Best Possible Outcome

CHAPTER 14UNDERSTAND AND PREPARE FOR UNCERTAINTY

Now we pull it all together. The examples of leadership on both sides of the conflict and the series of lessons that illustrated them can now be aligned with a process for decision-making in times of uncertainty and stress. A process for when your organisation finds itself in a situation that is unclear, when decisions need to be made fast, though the answers to the questions faced do not readily present themselves.

PREPARING YOUR ORGANISATION TO RESPOND IN THE FACE OF ADVERSITY

Your business has a strong risk culture. Your comprehensive risk processes mean everyone from the board down feels comfortable. Everyone knows that the controls in place and contingency plans developed through your enterprise risk analysis cover the risks the organisation is exposed to.

But, what about black swan events — the occurrence of an unimagined event or events, and the failure of all the controls you have put in place to minimise the risk? The hospitalisation of children is linked to your product; two of your key suppliers go into liquidation; your CEO dies unexpectedly; an extramarital affair of one of your executives is made public; the roof of your warehouse fails, damaging millions of dollars' worth of stock; staff are kidnapped; you face earthquake, bushfire, flood or a global pandemic.

The academic process of risk management will only take you and your team so far. You need a deliberate decision-making process.

We will begin by reviewing ...