Más contenido relacionado La actualidad más candente (20) Similar a Management Excellence, Planning & Stress Control (20) Más de Asia Master Training آسيا ماسترز للتدريب والتطوير (20) Management Excellence, Planning & Stress Control2. Definition of Leadership
Leadership, according to Peter DeLisle, is the ability to
influence others, with or without authority.
All successful endeavors are the result of human effort;
thus, the ability to influence others is a derivation of
Interpersonal Communications
Conflict Management
Problem solving
© www.asia-masters.com
3. Interpersonal Effectiveness
Interpersonal effectiveness is the capability of an
individual to do this, influence others, competently.
Leadership is a direct function of three elements of
interpersonal effectiveness
Awareness
Ability
Commitment
© www.asia-masters.com
5. Awareness
Awareness is a state of consciousness.
It is the ability to recognize yourself, others, events and
situations in real time.
It is the ability to assess the impact of actions on
situations and others, and be critically self-reflective.
It is a development process that is a function of
experience, communication, self discovery and
feedback.
© www.asia-masters.com
6. Ability
Ability to learn and understand technical issues is
the basis of our careers.
Ability to lead is a function of influence:
Ability to communicate
Ability to resolve conflicts
Ability to solve problems and make decisions
As a member of a team, we influence others in a
collaborative effort to find better ideas or solve
problems.
© www.asia-masters.com
7. Commitment
For leaders, the “one thing” that leads to maturity is the
fully aware recognition that one’s decisions make a
difference, both positively and negatively, in the lives of
others, and that any attempt to solve a problem might
have a decided negative impact on some, while helping
others.
In no-win scenarios, one must still make a hard decision.
© www.asia-masters.com
8. Commitment
Movie example – Untouchables
Moment of truth for Elliott Ness
Jimmy O’Neil asks
“What are you prepared to do?”
Ness replies
“Anything I have to do to make this thing right.”
O’Neil says
“Everyone knows where the problems are, but no one
is willing to do anything. You said you would do
anything you had to, to make it right. Now, I’m
willing to help you. You made the commitment.”
© www.asia-masters.com
9. Defining a Leader…
Think of a leader that you worked for
or observed…
What does this person do and what
qualities does this person have that
make you admire him or her as a
leader?
© www.asia-masters.com
10. Attributes of a Leader
Guiding vision: Effective leaders know what they want
to do, and have the strength of character to pursue their
objectives in the face of opposition and in spite of
failures. The effective leader establishes achievable
goals.
© www.asia-masters.com
11. Attributes of a Leader
Passion: Effective leaders believe passionately in their
goals. They have a positive outlook on who they are, and
they love what they do. Their passion for life is a guiding
star for others to follow, because they radiate promise!
© www.asia-masters.com
12. Attributes of a Leader
Integrity: Because they know who they are, effective
leaders are also aware of their weaknesses. They only
make promises they can follow through on.
Honesty: Leaders convey an aura of honesty in both
their professional and their personal lives.
Trust: Effective leaders earn the trust of their followers
and act on behalf of their followers.
© www.asia-masters.com
13. Attributes of a Leader
Curiosity: Leaders are learners. They wonder about
every aspect of their charge. They find out what
they need to know in order to pursue their goals.
Risk: Effective leaders take calculated risks when
necessary to achieve their objectives. If a mistake is
made, the effective leader will learn from the
mistake and use it as an opportunity to explore
other avenues.
© www.asia-masters.com
14. Attributes of a Leader
Dedication: The effective leader is dedicated to his or
her charge, and will work assiduously on behalf of those
following. The leader gives himself or herself entirely to
the task when it is necessary.
© www.asia-masters.com
15. Attributes of a Leader
Charisma: This may be the one attribute that is the
most difficult to cultivate. It conveys maturity,
respect for your followers, compassion, a fine sense
of humor, and a love of humanity. The result is that
leaders have the capability to motivate people to
excel.
Listening: Leaders Listen! This is the most
important attribute of all, listen to your followers.
© www.asia-masters.com
16. Leader vs Manager
Leader n, 1. A person who is followed by others.
Manager n, 1. A person controlling or administering a
business or a part of a business. 2. A person regarded in
terms of skill in household or financial or other
management.
© www.asia-masters.com
17. Leadership
Leadership is the ability
to develop a vision that
motivates others to move
with a passion toward a
common goal
© www.asia-masters.com
18. Management
Management is the ability to
organize resources and
coordinate the execution of
tasks necessary to reach a
goal in a timely and cost
effective manner
© www.asia-masters.com
19. Leadership vs Management
Management seeks stability & predictability
(order)
Leadership seeks improvement through change
(disorder)
© www.asia-masters.com
21. Leadership & Management Skills
Leadership – soft skills
Communications
Motivation
Stress Management
Team Building
Change Management
Management – hard skills
Scheduling
Staffing
Activity Analysis
Project Controls
© www.asia-masters.com
22. 22
12 Unique Insights On Leadership,
According To Bob Danzig
1. Become a “destiny architect”
2. Encourage “elasticity of thinking” -- be a “destiny pursuer” versus an
“operational comfort seeker”
3. Identify, assess, and engage the very best talent
4. Become “strategic” rather than “operational”
5. Create a “climate or spirit of celebration and applause” -- spirited
organizations excel
6. Be committed every day to putting the pickax to the mountain, find new ways
to lift yourself and others higher
© www.asia-masters.com
23. 23
12 Unique Insights On Leadership
7. Be the source of “possibility thinking”
8. Let your co-workers know they are “worthwhile” and full of promise
9. Find disciplined, organized ways to focus on integrity, trust,
credibility, and the commitment to do the right thing
10. Know that management is about today -- and leadership is about
tomorrow!
11. Know that management is about process -- leadership is about
purpose
12. Recognize “success” is not about perfection, it's about “progress”
© www.asia-masters.com
24. Managers have the following attributes , they
Consider alternatives to design
Estimate costs involved
Establish risks to the organization
Develop a schedule for the project
Include decision steps
Manage change in an orderly fashion
Keep the team motivated and informed
Review responsibilities and goals with each team player
State clearly the basis for evaluation and where each
person fits into the organization
© www.asia-masters.com
25. Managers have the following attributes , they
Monitor progress
Set directions; set expected achievements for each
individual within the next work period. Show the team
members where they fit in achieving unit goals.
Perform administrative tasks
Report to senior management
Money and job security play a major role in management
effectiveness. They act as deficiency motivators.
© www.asia-masters.com
26. Being a Leader
If you want to get ahead, be a leader, you must
assume:
That everything that happens to you results in a situation
that is in your control
That the attitude you convey is what you are judged on
That what you think and do in your private life is what
you will reap in your public or corporate life
You are what you think and believe
If you never meet a challenge you will never find out what
you are worth
© www.asia-masters.com
27. Recipe for being a Leader
Take control of your life
Assume responsibility for who you are
Convey a positive and dynamic attitude in
everything you do
Accept blame: learn from your own mistakes as
well as those of others. Take blame for everything
that happens in your unit
Give credit wherever it is due
Be compassionate when you review your team
members' progress or lack thereof
28. Recipe for Being a Leader
Think great thoughts. Small thinking is why
companies go broke
Turn disasters into opportunities. Turn every
obstacle into a personal triumph
Determine your "real" goals then strive to achieve
them
When you want to tell someone something
important, do it personally
Don’t be afraid to get your hands dirty doing what
you ask others to do. Make coffee
29. Recipe for Being a Leader
Listen effectively
Encourage teamwork and participation
Empower team members
Communicate effectively
Emphasize long-term productivity
Make sound and timely decisions
Treat each person as an individual
Know yourself and your team
Protect your team
Have vision, courage and commitment
30. Holistic Communicationsimage (noun)
1. Form, semblance; counterpart as regards
appearance (That person is the image of an
engineer.)
2.simile, metaphor; mental representation; idea,
conception; character of thing or person as
perceived by the public.
Image includes everything: the way you talk and
dress, the way you act, your attitude to others
at work and play.
© www.asia-masters.com
31. Holistic Communications
Do you give warm fuzzies? Do you smile a lot? Do you feel
dynamic and energized, and show it? Do you feel
comfortable in a group?
Or: do you hand out cold pricklies? Do you frown a lot? Do
you feel tired and drained of energy, and show it? Do you
feel uncomfortable in a group?
When people think about you, do they equate your image
with a dynamic, interested, competent person? Are you the
sort of a person who makes things happen, at home, at
work, or at play?
Or: do people think you are merely occupying a spot in the
universe? That you are waiting for the next millennium? Are
you the sort of person who waits for someone else to make
things happen?
© www.asia-masters.com
32. Holistic Communications
What are your personal career objectives?
1. to identify problems and create winning solutions
to solve them?
2. to lead effectively, with inspiration; to motivate?
3.to be in control of your world; to make things
happen for you?
4. to manage your personal resources effectively?
5. to be president of your own company?
6. to be a millionaire, if you aren't already?
© www.asia-masters.com
33. The way you stand or sit
indicates whether you are an open person, easily
approachable
says whether you are friendly
tells others whether you could be a good team
player
suggests that you are frank and honest
tells others what you really think of them
shows whether you are a part of the team
© www.asia-masters.com
34. The way you dress
indicates whether you have conventional ideas or
whether you are a radical
shows how neat you are
suggests whether you will fit in with the company's
image
makes a statement about whether or not you care
enough to find out about the company, its image
and its objectives
shows indirectly whether you are confident,
whether or not you believe in yourself.
