Every change initiative carries accompanying risks from both external sources and from sources internal to the organization. It is the difficulty of identifying and “facing into” risks that accounts for many value-destroying disasters in change processes.
Fear of the consequences of risks limits innovative pursuits, often creating the opposite effect for which management of the risks was designed. For example, some firms build greater infrastructure than is required to run their operations. The thinking is that infrastructure equals security and reduced risk. In fact, excessive infrastructure fixes higher costs and establishes performance limitations that can lead to greater inertia, paralysis, and loss of competitiveness.
The answer lies in Risk Readiness, the ability throughout the business to access a wider horizon of opportunities, and to see and manage all current and potential risks through this growing ability. Risk Readiness is the capability and behavior that identifies current risk, adjacent opportunities, and adjacent risks, and surfaces and manages risk before it manifests into destruction of value. It yields far more opportunities and greater time to manage exposure and create potential growth, and far fewer “rotten compromises” that only limit an enterprise’s ability to prosper.
Our approach to change builds increased Risk Readiness in the process of preparing for and implementing change, so your people become more aware and creative in managing risk before it manifests.
See our White Paper Readiness and Risk for a detailed discussion about risk and readiness.
Please contact our Readiness Practice Director for current information and status.