IRM GRC SIG Q&A session with Norman Marks on 30 May 2013 - http://www.chaordicsolutions.co.uk/blog/irm-grc-special-interest-group/irm-grc-sig-qa-session-with-norman-marks-on-30-may-2013/

http://www.chaordicsolutions.co.uk/blog/irm-grc-special-interest-group/irm-grc-sig-qa-session-with-norman-marks-on-30-may-2013/

This is a special event not on the IRM GRC SIG’s previously published programme … and is an unexpected opportunity to spend some extended time with Norman Marks, who is an Honorary Fellow of the Institute of Risk Management for his contribution to the risk management field.

Some more background about Norman: he has been a practitioner and thought leader in internal audit, risk management, compliance and ethics for a long time. During his career, he has led large and small internal audit departments, been the Chief Risk Officer and Chief Compliance Officer, and managed IT Security and governance functions. Norman makes the point that in theory, he has now retired from SAP, where he was an evangelist for “better run business”, risk management, internal audit, GRC and related business processes such as business analytics. However, he continues to blog, write, and speak – and mentor individuals when he can.

The session is scheduled for 13:30 to 15:30 London/UK time.  You can book your place using this link: http://irmgrcsigmay213.eventbrite.co.uk/#

The way the SIG is running the particular event is that, due to space and other restrictions, a few of the Steering Group members will meet face-to-face with Norman in London but we open up the discussions to everyone else in the SIG via an audio link.

If you have specific quesitons you would like to ask Norman please send them to me ASAP at my normal email address of robert_toogood@chaordicsolutions.co.uk by no later than end of business on 24 May so we can collate, finalise the agenda and share with Norman in advance of our session.

I hope you will be able to join us for what will be a very informative and lively debate. In the meantime, you can read more about Norman here on his website: http://normanmarks.wordpress.com/about/

Using hack days to support building of innovative culture - http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/using-hack-days-to-support-building-of-innovative-culture/

http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/using-hack-days-to-support-building-of-innovative-culture/

Using hack days to support building of innovative culture: increasing creativity and passion outside day-to-day work.

 

Extract from NVIVO Blog – Adam Long:

A hack day (also known as hackathon, hackfest or codefest) is an event in which those involved in software development collaborate intensively on software projects over 1 to 5 days to create new product innovation.

Where does the idea come from?

Companies that run hack days include Facebook, Google, LinkedIn, Microsoft, NASA, and many more.  I was convinced that we at QSR International should also be running hack days to empower our talented staff to create more inventions for our customers and employees.

QSR International’s company values are articulated as collaboration, innovation, and celebration.  Our hack day goals supported our company values and were summarized as:

- Collaborate with Peers

- Innovate the Platform, Product, or Process

- Celebrate the Demonstration of Ideas

Choosing a theme

We undertook our first hack day in October 2012 and set the theme ‘Invent the Future’ which was inspired from the quote ‘the best way to predict the future is to invent it’ by Alan Kay. Our second hack day was in March 2013 and set the theme ‘Leadership through Innovation’ which was inspired from the quote ‘innovation distinguishes between a leader and a follower’ by Steve Jobs.  We will continue doing more hacks days every six months.

 

 

 

 

 

What’s involved in a hack day?

In the lead up to the hack day we created a wiki based charter of ideas originating from customers that had not been explored.  Participants were encouraged to choose one of these ideas or propose new ideas and seek out interested team members.

Our first hack day involved 37 employees working on 15 unique project ideas over 2 days.  Given the success and interest in the first hack day, the second hack day involved 49 employees working on 17 unique project ideas over 2 days.

Each day started with a stand-up meeting to describe each project idea and raise any assistance requests.  On the afternoon of the second day an exhibit was held to demonstrate and celebrate each of the project ideas to the whole company.

Quality and diversity – how do you judge the best hack?

We assembled a judging panel consisting of the CEO, CTO (that’s me), Senior Project Manager, and an invited customer.  This judging panel had the difficult task of choosing the ‘most innovative’ and ‘most promising’ project idea.

Additionally, everyone in the company was given tokens to vote on the ‘most popular’ project idea.  The quality and diversity of demonstrable project ideas was incredible and exceeded most expectations.

Kevin Burfitt, our Senior Project Manager coordinated the hack days and when asked about his reflection on the hack days he had this to say:

“For two days we remove all the normal reporting structures, meetings and red-tape and just let people concentrate on their own innovative ideas.  Seeing the enthusiasm of so many people working together and bringing their hacks to life is inspiring.”

Turning hacks into real features: Community Feed and Geovisualization

The NVivo 10 Service Pack 2 released in February 2013 included 2 hack day project ideas from the first hack day.  The first was the Community Feed which facilitated the ability to provide live news, tips, and video tutorials to users of NVivo within NVivo.

The second was Geo-visualization which facilitated geospatial visualization of Facebook, LinkedIn, and Twitter data captured using NCapture (a browser add-in) for analysis within NVivo.

Encouraging creativity and passion

We are proceeding with a half dozen hack day project ideas that will find their way into product releases and company process over the remainder of this year.

Hack days support building an innovative culture which allows experimentation, failure, and learning.  It enables participants to express their creativity and passion outside their day to day work and drives increased innovation within the organization.  The time constraint imposes the need for creative problem solving and early prioritization to ensure a demonstrable idea.

To finish, I quote Thomas Edison, one of world’s most prolific inventors in history:

“The real measure of success is the number of experiments that can be crowded into twenty-four hours”

Author: Adam Long is the Chief Technology Officer at QSR International and is responsible for envisioning and developing QSR’s software products. Adam is passionate about innovation and technology, especially where it is applied to assist people understand and improve the world around us.

Copyright © 2013 QSR International

More … http://blog.qsrinternational.com/hack-days-creating-new-product-innovation/?

Latest Protiviti SOX survey show growing reliance on internal audit functions and control automation - http://www.chaordicsolutions.co.uk/blog/from-our-compliance-consultants/latest-protiviti-sox-survey-show-growing-reliance-on-internal-audit-functions-and-control-automation/

http://www.chaordicsolutions.co.uk/blog/from-our-compliance-consultants/latest-protiviti-sox-survey-show-growing-reliance-on-internal-audit-functions-and-control-automation/

Latest Protiviti SOX survey: key trends show growing reliance on internal audit functions and control automation.

 

Extract from Protiviti Press Release:

Demand for added attention to high-risk processes, growing costs and the increasing role of IT controls and testing reports are some of the key changes and challenges companies faced over the last year as they worked to meet Sarbanes-Oxley (SOX) requirements, according to findings in the 2013 Sarbanes-Oxley Compliance Survey (www.protiviti.com/soxsurvey) by global consulting firm Protiviti (www.protiviti.com).

When executives and professionals involved in SOX compliance were asked what was driving the most change in their SOX compliance processes, 66 percent said there was at least moderate change due to demand for increasing process and control documentation for high-risk processes. Additionally, 60 percent of respondents indicated that the increased amount of time required for walkthroughs and documentation around processes was also driving moderate change.

“To continue to improve their SOX compliance efforts, companies need to intensify their scrutiny of high-risk processes such as financial reporting, accrual processes, stock options and equity, and taxes,” said Brian Christensen, Protiviti’s executive vice president for global internal audit. “The study shows that companies are beginning to adjust in that direction and the shift aligns with guidance from the SEC and PCAOB.”