35. The way you write
Conveys whether you are warm and friendly or appear cool
and reserved
Tells whether you are dynamic and energetic or whether you
are lethargic and procrastinate
Conveys an image of you as either intuitive in solving
problems, or logical, solving problems step by step
Says whether you want to communicate with others or not
Says whether you try to avoid conflict or seek it
Says whether you are materialistic or idealistic
© www.asia-masters.com
36. Holistic Communications
Conclusions
Communication is a holistic concept; everything
we do conveys something about ourselves
If you want to achieve greatness in your chosen
objectives you must communicate holistically. It is
not enough to write well or to know a lot of big
words. You must be able to project an image that
will lead to success
You can change the way you appear to others by
changing your behavior pattern
If you want to change your behavior pattern, you
must change everything about yourself.
37. What is the bottom line for you?
You are in control of your environment. You can make
every setback an opportunity for success
You can be anything you can be! Whatever you want to
be is entirely up to you
You can become the person you want to be. Dress like
that person, talk like that person, act like that person,
write like that person, and that will be you.
© www.asia-masters.com
38. Interpersonal Communications
Carl Jung was a Swiss born psychiatrist, and a colleague
of Sigmund Freud, who practiced in the first half of the
20th century.
Jung formulated a classification of personality in terms of
types of characteristics, such an introvert and extrovert
© www.asia-masters.com
39. Personal Interactive Skills
On the basis of Jung’s classification of personality,
Katherine Briggs and her daughter, Isobel Briggs-Myer,
developed a procedure for evaluating personality
characteristics.
A number of tests exist for giving Myers-Briggs type
indicators.
The types are divided into four pairs of preferences.
© www.asia-masters.com
40. Personality Indicators
Extraversion: type E, sociable,
about 75%,
expends energy
interacts with others freely
Introversion: type I, territorial,
about 25% conserves energy
reads meditates
solves problems
© www.asia-masters.com
41. Personality Indicators
Are you energized around people? Do you like to
meet people and seek opportunities to do so? Do
you think out loud? Do you talk to plants and
discuss problems with animals? This is Extrovert
behavior.
Alternatively, do you find you would rather work
alone, without interruption. Does meeting too
many people tend to tire you out? Would you
sooner not answer the phone - let the answering
machine do it for you. Would you rather have a
problem written down for you than stated verbally?
This is typical Introvert behavior.
© www.asia-masters.com
42. Personality Indicators
intuitive: type N, creative, about 25% ingenious,
future-oriented, fantasizes, imaginative
Sensing: type S, practical, about 75% experience-
oriented, utility, sensible
Do you see the world in terms of your senses? Do
you like the facts before starting work? Do you like
dealing with the details of a project rather than the
overall plan? You are likely Sensing.
Or do you think in terms of the big picture, in
terms of concepts and ideas, rather than the
information involved? Put down intuitive.
© www.asia-masters.com
43. Personality Indicators
Thinking: type T, impersonal, 50% (however, 60%M)
objective judgments, logical orientation, rules, laws, justice,
firmness
Feeling: type F, personal, 50% (however, 60%F) emotional
judgments, value-oriented, persuasion, sympathy, devotion
Note: both types can react with the same emotional
intensity.
Do you tend to follow the rules regardless of how you feel?
Do you hide your feelings and get on with the job? That's
Thinking.
Or do you inject a personal note into things you do, even let
your emotions take over, sometimes. That's Feeling type
behavior.
© www.asia-masters.com
44. Personality Indicators
Judging: type J, closure, concluding, 50% settled, decided,
work comes first, plan ahead, urgency, deadline, get-it-
done.
Perceptive: type P, get more data, 50% pending, flexible,
adaptable let-it-happen, open-ended, tentative, wait-and-
see.
Note: both types are equally "judging" and "perceptive."
Do you like to set up a schedule to meet deadlines, make
lists, make quick decisions in order to get onto the next job?
That's Judging behavior.
Or are you really adaptable, you like collecting more
information so your decision will be really informed. That's
Perceptive.
© www.asia-masters.com
46. Self Evaluation
What is my personality type?
Take the test.
Be as honest as you can, only you will see the results.
List the answers on the chart.
Evaluate the results.
Do you concur?
Do you understand yourself?
© www.asia-masters.com
47. Motivating
Abraham Maslow was an American born psychologist,
researcher and educator who practiced during the
middle third of the 20th century.
Maslow created his now famous hierarchy of needs based
on his observations that some needs take precedence
over others.
© www.asia-masters.com
50. Building a Team
Why would someone want to become part of a team?
An effective team helps one feel they are:
Doing something worthwhile for themselves and
the organization
Enjoying a more satisfying work life
More in control of their jobs
Making contributions which are well used
Learning new skills
Recognized and respected
© www.asia-masters.com
51. Building a Team
When a team is operating well the leader and the
members:
Are clear on team goals and are committed to them
Feel ownership for problems rather than blaming
them on others
Share ideas
Listen to and show respect for others
Talk more about “we” and less about “I” and “me”
© www.asia-masters.com
52. Building a Team
Understand and use each others know-how
Know about each other’s personal lives
Give each other help and support
Show appreciation for help received
Recognize and deal with differences and
disagreements
Encourage development of other team members
Are loyal to the group, its members, the leader and
the organization
© www.asia-masters.com
53. Building a Team
Make decisions based on facts not on emotion or
personalities
Play a variety of roles – serve as leader, teacher or coach
© www.asia-masters.com
54. Coaching
The goal of coaching is not to provide direction, but to
enable team members to work together to help one
another find direction.
Coaching is the foundation for continuous improvement.
Coaching is a practical skill anyone can learn.
© www.asia-masters.com
55. Coaching
1. Identify an opportunity to help someone expand on
his or her skills, knowledge and abilities
Coaching is a chance to help someone enhance his or her
performance and add value to the
organization/team. Sometimes, people may ask for
coaching, but don’t wait for that to happen. Act on
opportunities for coaching at any time.
© www.asia-masters.com
56. Coaching
2. Confirm that the person is ready for coaching.
Before trying to coach, make sure the person is open to it.
If a person seems hesitant, try explaining the
benefits, but don’t insist on coaching someone who
simply isn’t receptive. To ensure a win-win situation,
find out if the person is willing before proceeding to
coach.
© www.asia-masters.com
57. Coaching
3. Ask questions and offer information to help clarify
the situation.
Much of coaching involves helping people clarify
situations in their own minds. Often, the best way to
do this is by asking open-ended questions that
encourage them to think through the situation
aloud. Begin questions with words like what, when,
where, who and how much.
© www.asia-masters.com
58. Coaching
4. Help the person identify possible actions.
The best coaching enables people to think and act on
their own. As you help someone identify immediate
actions, you’re also preparing the person to work
through similar issues without your help. Offer
guidance as he or she develops a plan.
© www.asia-masters.com
59. Coaching
5. Gain agreement on a course of action.
In coaching, you help someone plan how to handle a
situation. To be certain that the session results in
positive action, you need to gain the person’s
commitment to a specific plan of action.
© www.asia-masters.com
60. Coaching
6. Offer your support.
The ultimate goal of coaching is to enable a person to
act independently. Most people need assurance
and support before they can reach that goal. As a
coach, you need to let the person know you’re
available to give further assistance – or further
coaching- when it is needed. Coaching isn’t a
quick fix or a one-time shot, it’s an extended
relationship.
© www.asia-masters.com
63. 63
Use The High Performance
Development Model:
The High Performance Development Model (HPDM) is
the framework for developing highly-skilled leaders for the
21st Century. By focusing on eight core competencies,
HPDM provides the foundation for leading-by-
example and creating a motivating workplace.
© www.asia-masters.com
64. 64
8 HPDM Core Competencies
1. Personal Mastery
2. Technical Skills
3. Interpersonal Effectiveness
4. Customer Service
5. Flexibility/Adaptability
6. Creative Thinking
7. Systems Thinking
8. Organizational Stewardship
© www.asia-masters.com
65. 65
HPDM Pyramid
Organizational
Stewardship
Systems Thinking
Creative Thinking
Flexibility/Adaptability
Customer Service
Interpersonal Effectiveness
Personal Mastery Technical Skills
Holistic Leadership/Org. Ecology
Connecting the Dots
Reaching Outside of the Box:
Taking Risks
Becoming Comfortable with
Unpredictability
Becoming Other-Oriented
Dealing with Others
Dealing with Self
Global Accountability
Controlled
Accountability
© www.asia-masters.com
69. Thomas-Kilmann Conflict Styles
Avoiding (Uncooperative and unassertive) Neglects
own concerns as well as those of other parties: does
not raise or address conflict issues.
Accommodating (Cooperative and unassertive)
Seeks to satisfy other person's concerns at the
expense of own.
Competing (Uncooperative and assertive) Opposite
of accommodating. Uses whatever seems
appropriate to win.
© www.asia-masters.com
70. Thomas-Kilmann Conflict Styles
Collaborating (Cooperative and assertive) Opposite of
avoiding. Works with other party to find a solution that
satisfies both own and other party's concerns.
Compromising (Middle ground) Seeks to find a middle
ground to partially satisfy both parties.
© www.asia-masters.com
71. When to Avoid
When an issue is trivial.
When there is no chance of getting what you want.
When the potential damage of confrontation is
greater than the benefits if resolution.
When you need to gather more information.
When others can resolve the conflict more
effectively.
When you need to cool down, reduce tension, and
regain perspective or composure.
72. When to Accommodate
When you realize you are wrong.
When the issue is much more important to the other
person than you.
When you need a future favor (credit).
When continuing the competition would damage the
cause.
When subordinates need to develop - to learn from our
mistakes.
© www.asia-masters.com
73. When to Compete
When quick, decisive action is necessary.
On important issues for which unpopular courses of
action need implementing.
On issues vital to the group welfare, when you know
you are right.
When protection is needed against people who take
advantage of noncompetitive behavior.
© www.asia-masters.com
74. When to Collaborate
When both sets of concerns are too important to be
compromised.
