Mastering strategic risk : a framework for leading and transforming organizations

251 Pages·2014·17.01 MB·English

by  Joel E

Mastering
Strategic Risk
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Mastering
Strategic Risk
A Framework for Leading and
Transforming Organizations
JOEL E. MCPHEE, JR.
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ISBN 9781118757291 (Hardcover)
ISBN 9781118772874 (ePDF)
ISBN 9781118772867 (ePub)
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
This book is dedicated to the Past and the Future:
The Past, in memory of my maternal grandfather,
Arthur Leon Roach Sr., whose tremendous insight and
vision inspires me to this very day
And
The Future, in the form of my wonderful
daughters, Kimai and Kiori . . . It’s a blessing and an honor
to be the father of two amazing human beings!
Contents
Preface xi
Acknowledgments xv
INTRODUCTION
Mastering the Complexities of a New Age 1
CHAPTER 1
The Round World, the Square Pegs: Redesigning Organizations to
Manage the Risks of a Different World 5
Righting the Ship: Managing the Complexities
of a New Age 5
The Untold Story of Wachovia’s Demise: The Rise and Fall
of an Industry Giant 7
A Symptom of a Much Larger Challenge 12
The Burning Platform: Why the Need for Change 14
Leveraging the Power of People 15
A World of Patterns: Does Nature Hold the Answers? 16
References 17
CHAPTER 2
The Three Elements: Creating, Facilitating, and Supporting Your
Competitive Advantage 19
A Framework Taken from Nature 19
The Human Body as an Example 2
Ecosystems 25
The Three Elements and Our Marketplace 26
The Thre Elements and the Auto Industry 31
The Three Elements and Organizations 32
The Creative Element in Organizations 34
Information Technology as an Example 36
Everything Old Is New Again 36
Sumary 38
vii
viii CONTENTS
Questions 38
Note 39
References 39
CHAPTER 3
The Three Forces: Mastering Strategic Risk with Repetition, Balance,
and Movement 41
Anticipating Change: Toyota 41
Three Forces that Dictate Performance in Systems 43
Movement and Change in Nature 44
Movement, Balance, and Repetition in Our Marketplace 48
Change, Balance, and Repetition in Organizations 51
The Three Elements and Forces and Our
System of Government 54
The Federal Government Supports, Facilitates, and Creates:
A Fractal View 57
The Federal Government and Oversight 58
A Holistic Aproach 59
Sumary 60
Questions 60
References 61
CHAPTER 4
Transforming the Corporate Agenda: Applying the New Learning to
Master Strategic Risk 63
Aligning the Three Elements and Forces for Impactful Results 63
The Three Elements as Key Drivers of
Organizational Performance 65
Creativity and Innovation through the Lens of
Industry Leaders 67
Identifying Additional Centers of Creativity and
Growth in the Most Unlikely of Places 71
Growth through Facilitative
Functions and Capabilities 74
Growth through Supportive
Functions and Capabilities 76
Repetition and Operational Excelence 78
Wachovia and Merger Integration 78
Managing Movement and Change 81
The Value of a Transformation and Change COE 81
The Importance of Measuring Key Controls and Activities 83