How do companies deal with the fact that the rules of business are constantly changing? While it is not only technology that is constantly changing, technology surely is one of the greatest impacts. The rules are changing and the dynamics are changing. Coming up with a way to deal with change is a primary focus of business. Businesses should realize that managing risk an intuitive exercise for most individuals.
In business there are two terms you hear more and more all the time. Risk Management and Change Management are everyday realities in businesses of all types and sizes. Businesses large and small are scrambling to come up with a change management plan to deal with the new world of commerce. Every aspect of business that is impacted by technology is changing so fast that it is almost impossible to keep up. Businesses mobilize to come up with a strategy to deal with the latest changes but by the time they get set to announce their plans it is too late and that trend has passed.
Companies have to evolved from static operating procedures to a dynamic, evolving, ever changing plan of action. Flexibility is paramount. Changeability a must. This is true for all kinds of business whether you are selling a product, providing a service or just about anything you can charge a fee for.
When you are putting together a risk management plan or change management plan there are four basic levels of due diligence that should be followed. The four levels must be completed in sequential order to be effective for project preparation. Of course there may be several steps or stages to each level.
First you must Identify the factors that will have an influence, negative or positive on the success of your project. Second you will need to assess the impact of each factor or influence on the project. Next you must conceptualize or prioritize a solution to respond to all factors and impacts. Once you have completed these three levels of due diligence you are ready to begin the process of putting together a plan.
Level 1. Identify
Level 2. Assess
Level 3. Conceptualize
Level 4. Plan
Following these 4 levels will provide you with the basis to get started on your plan. Just remember there is much more to it.
The key to effective risk management and change management is to have a system that has measurable results. Risk management or change management for any project can be tied into a milestone schedule to assess and measure risk as it applies to scope schedule and budget.
Risk management is essential to success in business. Most of us are very well equipped to manage risk and change effectively. Our everyday activities prepare us well. You can find numerous parallels in everyday life.