When it is necessary to test your assumptions or
better to understand the viewpoint of the other
party.
When there is a need to combine ideas from people
with different perspectives.
When commitment can be increased by
incorporating the concerns of everyone into the
proposal.
When there is a history of bad feeling.
© www.asia-masters.com
75. When to Compromise
When goals are important but not worth the effort
of potential disruption from more aggressive
players.
When two opponents with equal power are
strongly committed to mutually exclusive goals.
When temporary settlements are needed on
complex issues.
When expedient solutions are needed under time
pressures.
As back-up when collaboration or competition fail.
© www.asia-masters.com
76. Negative Consequences of Competing
Eventually being surrounded by "yes people."
Fear of admitting error, ignorance, or uncertainty.
Reduced communication.
Damaged relationships.
Lack of commitment from others.
More effort during implementation to sell the solution.
© www.asia-masters.com
77. Negative Consequences of Collaborating
Too much time spent on insignificant issues.
Ineffective decisions can be made by people with
limited knowledge of the situation.
Unfounded assumptions about trust.
© www.asia-masters.com
78. Negative Consequences of Compromising
No one is completely satisfied.
Solutions tend to be short-lived.
Cynical climate: perception by both parties that it is a
"sellout."
Larger issues, principles, long-term values and the
welfare of the company can be lost by focusing on trivia
or the practicality of implementation.
© www.asia-masters.com
79. Negative Consequences of Avoiding
Decisions made by default.
Unresolved issues.
Self-doubt created through lack of esteem.
Creative input lost.
Lack of credibility.
Anger and hostility generated in subsequent
discussions.
© www.asia-masters.com
80. Negative Consequences of Accommodating
Decreased influence, respect, or recognition by too
much deference.
Laxity in discipline.
Frustration as own needs are not met.
Self-esteem undermined.
Best solution may be lost.
© www.asia-masters.com
81. Conflict Control
Use avoidance to ignore the issue.
Use accommodating style to allow the other person to
resolve the issue.
Structure the interaction so that a triggering event is
unlikely to occur.
Strengthen the barriers that inhibit the expression of
conflict.
Avoid dealing with the person with whom you are in
conflict.
© www.asia-masters.com
82. Steps for Confronting Conflict
Explain the situation as you see it.
Describe how it is affecting your performance or the
performance of others.
Ask for the other viewpoint to be explained, and listen
to the response.
Agree on the issues independent of personalities.
Explore and discuss the issues, without reference to the
problem.
© www.asia-masters.com
83. Steps for Confronting Conflict
Agree on what each person will do to resolve the issues.
Try to agree on the problem. If there is no agreement,
discuss issues some more.
Explore possible solutions.
Agree on what each person will do to solve the
problem.
© www.asia-masters.com
84. Problem Solving & Decision Making
A number of formal, structural problem solving and
decision making techniques are taught in
organizational management courses. Examples:
Kepner-Tregoe (KT) Technique
Alamo Technique
Cause Mapping
etc
© www.asia-masters.com
85. Brainstorming Process
Everyone must be involved
Call out ideas to scribe
Build on ideas
No idea is too trivial or silly
There is no criticism nor judgment on any idea
Get as many ideas as possible in the time
Objective: solve problems and enjoy doing it
© www.asia-masters.com
86. Objectives of Brainstorming
Identify the issues rapidly
Reach consensus on the most important issues rapidly
Determine possible solutions to issues
Select the most promising action to solve the problem
Agree on who does what
Get a commitment
Sell the process
© www.asia-masters.com
87. Synergistic Decision Making
Based on the premise that when people are supportive of
one another and follow a rational sequence of activities
in dealing with a problem, they can perform beyond
the sum of their individual resources.
Synergistic decision making requires participation in
effective interpersonal and rational processes.
© www.asia-masters.com
88. Synergistic Decision Making
Interpersonal Processes – involves skills we use when
working with others.
Listening to others
Supporting their efforts to do well
Differing with others when necessary in a manner that
is constructive rather than defensive
Participating equally in group discussions
© www.asia-masters.com
89. Synergistic Decision Making
Rational Processes – involves the skills we use in thinking
a problem through to a solution.
Analyzing the situation
Identifying objectives (ie., aims or goals)
Considering alternative strategies
Discussing adverse consequences
© www.asia-masters.com
90. Synergistic Decision Making
Reaching a consensus is the hallmark of “acceptance” in
the effective decision equation:
Effective Decision = Quality X Acceptance
Lack of agreement regarding a decision places
acceptance of the decision and its execution in
jeopardy.
© www.asia-masters.com
95. Leadership Styles
Autocratic (Authoritarian)
Bureaucratic
Democratic
Coercive
Transactional
Transformational
Laissez-Faire
© www.asia-masters.com
96. Autocratic (Authoritarian)
Manager retains power (classical approach)
Manager is decision-making authority
Manager does not consult employees for input
Subordinates expected to obey orders without
explanations
Motivation provided through structured rewards
and punishments
© www.asia-masters.com
97. When to use Autocratic
New, untrained employees
Employees are motivated
Employees do not respond to any other leadership
style
High-volume production needs
Limited time for decision making
Manager’s power is challenged by an employee
© www.asia-masters.com
99. Bureaucratic
Manager manages “by the book¨
Everything must be done according to
procedure or policy
If it isn’t covered by the book, the manager
refers to the next level above him or her
Police officer more than leader
© www.asia-masters.com
100. When to use
Bureaucratic
Performing routine tasks
Need for standards/procedures
Use of dangerous or delicate equipment
Safety or security training being conducted
Tasks that require handling cash
© www.asia-masters.com
102. Democratic
Often referred to as participative style
Keeps employees informed
Shares decision making and problem solving
responsibilities
“Coach” who has the final say, but…
Gathers information from staff members
before making decisions
© www.asia-masters.com
103. Democratic Continued
Help employees evaluate their own
performance
Allows employees to establish goals
Encourages employees to grow on the job and
be promoted
Recognizes and encourages achievement
Can produce high quality and high quantity
work for long periods of time
© www.asia-masters.com
104. When to use
Democratic
To keep employees informed
To encourage employees to share in decision-
making and problem-solving
To provide opportunities for employees to develop
a high sense of personal growth and job
satisfaction
Complex problems that require a lots of input
To encourage team building and participation.
© www.asia-masters.com
106. The ear of the
leader must ring
with the voices of
the people.
Woodrow Wilson
© www.asia-masters.com
107. Coercive
Power from a person’s authority to punish
Most obvious types of power a leader has.
Good leaders use coercive power only as a last
resort:
In today’s sophisticated and complex workplace,
excessive use of coercive power unleashes unpredictable
and destabilizing forces which can ultimately
undermine the leader using it.
© www.asia-masters.com
108. When to use Coercive
To meet very short term goals
When left with no other choice
In times of crisis
© www.asia-masters.com
110. Transactional
Motivate followers by appealing to their own self-
interest
Motivate by the exchange process.
EX: business owners exchange status and wages for the
work effort of the employee.
Focuses on the accomplishment of tasks & good
worker relationships in exchange for desirable
rewards.
Encourage leader to adapt their style and behavior
to meet expectations of followers
© www.asia-masters.com
111. When to use
Transactional
Leader wants to be in control
When there are approaching deadlines that
must be met
Relationship is short term
© www.asia-masters.com
112. “We made workers into
robots; we made them
into machines…
© www.asia-masters.com
113. ...Now, we want them to become a
different kind of person: to come
up with new ideas.”
Jack Smith, CEO, General Motors
© www.asia-masters.com
114. Transformational
Charismatic and visionary
Inspire followers to transcend their self-interest
for the organization
Appeal to followers' ideals and values
Inspire followers to think about problems in
new or different ways
Common strategies used to influence followers
include vision and framing
Research indicates that transformational leadership is more
strongly correlated with lower turnover rates, higher productivity,
and higher employee satisfaction.
115. Transformational cont.
Instils feelings of confidence, admiration and
commitment
Stimulates followers intellectually, arousing
them to develop new ways to think about
problems.
Uses contingent rewards to positively
reinforce desirable performances
Flexible and innovative.
© www.asia-masters.com
116. When leaders want members to be an active
part of the organization and have ownership
to it
When leaders are building a sense of
purpose
When the organization has a long term plan
When people need to be motivated
When to use
Transformational
© www.asia-masters.com
117. "(He) possessed the
gift of silence."
(Comment by President John Adams about
George Washington)
© www.asia-masters.com
118. Laissez-Faire
Also known as the “hands-off¨ style
Little or no direction
Gives followers as much freedom as possible
All authority or power is given to the followers
Followers must determine goals, make
decisions, and resolve problems on their own.
© www.asia-masters.com
119. When to use
Laissez-Faire
Employees are highly skilled, experienced, and
educated
Employees have pride in their work and the
drive to do it successfully on their own
Outside experts, such as staff specialists or
consultants are being used
Employees are trustworthy and experienced
© www.asia-masters.com
120. Other Referenced Theories
Theory X and Theory Y
Theory X and Theory Y each represent different
ways in which leaders view employees.
Theory X is the traditional view of direction and
control by managers.
Theory Y is the view that individual and
organizational goals can be integrated.
© www.asia-masters.com
123. Other Referenced Theories
Hersey-Blanchard
Situational Leadership
Based on the amount of direction (task-
behavior) and amount of socio-emotional
support (relationship-behavior) a leader must
provide given the situation and the "level of
maturity" of the followers.
