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In this paper we'll take a look at changes which each organization may face, discover why they appear and how they may be connected with risks. We will also discover the role of risk management in managing change.

Extracts from this document...

Introduction

Managing change by managing risk Times have changed and our thinking about the way we manage our improvement activities has to change. Good is not good enough. Only the very best will attract customers in today's competitive environment. We have to excel in all parts of our organization. We have to have an organization that "wows" the customer, not just satisfies them. Research confirms that as much as 60 per cent of change initiatives and other projects fail as a direct result of a fundamental inability to manage their social implications.1 Change is inevitable and we must embrace it if we are going to be successful in this challenging world we live in. Everything changes as well as each organization and, according to Waring and Glendon, change management has become a core element of management rhetoric.2 In this paper we'll take a look at changes which each organization may face, discover why they appear and how they may be connected with risks. We will also discover the role of risk management in managing change. Types of Change In any organization setting, change is inevitable. But not all types of change are the same - there is a distinct difference between continuous change, as in continuous incremental improvement of EXISTING products, programs, services and processes, and discontinuous change, as in reengineering using a "blank sheet" approach or new technology that relies on a complete departure from existing systems and infrastructures3. Continuous change is evolutionary, whereas discontinuous change is revolutionary, and therefore extremely disruptive. When a leader, and presumably the leadership team, calls for any type of change to occur, but especially discontinuous change, they are essentially saying to the organization "life as we know it will never be the same". And here the process of managing change starts. ...read more.

Middle

spinning out an independent organization from the existing gone and developing new processed and values within it required to solve the problem; 3. acquiring a different organization whose processes and values close match the requirements of the new task. "How Can We Manage Change?" Perhaps the real question to be given is "How Can We Manage The RISKS Associated With Change?" For if there were no risks, any changes wouldn't be needed. Risk Definition The simplest and possibly best definition of risk is: The possibility of loss, injury, disadvantage or destruction10. It is possible to gain some insight by considering the types of risks such as programmatic, technical, cost, schedule and sometimes supportability. There is also the consideration that acquisition risks are a part and often mingled with risks such as encountered in other venues such as health, safety, insurance/underwriting , finance, business, environment and politics. However, what happens very often with elaborate definitions is that much time and energy are wasted trying to characterize a risk as opposed to managing it. Risks are so often interwoven as to type as to be Gordian knots, and a "cut the knot" attitude is best. The recommendation here is that if a customer (either a contracting agency or a superior agency) requires some elaborate set of definitions (e.g., through contract terms) then use them (i.e., apply the Golden Rule), but otherwise avoid the trap of too much definition to the detriment of content. The leftmost column of this risk definition matrix will be the risks, and across the top will be the categories: programmatic, technical, cost, schedule, supportability and others as appropriate. Each risk has the applicable items of the categories checked. ...read more.

Conclusion

Organizational excellence Organizational excellence is designed to permanently change the organization by focusing on combining and managing the five key pillars of the organization. These pillars are16: 1. Process management 2. Project management 3. Change management 4. Knowledge management 5. Resource management By effectively managing these five key pillars and leveraging their interdependencies and reactions, an organization can bring about an amazing transformation within itself. Achieving Excellence In today's worldwide marketplace customers do not have to settle for second best. Overnight mail brings the best to everyone's doorstep. The Internet lets your customers shop internationally so it is easy for them to get the best quality, reliability, and price, no matter who is offering it. Customers are concerned about the products they purchase, but they are equally or more concerned about dealing with organizations who care, who are quick to respond, and who will listen and react to their unique needs. This demands that, in order to succeed in the twenty-first century, organizations need to excel in all parts of their business. You must have an organization that excels at what it is doing, but also is recognized for its excellence to win today's savvy customers. Conclusion To cope with risks which stand on the way of changes, any organization should, first of all, identify changes17 that are needed to increase the work effectiveness. Managing means first of all managing changes.18 And changes in their turn may be either avoided by means of managing risks or accepted as being a way of organization's development. One more thing to be noticed: a manager should think about his organization's capabilities as well as about individual people's capabilities,19 the most important of which are recourses of the organization, its processes and values. And, ideally, each company should tailor the team structure and organizational location to the process arid values required by each project. ...read more.

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