Manage Risks More Intentionally

Change is a constant in every organization.  Change is a combination of four things, 1) Keep, 2) Add, 3) Modify, and 4) Retire.  Change is accomplished through projects.  There are five reasons to run a project, 1) resolve an issue, 2) mitigate a risk, 3) improve a process, 4) change a relationship, and 5) become something next.  Most projects combine two or more of these reasons.  Today’s uncertain economy threatens the operation of just about every organization on the planet.  So, let’s consider running a project that mitigates the risk of insufficient funds to continue current operations. 

 

If your funds decline you must reduce expenses.  This means you must be ready to decide where you will cut expenses and why.  Do you take a 10% cut across the board?  Do you sell a division?  Do you ask everyone to take a cut in pay?  Do you increase or decrease prices?  The project to mitigate the risk of a decline in funds could be to add the capability to make these kinds of decisions with a greater ability to understand the truth of the circumstances and predict the consequence of the decisions.  Having the capability to confidently make the needed decisions and explain the rationale can go a long way to realizing the needed benefits.

 

Organization Ontologics, which is the study of the naturally occurring principles and patterns of human organizational existence, offers much to this risk mitigation project.  The Principle of Decision: Clear context leads to confident decisions, provides the requirements for the organizational capability that can mitigate this risk.  List the contexts that inform the types of decisions that may be required if there is a decline in funds.  Create an operational model and a corresponding financial model with planning assumptions that represent each context and each type of decision.  Review these models with your leadership and management teams and let their life experience tune your list of contexts and types of decisions and the values you assign to the planning assumptions.  Organization Ontologics allows you to add the capability to analyze more intentionally the natural design of your organization given the truth of your circumstances.

 

Why Organization Ontologics?  To better manage the risks of today’s economy.