“It’s important to note that SOX compliance programs and processes should remain agile and ready to change course if public companies are to adhere to the law in an effective and cost-efficient manner,” said Christensen. “As demonstrated by regulators, providers of ongoing guidance (e.g. COSO) and rapidly changing business conditions, the achievement of sustainable, cost-effective and value-enhancing compliance processes remains an ongoing journey that requires continual vigilance.”

With regard to the new COSO internal control framework, nearly two-thirds (66 percent) of the Protiviti survey respondents were aware of the revision process. Not surprisingly, the vast majority (85 percent) were against early implementation in 2013. If given an adoption option, respondents were fairly evenly split across several potential implementation schedules, including fiscal year 2014 and adoption after 2014.

Shifting Responsibility to the Internal Audit Function

Year-over-year findings about which area within an organization is responsible for overseeing SOX compliance showed a sizeable shift toward the internal audit function and away from project management. In 2012, the survey found that 30 percent of organizations housed this responsibility with the internal audit function, while 25 percent handled SOX compliance through their project management office. However, in this year’s survey, 45 percent of respondents said internal auditing managed SOX compliance (up 15 percent), while only 10 percent said it was handled by project management (down 15 percent).

One reason for this shift is the willingness of external auditors to rely on the work of internal audit departments rather than other functions. In 2013, only 25 percent of respondents said there was an increase in external auditors’ reliance on documentation, walkthroughs and testing performed outside of the internal audit function, while 39 percent said there was an increase from external auditors in having the same work done by internal audit departments.

Additional Survey Findings

Other key findings from Protiviti’s 2013 Sarbanes Oxley Compliance Survey include:

1. Eighty percent of respondents indicating they have seen improvements in internal control over financial reporting structure since Sarbanes-Oxley Section 404(b) was first required for large accelerated and accelerated filers in 2004. This is especially true for large accelerated filers, with 87 percent saying there have been improvements

2. More than one-third of companies (38 percent) reporting a year-over-year increase (from 2011 to 2012) in SOX costs. Nearly half of the companies surveyed (47 percent) also reported a year-over-year increase in external audit fees during the same period. That said, on average the costs for SOX compliance are not extraordinarily high relative to the objective of quality financial reporting to investors through improved internal controls. For most organizations, the cost of SOX compliance remains at a manageable level

3. Automation of controls continues to be an area of increased focus, with 90 percent of companies surveyed this year indicating that they have plans to automate IT processes and controls for SOX compliance, up from 83 percent in 2012

About the Survey:  In its fourth edition, Protiviti’s 2013 Sarbanes-Oxley Compliance Survey gathered insights from 297 executives and professionals at companies with gross annual revenues ranging from less than $100 million to more than $20 billion. The survey was conducted in late 2012 and early 2013, and respondents included chief audit executives, chief financial officers, corporate Sarbanes-Oxley and Project Management Office leaders, chief compliance officers and others involved with SOX. The survey is available for complimentary download at: www.protiviti.com/soxsurvey.

About Protiviti

Protiviti (www.protiviti.com)is a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit. Through its network of more than 70 offices in over 20 countries, Protiviti has served more than 35 percent of FORTUNE 1000® and FORTUNE Global 500® companies. The firm also works with smaller, growing companies, including those looking to go public, as well as with government agencies.

More … http://www.protiviti.com/SOXsurvey

Latest annual terrorism and political violence map - http://www.chaordicsolutions.co.uk/blog/from-our-business-continuity-and-pandemic-planning-consultants/latest-annual-terrorism-and-political-violence-map/

http://www.chaordicsolutions.co.uk/blog/from-our-business-continuity-and-pandemic-planning-consultants/latest-annual-terrorism-and-political-violence-map/

Latest annual terrorism and political violence map: improvements but continued caution needed if looking to expand.

 

Extract from Continuity Central -  Aon Risk Solutions:

Aon Risk Solutions has released its 10th annual Terrorism and Political Violence Map to help companies assess risk levels of political violence and terrorism.

Produced in collaboration with global risk management consultancy The Risk Advisory Group plc, the 2013 Map is complimented by an online and interactive version providing clients a clear global and country level view on terrorism and political violence ratings.

Aon’s 2013 Terrorism and Political Violence Map points to a continued threat of a terrorist attack or political violence as 44 percent of countries measured have an identifiable risk of terrorist attacks. This trend is especially prevalent in African and the Northern African countries.

Despite 19 countries showing improved terrorism and political violence ratings, including the UK and Germany, data and analysis reflected by the map suggest continued and growing awareness is needed for businesses looking to expand.

The three perils measured indicate the different forms of political violence most likely to be encountered by businesses:

Terrorism and sabotage;
Strikes, riots, civil commotion and malicious damage to property;
Insurrection, revolution, rebellion, mutiny, coup d’etat, war and civil war.

Color-coded ratings of the 200 countries and territories measured act as a gauge for the overall intensity of the risk of terrorism and political violence to business in each country.

The data shows:

11 upgrades (increased risk ratings), including Argentina, Egypt and Jordan;

19 downgrades (decreased risk ratings), including Germany, Italy and the UK;

Countries worst affected by terrorism are Afghanistan, India, Iraq, Nigeria, Pakistan, Russia, Somalia, Syria, Thailand and the Yemen.

Europe has the most positive regional outlook, with 47 percent of the countries with lowered risk ratings this year. This reflects receding civil unrest associated with the financial and economic crises. Limited incidents of terrorism outside of Greece and Northern Ireland also accounted for lowered risk scores.

Lingering after-effects of the Arab Spring on regional security and stability remain evident. The Middle East is the most unstable region, with 64 percent of its countries attaining high or severe risk ratings, reflecting terrorism, unrest and conflict risks.

The Middle East and North Africa region witnessed the highest proportion of countries with a terrorism and sabotage peril, at 85 percent.

Copyright 2013 Continuity Central

More … http://www.continuitycentral.com/news06770.html

Watch out for enemies of agility - http://www.chaordicsolutions.co.uk/blog/from-our-change-management-consultants/watch-out-for-enemies-of-agility/

http://www.chaordicsolutions.co.uk/blog/from-our-change-management-consultants/watch-out-for-enemies-of-agility/

Watch out for enemies of agility: these will stop you from creating an adaptable organisation unless addressed.

 

Extract from Fortune CNNMoney – Julian Birkinshaw:

Last week, I taught a case study on the decline of Nokia to my MBA students. I asked them, “Why did Nokia fall from industry leadership to also-ran status in the space of less than five years?” Their answers were predictable:

- “They lost touch with their customers.” True, but almost tautological — and interesting to note that this is the same Nokia that in the early 2000s was lauded for its customer-centric marketing and design capabilities.

- “They failed to develop the necessary technologies.” Not really true — Nokia had a prototype touchscreen before the iPhone was launched, and its smartphones were technologically superior to anything Apple, Samsung, or Google had to offer during the late 1990s.

- “They didn’t recognize that the basis of competition was shifting from the hardware to the ecosystem.” Again, not really true — the “ecosystem” battle began in the early 2000s, with Nokia joining forces with Ericsson, Motorola, and Psion to create Symbian as a platform technology that would keep Microsoft at bay.

Through this period, the people at Nokia were aware of the changes going on around them, and they were never short of leading-edge technology or clever marketers. Where they struggled was in converting awareness into action. The company lacked the capacity to change in a decisive and committed way.