© www.asia-masters.com
125. Selecting a Style
Some people are motivated by reward
Some people are motivated by
punishment
Social systems work best with a chain of
command
When people have agreed to do a job, a
part of the deal is that they cede
authority to their leader
© www.asia-masters.com
126. What is Strategic Planning?
• Process to establish priorities on what you will
accomplish in the future
• Forces you to make choices on what you will do
and what you will not do
• Pulls the entire organization together around a
single game plan for execution
• Broad outline on where resources will get allocated
© www.asia-masters.com
127. Why do Strategic Planning?
• If you fail to plan, then you plan to fail – be
proactive about the future
• Strategic planning improves performance
• Counter excessive inward and short-term thinking
• Solve major issues at a macro level
• Communicate to everyone what is most important
© www.asia-masters.com
128. Fundamental Questions to Ask
• Where are we now? (Assessment)
• Where do we need to be? (Gap / Future End
State)
• How will we close the gap (Strategic Plan)
• How will we monitor our progress (Balanced
Scorecard)
© www.asia-masters.com
129. A Good Strategic Plan should . . .
• Address critical performance issues
• Create the right balance between what the
organization is capable of doing vs. what the
organization would like to do
• Cover a sufficient time period to close the
performance gap
• Visionary – convey a desired future end state
• Flexible – allow and accommodate change
• Guide decision making at lower levels –
operational, tactical, individual
© www.asia-masters.com
130. Strategic Planning Model
A B C D E
• Environmental Scan
Assessment
• Background
Information
• Situational Analysis
• SWOT – Strength’s,
Weaknesses,
Opportunities,
Threats
• Situation – Past,
Present and Future
• Significant Issues
• Align / Fit with
Capabilities
• Mission & Vision
• Values / Guiding
Principles
• Major Goals
• Specific Objectives
• Performance
Measurement
• Targets / Standards of
Performance
• Initiatives and
Projects
Baseline Components
• Performance
Management
• Review Progress –
Balanced Scorecard
• Take Corrective
Actions
Down to
Specifics
Evaluate
Where we are Where we want to be How we will do it How are we doing
• Gaps • Action Plans • Feedback upstream –
revise plans
© www.asia-masters.com
131. Pre-Requisites to Planning
• Senior leadership commitment
• Who will do what?
• What will each group do?
• How will we do it?
• When is the best time?
© www.asia-masters.com
133. Assessment Model:
S W O T
Assessment
External Assessment: Marketplace,
competitor’s, social trends, technology,
regulatory environment, economic cycles .
Internal Assessment: Organizational
assets, resources, people, culture,
systems, partnerships, suppliers, . . .
• Easy to Understand
• Apply at any
organizational level
• Needs to be
Analytical and
Specific
• Be honest about your
weaknesses
Good Points Possible Pitfalls
SWOT SWOT
134. Strength’s
Assessment
• Strength’s – Those things that you do well, the
high value or performance points
• Strengths can be tangible: Loyal customers,
efficient distribution channels, very high quality
products, excellent financial condition
• Strengths can be intangible: Good leadership,
strategic insights, customer intelligence, solid
reputation, high skilled workforce
• Often considered “Core Competencies” – Best
leverage points for growth without draining your
resources
© www.asia-masters.com
135. Weaknesses
Assessment
• Weaknesses – Those things that prevent you from
doing what you really need to do
• Since weaknesses are internal, they are within
your control
• Weaknesses include: Bad leadership, unskilled
workforce, insufficient resources, poor product
quality, slow distribution and delivery channels,
outdated technologies, lack of planning, . . .
© www.asia-masters.com
136. Opportunities
Assessment
• Opportunities – Potential areas for growth and
higher performance
• External in nature – marketplace, unhappy
customers with competitor’s, better economic
conditions, more open trading policies, . .
• Internal opportunities should be classified as
Strength’s
• Timing may be important for capitalizing on
opportunities
© www.asia-masters.com
137. Threats
Assessment
• Threats – Challenges confronting the organization,
external in nature
• Threats can take a wide range – bad press
coverage, shifts in consumer behavior, substitute
products, new regulations, . . .
• May be useful to classify or assign probabilities to
threats
• The more accurate you are in identifying threats,
the better position you are for dealing with the
“sudden ripples” of change
© www.asia-masters.com
139. Why create a baseline?
Baseline
• Puts everything about the organization into a
single context for comparability and planning
• Descriptive about the company as well as the
overall environment
• Include information about relationships –
customers, suppliers, partners, . . .
• Preferred format is the Organizational Profile
© www.asia-masters.com
140. Organizational Profile
1. Operating Environment
Baseline
• Products and Services – Suppliers, Delivery
Channels, Contracts, Arrangements, . . .
• Organizational Culture – Barriers, Leadership,
Communication, Cohesiveness . . . .
• Workforce Productivity – Skill levels, diversity,
contractor’s, aging workforce, . . .
• Infrastructure – Systems, technology, facilities, . .
• Regulatory – Product / Service Regulation, ISO
Quality Standards, Safety, Environmental, . . .
© www.asia-masters.com
141. Organizational Profile
2. Business Relationships
Baseline
• Organizational Structure – Business Units,
Functions, Board, Management Layers, . . .
• Customer Relationships – Requirements,
Satisfaction, Loyalty, Expectations, . . .
• Value Chain – Relationship between everyone in
the value chain . . . .
• Partner Relationships – Alliances, long-term
suppliers, customer partnerships, . . .
© www.asia-masters.com
142. Organizational Profile
3. Key Performance Categories
Baseline
• Customer
• Products and Services
• Financial
• Human Capital
• Operational
• External (Regulatory Compliance, Social
Responsibility, . . . )
© www.asia-masters.com
145. Major Components of the
Strategic Plan / Down to Action
Components
Mission
Vision
Goals
Objectives
Measures
Why we exist
What we want to be
Indicators and
Monitors of success
Desired level of
performance and timelines
Planned Actions to
Achieve Objectives
O1 O2
AI1 AI2 AI3
M1 M2 M3
T1 T1 T1
Specific outcomes expressed in
measurable terms (NOT activities)
Strategic Plan
Action Plans
Evaluate Progress
Targets
Initiatives
What we must achieve to be successful
146. Mission Statement
Components
• Captures the essence of why the organization
exists – Who we are, what we do
• Explains the basic needs that you fulfill
• Expresses the core values of the organization
• Should be brief and to the point
• Easy to understand
• If possible, try to convey the unique nature of your
organization and the role it plays that differentiates
it from others
© www.asia-masters.com
147. Examples – Good and Bad
Mission Statements
Components
To Make People Happy
To Explore the
Universe and Search
for Life and to
Inspire the Next
Generation of
Explorers
NASA
Walt Disney
Does a good job of expressing the core
values of the organization. Also conveys
unique qualities about the organization.
Too vague and and unclear. Need more
descriptive information about what makes
the organization special.
© www.asia-masters.com
148. Vision
Components
• How the organization wants to be perceived in the
future – what success looks like
• An expression of the desired end state
• Challenges everyone to reach for something
significant – inspires a compelling future
• Provides a long-term focus for the entire
organization
© www.asia-masters.com
149. Guiding Principles and Values
Components
• Every organization should be guided by a set of
values and beliefs
• Provides an underlying framework for making
decisions – part of the organization’s culture
• Values are often rooted in ethical themes, such as
honesty, trust, integrity, respect, fairness, . . . .
• Values should be applicable across the entire
organization
• Values may be appropriate for certain best
management practices – best in terms of quality,
exceptional customer service, etc.
© www.asia-masters.com
150. Examples of
Guiding Principles and Values
Components
We obey the law and do not compromise moral or ethical principles – ever!
We expect to be measured by what we do, as well as what we say.
We treat everyone with respect and appreciate individual differences.
We carefully consider the impact of business decisions on our people and we
recognize exceptional contributions.
We are strategically entrepreneurial in the pursuit of excellence, encouraging original
thought and its application, and willing to take risks based on sound business
judgment.
We are committed to forging public and private partnerships that combine diverse
strengths, skills and resources.
© www.asia-masters.com
151. Goals
Components
• Describes a future end-state – desired outcome
that is supportive of the mission and vision.
• Shapes the way ahead in actionable terms.
• Best applied where there are clear choices about
the future.
• Puts strategic focus into the organization – specific
ownership of the goal should be assigned to
someone within the organization.
• May not work well where things are changing fast
– goals tend to be long-term for environments that
have limited choices about the future.
© www.asia-masters.com
152. Developing Goals
Components
• Cascade from the top of the Strategic Plan –
Mission, Vision, Guiding Principles.
• Look at your strategic analysis – SWOT,
Environmental Scan, Past Performance, Gaps . .
• Limit to a critical few – such as five to eight goals.
• Broad participation in the development of goals:
Consensus from above – buy-in at the execution
level.
• Should drive higher levels of performance and
close a critical performance gap.
© www.asia-masters.com
153. Examples of Goals
Components
Reorganize the entire organization for better responsiveness to customers
We will partner with other businesses, industry leaders, and government agencies in
order to better meet the needs of stakeholders across the entire value stream.
Manage our resources with fiscal responsibility and efficiency through a single
comprehensive process that is aligned to our strategic plan.
Improve the quality and accuracy of service support information provided to our
internal customers.
Establish a means by which our decision making process is market and customer
focus.
Maintain and enhance the physical conditions of our public facilities.
154. Objectives
Relevant - directly supports the goal
Compels the organization into action
Specific enough so we can quantify and measure the
results
Simple and easy to understand
Realistic and attainable
Conveys responsibility and ownership
Acceptable to those who must execute
May need several objectives to meet a goal
Components
© www.asia-masters.com
155. Goals vs. Objectives
GOALS OBJECTIVES
Very short statement, few
words
Longer statement, more
descriptive
Broad in scope Narrow in scope
Directly relates to the Mission
Statement
Indirectly relates to the Mission
Statement
Covers long time period
(such as 10 years)
Covers short time period (such 1
year budget cycle)
Components
© www.asia-masters.com
156. Examples of Objectives
Develop a customer intelligence database system to capture and analyze patterns in
purchasing behavior across our product line.
