting them right is vital for their survival especially in today’s crisis and economic downturn.
Businesses survive and thrive by taking risks. They falter when risks and opportunities are not managed effectively.
For organisations to execute their chosen strategy and achieve their strategy-focused objectives, risks and opportunities resulting from the implementation of their strategy must be differentiated from the risks and opportunities posed by the strategy itself. They do so by embedding risk management into their strategy planning and execution.
When risk management is effectively embedded in strategy planning and execution, corporate leaders will know the shortcomings of their chosen strategy while identifying those strategic objectives that may be at risk during their implementation.
Businesses take risks to pursue opportunities. What is your risk appetite? This question has been asked by companies for years. Risk appetite is the amount and type of risk an organization is able to support in the pursuit of business objectives. Examples of successful high risk appetite companies are: Amazon; Uber; and Tesla.
Risk appetite can be applied to your personal life as well especially today to thrive in changing times. Two stories of individuals with different risk appetite are presented below to illustrate how much you want to take can affect your life especially in retirement years. [Read more…]
The predictability of disruption as an innovation accelerator is a central component of the Anticipatory Organization Model, focusing closely on how Anticipatory Organizations and individuals can look at disruption and see enormous opportunities. [Read more…]
Steve Jobs envisioned a future state with computers on every worker’s desk. It will be a progressive culture where technology creates more opportunities for employees and a workplace without secretaries.
The future-state for Jobs was about “building tools that amplify a human ability”. He used the word “tools”, not “computers”, at the start of Apple’s life, which became hugely successful.
That is why Apple came up with the iPod, iPhone, and iTunes. These tools revolutionised the way we listen to music. Many people didn’t know they wanted an iPad until Apple showed them these tools. [Read more…]
In June 2019, the Association for Federal Risk Management publish a document entitled: “Getting Ahead of Risks Before They Become Government Failures: An Imperative for Agency Leaders to Embrace Enterprise Risk Management”. The document states: “Agencies are under increasing pressure to perform their missions more effectively and efficiently, while the types of challenges that government confronts are growing more complex.
Agency leaders are expected to keep program and operations on track by getting ahead of risks before they turn into problems.” (1) [Read more…]
A decision point is a moment when a significant choice presents itself and the decision made will result in a significant change of course that cannot be undone easily. Moreover, that same choice or option is unlikely to reemerge in the future. The essential elements are that the decision is significant, non-repeatable, and non-reversible.
The problem is that decision points don’t always announce themselves as clearly as the examples above suggest. Sometimes, the decision point looks a lot like other, similar moments except the context or consequences are very different. At other times, the decision point might get overlooked, mixed in with other less critical choices amongst a flood of activity. So it can be easy to overlook or miss the decision point. [Read more…]
Much is being written these days about the future of work and the problems it presents. This piece presents one way we could manage this constantly evolving situation.
The world is changing rapidly in so many ways, primarily, but not limited to technology, geopolitics and climate change. There is no attempt to assign priorities here; these factors are all intimately connected and affect the outcome in concert. [Read more…]
The point of risk management is to understand and react to the threats and opportunities that might affect your business. The problem is that risk management can often become dislocated from the mainstream business processes. Instead of being integrated into the organization, risk management takes place in a parallel but separate workstream: one that decision-makers dip into occasionally but generally look at as a specialized, technical process. [Read more…]
Disruption is a central component of the Anticipatory Organization Model, focusing closely on how Anticipatory Organizations and individuals can look at disruption and see enormous opportunities.
The untimely situation we currently face with COVID-19 is no exception; not only has every industry been touched by the coronavirus pandemic and subsequent lockdown, every country has. There is literally no safe haven from this disease, and businesses both large and small have found themselves in a predicament unlike ever before. [Read more…]
In my previous post, I asserted that many companies are not good at managing risks and I’ll stand by that statement. They’re not good at identifying them, poor at pinpointing dependencies, don’t understand the interactions that create or exacerbate risks and fail to actively quantify and evaluate the effectiveness of their risk management programs. I believe that a number of disciplines should be applied to help address these issues.
Let’s talk about Enterprise Architecture. No! Don’t run away. We’ll keep it at a layman’s level and try to avoid the need to employ an electron microscope to voluminous diagrams of elements of your company’s structure in order to make any sense of it. [Read more…]
Coronavirus seems to be spreading quicker than previous pandemic potential viruses, i.e., H5N1, H7N1, SARS, Ebola, MERS, etc. Could this be the long awaited/anticipated threat realization, or is it becoming a media driven phenomenon? Needless to say, planners should be implementing some assessment analysis regarding the potential for impacting business operations. Here is a brief look back at one of my articles from 2006, entitled, “Pre-Pandemic Planning: Business Continuity Perspectives“, when Bird Flu (H5N1) was the hot topic:
The business community is “not adequately prepared” for a possible avian flu pandemic, says Secretary of Health & Human Services Michael Leavitt. As of July 24, 2006, there have been 231 confirmed cases in humans resulting in 133 deaths (a mortality rate of 57%). The virus has spread to 33 countries through wild migratory birds that have now infected domestic poultry (source World Organization for Animal Health). [Read more…]
Unless you are a person that firmly believes there will be a second wave – or even that there might be a second wave – the reactions and measures taken to the COVID-19 pandemic are starting to calm down and the world is beginning to unwind the measures that have been put in place; albeit to varying degrees and velocities and with little consistency.
On thing is for certain; this event will be studied for years to come as data is gathered, scrubbed, and harmonized so that proper analysis can take place. Unfortunately, another thing which is as certain is that the analysis will be politicized – with, unfortunately, a priority of placing blame being a primary driver of the analysis and the outcomes.
But it would be wise to remember; “Blame is for God and small children” – Dustin Hoffman as Louis Dega in the movie “Papillon”. [Read more…]
If you’re cooking, you need a way to tell how hot the oven is. You won’t be able to tell the difference between 275F and 325F just by sticking your hand inside – both are going to feel hot to you – but this is the difference between a perfect, crunchy yet chewy meringue and something that’s dry and explodes into a pile of dust. So we use a thermometer to give us the information we need.
Similarly, we need a way to be able to differentiate between risks, to separate those that are ‘hotter’ and might burn us and the others that are simply ‘warm’. Unfortunately, we can’t buy a risk thermometer so we conduct a risk assessment to help us make that differentiation. [Read more…]
Only when the tide goes out do you discover who’s been swimming naked.”
– Warren Buffett
The current pandemic has wreaked profound dislocation on businesses throughout the world and upended societal norms as we know them. It may have been an unpredictable, ‘black swan’ event that will not recur anytime soon, though that’s open to discussion, but it’s worth evaluating your risk management practices to see whether you could have done better.
My guess is that, with the exception of a small fraction of companies, risk management is not done particularly well and better (or at least, less-worse) outcomes could have been achieved. [Read more…]
