Posts Tagged ‘risk management’

by Richard Martin
Well, we’ve just had our latest winter storm of the decade (or what it century?) in Eastern Canada. Among other events, Montreal’s roads were a scene of chaos and waiting, and waiting, and waiting….
The Quebec Department of Transportation (Ministère du transport du Québec, MTQ) has been heavily blamed for the chaos and poor response on the roads, especially on Highway 13, one of the two main North-South arteries through Montreal. To illustrate, hundreds of cars were stranded on the 13 from late Tuesday afternoon rush hour through to mid-day on Wednesday. Some people had to spend the night in their car. We’re lucky no one died or was seriously injured there. It was a distinct possibility given the harshness of the conditions, the fact that most people were ill equipped (i.e. not ready) for just such a situation, and that there were deaths and serious injuries in other areas.
But the worst reproaches have been directed at the MTQ. It has since come out that the ministry’s emergency plans and procedures appear to be overly complex, requiring numerous steps in the decision process for road closure and emergency response (actually, 94 steps, but that’s the entire decision flowchart). But that’s probably a red herring. Such decision processes always look complex out of context. The real proof of validity and effectiveness for any emergency/contingency plan isn’t what it looks like on paper, but its performance and execution once it’s put into action. It’s clear that the MTQ and probably many other government and municipal agencies were out of their depth and overwhelmed by the scale of the disruption.
Instead, I think the real problem was that of poor preparation and training, unclear activation processes, lack of well-defined readiness levels, as well as a lack of practice. Did the ministry ever conduct exercises? I’m not talking about a “tabletop” exercise with a few departmental reps. I’m talking about full-scale field exercises? Many of these problems would have come out beforehand if they had been exercised adequately. Also, what disaster and/or storm scenarios were envisaged? If appears that there was little understanding of the prior coordination and planning that are required to ensure interdepartmental and intergovernmental cooperation. Wildlife agents in the Québec Forestry and Wildlife Ministry are equipped and trained to conduct search and rescue operations in heavy weather and extreme survival conditions, but no one called upon that department to provide support. This is a clear indication that prior arrangements we’re lacking, either in terms of planning or in actually requesting and coordinating a joint response.
This is ALWAYS my biggest beef with any organization I work with on risk management and emergency/business continuity readiness: the lack of practice. It’s one thing to tread with care when you’re a for-profit business and any disruption to ongoing operations for the purposes of exercising can have serious impacts on production and client services. But when we’re talking about a public-service organization with a clear public safety mandate, you simply MUST exercise thoroughly and regularly. If it’s good enough for the military, firefighters, and airport operations and security organizations, then it should be good enough for municipal and governmental departments at all levels and in all domains, especially if lives depend on it.
Richard Martin’s Business Readiness Process:
  1. Ensure vigilance through situational awareness.
  2. Do preliminary assessment of tasks and time.
  3. Activate organization or team.
  4. Conduct reconnaissance.
  5. Do detailed situational estimate.
  6. Conduct wargame and decide on optimal course(s) of action.
  7. Perform risk management and contingency planning.
  8. Communicate plan and issue direction.
  9. Build organizational robustness.
  10. Ensure operational continuity.
  11. Lead and control execution.
  12. Assess performance.

Contact me to apply the whole thing–or just a piece, as needed–to improve your strategy, your readiness… and your results!

Did you know that an infantry battalion only needs about 3 to 4 hours of prep and planning time to be battle ready? What are you waiting for to get the same benefits for your outfit?
Why Sunday and What Does “Stand To” Mean?
Sunday? I want you to get my insights and advice first and fast, so you can prepare and up your readiness and results before others even know what’s happening!
And Stand To? It’s the order used in the military to get forces to man the parapets and be in a heightened state of situational awareness and, yes, readiness, so they can face any threat or undertake any mission.


My name is Richard Martin and I’m an expert on applying readiness principles to position companies and leaders to grow and thrive by shaping and exploiting change and opportunity, instead of just passively succumbing to uncertainty and risk.


© 2017 Alcera Consulting Inc. This article may be used for non-commercial use with proper attribution.

by Richard Martin, founder and president, Alcera Consulting Inc.

What risks (or opportunities) are staring you right in the face? Are you doing anything about them, or are you just hoping that they will go away (in the case of risks and threats) or that they will miraculously come to pass (in the case of opportunities)?