Launch at least three value stream pilot projects to kick-off our transformation to a
leaner organization.
Centralize the procurement process for improvements in enterprise-wide purchasing
power.
Consolidate payable processing through a P-Card System over the next two years.
Monitor and address employee morale issues through an annual employee satisfaction
survey across all business functions.
Components
© www.asia-masters.com
158. What are Action Plans?
Objectives
Initiatives
Action
Plans
• The Action Plan identifies the specific steps that will be taken to achieve the
initiatives and strategic objectives – where the rubber meets the road
• Each Initiative has a supporting Action Plan(s) attached to it
• Action Plans are geared toward operations, procedures, and processes
• They describe who does what, when it will be completed, and how the
organization knows when steps are completed
• Like Initiatives, Action Plans require the monitoring of progress on Objectives,
for which measures are needed
Down to
Specifics
© www.asia-masters.com
159. Characteristics of Action Plans
Down to
Specifics
Assign responsibility for the successful completion of the Action Plan. Who is
responsible? What are the roles and responsibilities?
Detail all required steps to achieve the Initiative that the Action Plan is supporting.
Where will the actions be taken?
Establish a time frame for the completion each steps. When will we need to take
these actions?
Establish the resources required to complete the steps. How much will it take to
execute these actions?
Define the specific actions (steps) that must be taken to implement the initiative.
Determine the deliverables (in measurable terms) that should result from
completion of individual steps. Identify in-process measures to ensure the processes
used to carry out the action are working as intended. Define the expected results
and milestones of the action plan.
Provide a brief status report on each step, whether completed or not. What
communication process will we follow? How well are we doing in executing our
action plan?
Based on the above criteria, you should be able to clearly define your action plan. If
you have several action plans, you may have to prioritize.
© www.asia-masters.com
160. Action Plan Execution
Down to
Specifics
• Requires that you have answered the Who, What, How,
Where, and When questions related to the project or
initiative that drives strategic execution
• Coordinate with lower level sections, administrative and
operating personnel since they will execute the Action
Plan in the form of specific work plans
• Assign action responsibility and set timelines – Develop
working plans and schedules that have specific action
steps
• Resource the project or initiative and document in the
form of detail budgets (may require reallocation prior to
execution)
• Monitor progress against milestones and measurements
• Correct and revise action plans per comparison of actual
results against original action plan
© www.asia-masters.com
161. Quantify from Action Level Up
in terms of Measurements
Down to
Specifics
• Measure your milestones – short-term outcomes at
the Action Item level.
• Measure the outcomes of your objectives.
• Try to keep your measures one per objective.
• May want to include lead and lag measures to
depict cause-effect relationships if you are
uncertain about driving (leading) the desired
outcome.
• Establish measures using a template to capture
critical data elements
162. Measurement Template
Down to
Specifics
(Insert
organization
name)
(Insert division
name)
(Insert department
name)
Risk Frame area
objective
supports
(Insert
objective
owner)
(Insert
measurement
owner)
(Insert reporting
contact info)
Objective Description – description of objective purpose, in sufficient detail for personnel not familiar
with the objective to understand its intent. Objective descriptions are typically two or three paragraphs
long. This will appear in the pop-up window when you mouse over the objective in the Balanced
Scorecard System.
References – source
documentation for objective and
objective description
Comments – additional information about the objective not covered in above blocks, such as recommendations for further revision,
additional organizations objective impacts, recommendations for coordination / alignment with other objectives, etc.
Measure Name - The name
exactly as you want it to appear
in the Balanced Scorecard,
including the measure number
(i.e. Percent Employees
Satisfied, etc.)
Measure Description – description of the measure,
include its intent, data source, and organization
responsible for providing measure data. This will appear
in the pop-up window when you mouse over the measure
in the Balanced Scorecard.
Measure Formula
– formula used to
calculate measure
value (if any)
Data Source - The
source of the data –
manual, data
spreadsheet, or
database name and
contact familiar with
the data
Measure Weight - the relative weight of the measure based on the impact it has on the overall
objective. The total weights for all measures for an objective must add to 100
Measure Reporter – Person responsible for
providing measure data. Include the name,
organization and email.
Target Maximum – Maximum expected value for the measure. Effective Date –
Date the target first
becomes effective
Frequency – How often
target data will be reported
Units – Units
of measure
Target – Point where the measure goes from green to amber
Target Minimum – Point where the measure goes from amber to red.
The target minimum and target can not be the same value.
Scorecard Perspective
Name
163. Integrity – Complete; useful; inclusive of several types of
measure; designed to measure the most important activities
of the organization
Reliable: Consistent
Accurate - Correct
Timely – Available when needed: designed to use and report
data in a usable timeframe
Confidential and Secure: Free from inappropriate release or
attack
Criteria for Good Measures
Down to
Specifics
© www.asia-masters.com
164. Examples of Measurements
Lead Indicators
Down to
Specifics
Average time to initiate customer contact =>
shorter time should lead to better customer service
Average response time to incident => below average
response times should lead to increased
effectiveness in dealing with incident
Facilities that meet facility quality A1 rating =>
should lead to improved operational readiness for
meeting customer needs
© www.asia-masters.com
165. Examples of Measurements
Lag Indicators
Down to
Specifics
Overall customer satisfaction rating => how well
you are doing looking back
Business Units met budgeted service hour targets
=> after the fact reporting of service delivery
volume
Number of category C safety accidents at
construction sites => historical report of what has
already taken place
© www.asia-masters.com
166. Targets
Down to
Specifics
For each measurement, you should have at least
one target
Targets should stretch the organization to higher
levels of performance
Incremental improvements over current
performance can be used to establish your targets
Targets put focus on your strategy
When you reach your targets, you have successfully
executed your strategy
© www.asia-masters.com
167. Examples of Targets
Average Time to Process
New Employee Setups in DB
65 days
Year 2007
60 days
Year 2008
55 days
Year 2009
Utilization Rate for Rental
Housing Units
90% for
Year 2007
92% for
Year 2008
95% for
Year 2009
Toxic Sites meeting in-service
compliance
55% for
Year 2007
70% for
Year 2008
95% for
Year 2009
Personnel Fully Trained in
Safety and Emergency
65% by 2rd
Quarter
75% by 3th
Quarter
90% by 4th
Quarter
Open Positions Filled after 30
day promotion period
75 positions
Sept 2007
100
positions
Jan 2008
135
positions
July 2008
% Reduction in Orders Filled
Short in 1st Cycle
50% by
Year 2008
65% by
Year 2009
85% by
Year 2010
Down to
Specifics
© www.asia-masters.com
168. Make sure everything is linked and connected for
a tight end-to-end model for driving strategic
execution.
INITIATIVE
Employee
Productivity
Improvement
Program
Employee
Satisfaction
Survey
Rating
90%
favorable
overall
Measure
Target
Target Actual
90%
45%
PercentSatisfaction
gap
MEASURE / TARGET
OBJECTIVE
Improve Employee
Satisfaction
ACTION PLAN
Identify issues per
a company wide
survey
Sanity Check . . .
Down to
Specifics
170. Continuous Feedback
through the Balanced Scorecard
Evaluate
Cascade and align from the top to create a Strategic
Management System.
Use the Balanced Scorecard framework to organize
and report actionable components.
Use the Scorecard for managing the execution of
your strategy.
Scorecard “forces” you to look at different
perspectives and take into account cause-effect
relationships (lead and lag indicators)
Improves how you communicate your strategy –
critical to execution.
© www.asia-masters.com
171. D2-D5: Build the Balanced Scorecard
Performance Management
Evaluate
Establish a regular review cycle using your balanced
scorecard.
Analyze and compare trends using graphs for rapid
communication of performance.
Don’t be afraid to change your metrics – life cycle (inputs
to outputs to outcomes)
Work back upstream to revise your plans: Action Plans >
Operating Plans > Strategic Plans
Planning is very dynamic – must be flexible to change.
Recognize and reward good performance results
Brainstorm and change – take corrective action on poor
performance results.
© www.asia-masters.com
172. D2-D5: Build the Balanced Scorecard
Automating the Process –
Links to Software Products
Evaluate
http://www.bscdesigner.com/
http://catalystone.com/
https://www.clearpointstrategy.com/
http://www.corporater.com/en/index.html
http://www.crgroup.com/Pages/home.aspx
http://distributive.com/
http://www.4ghi.se/
http://eprocessmanager.com/
http://www.iexecutivedashboard.com/
http://www.goaltrak.com/
https://www.intrafocus.com/
http://www.pm-express.com/
http://www.profitmetrics.com/
http://www.protia-inc.com/
http://www.qpr.com/
http://www.strategy2act.com/
http://www.myvaluesoft.com/
© www.asia-masters.com
173. Link Budgets to Strategic Plan
The world’s best Strategic Plan will fail if it is not
adequately resourced through the budgeting process
Strategic Plans cannot succeed without people, time,
money, and other key resources
Aligning resources validates that initiatives and
action plans comprising the strategic plan support
the strategic objectives
Evaluate
© www.asia-masters.com
174. Every Action Plan should identify the following:
• The people resources needed to succeed
• The time resources needed to succeed
• The money resources needed to succeed
• The physical resources (facilities, technology, etc.) needed to
succeed
Resource information is gathered by Objective Owners which is provided
to the Budget Coordinators for each Business Unit.
Resources identified for each Action Plan are used to establish the total
cost of the Initiative.
Cost-bundling of Initiatives at the Objective level is used by our Business
Unit Budget Coordinators to create the Operating Plan Budget
What Resources? How to Link?
Evaluate
© www.asia-masters.com
175. Some Final Thoughts
Integrate all components from the top to the bottom:
Vision > Mission > Goals > Objectives > Measures >
Targets > Initiatives > Action Plans > Budgets.
