Mastering Strategic Risk: A Framework for Leading and Transforming Organizations

Chapter 4 Transforming the Corporate Agenda: Applying the New Learning to Master Strategic Risk

The requirements of our new age demand a unique approach in the way companies account for the risks and complexities of the twenty-first century. To rise to these challenges, organizations as systems must be governed holistically, incorporating mechanisms that keep pace with an increasingly dynamic marketplace. Through a keen focus on the critical elements and forces that serve as fundamental pillars in systems leaders can build robust capabilities, enabling them to unleash the true power often lying dormant in organizations. These elements will serve as a compelling catalyst for operational excellence, ensuring optimal performance even in the most challenging of times.

Aligning the Three Elements and Forces for Impactful Results

Organizations in the context of systems provide a unique lens to evaluate the effectiveness of critical activities and functions. While this differs from the traditional way in which we think of corporate activities, it does not conflict with the internal structures in place today that support the sale of products and services. The focus on organizations as systems also supports traditional approaches to operational excellence. While the first few chapters introduced these new concepts, this chapter will demonstrate how the elements and forces, when combined, can provide a compelling operational framework.

Operational excellence is focused on two important ...