Risk Management – as relevant as ever in 2010

During the current Toyota maelstrom, I have paused to consider the accelerator pedal recall within the context of Risk Management. I had commented in an earlier blog post that many of Toyota’s top managers had become less adept at nurturing relationships, and more aligned to driving people towards financial targets. Profit had already suffered under this evolution, and, with the recall, reputation has been damaged too – potentially a graver injury to the company.

At the core of the earlier article, I focused on motivation and process capability. Bringing this up to date also, a recent UK Government survey identified that only 1 in 4 employees were aware of their company strategies for 2010, which is a staggering statistic in what will be a very challenging year. Motivation, including setting out individuals’ roles in the context of company objectives, should be a primary target for CEOs, managers and leaders.

2010 will challenge us all with many changes and developments, positive and negative risks expected. More than ever then, Risk Management must be a top Board issue. Effective communication of strategies; avoidance of unconnected short term targets and a thorough focus on process capability is not a complete guarantee for success but is a key building block and an excellent place to start.

At MA Consulting International we use a tool called Vision to Reality, VTR® which supports businesses through development of strategies and tactical plans of implementation. Internal surveys are a starting point for measuring how well messages are getting through a company structure. Thereafter, a VTR® workshop would provide an independent confirmation that strategies and goals are commonly understood.

Please contact me if you would like further information or support in this area.

Anthony Abbott

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