Get Early Wins (Quick Kills) to create some momentum
Seek external expertise (where possible and permissible)
Articulate your requirements to senior leadership if they
are really serious about strategic execution
© www.asia-masters.com
176. Recommended Workbook
This is a very useful workbook which includes
templates to walk you through every step of strategic
planning. Even though it is written for Nonprofits, it
can be used for any type of an organization seeking
to develop a good strategic plan. You can order this
workbook from the link below:
© www.asia-masters.com
177. About The Presenter
• UC COE for Healthcare Injury Prevention
• Previously worked with:
UCLA
Fender Guitars
Boeing
E! Network
About the presentation:
• Presentation will be sent to all attendees – email list is in back.
• Will cover many concepts very fast, if you have questions I will be available
afterwards.
• “Key Concepts” will be pointed out – take not of these.
Before We Get Started
© www.asia-masters.com
178. • Define ERR
• ERR Background
• ERR Concepts
• High Reliability Organization
• The “Enterprise” in ERR
• Opportunity to Apply Concepts
• Review and Summary
Overview
© www.asia-masters.com
179. Enterprise Risk Reduction (ERR) is:
• Combination of age old concepts on productivity, quality, and safety.
• A revised approach with ERM in mind.
• A systemized process to improve operations as a whole.
What is Enterprise Risk Reduction?
180© www.asia-masters.com
180. ERR Goals
• As a team of SME’s, address ALL risks together – Not just individually for your
subject areas.
• Improve the Output of the process/job/operation.
• Eliminate all failure points.
• Create a “High Reliability Organization”.
What are the Goals of ERR?
© www.asia-masters.com
182. Operations encompass all business processes.
All operations are based off of one key similarity:
Operational Excellence through ERR
OUTPUT
(creating a product or
service)
….which is reliant on
BUT WE'RE RISK!!! Why look at efficiency?
EFFICIENC
Y
© www.asia-masters.com
183. Efficiency is how fast you can get something done….. Right?
First we must answer: What is efficiency?
EFFICIENC
Y
...is the
COST PER
UNIT
Unit = “Value” Measurement
© www.asia-masters.com
185. In ERR, everything is a risk!
ERR Risks are broken down into Risk Variables
• Operational Risk (task time, productivity, reliability, user interaction, etc)
• Loss/Hazard Risk (assets, materials, safety, injuries, etc)
• Regulatory/Compliance Risk
• Quality Risk (Right First Time, liability risk, product/service failure , etc)
• Financial Risk (pricing, currency, liquidity , etc)
• Reputational Risk (brand, customer satisfaction , etc)
• Strategic Risk (competition, capital availability , etc)
• and many more….
All risks tie in together.
Efficiency Risks
© www.asia-masters.com
188. ERR Strategies:
• LEAN
• Hazard Analysis
• Six Sigma
• Ergonomics
• Organizational Behavior Management
• Failure Mode & Effects Analysis
These strategies address:
• Productivity
• Loss
• Quality
• Predictability
• Reliability
ERR Strategies to Identify Risks
© www.asia-masters.com
189. Background - Started by Henry Ford in early 1900’s - Improved by Toyota in 1930’s –
Continually improving ever since…
LEAN focuses on:
• “Value Add” and “Non-Value Add” task steps
• Operational “wastes”
• Optimizing processes
Typical types of “waste”:
• Non “Value Add” processes or steps
• Non “Value Add” movement, or travel
• Material waste
• Overprocessing (rely on inspections rather than having an efficient process) –
We often do this in Risk disciplines
• “Wait time” – caused by an uneven process
• Supply chain management
ERR Goals:
1. Break down and outline all task steps
2. Identify which steps add value to your “Output”
3. Eliminate or control wastes and non value add tasks
LEAN in ERR
(Productivity)
190. Background - Started at the dawn of time…
HA focuses on:
• Identifying potential “loss” of life, health, or property
Typical types of “loss”:
• Property (Fire, flood, etc)
• Employee injury (lacerations, ergonomics, falls, death, etc)
• Tool/equipment breakdown
ERR Goals:
1. Break down and outline all task steps
2. Identify where loss may occur
3. Eliminate or control loss
Hazard Analysis (HA) in ERR
(Loss)
© www.asia-masters.com
191. Background - Developed by Motorola in 1986 to reduce quality errors
Six Sigma focuses on:
• Identifying & removing the causes of defects (errors)
• Minimizing variability of processes (Ensure consistency & predictability)
• Defect/error metrics
Typical types of metrics:
• # of errors per operation/process cycle
• # of injuries, lost time days, modified duty days
• Lost/wasted assets
ERR Goals:
1. Identify, track, & trend defect (errors) metrics
2. Review metrics for cause & effect trends
3. Remove causes of defects/errors to create a consistent & predictable process.
Six Sigma in ERR
(Quality)
192. Background – May have started as early as ancient Greek & Egyptian times.
Ergonomics focuses on:
• Physical risk factors where musculoskeletal stress occurs.
• User interaction with a process (is the process intuitive).
• Tool design
Typical ergonomic risks:
• Waste movements
• Static postures
• High or repetitive forces (not necessarily movements)
• User interaction with the task (easy to use….dummyproof)
ERR Goals:
1. Identify musculoskeletal stress factors.
2. Engineer out stress factors
3. Dummyproof the process
Ergonomics in ERR
(Productivity, Loss, Quality)
© www.asia-masters.com
193. Background – Started at the dawn of time… Successfully modified by marketing
strategists who found a way to control consumer behavior.
OBM focuses on:
• How people interact and act at both work and at home.
• Based on foundations of motivation (“SIRE”)
• A carrot just big enough to chase, but not too big to weigh down the rabbit
What is SIRE?
• Status – Status in social heirarchy
• Incentive – Physical or monetary reward
• Recognition – Recognition for actions
• Encouragement – Support for desirable action
*This is what casino/store rewards are based off of…
ERR Goals:
1. Identify possible negative behavioral outcomes
2. Design SIRE based rewards system to direct employees toward desirable goals
Organizational Behavior Management
(OBM) in ERR (Predictability)
194. Background – Developed by military reliability engineers in the 1950’s to ensure
high reliability. Used heavily in weapons design and airplane manufacturing.
FMEA focuses on:
• Where a process can fail.
• Testing a process with the goal of making it fail.
Typical failure points:
• User interaction & behavior
• Equipment
• Process design
• The design of your control methods
ERR Goals:
1. Anticipate failure points (especially the failure points of your controls)
2. Test the revised process and try to make it fail
3. Plan for failure mitigation
Failure Mode & Effects Analysis (FMEA)
in ERR (Reliablility)
195. Throwing a ball
Need 3 volunteers to throw a ball at a target
1. Manually throw the ball
Were their mechanics consistent?
Was the outcome predictable? Accurate?
What could have failed? How likely is each?
2. Throw the ball with a lacrosse stick
3. Launch the ball with a catapult
A process vetted by failure modes will be:
1. Consistent
2. Predictable
3. Reliable
Failure Mode Examples
© www.asia-masters.com
196. Almost all failures are indicated by “something”
• This makes failure predictable… if you’ve identified the indicators.
How to identify failure indicators
• Start with the problem
• Identify sources of the problem
• Accumulate metrics on each source
• Identify the sources of the sources
• And so on….
ERR Goals:
1. Anticipate failure points (especially the failure points of your controls)
2. Test the revised process and try to make it fail
3. Plan for failure mitigation
Failure Indicators
© www.asia-masters.com
197. Identifying &
controlling
them will
prevent the
claims
Example – Patient falls in the hospital
How to Identify Failure Indicators
Patient Fall
Injury Claims
Overall # of
patient falls
Indicated
By
Indicated
By
Patient Mobility
Factors
(balance, cognitive
status, etc)
These are
the
“source”
indicators
Should we
track and
trend these?
Caused
By
Unstable
Patients
© www.asia-masters.com
198. Base your solutions on quantifiable data when possible:
• Time
• Repeatability
• Accuracy
• Force output
• Behavior Reliability
• Rate of failure per cycle
All risks are quantifiable to an extent, you’ll just need to define
how you are quantifying each
ERR Solutions are based on ideas
• Encouraged to be creative
• Some will be bad… that‘s okay (I have many bad ideas)
• A bad idea often has merit and can be used to better another idea
• Just don’t follow bad ideas to a dead end street…
Developing Solutions for ERR Risks
© www.asia-masters.com
200. An organization where:
• Cost per unit is optimized
• Operations are reliable and predictable
• Adverse events are very rare
• Expectations are very well defined
• Everyone takes ownership for all risk areas, not just their own
Background:
• Concept developed @ UC Berkeley in 1987
• Initially focused on adverse events in high risk tasks
• Over time, morphed to include reliability in business operations
What is a High Reliability Organization?
© www.asia-masters.com
202. Breaking the SilosRiskManagement
EH&S&WorkComp
Researchers
Operations
SupportServices
Liability,
Property,
Litigation,
etc…
Injuries,
Environme
ntal,
Regulatory,
etc…
Grants,
Chemicals,
Data
Security
etc…
Equipment
, Quality,
Productivit
y, etc…
Material
costs,
Productivit
y, etc…
Leadership
Operations
costs,
Reputation,
Capital
availability
HR
Employee
turnover,
regulatory,
etc…
B
A
R
R
I
E
R
Leadership’s Glass Barrier
• Is in place to prevent overloading of
insignificant problems.
• Is difficult to penetrate by a singular risk
group.
• Is broken by large adverse events, or losses.
203. One Big Silo
Collaborative
approach penetrates
the barrier
Leadership
Operations
costs,
Reputation,
Capital
availability
Entire Organization
Everyone:
• Considers all risks.
