Greg Hutchins - Thought Leader

Economics concerns itself with the determination of the most logical and effective use of resources to meet private and social goals for some form of benefit.  While primarily concerned with industry and business, its concepts of opportunity cost, supply and demand, present value, and mutual interdependence economics is also applicable to email; one of our most utilised forms of communication but, possibly, the most hated. [Read more…]

Guest Post by John Ayers (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

A Hybrid Methodology combining the speed and flexibility of Agile and the structure of Waterfall is feasible and practical. I base my opinion on the research I have done. I recently presented a Webinar to Project Management Institute (PMI) members on how to merge Agile and Waterfall to achieve a Hybrid methodology. The focus of this paper is to address the greatest risk to a company in implementing the new methodology i.e., acceptance of it. I addressed how to accomplish the merger to achieve a Hybrid method in a paper I wrote and posted on LinkedIn in May

Go out on a limb. That’s where the fruit is.||
Jimmy Carter – U.S. President

Working It in VUCA time emphasizes Risk Based, Problem Solving (RBPS) and Risk Based, Decision Making (RBDM), which are the essence of self-management, execution, career resilience, and career agility.

Years ago, our mantra was risk management should be part of the tool box of all engineers.  Why?  Engineers live and work in the world of uncertainty and risk.  Then things changed.  In VUCA time, we say that risk is the entire toolkit and lens for ALL work and living in VUCA time.  McKinsey, the global consulting firm, explains the connection between problem solving and decision making:

[Read more…]

Guest Post by Patrick Ow (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Interest in risk culture has been growing since the 2008 Global Financial Crisis. It is a topic that is getting more and more spotlight.

Regulatory authorities are demanding that financial institutions improve their ‘risk culture’. Workplace health and safety authorities are urging organisations to improve their ‘safety culture’. Everyone is talking about having a ‘customer experience culture’. And the list goes on.

Guest Post by Bill Pomfret (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Mental Health Awareness week is fast approaching. This year [2022] it is from 9th-15th May, and the theme is Loneliness, Anna Neagle is right, in her book Cultivating and being happy in our own company is important, but even the most introverted among us benefit from human connection and where increasingly people have started working from home, or in a hybrid home/workplace setting, we need to proactively seek that connection out.  Connection can be with our close circle, or even from small talk with strangers the research shows that both are helpful for our well-being. [Read more…]

Guest Post by John Ayers (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

“Department of Defense (D0D) acquisition must improve program while working within budgetary constraints. The DoD community shows an interest in utilizing Agile methodologies, but struggles to reap Agile’s benefits. They encountered challenges including the historically built-up processes that enforce heavy-weight oversight, the outdated, manufacturing focused Work Breakdown Structure (WBS) provided in DoD Handbook: Work Breakdown Structures (WBS) for defense Material Items (MIL-STD-881C), and the inability of traditional waterfall-based process to accommodate iterative development.

There are lots of lessons to learn from Amazon. Never stop innovating or questioning the fundamentals of your business. Disrupt yourself before others do.
Brad Stone – Journalist & Author

Consulting firms, academics, and consultants are developing models for the Future of Work.   Price Waterhouse Coopers (PwC) developed a scenario called the Future of Work: A Journey to 2022.  The premise of the study is: “disruptive innovations are creating new industries and business models, and destroying old ones.”[i]  PwC outlined three distinct worlds of work: Blue, Green, and Orange.

Guest Post by Patrick Ow (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Gallup’s State of the Global Workplace: 2022 Report found that only 21% of employees are engaged at work and 44% of employees experienced a lot of stress on the previous day – both findings are up 1% from 2021.

In one of the largest studies of burnout, Gallup found the biggest source was “unfair treatment at work.” That was followed by an unmanageable workload, unclear communication from managers, lack of manager support and unreasonable time pressure.

Disengagement and stress in workplaces are good indicators of an organisation’s workplace climate. They can also provide insights into potential issues with the organisation’s culture.

Guest Post by Howard Wiener (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

If your business is going to survive, you must be able to read and react to changes in your markets and continuously improve your competitive position.  It’s more important now than it’s ever been.

SWOT is a model often employed to characterize a company’s competitive position in terms of Strengths, Weaknesses, Opportunities and Threats.  If a competitor creates a new offering that you can’t match, that’s a weakness.  If you have one that they can’t match, it’s a strength. 

Guest Post by Annette Davison Ph.D (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

According to the definition in ISO 31000, risk is the impact of uncertainty on [achieving] your objectives. Of course, this impact can be both negative or positive. ISO 31000 states the following:

“Clause 6.4.2 Risk identification: The organisation should identify risks, whether or not their sources are under its control.

Clause 6.4.3 Risk analysis: The effectiveness of existing controls.”

Guest Post by John Ayers (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

There are two basic types of contracts applied to development projects. They are Firm Fixed Price (FFP) and Cost-Plus (CP). Each type has a number of different variations shown in Table 1. FFP contracts are for projects with mature technology, less uncertainty, and more predictability. CP contracts are for projects with new technology, a lot of uncertainty, and less predicability. There are other types of contracts but are out of scope for this paper.

Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

People!  People in positions of authority wish for popularity, they may demand respect in one way or another but, above all, being trusted is perhaps the most desirable.  Trust, they say, needs to be won, respect is awaited expectantly but not necessarily given enjoyably, and popularity is fleeting.  In the absence of trust and respect, and despite any feelings of friendship or congeniality, toxic environments can prevail even though their obnoxiousness is well known as is the souring effect on human relationships.

Everything, at some point, involves people and relationships of some sort will develop in one way or another.  Psychologically speaking, relationships are based on individuals and their personal needs or desires for socialising and maintaining both a physical and emotional balance.  The same is also true of groups of people.

Guest Post by Patrick Ow (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

If your organisation is suffering from performance issues despite what you consider well-executed strategies, plans, and initiatives, then you have a range of roadblocks holding you back.

Typically, when organisations are losing market share or not making achieving their revenue targets, the first thing they do is to change their goals, strategy, mission, structure, vision, values etc, and even their plans.

Looking externally seems to be the easiest when organisations are suffering a range of performance challenges that they want to improve.

Guest Post by Dianna Deeney (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

New product development engineers are managing risks, daily, with each design decision: unknown risk in creating something new, risk introduced through a failure, human factors risk, and other risks related to products and services. Their design decisions affect downstream activities (from production through disposal) and the bottom-line success of the product in the market. How can engineers manage these risks through the design process?

Proactively managing risks can be an iterative part of product design engineering. Risks can be managed at the early concept phases of development when changes to the design are easier to make. Finding and addressing risks also helps the team to avoid surprises late in development and after the product has been released to the market. The results are not only managing risks but also managing the design process for a more successful product.

Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Projects are about businesses and business is about money.  Very few firms are not-for-profit and profit margins are fundamental to ensuring a company’s survival in the dog-eat-dog world of the markets they operate in.  Profit declaration is an essential part any company’s annual report and a quick, but not necessarily accurate indicator of its financial health.

According to the microeconomic ‘Theory of the Firm’ companies exist to maximize net profits and all decisions must bear this in mind. But profit margins are based upon forecasts and assumptions until a final account is determined.  It’s only then that the grim reality of undeniable and irreversible losses is seen or the comfort any balance hasn’t slipped into the red, or the euphoria that predetermined margins have been maintained or even exceeded!