Using Risk Management To Ride Out Tornadoes of Change And Keep The Success In Succession
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Imagining and planning for the future is not always easy. Sometimes we just can't foresee obstacles until they are right in front of us. But then we must pivot, and quickly.
A busy first quarter of 2024 culminated in my near-death experience (due to medical negligence). This was followed by a long recovery, and new physical realities that have shifted my life, irrevocably. Cancer was essentially the one-punch; and being back in the Emergency Room in April with septic shock, fighting flesh-eating bacteria, was the uppercut. On the bright side, the extra rest provided some time for long-term introspection and decision making.
It also put the interplay between high-performing systems and people, front and center of my hospital bed. In Healthcare, the systems and people have to work well together or patients die. But that's the case in many industries.
When I worked in GE Energy's global quality unit, I appreciated the laser-like, central focus on quality. Our training curricula relied on thorough policies, procedures, and work instructions that all aligned with ISO standards. GEE was industry-renowned for maintaining a 5-year and 10-year risk management playbook, including mitigating supply chain interruptions of raw materials, parts, manufacturing machinery, tools and all the other essential ingredients to our quality-aligned products.
It covered things like: What was the possibility of war in a supplier country…and what would we do about it? What would happen if 5%, 10% or even more, of our workforce dropped out of work due to a viral pandemic ravaging their bodies? Did we cross-train our people to ensure forward movement? How would we pivot – and fund – a destroyed manufacturing plant due to tornadic activity? There were many types of interruptions considered, and proper planning made pivots possible.
Contrast this example with Boeing's current trajectory. Their past reputation for high quality has been heavily tarnished because they didn't remain agile and attentive to change. There have been crashes. They punished their whistleblowers. Now there are two astronauts on the space station waiting for Boeing to fix issues on their Starliner. It remains to be seen whether or not Boeing has the will to confront and fix these quality mistakes.
Was any of this due to automation challenges? Because we hear a lot these days about Artificial Intelligence (AI). Both the good: more efficiency, reduced redundancy, scalability, greater solvability. And the bad: displacing jobs, changing social interactions, hurting the environment, eradicating humankind. However, AI is simply the most recent digital technology we've started to explore. I heard keynote speaker Sharon Gai, speak about AI at last month's Florida Society of Association Executives (FSAE) Annual Conference. And it gave me better insight. She agreed to serve as a guest blog writer this month, and I hope you I hope you enjoy her article that follows below.
We have to remember that change and interruptions will always come. And that we can help ensure high quality by aligning our people and systems effectively. AI is certainly going to be some part of that. But the people part comes first.
In previous newsletters, I've talked about how proud I am of the culture we've built at Change by Design. One of the pivotal people in helping to fortify and expand this organization has been my right-hand, Robin Herriff. As our lead project manager for the last eight years, Robin has shepherded dozens of client projects to success. She assists me with hiring and communication, and even stepped up to help with internal operations like invoicing while I was battling cancer. As a result, our relationship has grown closer. She is now my business partner and the COO of Change by Design, willing to embrace our company as her own as it is mine.
Right along with supply chain and technology, succession planning should be in your company's risk management playbook, if it isn't already. As Steve Jobs battled pancreatic cancer, he put the right people in place at Apple who could carry his vision forward if he didn't make it. A couple of months before his death, he recommended his successor, which helped people envision Apple without Steve Jobs. Tim Cook wasn't a replica of Jobs, but had the skills to do the job, shared Jobs' vision for Apple, and had the right personality for the culture to thrive.
Facing mortality can certainly motivate you make dramatic changes. But it isn't required in order for you to take action now, to ensure that the future will remain bright when you leave the stage. Just remember that the future is unwritten and each day is truly a blessing. I wish you good health, vibrant days, and hope you take this opportunity to plan today for what will inevitably come tomorrow.
Yours Truly,
Sue
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