The failure of big companies to adapt to changing circumstances is one of the fundamental puzzles in the world of business. Occasionally, a genuinely “disruptive” technology, such as digital imaging, comes along and wipes out an entire industry. But usually the sources of failure are more prosaic and avoidable — a failure to implement technologies that have already been developed, an arrogant disregard for changing customer demands, a complacent attitude towards new competitors.

In such cases, the ultimate responsibility for failure rests with the CEO. But if such failures are to be avoided, it is clear that the CEO cannot do it on his or her own. People across the firm must keep their eyes open to changes in their business, and to take responsibility to push their new ideas and challenge existing ways of working.  Obviously, this isn’t easy to do, but if there is a better understanding of the problem then there is a chance for improvement.

So what are the enemies of agility you should be looking out for in your organization?  Here are my “big five”:

Ossified management processes.  Things get done in big firms through management processes — budgeting and planning, performance management, succession planning. These processes create simplicity and order, but they also become entrenched and self-reinforcing. One example: I was asked to put on a webinar for a big publishing company a couple of years ago, and they asked me to sign a 20-page contract for the right to talk about my research for an hour. The reason wasn’t hard to fathom — their antediluvian book-publishing process was running on autopilot, and doing its best to suck the life out of any new Web-based initiatives. What’s the solution here? First, identify and kill off the processes that no longer add any value. Second, pilot all new initiatives outside the existing processes.

Old and narrow metrics.  What gets measured gets done, but we don’t refresh our choices of measures frequently enough, and we end up with massive blind spots. Nokia didn’t think of Apple and Google as competitors until it was too late. A friend of mine took the reins at a major national newspaper in the U.K. in the early 2000s, and it took him more than a year to persuade his colleagues that Google should be added to the list of competitors they used to benchmark their performance. The solution here? Define your relevant market as widely as possible, so that your market share is as low as possible. And measure customer behavior very carefully — are they defecting? To whom?  And why?

A disenfranchised front line.  The first insights into changes in your business environment come from the people on the “front line” — salespeople, developers working with third parties, purchasing managers. But their voice — if it is raised at all — typically gets drowned out among all the others clamoring for executive attention. The solutions here are far from easy, but they include technology-based systems for sharing front-line information quickly with those at the top, as well as informal networks and cross-cutting task forces designed to address specific threats and opportunities.

Lack of diversity.  Nokia’s top executives were all Fins of similar age and background, and this surely hampered their ability to make sense of their changing business environment. Of course, we are all more comfortable working with people with similar worldviews and as a result we end up with inevitable blind spots. The solution? Hire people with different frames of reference from our own, or at least find a way to bring their point of view to the table. In the late 1990s, Infosys had a program called “Voice of Youth” designed to bring the insights of the under-30 crowd to the attention of the 50-something executive team.

Intolerance of failure. The bigger and more successful a firm becomes, the more risk-averse it becomes. Executives say they want innovative new products and services, but they expect them all to succeed. And, needless to say, this attitude breeds caution and rigidity. The solution here is clear: you need to find ways to develop a culture that encourages trial and error. Google, Amazon, and Netflix are all great examples — they have all had their share of dud products, but everyone accepts them as part of the package.

What do you think gets in the way when it comes to creating an adaptable organization? Share your story — and help us hack HR by joining the Building an Adaptability Advantage hackathon (registration required), a joint production of the Chartered Institute of Personnel and Development (CIPD) in the UK and the MIX.

Author: Julian Birkinshaw is Professor of Strategic and International Management at London Business School. He is co-Founder and Research Director of the Management Lab (MLab).

© 2012 Cable News Network. A Time Warner Company. All Rights Reserved.

More … http://management.fortune.cnn.com/2013/05/08/corporate-change-nokia/?

 

 

 

We must reinvent management - http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/we-must-reinvent-management/

http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/we-must-reinvent-management/

We must reinvent management: rethinking basic assumptions about capitalism, organisational life, and meaning of work.

 

Extract from Management Innovation eXchange – Gary Hamel:

What Matters Now: How to Win in a World of Relentless Change, Ferocious Competition, and Unstoppable Innovation

MIX co-founder and leading management thinker Gary Hamel shares his agenda for building organizations that can flourish in a world of diminished hopes, relentless change and ferocious competition.

This is not a book about doing better. It’s not a manual for people who want to tinker at the margins. Instead, it’s an impassioned plea to reinvent management as we know it—to rethink the fundamental assumptions we have about capitalism, organizational life, and the meaning of work.

Leaders today confront a world where the unprecedented is the norm. Wherever one looks, one sees the exceptional and the extraordinary:

- Once-innovative companies struggling to save off senescence.
- Next gen employees shunning blue chips for social start-ups.
- Hundred year-old business models being rendered irrelevant overnight.
- Investors angrily confronting greedy CEOs and complacent boards.Newly omnipotent customers eagerly wielding their power.
-Social media dramatically transforming the way human beings connect, learn and collaborate.

Obviously, there are lots of things that matter now. But in a world of fractured certainties and battered trust, some things matter more than others. While the challenges facing organizations are limitless; leadership bandwidth isn’t. That’s why you have to be clear about what really matters now. What are the fundamental, make-or-break issues that will determine whether your organization thrives or dives in the years ahead? Hamel identifies five issues are that are paramount: values, innovation, adaptability, passion and ideology.  In doing so he presents an essential agenda for leaders everywhere who are eager to. . .

… reverse the tide of commoditization
… defeat bureaucracy
… astonish their customers
… foster extraordinary contribution
… outrun change
… build a company that’s truly fit for the future

Author: Gary Hamel  has been called the world’s “most influential business thinker” (Wall Street Journal) and “leading expert on business strategy (Fortune). His landmark books have appeared on every management bestseller list. He is also author of 15 articles for the Harvard Business Review and articles for The Wall Street Journal, Fortune, and The Financial Times.

He is on the faculty of the London Business School and consults with GE, Time Warner, Nokia, Nestle, Shell, Best Buy, Procter & Gamble, 3M, IBM, and Microsoft. He founded the management consulting firm Strategos and the think-tank MLab. He is currently leading an effort to built an open innovation platform for reinventing management—the Management Innovation eXchange (MIX)—which is designed to radically accelerate the evolution of management knowledge and practice.

More … http://www.managementexchange.com/feature/what-matters-now

Need new leadership models to help us recover from current economic gloom - http://www.chaordicsolutions.co.uk/blog/from-our-strategy-implementation-consultants/need-new-leadership-models-to-help-us-recover-from-current-economic-gloom/

http://www.chaordicsolutions.co.uk/blog/from-our-strategy-implementation-consultants/need-new-leadership-models-to-help-us-recover-from-current-economic-gloom/

Need new leadership models to help recover from current economic gloom: must look beyond Fortune 100 for inspiration.

 

Extract from London Business School Business Strategy Review – Professor Julian Birkinshaw:

Rethinking the responsibility of business leaders

What is the primary responsibility of business leaders today? Is it to make a financial return for their shareholders? Or is it to contribute more broadly to the welfare of employees and society as a whole?

This question has always been important, but it takes on greater significance as we seek to recover from the worst contraction since the Great Depression.  How business leaders respond, and how they prioritise different stakeholders, will have a major impact on the speed of recovery.

A poll conducted by London Business School, in the lead up to the Global Leadership Summit on 20 May, showed that business leaders are being expected to take on a broader set of responsibilities than ever before. Across 3,800 respondents, maximising total financial return to shareholders was rated 3.7 out of 5 in terms of importance, while creating a responsible culture, demonstrating integrity and moral leadership, contributing to the long-term sustainability of the global economy, and creating an engaging place of work for employees all scored between 3.4 and 3.6. The message seems clear: we want our leaders to do everything!