Just off the top of my head, I can think of some major events and changes in conditions that could be risks or opportunities, depending on your perspective, needs, objectives, and readiness to defend them or exploit them:

  • An incipient refugee crisis in Canada: Think I’m being alarmist? Hundreds are crossing the border now and it’s winter. What might happen when the weather changes, literally and figuratively? I’m sure many in Europe didn’t anticipate how things could turn so quickly in the last two years. Forewarned is forearmed, but only if you think things through and have contingency plans do deal with the possibilities.
  • Global upswing in populist demagoguery and politics: This can lead to reactionary policies, official identity politics, closed borders, intrusive searches and surveillance, economic protectionism, et j’en passe
  • “America First”: This goes beyond Donald Trump as president. He isn’t the cause of the wave of nativism, protectionism, and bellicosity in the U.S., but he sure is riding it!

No matter what your role or mission, whether you’re a company, a government organization, a health care provider, educator, or non-profit, these events may affect you, your objectives, your profit, your revenues, even your viability and existence. You must assess these types of changes seriously and determine the nature of the risk and whether it’s a threat or an opportunity.

I’ve started working and putting out a new type of situational awareness and briefing document. I’m calling them Strategic Readiness Bulletins. I’ll be putting them out on an as needed basis to highlight events and changes in the global environment that can impact businesses and organizations in all sectors.

However, nothing beats actually thinking for yourself and putting brainpower into seeing how such changes can be absorbed or exploited, avoided or mitigated.

Oh, and I can help you with this process, any time, any place, quickly and efficiently. But you must contact me first…

Richard Martin’s Business Readiness Process:

  1. Ensure vigilance through situational awareness.
  2. Do preliminary assessment of tasks and time.
  3. Activate organization or team.
  4. Conduct reconnaissance.
  5. Do detailed situational estimate.
  6. Conduct wargame and decide on optimal course(s) of action.
  7. Perform risk management and contingency planning.
  8. Communicate plan and issue direction.
  9. Build organizational robustness.
  10. Ensure operational continuity.
  11. Lead and control execution.
  12. Assess performance.

Contact me to apply the whole thing–or just a piece, as needed–to improve your strategy, your readiness… and your results!

Did you know that an infantry battalion only needs about 3 to 4 hours of prep and planning time to be battle ready? What are you waiting for to get the same benefits for your outfit?

Why Sunday, and What Does Stand To Mean?

Sunday? I want you to get my insights and advice first and fast, so you can prepare and up your readiness and results before others even know what’s happening!

And Stand To? It’s the order used in the military to get forces to man the parapets and be in a heightened state of situational awareness and, yes, readiness, so they can face any threat or undertake any mission.

My name is Richard Martin and I’m an expert on applying readiness principles to position companies and leaders to grow and thrive by shaping and exploiting change and opportunity, instead of just passively succumbing to uncertainty and risk.

© 2017 Alcera Consulting Inc. This article may be used for non-commercial use with proper attribution.

 

by Richard Martin

Readiness is the ability to anticipate and absorb changing conditions so you can come out on top, or at least maintain your position or objectives.

The Readiness Mindset depends on the following characteristics:

  • Don’t assume you know everything you need to know. As I learned on peacekeeping duty in Bosnia, first information is often, even usually, wrong, so don’t overreact!
  • You can never eliminate uncertainty and its attendant risks.
  • Keep your overarching objectives and purposes in mind. Momentary setbacks are normal and must be overcome.
  • If you try to defend or attack everywhere, you end up defending or attacking nowhere. Assess opportunities, risks, and threats in terms of their likelihood and potential effects and put your main effort on the highest priority items.
  • Always keep the morale of your team and self in mind. Morale is the willingness to sacrifice and persist despite setbacks and obstacles to achieve your aims.
  • Shape your competitive conditions as much as possible so you can seize and maintain the initiative. That is the essence of an offensive mindset and action.
  • There is always more than one way to achieve an aim. Strategy is about assessing and balancing ends, ways and means to come out on top.
  • Power people: Brief your people, get them in the loop, delegate responsibility, keep them informed on the changing situations, ask for advice.
  • Tell your people what you’re trying to achieve and let them figure out the best way to get there. Give them the “what and why,” let them find the “how.”
  • Use time to your advantage. Bring people into the loop early and often so they can anticipate and prepare.
  • Nothing is fulling sequential. Run things in parallel. For instance, you can activate your team for a forthcoming change or mission; while you plan, they can prepare and increase your overall readiness.