• Leads for their subject area.
• Takes ownership of all other
subject areas.
ALL Risks
B
A
R
R
I
E
R
204. Include everyone in ERR projects, but keep member size
manageable
• Actively engage primary risk holders
• Keep secondary risk holders informed in real time
• Report findings to all
Know your project groups personality types:
• Program builders
• Visionaries/Innovators
• Devil’s advocates
• Program managers
• Sustainers
• People Leaders
Assign responsibilities in line with personalities.
Working Together
© www.asia-masters.com
205. Who Owns the ERR Process?
Project Owner
Keeps Project On Target
Removes Obstacles
Owns Project Success
Or Failure
Addresses Problems
Head On
Considers All Risk
Control Ideas
207. Business Case
Quantifiable ROI metric
examples
• Cost per unit
• Time improvements
(productivity)
• Employee injury cost savings
(medical, lost time, mod time,
replacements, training, litigation)
• Quality improvement (Less
waste, happier customer, minimized
errors)
• Insurance benefits (lower rates,
increased rebates)
Difficult to quantify ROI
metric examples
• Liability savings
• Employee satisfaction &
retention
• Brand improvement
• Competitive edge
Executives rely on Return on Investment (ROI) estimates
In order to have ROI estimates, you must have metrics
If it was a risk it can be estimated in the ROI.
COST PER
UNIT
This all boils down to the
209. Sustain & Continually Improve
•Track & review
metrics
•Audit checks and
balances
•Report metrics to
stakeholders
•Re-evaluate if
metrics are off.
•Implement
solutions
•ERR process
•Create checks and
balances
•Establish metrics
PLAN DO
CHECKACT
© www.asia-masters.com
211. A group of 100 employees in a medical billing office have all complained
of injuries from working at their computer. You have one ergonomics
specialist.
• What is your cost per unit? (wages, benefits, injury costs, equipment breakdown,
new equipment, etc)
• What risks (efficiencies) are there?
• Who should be involved in the ERR project?
• How can you control the risks?
• What are the failure modes?
• How can you sustain risk control?
Now plan for 50,000 of these employees at UC… You still only have one
ergonomics specialist.
• Do your risks change?
• How can you control the risks?
• What are the failure modes?
• How can you sustain risk control?
Hands on Scenario - Job
© www.asia-masters.com
212. Your custodial department for your office building needs to cut 40%
of its budget & staff, but still maintain the same level of service to the
university. The major tasks that they do are: empty all large & small
trash bins in the building, vacuum all carpets weekly, mop floors
every day, clean the grounds, & clean the restrooms 3x daily.
• What is your cost per unit? (wages, benefits, injury costs, equipment
breakdown, new equipment, etc)
• What risks (efficiencies) are there?
• Who should be involved in the ERR process?
• How can you control the risks?
• What are the failure modes?
• How can you sustain risk control?
Hands on Scenario - Process
© www.asia-masters.com
213. • PI just received a grant to perform research on a newly discovered,
and highly contagious, infectious disease. He/she has nothing set
up… no lab, no equipment, no staff, no procedures.
• What risks are there to this research?
• Who should be involved in the ERR process?
• How can you control the risks?
• What risks can you anticipate and control to help them optimize their
research dollars?
• How will they transport, receive, handle, & dispose of this new disease?
• What happens if something goes wrong in the research? (foreseen reactive
controls)
Hands on Scenario – Entire Operation
© www.asia-masters.com
218. Who Owns the ERR Process?
Project Owner
Keeps Project On Target
Removes Obstacles
Owns Project Success
Or Failure
Addresses Problems
Head On
Considers All Risk
Control Ideas
219. Sustain & Continually Improve
• Track & review
metrics
• Audit checks
and balances
• Report metrics
to stakeholders
• Re-evaluate if
metrics are off.
• Implement
solutions
• ERR process
• Create checks
and balances
PLAN DO
CHECKACT
© www.asia-masters.com
220. “It wasn’t the risk we knew about that
concerned us, but the risks we were unaware
of that worried us the most”
Chris McAlary, VP Finance,
Mount St Mary’s College
© www.asia-masters.com
221. 1. Trends in risk management and impact of ERM on credit ratings.
2. Developing an Institutional ERM program.
3. Practical Risk Management tools for Compliance and ERM programs
Program Overview
© www.asia-masters.com
222. All organizations face internal and external factors that
make it uncertain whether and when they will meet their
objectives.
The effect of this uncertainty on achieving
objectives is called risk.
Risk: Upside and Downside
© www.asia-masters.com
223. Risk Management principles can be applied to any type
of risk, whatever its nature, whether having positive or
negative consequences.
Compliance Programs:
Use Risk Management principles to help identify,
assess, evaluate, and treat ethical and regulatory risks.
Enterprise Risk Management (ERM):
Is a coordinated program applied throughout the
life of an organization and to a wide range of activities,
including strategies and decisions, operations,
processes, functions, projects, and services.
Risk Management in Application
224. 1. Organizational Context: What are your organization’s objectives, structure
and operations?
2. Risk Identification: What are the possible risk events your organization faces?
3. Risk Assessment:
o What is the likelihood of the risk event happening?
o What is the potential impact of the risk event?
4. Risk Evaluation: Having assessed the risks:
o What is your organizations “appetite” for risk?
o what are the most important risks to address?
5. Risk Treatment: What steps must be taken to mitigate the risks Identified?
6. Monitoring, Review and Corrective Action,
o Are internal controls working effectively to mitigate risk?
o Is there any corrective action needed?
7. Communication: Throughout the Organization
Risk Assessment and Management Process
© www.asia-masters.com
225. Simple Risk Assessment Diagram
Identified Risks
Conflicts of Interest
Medicare/Medicaid
Billing
Time and Effort
Reporting
Tax Exempt Bonds
Executive Compensation
Record Retention
Export Controls
EEO/AA Laws
© www.asia-masters.com
226. Having assessed the risks:
o What are the most important risks to address?
o What is your organizations “appetite” for risk?
Risk Evaluation
© www.asia-masters.com
227. Risk Response
Avoidance
Reduction/Mitigation (Internal Controls)
Sharing (e.g. Insurance)
Acceptance
o Crisis Management Plans
o Business Continuity Plans
o Other Operational Plans
© www.asia-masters.com
228. Control Activities
Organizational/Process Controls
o E.g. Separation of Duties
Documentation
o Written Policies and Procedures Essential
Training
Audit Trails
o Final Results should be traceable back to originating
transactions
Security and Integrity
o Access Controls
© www.asia-masters.com
229. Strategic Risk Management: Expectations and Opportunities
Areas where senior management’s expectations of risk management have
grown
Integrate with operations
Execute day-to-day RM activities
efficiently
Improve quantification/analysis
Understanding of non-insurable risks
Increase involvement in strategic planning
Lead ERM activities
Work with lower headcount
Serve on RM committee
Increase use of technology
Understanding of RM ROI
Risk Manager
C-Suite
Finance
25% 50%Source: Excellence in Risk Management VIII
© www.asia-masters.com
230. 15%
15%
13%
7%
6%
5%
20%
4%
3%
3%
Strategic Risk Management:
Expectations and Opportunities
Key performance indicators (KPIs)
Manage RM value through TCOR
Competitive procurement of risk transfer
Financial measures for retained/insured
exposures
Insurance budget management
Mitigate liabilities/support preparedness
Align RM objectives with company risk tolerance
RM alignment with company goals
Build strategic risk awareness across
organization
Deliver successful claim results
Compliance
Primary KPIs
Secondary KPIs
Tertiary KPIs
Source: Excellence in Risk Management VIII
© www.asia-masters.com
231. Strategic Risk Management: Expectations and Opportunities
Effectiveness of risk committees
30%
62%
8%
How effective are cross-
functional risk committees?
How could your firm’s cross-functional risk
committee become more effective?
44%
36%
30%
55%
36%
Consider risks more
strategically
Disseminate information
more widely
Increase visibility of senior
management support
Use a wider range
of analytics
Engage senior
management to
communicate support
Very effective
Somewhat effective
Not effective
Source: Excellence in Risk Management VIII
233. 42%
39%
31%
31%
27%
27%
34%
Strategic Risk Management: Expectations and Opportunities
Barriers to senior management’s understanding
of the risk landscape
Siloed approaches to RM
Lack of awareness of ERM concepts
Organizational structure
Inadequate RM representation at
Board/C-suite level
Lack of relevant risk data
Inadequate link to strategies
Demonstrating value of ERM
Source: Excellence in Risk Management VIII
© www.asia-masters.com
234. Strategic Risk Management: Expectations and Opportunities
Top Ten Risks
` Company’s Top Risks
Risk Managers
Rank
(Readiness*)
C-suite Rank
(Readiness*)
Finance Rank
(Readiness*)
1 Economic conditions 1 (30%) 1 (26%) 5 (31%)
2 Business disruption 2 (76%) 3 (58%) 1 (63%)
3 Reg. /Compliance 3 (60%) 5 (59%) 3 (62%)
4 Legal or reg. shifts 4 (44%) 2 (47%) 6 (53%)
5 Litigation or claims 6 (70%) 5 (63%) 9 (56%)
6
Tech. / systems
failure 7 (63%) 11 (65%) 3 (60%)
7 Brand / reputation 5 (44%) 8 (51%) 12 (35%)
8 Data sec. / breach 9 (65%) 7 (60%) 8 (53%)
9 Physical resources 8 (80%) 20 (61%) 2 (73%)
10 Business continuity 10 (67%) 13 (64%) 17 (58%)
* Percent of respondents with management plan in place or recent review undertaken of the risk
Source: Excellence in Risk Management VIII
235. What is ERM
And Why Does it Matter to
Higher Education?