What is the way forward?  There is an increasing recognition that we need new models of leadership, where business leaders can balance the needs of multiple different stakeholders and are visibly accountable to the organisations they work for rather than the other way round.  But it is not obvious what these alternative models might look like.

My view is that we need to look beyond the usual best-practice corporate case-studies, to see if there are leadership and management principles we learn from other settings.

- If we want our business leaders to be properly accountable, we can gain insight from the principles of joint responsibility exhibited by many professional partnerships.

- If we want our business leaders to take a long-term view, we should seek to understand how many family-owned firms have sustained themselves over hundreds of years.

- And if we want our business leaders to balance multiple competing objectives, we can learn from the checks-and-balances built into democratic governments.

This is just a starting point. There are also, of course, many different models of corporate governance that avoid the short-termism and financial focus of the Anglo-American model, and there are insights to be drawn from the renewal and adaptability of cities, faith systems, and even life itself.  The challenge is to raise our horizons, and to look beyond the Fortune 100 for a glimpse of what the future of leadership might look like.

Author: Julian Birkinshaw is Professor of Strategy and Entrepreneurship at London Business School

Copyright 2013 London Business School

More … http://bsr.london.edu/lbs-article/754/index.html

Value of CCOs at board level - http://www.chaordicsolutions.co.uk/blog/from-our-compliance-consultants/value-of-ccos-at-board-level/

http://www.chaordicsolutions.co.uk/blog/from-our-compliance-consultants/value-of-ccos-at-board-level/

Value of CCOs at board level: to convince how governance, risk and compliance management can improve bottom line.

 

Extract from Corruption, Crime & Compliance Blog – Michael Volkov:

Chief Compliance Officers are basically optimists.  In the face of a mountain of worst case scenarios (typically referred to as “risks”), CCOs keep smiling and work incredibly hard.  They are “religious” zealots in business clothing.  CCOs indoctrinate their staff to fight the same cause and they spread the word on the importance of ethics and compliance.

The perception of CCOs is far different.  Management and employees often view CCOs and their staff as “law” enforcers or “sheriffs.”  If that is the perception, the CCOs have an important task – to change this perception and turn into important business partners.

CCOs are often challenged to make the business case for compliance.  It should be an easy argument – an integrated approach to risk and compliance directly translates into bottom-line increases in profits.  In this context, it is a mistake to argue that legal and regulatory requirements dictate that a compliance program follow certain policies and procedures, or else the company will suffer big fines and reputational damage.  A singular focus on negative consequences is a limited (albeit partially effective) message.

There are significant operational advantages to integrating governance, risk and compliance issue – namely that effective compliance is good for business.  What do I mean by this?  A CCO has unique visibility of an entire organization.  CCOs have to become familiar with all of the business operations.  They have a view of the company that few others in the C-Suite have.  And they can provide important insights into the governance, risk and compliance mix.

CCOs often report to the Board on common metrics of compliance program effectiveness – number of complaints, risk assessments, audit reviews and disciplinary actions taken.  There are other important operations that CCOs can identify, including a lack of oversight, organizational silos, wasted resources and information, lack of data integrity.  CCOs can then assist in identifying effective oversight programs, integrated risk and control policies, quality data and information, resource and personnel improvements, and streamlined business processes.

CCOs can bring about a good marriage of compliance and operational goals.  With a fundamental understanding of the business operations, CCOs can make valuable contributions to key business decisions relating to organizing people, process and technology, and projecting future benefits and costs from key business decisions.  CCOs can make the case that strong risk and compliance processes can increase revenues, reputation and brand protection, customer attraction and retention, improve workforce performance and asset protection.

To transform CCOs into effective business partners requires one significant change – CCOs have to be elevated to the C-Suite.  This is occurring more frequently but companies still have a long way to go.   Assuming they have a seat at the table, CCOs can advance the importance of the compliance function by communicating ways in which governance, risk and compliance management can improve the bottom line for everyone.

© 2011 – 2013 · Corruption, Crime & Compliance, All Rights Reserved.

More … http://corruptioncrimecompliance.com/2013/05/turning-ccos-into-business-partners/

Most innovative companies create culture that continually surprises - http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/most-innovative-companies-create-culture-that-continually-surprises/

http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/most-innovative-companies-create-culture-that-continually-surprises/

Most innovative companies create culture that continually surprises: driving competitive differentiation and growth.

 

Extract from LDRDB – Soren Kaplan:

All companies, whether they are successful with innovation or not, have one thing in common: they have their own “personalities.”  These personalities are their unique organizational cultures – the shared experiences, values, norms, assumptions and beliefs that shape individual and group behavior, and that (for better or for worse) ultimately impact their business success.

The most innovative companies pull the right levers to create a culture that leads to exploration, experimentation, and the innovations that positively surprise the market, create competitive differentiation, and drive growth.

So how do you do it?

Needless to say, there’s no simple answer.  Entire books, courses, and graduate school programs have focused on the topic.

This last week at the Front End of Innovation conference in Boston, I shared a presentation on the Strategies and Tools for Creating a Culture of Innovation.  Anyone tasked with leading organizational or culture change initiatives focused on innovation might benefit from the Culture of Innovation Canvas that I shared during my presentation. It’s a simple tool (download PDF or download PowerPoint) for defining the following dimensions of an organization’s innovation culture:

Leadership – How leaders influence innovation through explicit decisions and subtle behaviors;

Processes – How growth strategies and innovation are executed internally and externally including functional and cross-functional processes, customer engagement, information sharing, product and service development, and other activities;

Structure – The formal and informal organizing principles and functional designs that enable (or inhibit) collaboration and guide mindsets & behavior;

People – The mindsets and skillsets of employees, leaders, external partners and even customers tied to creative thinking, prototyping, and execution of new ideas and opportunities;

Metrics, Rewards & Recognition – The mindsets and skillsets of employees, leaders, external partners and even customers tied to creative thinking, prototyping, and execution of new ideas and opportunities;

Technology – Capabilities and tools that allow employees, external partners and customers to connect, share knowledge, and innovate.

There are also a number of resources that can be used to assess your current culture to identify opportunities for infusing a greater innovation focus:

Building Blocks of Innovation (MIT)

KEY Creativity Climate (Harvard)

LEAPS Innovation Leadership Competencies

Tim Cook, Apple’s CEO, recently said, “There’s no formula. If there was a formula, a lot of companies would have bought their ability to innovate.”  When it comes down to it, every leader and every company has an opportunity to create their own unique formula for innovation.  That’s the source of real innovation.

More … http://ldrlb.co/2013/05/leading-a-culture-of-innovation/

Introducing our SUPPORT service to help you achieve your full potential - http://www.chaordicsolutions.co.uk/blog/from-our-change-management-consultants/introducing-our-support-service-to-help-you-achieve-your-full-potential/

http://www.chaordicsolutions.co.uk/blog/from-our-change-management-consultants/introducing-our-support-service-to-help-you-achieve-your-full-potential/

In a previous post, we talked about the different ways in which our Senior Partner, Robert J Toogood, can help you and your organisation.

In this post, we focus in more detail on how Robert can SUPPORT and help you achieve your full potential during a period of significant change and/or challenge.