Remember Richard’s Business Readiness Process in 2017!

  1. Ensure vigilance through situational awareness.
  2. Do preliminary assessment of tasks and time.
  3. Activate organization or team.
  4. Conduct reconnaissance.
  5. Do detailed situational estimate.
  6. Conduct wargame and decide on optimal course(s) of action.
  7. Perform risk management and contingency planning.
  8. Communicate plan and issue direction.
  9. Build organizational robustness.
  10. Ensure operational continuity.
  11. Lead and control execution.
  12. Assess performance.

Call me for a Business Readiness Briefing in 2017!

My name is Richard Martin and I’m an expert on applying readiness principles to position companies and leaders to grow and thrive by shaping and exploiting change and opportunity, instead of just passively succumbing to uncertainty and risk.

© 2017 Alcera Consulting Inc. This article may be used for non-commercial use with proper attribution.

operational-continuity

Step 10 of the Business Readiness Process: Ensuring Operational Continuity

The capacity to analyze, decide, and act during and after crises is critical. Here, I focus on the principles and techniques to manage and operate on a 24/7 basis during a crisis. These approaches are directly inspired by military command and control methods.

Operational continuity is part of the contingency planning resulting from risk management. The aim is to continue operating during and after a crisis or emergency, especially ensuring that customer services are maintained as much as possible.

There’s no such thing as a 9 to 5 crisis

If something is going to go wrong, it will probably do so at the worst possible time and the worst possible place. Just like the military, businesses and organizations providing essential services and mission-critical functions must be capable of operating 24 hours a day, 7 days a week.

Time enough for blame

Ensuring operational continuity is about solving the problem, not finding someone to blame. No matter when or where, it’s human nature to want to find someone responsible to lash out or punish them. But does that solve the problem? The focus during a crisis or emergency is on reacting in a timely and effective manner. There will be time enough to determine cause and accountability afterwards.

Caring for your people, caring for yourself

You can’t last long if you’re exhausted, nor can your people. True welfare during a crisis is about making sure your people are well rested and well fed, with proper hygiene, safety, and health care. This also extends to their families if it’s crucial to mission and operational continuity. Military forces know this first hand and take welfare measures very seriously, because it contributes to morale, team work, and resilience.

Operational rhythm and routines

Organizations such as hospitals, fire departments, and police agencies can respond around the clock. But, they also must operate on a continuous basis and be ready to handle surges in demand or action. The model for this is military battle rhythm. This assures leadership, decision-making, and command presence on a continuous basis. This section shows how to follow a military-inspired headquarters rhythm and routine.

Information management and the crisis operations center

The brain of any response must be in the Crisis Operations Center (COC). Information is the equivalent of neural signaling and cognition. The top leader can repair to the COC for briefings and updates, while exercising leadership and influence at the front lines. He knows that no matter what happens, someone is minding the shop to maintain situational awareness and to conduct ongoing planning and control of operations.

My name is Richard Martin and I’m an expert on applying readiness principles to position companies and leaders to grow and thrive by shaping and exploiting change and opportunity, instead of just passively succumbing to uncertainty and risk.

© 2016 Alcera Consulting Inc. This article may be used for non-commercial use with proper attribution.

risk-vs-reward

Step 7: Perform Risk Management and Contingency Plannin

Why analyze and manage risk? 

  • It exists whether we recognize it or not.
  • We are better to identify risks consciously and determine how best to accept and/or manage them.
  • That way, we can decide how much risk we wish to take on and the nature of these risks.
  • We should only take on risks willingly in exchange for potential rewards: risk ≈ reward.

What is risk?

  • Risk is the potential for loss due to uncertainty. All risks are quantifiable as the product of probability of occurrence and potential harmful consequences (R=PxC). There are generic risks, such as natural or manmade disasters, and there are inherent risks, which are specific to each course of action. Both types must be identified, evaluated, and actively managed.
  • There are two focal points of risk management: prevention and mitigation.

Risk Prevention

Prevention seeks to reduce the probability of harmful events before they occur. Accepting risks without concomitant rewards is reckless and irresponsible. Such risks can actually be considered as hazards and should be eliminated through careful planning.

Risk Mitigation

  • The second focus of risk management is mitigation, which comes into play if prevention fails and a harmful event actually occurs. Mitigation entails responding in a timely and effective manner to the event so as to minimize its evolution and impact, taking action to contain its harmful side-effects, and implementing recovery and continuity measures.

