Managing Risk and Returns

Managing the Business

Leading Strategy and Alignment

In a turbulent business market place the need for a balanced approach to risk management within the business has never been more important as seen from the recent economic meltdown.

Innovation and creativity including risk taking are important, but not reckless opportunism.

Clearly links and assessments are required between risk investment and return, opportunity capitalization, process management, strategy and business ethics.

RISK =         Risks         
                  Benefits

ROI =        Benefits       
    Cost of Realizing Benefits

Ethics =     Benefits      
         Justifiable Behaviour

The EFQM Excellence Model is a business improvement framework for organizational management systems, promoted by the European Foundation for Quality Management (EFQM), it is specifically designed to help future orientated organizations in their drive towards being competitive.

Regardless of the sector you operate in, the size of your business, structure or its maturity, to be successful organizations need to establish appropriate management systems, which are visionary and driven by a considered strategy enabled by appropriate leadership.

The EFQM Excellence Model is a practical methodology designed to help organizations measure where they are on the path to improvement.

The coherent linking of risks, returns, quality process and strategy alignment, has the effect of bringing together the main important parts of the business often overlooked by adopting silo thinking to each component part.

The Main Aim of Management is to maximise the output of the organization through administrative implementation. To achieve this, managers undertake a number of direct operational functions (doing things right).

Leadership on the other hand is one important component of directing the future direction of the business. To achieve this leaders approach things differntly they (do the right things).

(total benefit - total costs) = ____           X 100 = ROI
                total cost

Strategy is Not a Static Process, its an ongoing continuum of business alignment and re-alignment within a shifting and emerging market place.

Business operates in an environment of constant change and evolutionary processes, as with any process change means constant disruption (with the risk of taking your eye off the ball or derailment).

Whilst these changes are happening consistently, the business still needs to maintain its direction and continuity, driven rather than pulled.

As with emergency contingency planning continuity of the business is critical; constant change can have a debilitating effect if it is not strategically managed in a way that makes it a natural process rather than a set of consistant uncomfortable experiences.

As with humans a business is a living organism and will evolve grow and prosper provided that the culture is flexible enough and change enabling rather than debilitating.

What you measure in strategy is down to the strategic variables you decide as essential, what is important is how it all fits together and is harmonised.