SERVICE FOCUS

Robert has many years experience of helping senior executives cope with complex change, and gains great personal satisfaction from providing SUPPORT in the form of practical assistance in this area.

CASE STUDY

On this SUPPORT assignment for a Client in the Life-Sciences – Medical Devices & Diagnostics sector they wanted help with supporting a business transformation programme associated with UK, France and Germany that involved the simultaneous implementation of a JD Edwards ERP solution.

Robert worked with the Project Director to re-focus implementation management governance activities and then provide ongoing programme/project support to him and key stakeholders.  

He made a difference by being able to leverage his extensive systems and programme/project organisation experience to complement that of the Client to support successful delivery of programme objectives.

TESTIMONIAL

The Client subsequently commented about Robert:

“He’s the ideal right hand man, a bit like Jiminy Cricket sitting on your shoulder reminding you of stuff that needs sorting.”

NEXT STEPS

So if you are looking for SUPPORT to help you achieve your full potential during a period of significant change and/or challenge, then Robert might be that safe pair of hands you have been looking for.  Contact him NOW on +44 (0)1983 617241 or at robert_toogood@chaordicsolutions.com to schedule some time to discuss your immediate challenges … on a strictly confidential and non-obligation basis

More … www.robertjtoogood.com … this site is best viewed from a laptop or desktop as it is not currently optimised for mobile viewing.

Introducing our IMPLEMENT service to help you organise more effectively for change - http://www.chaordicsolutions.co.uk/blog/from-our-change-management-consultants/introducing-our-implement-service-to-help-you-organise-more-effectively-for-change/

http://www.chaordicsolutions.co.uk/blog/from-our-change-management-consultants/introducing-our-implement-service-to-help-you-organise-more-effectively-for-change/

In a previous post, we talked about the different ways in which our Senior Partner, Robert J Toogood, can help you and your organisation.

In this post, we focus in more detail on how Robert can help you and your organisation to IMPLEMENT and organise yourselves more effectively to implement change … possibly in the form of a business transformation programme; governance, risk management and compliance activities; or maybe a recent merger, acquisition or divestiture.

SERVICE FOCUS

Robert is able to leverage many years of real-life experience, as well as understanding of professional best practice, in working with you to IMPLEMENT and ensure successful implementation of what you are trying to achieve.

CASE STUDY

On this IMPLEMENT assignment for a Client in the Life-Sciences – Medical Devices & Diagnostics sector they wanted help with implementing Sarbanes-Oxley (SOX) compliance activities across Finance and IT functions within UK operation of major US Multinational Corporation.

Robert worked with the Company SOX Coordinator, Finance and IT Directors to: identify and interpret Corporate requirements; propose and implement project-type structure to ensure timely completion; facilitate weekly reviews of progress and management of critical show-stopping issues. 

He made a difference by being able to leverage on his extensive project and programme experience to provide an independent assessment of what was needed and then worked with the Client to help implement the solution.

TESTIMONIAL

The Client subsequently commented that Robert is:

“Good at identifying details and following up to nag people to get things done.”

NEXT STEPS

So if you and your organisation are looking to organise yourselves more effectively to implement change …, then Robert might be that safe pair of hands you have been looking for to help you IMPLEMENT this change.  Contact him NOW on +44 (0)1983 617241 or at robert_toogood@chaordicsolutions.com to schedule some time to discuss your immediate challenges … on a strictly confidential and non-obligation basis

More … www.robertjtoogood.com … this site is best viewed from a laptop or desktop as it is not currently optimised for mobile viewing.

Introducing our REVIEW service to help you learn from your experiences - http://www.chaordicsolutions.co.uk/blog/from-our-programme-and-project-management-consultants/introducing-our-review-service-to-learn-from-your-experiences/

http://www.chaordicsolutions.co.uk/blog/from-our-programme-and-project-management-consultants/introducing-our-review-service-to-learn-from-your-experiences/

In a previous post, we talked about the different ways in which our Senior Partner, Robert J Toogood, can help you and your organisation.

In this post, we focus in more detail on how Robert can help you REVIEW your experiences so you can learn from them … either at the organisational level, some project, portfolio or programme related activity or personally.

SERVICE FOCUS

Robert will work with you to REVIEW and develop ways in which your approach can be improved, that makes sense for you and your organisation.

CASE STUDY

On this REVIEW assignment for a Client in the Life-Sciences – Consumer sector wanted help with reviewing project life-cycle activity across Europe, Middle East and Africa (EMEA) in a more controlled and orderly way, initially in IT and then across other functions.

Robert worked with the VP Information Management EMEA to: identify and interpret requirements; propose and implement the initial project portfolio management (PPM) approach; facilitate monthly reviews of progress and management of critical show-stopping issues; extend the scope of the initiative to include all EMEA functions..

He made a difference by being able to leverage his extensive programme/project management experience to help the Client implement pragmatically, the first stage of a portfolio management approach to managing the complexity and ambiguity of project demands.

TESTIMONIAL

The Client subsequently commented that Robert is:

“Good at uncovering complexity and trying to make sense of it, to help your colleagues understand what’s really going on.”

NEXT STEPS

So if you are looking to learn from your experiences … either at the organisational level, some project, portfolio or programme related activity or personally, then Robert might be that safe pair of hands you have been looking for to help REVIEW them.  Contact him NOW on +44 (0)1983 617241 or at robert_toogood@chaordicsolutions.com to schedule some time to discuss your immediate challenges … on a strictly confidential and non-obligation basis

More … www.robertjtoogood.com … this site is best viewed from a laptop or desktop as it is not currently optimised for mobile viewing.

Introducing our RESCUE service for projects, portfolios and programmes - http://www.chaordicsolutions.co.uk/blog/from-our-programme-and-project-management-consultants/introducing-our-rescue-service-for-projects-portfolios-and-programmes/

http://www.chaordicsolutions.co.uk/blog/from-our-programme-and-project-management-consultants/introducing-our-rescue-service-for-projects-portfolios-and-programmes/

In a previous post, we talked about the different ways in which our Senior Partner, Robert J Toogood, can help you and your organisation.

In this post, we focus in more detail on how Robert can help you RESCUE a project, portfolio or programme or some other form of strategic implementation initiative that is failing to deliver on expectations.

SERVICE FOCUS

Robert particularly enjoys the very special and motivating challenge associated with RESCUE activities, which quite often is associated with restoring order to what sometimes appears as being chaos.

CASE STUDY

On this RESCUE assignment for a client in the Business Services – Office Products sector, they wanted help with rescuing a programme that was part of a “greenfield site” set of developments that included the setting up of a new Head Office and fully automated Distribution Centre, one of the most advanced in Europe at that time.

Robert worked with the IT Director to help manage the implementation of associated changes into the initial site. This involved working with a diverse team consisting of both Client and third party staff. During the implementation, the third party software vendor chosen by the Client ceased trading in the UK so additional issues and constraints had to be successfully resolved.

He made a difference by being able to leverage his extensive change management experience to complement that of the Client to support successful delivery of programme objectives.

TESTIMONIAL

The Client subsequently commented that Robert:

“Made a major personal contribution to the success of the project and has shown a high level of commitment and dedication throughout.”

NEXT STEPS

So if you have a project, portfolio or programme or some other form of strategic implementation initiative that is failing to deliver on expectations, then Robert might be that safe pair of hands you have been looking for to RESCUE it.  Contact him NOW on +44 (0)1983 617241 or at robert_toogood@chaordicsolutions.com to schedule some time to discuss your immediate challenges … on a strictly confidential and non-obligation basis

More … www.robertjtoogood.com … this site is best viewed from a laptop or desktop as it is not currently optimised for mobile viewing.