Contingency Planning

  • One part of risk mitigation involves contingency planning, so as to deal with harmful events and threats. However, contingency planning can also be used to prepare for exploitation of opportunities arising from chance or the effectiveness of our own plans and actions. In sum, contingency planning is about readiness for both positive and negative outcomes.

total-risk-strategy

Recap of Business Readiness Process

  1. Ensure vigilance through situational awareness.
  2. Do preliminary assessment of tasks and time.
  3. Activate organization or team.
  4. Conduct reconnaissance.
  5. Do detailed situational estimate.
  6. Conduct wargame and decide on optimal course(s) of action.
  7. Perform risk management and contingency planning.
  8. Communicate plan and issue direction.
  9. Build organizational robustness.
  10. Ensure operational continuity.
  11. Lead and control execution.
  12. Assess performance.

 

Monday STAND TO!

By Richard Martin, Expert in Business Readiness and Exploiting Change

“Stand to!” is the order given to put troops in a high state of readiness. It comes from the trenches of the First World War, when forces on both sides would stand ready for action at the parapets just before dawn and just after dusk in case of surprise enemy attack. The practice continues to this day, although adapted to the realities of modern warfare and conflict. The order to “stand to!” encapsulates the whole theory and practice of military readiness, which is about awareness, anticipation, and preparation before, during, and after operations, in war and in peace.

It’s time for a change. My book Brilliant Manoeuvres came out in the fall of 2012 and since then I’ve been issuing Brilliant Manoeuvres just about every Monday morning to help, you, my faithful readers manoeuvre successfully to achieve outstanding growth in your business and leadership capacity.

I’ve decided to change my focus to generating and building your business readiness. This is also in line with my latest writing project, tentatively titled, Stand To! Military Readiness Principles to Thrive in Business and Propel Your Growth.

Why is military readiness relevant for business? In my practice as a business consultant, I’ve noticed that many, if not most, executives and entrepreneurs are well prepared to fight the last war, but not well positioned to fight the current one, much less the next one. They frequently have limited situational awareness, poorly adapted decision-making, planning, and communication processes, and are sluggish in leveraging opportunities, responding to threats, and mitigating risks. After all, change is permanent; the real question is whether a business can exploit it and shape it to its advantage, whether it is positioned to seize and maintain the initiative or to reel from successive blows of evolving markets and competition.

From Awareness to Robustness–What Is Business Readiness?

Business readiness is the capacity to exploit change by maximizing opportunities and minimizing risks and threats in order to grow and thrive.

The first level of business readiness is situational awareness, which I define as the ability to discern an organizational shock or environmental change that may lead to crisis, and to take a measured approach to avoiding, leveraging, or resolving it.

The second level of business readiness is preparedness. A well prepared organization is one which has identified a number of risks and threats beforehand and has taken measures to mitigate or even eliminate some of these through active prevention. Many organizations have contingency plans to deal with various disasters, emergencies, and crises due to technological or natural hazards. The quintessential ready organization is the fire department, which has a well-defined set of threats and risks and is structured, trained, and equipped exactly for that purpose. There are others, however, such as airports, hospitals and other health-care facilities, law enforcement agencies, etc. Firms such as builders, manufacturers and mining companies also must have plans and procedures in place to deal with accidents, technological hazards, competition, and socio-political opposition.

The highest level of business readiness is robustness, which I define as the ability to absorb change and shocks by shaping the environment and leveraging the inevitable risks, threats, and uncertainty. Not many organizations operate at this level of readiness. Military forces come to mind as singularly robust and they can be used in a number of areas beyond combat because of their built in resiliency, flexibility, and access to logistical and human resources anywhere, at any time. While they can provide a useful example of what is possible, the reality is that most organizations are currently not very capable in this regard.

What all of these levels have in common is a certain level of resiliency, the ability to bounce back from adversity and shock and to continue functioning adequately. Further to that, however, situational awarenesspreparedness, and robustness are functions of increasing flexibilityredundancy, risk-taking, resourcefulness, and individual/collective initiative. All of these capabilities can be built into an organization and inculcated into its leadership and employees.

I hope you’ll join me as I develop this theme over the coming weeks and months. Feel free to contact me at any time with suggestions, questions, or comments.

And remember… STAND TO!!!

