Dealing with uncertainty and risks
The 21st century, with its technological and social upheavals, is characterised by VUCA. The term originates from the US Army War College and stands for Volatility, Uncertainty, Complexity and Ambiguity.
The conditions of VUCA require companies to adopt new management and control instruments and the ability for fast adaptation into de-centralised structures.
This streamlines corporate planning, but companies must think of essential scenarios in which different conditions are anticipated and their consequences thought through.
We can support you in prioritizing and evaluating scenarios, opportunities / risks and the quick adaptation of the organisation to changes.
- Revision of management and control instruments, as well as organisational adaptation in the VUCA environment (e.g. business planning, forecasts, creation of decentralised structures)
- Introduction of cascaded opportunity/risk management (scenario analysis, risk mapping)
- Development and implementation of measures for risk reduction
- Establishment of business continuity management to prepare the company for changes, crises, emergencies and loss events which threaten the existence of the company and increasing the resilience of key business processes
Adapting the corporate structure to the VUCA environment
An international technology group has to deal with rapidly changing conditions. The management and control instruments are “rigid and linear”; the organisation is structured in a conservative, hierarchical fashion. Changes and risks are often anticipated too late and adaptation of the organisation is cumbersome to inconsistent.
- Analysis of different environments / business scenarios in corporate planning
- Adoption of continuous opportunity and risk management and their prioritisation and consolidation at corporate level
- Preparation of a monthly Top 10 Opportunities and Risks list for prioritisation
- Revision of management and control instruments with a view to decentralisation and changing the corporate culture
Increased transparency of risks and fast company reactions to reduce risks
Your Contact Person
Dr. Mike Körner