Organic leadership model where nature is teacher - http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/organic-leadership-model-where-nature-is-teacher/

http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/organic-leadership-model-where-nature-is-teacher/

Organic leadership model where nature is teacher: self help tools that nurture growth using Living Systems Thinking.

 

Extract from Tipu Ake Website:

We share the Tipu Ake ki te Ora Lifecycle – an easily applied, and action focused leadership model that exploits Kiwi style teamwork.

It provides new tools for organisations that wish to grow into dynamic living entities, rather than just behaving like machines. See our summary paper Living Systems Thinking – Leadership Tools for Growing Living Organisations and Communities that thrive in a world of complexity , also our paper on Lifelong Learning – Nature’s Way and the Tipu Ake Rugby Scrum team learning metaphors and lessons.

- Tipu Ake is an organic project / program model that helps us operate in a world of complexity, chaos, interdependency and ambiguity. It embraces international leadership model thinking; see supporting stories, feedback from users and Tipu Ake Blogs. It supports best practices for sustainability and management. (It maps onto the Cynefin Framework that illuminates the simple, complicated, complex, chaotic and disorder domains that life requires us to work across).

- It is a cyclic behavioural model that can help any innovative organisation, community, project, group, team, or even a family or individual that needs to make new things happen. It is at the the roots of lifelong learning.

- Tipu Ake is a form of Biomimicry – Learning to thrive in a world of complexity and inter-dependence by taking lessons from Nature in the Whirinaki Rainforest.

- It was inspired by the self-transformation stories of Te Whaiti School. Here a pro-active underemployed Maori community called on its own internal strength and traditional wisdom to grow its school from failure and imminent closure to the top of its class. See videoclip.

- Their unique processes were captured after the event as the Tipu Ake Lifecycle by a team of volunteers from Te Whaiti, the Auckland University of Technology (AUT) and other NZ organisations. Student teams at AUT and other volunteers around the world continue to work together on a range of innovative projects to help them share it. The model was prototyped on pioneering workshops at AUT and is now part of Living Systems Thinking workshops delivered in New Zealand and alsewhere.

- The use of Tipu Ake is supported by stories, podcast interviews and blogsite, a downloadable videoclip library here, application case studies, introductory seminars, unique leadership retreats at Te Whaiti, application workshops, an organisational self-assessment tool, links – connectioNZ with partner organisations around the world, a DVD presentation and the Tipu Ake book collection held by the AUT library.

- Its full name is Tipu Ake ki te Ora (growing from within, ever upwards towards wellbeing). It is generously shared with the world, dedicated to the wellbeing of all its future grandchildrens. Anyone can download it, (including a Powerpoint presentation with French and Estonian translations).

- All intellectual property associated with Tipu Ake will continue to remain for all time at the place of its origin, Te Whaiti Nui-a-Toi. The children and people there are its Kaitiaki (Guardians). Acknowledgement is by koha (a gift in return based on its value to you).

(c) 2001 onwards Te Whaiti Nui-a-Toi. All intellectual property protected under the provisions of the Treaty of Waitangi 1840 and the UN Declaration on the Rights of Indigenous Peoples (Adopted by General Assembly 13 Sept 2007) – details www.tewhaiti-nui-a-toi.maori.nz

More … www.tipuake.org.nz

Ways in which a troubleshooter can unleash positive creative forces of organisational change - http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/ways-in-which-a-troubleshooter-can-unleash-positive-creative-forces-of-organisational-change/

http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/ways-in-which-a-troubleshooter-can-unleash-positive-creative-forces-of-organisational-change/

In a previous post, we talked about organisational change, it’s challenges and the troubleshooting role of our Senior Partner, Robert J Toogood, in bringing order to organisational change … by embracing risk.

In this post, we focus in more detail on the different ways in which Robert can help you and your organisation but first, some background about him.

Robert is a highly experienced and flexible, independent senior management consultant … with strong skills in the organisational change aspects of governance, risk management and compliance.  For over 25 years , he has been using his experience and his accumulated expertise to help senior executives cope with complex organisational change, in diverse organisations right across the world … quite often as part of a regional European or global team.

With this background, there are five specific ways in which Robert can help:

RESCUE: he can help you to rescue a project, portfolio or programme or some other form of strategic implementation initiative that is failing to deliver on expectations.

REVIEW: he can help you to learn from your experiences … either at the organisational level, some project, portfolio or programme related activity or personally.

IMPLEMENT: he can help you and your organisation to organise yourselves more effectively to implement change … possibly in the form of a business transformation programme; governance, risk management and compliance activities; or maybe a recent merger, acquisition or divestiture.

SUPPORT: he can help you achieve your full potential during a period of significant change and/or challenge.

RESEARCH: he can help you to find out more about some new or existing area of interest using the extensive resources available to him, combined with his passionate interest and enthusiasm.

If your organisation is stable and well-ordered then Robert is probably not the best person to help you … however, if you are facing into uncertainty, instability and other similar challenges then he might be that safe pair of hands you have been looking for.  So contact Robert NOW on +44 (0)1983 617241 or at robert_toogood@chaordicsolutions.com to schedule some time to discuss your immediate challenges … on a strictly confidential and non-obligation basis

More … www.robertjtoogood.com … this site is best viewed from a laptop or desktop as it is not currently optimised for mobile viewing.

Less than one in five trust leaders to tell truth - http://www.chaordicsolutions.co.uk/blog/from-our-strategy-implementation-consultants/less-than-one-in-five-trust-leaders-to-tell-truth/

http://www.chaordicsolutions.co.uk/blog/from-our-strategy-implementation-consultants/less-than-one-in-five-trust-leaders-to-tell-truth/

Less than one in five trust leaders to tell truth: crisis in leadership.

 

Extract from Edelman Trust Press Release:

Less than one in five respondents in the 2013 Edelman Trust Barometer believes a business or governmental leader will actually tell the truth when confronted with a difficult issue. This lack of confidence in traditional authority figures was continually reinforced in 2012 against the backdrop of high-profile scandals involving CEO and government officials, including former McKinsey managing partner Rajat Gupta, former Chinese government official Bo Xilai and Lance Armstrong, former chairman of the Livestrong Foundation.

“We’re clearly experiencing a crisis in leadership,” said Richard Edelman, president and CEO, Edelman. “Business and governmental leaders must change their management approach and become more inclusive by seeking the input of employees, consumers, activists and experts such as academics, and adapting to their feedback. They must also pass the test of radical transparency.”

The general public’s trust in leaders is far below that of institutions in all 26 markets. Globally, trust in business to do what is right is at 50 percent while trust in business leaders to tell the truth is 18 percent, a 32-point trust gap; the gap between government and government official is 28 points. The trust gap between business and business leader is amongst the largest (35 points) in the U.S. and China. At 47 points, China had the greatest divide between government and government official.

This year’s Barometer also reveals that academics, technical experts and a person like yourself are nearly twice as trusted as a chief executive or government official. “This confirms the democratizing trend of recent years with influence and authority moving away from CEOs and government leaders to experts and peers,” said Edelman.

