Tag Archives: risk

Mooselodgism: The Biggest Challenge to Organizations

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Most associations and organizations are becoming or are going the way of moose lodges.  This is the biggest challenge to all organizations over the next 20 years.  So, what is mooselodgism?

Moose, Elks, Masons, Daughters of American Revolution (DAR) and other service organizations were prevalent for hundreds of years.  They were staple and anchored the social service activities in many communities.  But, they have largely disappeared.  Why?  They couldn’t adapt to technology and couldn’t change to meet new requirements.

We’re seeing this now in most organizations and assocations.  Think of the organization or association you belong to?  How many folks attend a meeting?  What is the demographic of the folks who attend?  How are decisions being made or not made?  How diverse is the population who attends meetings?  How does the organization use technology to manage itself?

Don’t think Mooselodgism applies to you or to the US?  What’s the most prominent organization in the world?  US Congress.  They US has a $1000 billion deficit.  Congress can’t make a decision and solve this problem that impacts all of us.  Go figure if Mooselodgism is real or not?

 

Books on Risk

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Half or more of the business books now published deal with risk. Or, so it seems.

I just got back from Barnes & Noble. As a past author, I check out new hard cover books, which are a window into important business trends.

Maybe, it’s a situation of ‘where you sit is what you see.’ So, I sit in the risk space and all I see is risk. Risk in crossing the street. Risk in buying this or doing that.

But, the new hard cover business books point to a hard realization that risk is the new normal or new reset. And, it’s not going away.

Some implications: All if not most of the business rules are changing. Organizations and people are not ready for the changes. We need new: 1. Risk based, problem solving and 2. Risk based, decision making tools.

Hence, we are getting lots of business trade books explaining what to do to deal with risk.

Cyber ERM

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Cyber Security is going ERM.

The US Department of Energy (DOE) released for public comment the Electricity Subsector CyberSecurity Risk Management Process.  You can download it at:

(http://energy.gov/sites/prod/files/RMP%20Guideline%20Second%20Draft%20for%20Public%20Comment%20-%20March%202012.pdf

It may be a game changer in risk frameworks.  Most risk frameworks are linear risk assessment processes.

The DOE standard is ERM process based, inputs  => activities => outputs, hierarchal (tiered), and follows a novel cycle.

Let’s discuss a few of these:

The RM model is tiered: 1. Tier 1: Organization; 2. Tier 2: Mission and Business Processes; and Tier 3: IT and Industrial Control Systems.

The RM model has a cycle of: Frame => Assess => Respond => Monitor.

Each tier follows a process, much like the Project Management Institute Body of Knowledge (PMBOK)

Different RM model.  ERM based.  Interesting.  Novel.  Check it out.

MORPHING PROFESSIONS

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Qur firm – Quality + Engineering – provides professional engineering, forensics, and risk management.  In the last two months, we’ve been contacted to:

1.  Manage outsourced quality operations.
2.  Reframe a much smaller quality group into a risk management group.
3.  Do a combination of the above.

Is the quality profession morphing, disappearing, or maturing?  Or, is this an anomaly to the quality profession?  I don’t think so!

We’re seeing more than one profession changing dramatically.  As I read the NY Times and Wall Street Journal, it’s happening to the legal, marketing, journalism and most professions.    Newly minted lawyers can’t get jobs.  Top law firms are changing their revenue models, revamping their partnership models, or are folding.  Marketing is moving on line, which requires new technical skills.  Journalism is also moving online.

So, the critical questions for most of us are:

  • What changes are happening in our profession?
  • How are we keeping current?
  • What value are we adding to our organization or customers?