© 2016 Richard Martin. Reproduction, forwarding, and quotes are permitted with proper attribution.

We seem to live in an era when words are more like bullets—a way to injure and defeat others, to get one’s own way—than a way to communicate in a genuine manner, seeking understanding, insight, and mutual respect.

As I write this, the Paris climate summit is underway. We have just about all the countries in the world represented and we’re told this is the “last chance” to “save the planet.” Last chance. Really? Save the planet? I would think the planet doesn’t need us to “save” it. But, like the gospel inspired song said of That Lucky Old Sun, the earth will surely go on rolling around heaven all day. We may be in danger of disrupting our habitat or of damaging it beyond repair (that remains to be seen), such that we, as a species might be endangered. However, a cursory review of earth’s evolution over geological eons will show that it’s been through much worse before and life has gone on.

The zeal with which enviro-enthusiasts (or should I say fascists?) are claiming that it’s our last chance to keep the planet’s temperature from rising by more than 2 degrees is more religious than scientific. The same can be said of the attempts to claim a scientific consensus, as if scientists all agree with everything that’s claimed about environmentalists.

There may be a scientific consensus about the law of gravity, or evolution through natural selection, because the empirical evidence is overwhelming in favour of those theories. I doubt there is even close to the same level of agreement within the climatological community, which is really the only one that counts scientifically. And yet we keep hearing that 95 % of scientists, or whatever the figure is, believe that global warming is a reality. That may be the case, but being a scientist doesn’t automatically qualify someone to judge the validity of scientific theories outside their field of expertise. Just talk to medical doctors with different specialties to see how divergent the knowledge, skills, and judgment are on any particular illness or condition to realize how important these specialized competencies are to coming to a proper diagnosis and prognosis, much less the best treatment plan.

I’m not necessarily a skeptic about climate change and human-caused warming. However, there has been too much environmental change over the eons on earth to claim any kind of stasis in the matter. After all, what caused the end of the most recent ice age 10 or 12 thousand years ago? Perhaps the woolly mammoths and giant ground sloths were expelling too much methane as they chewed their cud. And what caused the planet to plunge into a deep freeze 130 thousand years ago when the current ice age started?

On the other hand, I am a skeptic when it comes to claims that “the science is settled.” Moreover, I find the current climate (pun intended) against questioning this so called common sense consensus to be a dangerous trend. It’s also very convenient for those with a statist centralizing agenda who wish to restrain economic growth and capitalism, because they claim they are the cause of global warming, at least indirectly. How convenient that there be a such an apocalyptic menace for our collective well-being. Nothing less than total war is needed to combat impending doom. And in war, all manner of propaganda and control mechanisms are warranted to defeat the common enemy. Many of the poorest countries in the world are already clamoring for a transfer of wealth from the wealthy countries to pay for African wind farms and human scale solar power units. After all, nothing should be excluded in order to “save the planet,” because this is our “last best chance.” Once again, I’m not arguing against such a wealth transfer (although there are good arguments against one). But I don’t think that haranguing people into feeling guilty is the correct way to go about it.

The use of language as a weapon and words as bullets is just as pernicious in other areas. Activists—or should I say bullies—at the University of Ottawa have gotten management to discontinue free yoga lessons for handicapped people on the grounds that yoga is “cultural appropriation.” In other words, they claim that you can’t use any idea or activity that comes from another culture if that culture was at one time subjugated by another. Presumably, the reference is to British imperialism in India. Is it okay to have Indian cuisine, or Chinese food? Can we Zumba, or do the limbo? After all, they come from Latin America and the Caribbean, originally all slave societies.

Just to be egalitarian, I don’t think war mongers come off any better. The Islamist inspired attacks in Paris, the Middle East and anywhere else are horrible and the Jihadist threat must be met militarily and politically with appropriate means and strategy. But I don’t think we’re in a “war on terror” any more than we’re engaged in wars on inequality, cultural appropriation, climate change, or global capitalism.

Language and words should help us understand and think better, not separate us into sloganeering tribes with faith-based creeds and intolerant beliefs. After all, words aren’t bullets.

Richard Martin is The Force Multiplier. He brings his military and business leadership and management experience to bear for executives and organizations seeking to radically improve performance, grow, and thrive in the face of rapid change, harsh competition, and increasing uncertainty.

© 2015 Richard Martin. Reproduction and quotes are permitted with proper attribution.