Trust across all institutions increased, including narrow upticks for business and government. Three of four institutions (NGOs, 63 percent; media, 57 percent; business, 58 percent) surpassed their all-time-highs. While there was an increase, it was tentative, with only 17 percent and 16 percent of those who trust business and government, respectively, saying they trust either business and government a great deal. Trust’s fragility was further exemplified by a January follow-up study done in the U.S. and UK. Trust in media in the UK experienced a dramatic 14-point drop, after the release of the Leveson Inquiry – an investigation into the role of the press in the phone-hacking scandal – making it the least trusted institution. In the U.S., trust in government dropped eight points among the general public, making it the least trusted institution, after the poor handling of the fiscal cliff issue.

Overall, the general population is far more skeptical of institutions than informed publics. Trust across all four institutions is nine points lower among the general population; the largest difference, 14 points, is seen in the U.S., Sweden and Poland.

Banks and financial services remain the least trusted sectors particularly trust in banks in Germany (23 percent), UK (22 percent), Spain (19 percent) and Ireland (11 percent). Trust in these sectors reached their lowest point in the U.S. in 2011 and in the UK, France, Germany region in 2012. With trust in two-thirds of the markets below 50 percent, trust in banks, globally, is now 11 points lower than it was in 2008.

The Barometer finds that this lack of trust is driven by poor performance and the perception of unethical behavior. Developed economies rate bank performance much lower than emerging markets, giving the industry poor grades in its practice of lending to small businesses and providing home mortgage loans. More than one in two people globally (56 percent) say they were aware of last year’s banking and financial services scandals (78 percent in the UK) with 59 percent saying the cause of those scandals was behavior, specifically corruption, poor corporate culture or poor leadership.

“The financial services industry must become more aggressive in explaining its business model and do away with terms such as ‘proprietary trading’,” said Alan VanderMolen, president and CEO, global practices, Edelman and vice chairman DJE. “Stakeholders have to understand how banks are making money and how the industry is working to benefit its shareholders and society.”

The Barometer found multinational companies headquartered in developed markets consistently have higher trust levels than those in emerging markets (China, India and Mexico scored lowest). While companies headquartered in developed markets are trusted globally, companies headquartered in emerging markets face their biggest trust hurdles in developed markets. Furthermore, the Barometer also found that small businesses are most trusted in the West while big business is on top in emerging economies.

There’s been a dramatic change in how trust in companies is established as stakeholders are now placing greater importance on engagement and integrity-based attributes such as treating employees well, listening to customers and exhibiting ethical and transparent practices. Operational-based attributes, including financial performance and being recognized as a “best” place to work, were nearly twice as important in 2008 (76 percent) as they are in 2013 (39 percent).

“Innovative products and making money are now table stakes,” said Ben Boyd, global practice chair, Corporate, Edelman. “Business must show that it has a broader skill set and can execute on engagement and integrity-based attributes. Now is the time for business to go beyond simply earning the license to operate toward earning a license to lead, serving the needs of both shareholders and broader stakeholders by being profitable and a positive force in society.”

Other key findings from the 2013 Edelman Trust Barometer include:

- Business leaders are trusted by less than 50 percent in 16 of 26 markets, while government leaders are trusted by less than half in 21.

- Technology (77 percent) and automotive (69 percent) were again the two most trusted industry sectors.

- NGOs remain the most trusted institution posting trust levels above 50 percent in 23 of 26 countries – four of the five top markets are in Asia (China 81 percent, Malaysia 76 percent, Hong Kong 76 percent, Singapore 75 percent).

- Further dimensionalization helped media continue its rise in trust that began in 2010. Among the general population, mainstream media and online search (both at 58 percent) are the most trusted sources of information. More than half in emerging markets trust all forms of media while developed markets have a high variance in trust levels across the various media types. When looking at social media, emerging markets (58 percent) are more than twice as trusting as developed (26 percent).

- Germany saw the most significant increases in trust across all institutions. NGOs up 16 points, media up 19 points, business up 14 points and government up 15 points. Argentina experienced the greatest decline in trust among all institutions.

About Edelman Trust Barometer:

The 2013 Edelman Trust Barometer is the firm’s 13th annual trust and credibility survey. The survey was produced by research firm Edelman Berland and consisted of 20-minute online interviews conducted October 16, 2012 – November 29, 2012. The 2013 Edelman Trust Barometer online survey sampled 26,000 general population respondents with an oversample of 5,800 informed publics ages 25-64 across 26 countries. All informed publics met the following criteria: college-educated; household income in the top quartile for their age in their country; read or watch business/news media at least several times a week; follow public policy issues in the news at least several times a week. For more information, visit: http://www.edelman.com/insights/intellectual-property/trust-2013/

More  … http://www.edelmanberland.com/press-releases/2013-edelman-trust-barometer-finds-a-crisis-in-leadership/

International risk standard ISO 31000 implementation guide coming in September - http://www.chaordicsolutions.co.uk/blog/from-our-risk-management-consultants/international-risk-standard-iso-31000-implementation-guide-coming-in-september/

http://www.chaordicsolutions.co.uk/blog/from-our-risk-management-consultants/international-risk-standard-iso-31000-implementation-guide-coming-in-september/

International risk standard ISO 31000 implementation guide coming in September: changes to standard coming later.

 

Extract from Commercial Risk Europe – Ben Norris:

A guide to help risk managers and other professionals implement international risk management standard ISO 31000 is set for publication this September and is likely to be followed by changes to the standard itself, a leading player involved in both processes told risk managers yesterday.

Speaking at the RIMS conference in Los Angeles, Dorothy Gjerdrum, Executive Director, Arthur J Gallagher RM Services and ISO 31000 US TAG Chair, predicted that there will soon be changes made to ISO 31000 following a vote that closes on June 18.

As is general practice in the standards world, ISO 31000 is up for review following its publication in 2009 and based on feedback from risk practitioners Ms Gjerdrum believes there is a need for update and revision.

“The question first is do we need a review and that is being asked right now. We believe because of the conversations that we have had that everyone will agree that we need to revisit this,” said Ms Gjerdrum, who is a member of the ISO 31000 International Working Group.

“There are a variety of reasons about why that is. I know some of the issues were given short shrift the first time though and we may want to spend time expanding or qualifying those areas. Some of those have to do with risk appetite and fully developing criteria. How we are going to do that is not yet clear. I hope in the US we can run some surveys ­as we need more input,” she said.

For his part, Michael Miller, Director, Risk Assessment & Mitigation at The Walt Disney Company and ISO 31000 US TAG Delegate, said that any changes to the standard would need to be carefully thought out. Not least because of concern over the amount of potential change amongst those that have already implemented the standard.

“Certain groups or companies have already implemented 31000 so there is a little bit of concern over how much is going to change. ISO understands that this is an active standard and not something that is going to peter out now we might rebuild it. Every few years you do need to do a quick check in and ask is it current? Do we need to modify it in any way? Yes or no, and then you take action. But discussions have taken place and people understand that 31000 is implemented across the world and any major changes would need to be considered because of their impact,” he said.

It seem likely that changes to ISO 31000 will come as a result of misgivings held by some organisations, risk professionals and other decision makers over the standard.

It is certainly clear from the forthcoming implementation guide that, following its publication, some practitioners sought further advice on how to implement the standard.

The ISO 31000 International Working Group re-engaged in 2011 to address this need and in March 2013 risk management experts from around the world met in the US to complete the draft of ISO 31004, or the implementation guide to ISO 31000.

ISO 31004 is set for publication in September and is in the final stages of development. It is approved as a Technical Report rather than a standard and therefore should be regarded more as advice and guidance, said Ms Gjerdrum.

