Blog -World Class Leadership

Little Giants – When staying small is the best option and when growing can be counterproductive

It is the vision of all companies to eventually grow and become more successful in the industries that they compete in.  In a world where market share provides direct competitive advantages and provides the opportunities required to generate lucrative returns growth has, and will continue to be king. 

However, just because growth is the goal doesn’t mean that the goal is always correct and doesn’t mean that every opportunity to grow is a good one for your company.  When opportunity strikes the instinct of any good  executive and manager is to explore the situation to determine whether the opportunity in question is in the best interest of the company.  If it is shown that the opportunity is in the best interest of the company, and the resources can be (notice I didn’t say should be) acquired then the executive will likely move forward with the transaction.  The problem is that executives are so anxious to grow their companies that...

Continue Reading...

Beyond Risky: Going Beyond Risk Mitigation and Risk Tolerance is a Risk Analysis

In its simplest form, risk, from an operational perspective, is a mathematical equation that focuses on the simple concept of risk vs. reward.  When we analyze how risk mitigation and risk tolerance effect business decisions, we are asking the decision-makers within the organization how much risk (or chance) they are willing to take versus the perceived rewards that could be obtained through a positive outcome of the decision being made.  These are simple formulas and in a perfect scenario these two factors (risk mitigation and risk tolerance) would provide all of the information necessary to make major operational decisions.  Unfortunately, like everything in life, it just isn’t that simple.

 

When assessing risk, it is extremely dangerous to use a simplified approach to decision making, because the fact is that risk must always be analyzed on an individual basis.  While risk tolerance and risk mitigation are always factors in analyzing risk within...

Continue Reading...
Close

50% Complete

Become a World class Leader

Game changing insights enabling you to achieve standards of excellence in everything you do