© www.asia-masters.com
236. Definition of Enterprise Risk Management (ERM)
A structured, consistent, and continuous risk management process
applied across the entire organization that brings value by:
1. Proactively identifying, assessing, and prioritizing material
risks
2. Developing and deploying effective mitigation strategies
3. Aligning with strategic objectives and administrative
processes
4. Embedding key components into the organization’s culture:
1. Risk ownership, governance, and oversight
2. Reporting and communications
3. Leveraging technology and tools
5. S&P incorporating ERM reference into industry credit rating
reports
238. 16Copyright © 2006 Mercer Oliver Wyman NYC-MOW171ERC-027
Higher education Enterprise risk inventory1
Teaching and
Student Life
Alumni
Human Capital
Finance
Process
Integrity
Strategy
Information
Technology
Environmental
Health/Safety
Students
• Student satisfaction/preferences
• Inter-class relations
• Housing
• Athletics
• Admissions policy
• Recruitment
• Retention
• Greek life/Student life
• Student welfare
• Student judiciary
• Attract and retain faculty
• Tenure policies
• Curricula/program design
• Research & development
• Intellectual property
• Fraudulent research
• Fraudulent credentials
• Alumni relations
• Endowment
• Donations
Student/faculty
travel
Special events Campus security Natural
hazards
Illness/injury to faculty,
students or staff
Visitors and contractors Environmental
compliance
Relevance
Reliability
Infrastructure
Internet security
e-Commerce Data integrity Technological
capacity
Availability
Privacy
Access
Resource
allocation
Technology transfer
Planning
Intellectual
property
Corporate/
institutional
alliances
Product and delivery
model
Outsourcing
Foreign expansion
Admissions policy
Reputation/
branding
Marketing
Vendor alliances
Contract commitment
Failure to educate
Licensing
Regulatory
compliance
Faculty bookings
Infrastructural renewal
and capacity
Field courses
Student activities
Athletics
Business
interruption
Unauthorized
acts
Third party fraud Management
fraud
Illegal acts Ethical decision-
making
Employee fraud Conflict of interest
Endowment Litigation Risk financing
Pension fund
Claim reserve
liability
Expansion capital Cost of capital/
interest rate fluctuations
Tuition rates/
tuition stability
Hiring and
retention
Workforce
productivity
Compensation
Unionization
Employee
stress/ burnout
Performance
incentives
Faculty/tenure
succession planning
Employment
practices
External
Demographics Competition Economy Social responsibility
Research & development programs Brand/reputation
Faculty
External
Stakeholders
• Corporate/institutional alliances
• Community outreach
• Endowment
• Donations
Athletic rankings Academic rankings
1This inventory does not capture the risks associated with a university medical center
Sample Enterprise Risk Issues in
Higher Education
239. ERM Compliance Factors: Commentary
Compliance and ethics oversight has traditionally been the
responsibility of an institution’s legal department
Risk management procedures of institutions are under
increasing regulatory and private scrutiny
There has been a shift from a defensive function focused
on policies, procedures and expenditures, to a strategic
function focused on optimizing resource allocation and
effectiveness
Recent mandates and guidelines are fueling the
momentum
© www.asia-masters.com
240. ERM Compliance Factors: Current and Emerging
Standards and Guidelines
GUIDELINES & BEST PRACTICES:
Committee of Sponsoring Organizations of the
Treadway Commission’s (COSO) ERM Framework
Standard & Poor's (S&P) ERM Ratings Criteria for
Non-Financial Organizations
ISO31000
EMERGING REGULATIONS & GUIDELINES:
Accreditation requirements?
© www.asia-masters.com
241. ERM Guidelines and Best Practices:
Overview of S&P’s ERM Ratings Criteria
Utilization of risk
management and
return on risk in
strategic decision
making
Risk consideration
within capital
budgeting and
allocation,
performance
measurement and
other
administrative
practices
Risk identification,
measurement and
monitoring
Risk limit
application and
enforcement
Risk control
processes—
policies,
infrastructure,
methodology (PIM)
Sector and firm-
specific risk
control criteria
Environmental
scanning,
trending, stress
testing,
contingency
planning and other
pre-loss practices
Expectation
planning for
negative events
pre and post-loss
performance
Organizational
structure
Risk management
staff roles and
accountability
Risk
communication
(internal and
external)
Culture
Emerging Risk
Preparation
Strategic Risk
Management
Risk Controls
242. ERM Guidelines and Best Practices: ISO 31000
6.4 Risk Assessment
6.2
Communication
& Consultation
6.3 Establishing the
context
6.6
Monitoring &
Review
6.4.2. Risk
Identification
6.4.3. Risk analysis
6.4.4 Risk evaluation
6.5 Risk treatment
• ISO 31000 Risk Management
Standard follows the Australian
/ New Zealand Standard
• Released in late 2009
• No current certification
standard, but it may follow
Source: International Organization for Standardization
© www.asia-masters.com
243. ERM Compliance Factors:
Common Elements of ERM Frameworks
They outline a process for ERM implementation that includes:
Risk identification and assessment
Risk prioritization
Risk solution design and implementation
Routine monitoring and reporting
Communication
They recognize that good risk management must be embedded into the
organization’s day to day activities
They consider both the ‘upside’ and ‘downside’ of risk
They are not one size fits all
© www.asia-masters.com
245. Building Senior-Level Support
Elements of an ERM Value Proposition:
Optimal capital deployment
Continued or improved rating agency confidence
Effective critical event response
Better decision making relative to risks assumed
Enhanced stewardship and governance
© www.asia-masters.com
246. Developing the Team/Structure
Board of Trustees
President/Senior Leadership
Risk Management Committee
Provost
Finance/
Legal/
HR
Ext
Affairs
Risk
Mgr
Internal audit
Select
Deans
RM
Compliance
Audit
ERM functional representation, risk management activity support and shared services
Dept A Dept B Dept C
College
A
College
B
College
C
Risk information and root data, issues management
Risk
Reports
?
Risk
Reports
© www.asia-masters.com
247. Critical success factors
Establish the right vision and realistic plan
Obtain senior leadership buy-in and direction
Align with mission and strategic objectives
Attack silos at the onset
Set objectives / performance / early warning indicators
Stay focused on results
Communicate vision and key outcomes
Develop a sustainable process vs. a one-time a project
Understanding Where You Want to Go…
© www.asia-masters.com
248. Assess the
Current State
Envision the
Future State
Implement
ERM
Risk Identification,
Assessment &
Prioritization
Risk Mitigation &
Controls
Risk Management
Infrastructure
Governance &
Accountability
Reporting
Strategy
Policies, Processes
& Procedures
Technology &
Systems
Culture
Implement Risk Solutions
ERM Integration with:
Routine Processes
Strategic Plan
Organizational
Culture
1 2 3
…Then Making It Happen
© www.asia-masters.com
249. Keep in Mind ERM is a Journey - Not a DestinationLinktoStrategyandStakeholderValue
Risk Management Philosophy
LOW
HIGH
Insurance & Compliance Risk-Reward OptimizationCore ERM Practices
Risk Specialization
• Isolated and independent
risk management
activities,
• Limited focus on the
linkage between
enterprise-wide risks and
strategies
Enterprise Risk
Awareness
• Adopt an ERM framework
• Assign executive
ownership of risk
management
• Conduct routine risk
assessments
Risk Management
Integration
• Implement a fully
integrated ERM structure
based on a framework
• Monitor & report on risks
through the enterprise
• Coordinate ERM activities
Value Creation &
Risk Optimization
• Embed risk management
into strategic planning
• Monitor risks with early
warning risk indicators
• Link risks to stakeholder
value
• Drive sustainable
performance
© www.asia-masters.com
251. Sample Risk Map
Low
LowVery Low MajorModerate
Likelihood
Impact
Catastrophic
Medium
High
18
17
16
3
9
1
10
2
8
12
1513
14
4
7
19
5
6
11
Tier one risks Tier two risks Tier three risks
Key risks
1. Intellectual Property
2. Greek Life
3. Pension Funding
4. Succession Planning
5. Student Safety
6. Economy
7. Alumni Relations
8. Faculty Retention
9. Tuition Rate
10. Athletics
11. Research Compliance
12. Community Relations
13. Information Technology
14. Delivery Channel
15. Demographics
16. Operating Model
17. Research Grants
18. Endowment
Performance
19. Privacy
- Illustration -
252. Sample Questions for the Board of Trustees
Did management outline strategy altering scenarios? For example, could
multiple problems arise simultaneously or sequentially (the “perfect storm”)?
Was management forthcoming about any differences among senior leadership
regarding material strategic recommendations and decisions?
Did management tie revenues, losses, surprises and specific material events to
the presented risk profile?
Were the assumptions underlying our strategy effectively challenged and tested
against changes in the external environment?
Were any losses that occurred related to risks that have been identified? Are
the losses consistent in magnitude and frequency to the risk profile?
Were the risks associated with key departments presented in a comprehensive,
holistic manner?
Did we receive material which adequately distilled vast quantities of risk
information into prioritized, actionable summaries?
Trustee QuestionsNoYes
Did management outline strategy altering scenarios? For example, could
multiple problems arise simultaneously or sequentially (the “perfect storm”)?
Was management forthcoming about any differences among senior leadership
regarding material strategic recommendations and decisions?
Did management tie revenues, losses, surprises and specific material events to
the presented risk profile?
Were the assumptions underlying our strategy effectively challenged and tested
against changes in the external environment?
Were any losses that occurred related to risks that have been identified? Are
the losses consistent in magnitude and frequency to the risk profile?
Were the risks associated with key departments presented in a comprehensive,
holistic manner?
Did we receive material which adequately distilled vast quantities of risk
information into prioritized, actionable summaries?
Trustee QuestionsNoYes
© www.asia-masters.com