Its purpose is twofold. Firstly, to help organisations align their risk management with ISO 31000 by providing guidance, explanation, examples and illustrations. Secondly, it is designed to assist standards-making organisations so that they can harmonise risk management processes with ISO 31000.

It will be suitable for use by any public, private or community enterprise and association, group or individual. The Technical Report is not specific to any industry or sector.

It can be applied to all types and sizes of organisations, their stakeholders and to all activities, explained the ISO insiders. It can also be applied to any type of risk, whatever its nature, whether having positive or negative consequences.

ISO 31004 will have four Annexes that offer guidance for implementation. These annexes focus on application of the ISO 31000 principles, how to evidence mandate and commitment, and how to monitor, review and integrate risk management within a management system.

Annex A, Application Of The ISO 31000 Principles, will provide direction on how to apply each of the standard’s 11 principles and provide practical tips, explained Ms Gjerdrum.

Annex B, How To Evidence Mandate And Commitment To ISO 31000, gives guidance and examples to help with characteristics, policy and reinforcement.

It will provide specific questions to help check that mandate and commitment is as strong as it could be. But the annex is not prescriptive and stresses that there is no ‘one size fits all’ approach, explained the risk professional.

Annex C, How To Give Effect To Monitoring and Review, provides a general explanation and considers accountability, the use of independent reviews and how best to monitor and review the framework and process.

Finally Annex D, Integrating Risk Management With A Management System, will provide useful tips and helpful tools to get this job done.

More … http://www.commercialriskeurope.com/cre/2224/56/Changes-to-ISO-31000-on-horizon-implementation-guide-due-in-months/

Presentation deck from recent IRM GRC SIG session now available for download - http://www.chaordicsolutions.co.uk/blog/irm-grc-special-interest-group/presentation-deck-from-recent-irm-grc-sig-session-now-available-for-download/

http://www.chaordicsolutions.co.uk/blog/irm-grc-special-interest-group/presentation-deck-from-recent-irm-grc-sig-session-now-available-for-download/

Last week, I chaired a really interesting Institute of Risk Management (IRM) GRC SIG session in London… speakers representing blue-chip organisations like Shell, WorldPay and Raytheon as well as industry recognised GRC pundit, Michael Rasmussen, all shared their real-life experiences of implementing a coordinated approach to governance, risk management and compliance.  The presentation deck we used can be downloaded from the SIG’s website at http://theirm.org/events/GRC_SIG.htm.

Best Wishes, Robert
Chair, IRM GRC SIG

Email: robert_toogood@chaordicsolutions.co.uk

Personal Website: www.robertjtoogood.com

Tel: +44 (0)1983 617241
LinkedIn: http://uk.linkedin.com/in/roberttoogood

 

Using organisational change as positive creative force - http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/using-organisational-change-as-positive-creative-force/

http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/using-organisational-change-as-positive-creative-force/

We are constantly being bombarded with negative messages about challenges ahead of us; messages that continuously refer to terms like uncertainty, recession, revenue, growth, innovation, confidence, complexity, and chaos … to name but a few!

We need to adapt to this constantly changing world in order to compete and more importantly, survive. This adaption can be triggered by external political, economic, social and technological events, well beyond the boundaries of the organisation.

The resulting organisational change should not be viewed as negative; if embraced, it can be harnessed to provide many positive transformational benefits for the organisation.

These changes may need to take the form of updates to the organisation’s mission, values and vision. In addition, the associated strategic and operational plans may also need to be adjusted to reflect revised focus.

Sometimes organisations need extra help with adapting to this constantly changing and uncertain world, to overcome a particular challenge … and this is where our Senior Partner, Robert J Toogood can help.

Robert is different, very different!  You see, he specialises in bringing order to organisational change. In fact, he loves the uncertainty, complexity and ambiguity you always find in these environments.

Robert is a TROUBLESHOOTER … he enjoys fixing organisational things that are broken and need mending.

So if your organisation is stable and well-ordered then Robert is probably not the best person to help you … however, if you are facing into uncertainty, instability and other similar challenges then Robert might be that safe pair of hands you have been looking for.

More … www.robertjtoogood.com … this site is best viewed from a laptop or desktop as it is not currently optimised for mobile viewing.

 

 

Key test of corporate centre profitability - http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/key-test-of-corporate-centre-profitability/

http://www.chaordicsolutions.co.uk/blog/from-our-business-transformation-consultants/key-test-of-corporate-centre-profitability/

Key test of corporate centre profitability: whether adding real value or just collection individual businesses.

 

Extract from World Economic Forum Blog – Ken Favaro:

More than half of all companies have unprofitable corporate centres. No wonder 2011 was a record year for corporate divestitures. When the corporate centre is unprofitable, there’s not much point in having one! On the other hand, 45% of all companies have profitable corporate centres. What do they do that the unprofitable ones don’t? Six things.

First, they are sparing in their use of centralized services such as receivables, payables, financial reporting, payroll, IT, legal, HR, R&D, manufacturing, sourcing and sales. They know that there are many large and hidden costs of over-centralizing.

Second, they do a better job of allocating capital than the “invisible hand” of a vast, liquid and ruthless capital market. They think of capital allocation as investing, not rationing.

Third, profitable corporate centres use the full breadth of the company’s business portfolio when developing and deploying human capital. They offer a variety of flexible and rich career paths, they nurture the corporate brand as a recruiting asset, and they actively match the company’s strongest talent to its most important priorities. They do all this with a small, lean corporate HR team.

Fourth, business unit governance processes are a key function. Profitable corporate centres continually ask themselves, “How can we ensure that we are governing the BUs in ways that enable them to outperform in their respective markets?” Unprofitable headquarters ask, “How can the BUs help us do our job in running the company?” They think of their governance role primarily as one of control and compliance rather than as one of adding value.

Fifth, profitable head offices actively identify enterprise capabilities anywhere in their organizations that can benefit all their businesses. (Examples are Frito-Lay’s direct-to-store delivery capability, Apple’s user design capability, and IBM’s C-suite sales capability.) They stay on alert for acquisitions that would enhance their businesses’ most important capabilities. They organize centres of excellence to nurture certain essential capabilities. They manage costs and capital to ensure that they are investing more effectively in their capabilities than any other company can.

Finally, a profitable corporate centre shapes the corporate portfolio with businesses that gain the most from their company’s enterprise capabilities. For example, the Danaher Corporation owns only businesses that benefit greatly from Danaher’s enterprise capabilities, such as its goal deployment process and Lean Six Sigma expertise. Disney’s magic comes from owning entertainment businesses that all benefit from its uncanny capability to create and monetize family-friendly, child-engaging characters. Berkshire Hathaway oversees a mix of highly capital-intensive businesses (such as trains, utilities and retail) and substantially cash-generative businesses (such as insurance and reinsurance), all of which gain a lot from Berkshire’s undeniable investment prowess.

Corporate centre profitability is the acid test of whether a company is truly adding value or just functioning as a collection of individual businesses. Do you know which is true for your company?

This article originally appeared in strategy+business, by the global management consulting firm Booz & Company

Author: Ken Favaro is a senior partner with Booz & Company based in New York and global head of the firm’s enterprise strategy practice.

All opinions expressed are those of the author. The World Economic Forum Blog is an independent and neutral platform dedicated to generating debate around the key topics that shape global, regional and industry agendas.

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