| 3 Alphas in Management is written using very simple | | | | take over? |
| yet effective and proven management techniques that | | | | Do we hire someone from outside? |
| I have been using in my almost 30 years in senior | | | | Will he be willing to come? |
| management positions in varied industries. The | | | | When can he come? |
| emphasis of 3 Alphas in Management is on the | | | | Will we be able to afford him? |
| formation of teams, known as circles, involving every | | | | Will the employees accept someone from outside for |
| level of personnel in the organization to create a | | | | such a senior position? |
| cohesive work force with a sense of purpose within a | | | | There are just so many questions !! |
| customer-centric organization. | | | | That needs answers, answers and more answers !! |
| -- Overview -- | | | | - Loss of Key Assets |
| 3 Alphas in Management is written using very simple | | | | Next, ask yourself : |
| yet effective and proven management techniques that | | | | What happens if our production plant were to be |
| I have been using in my almost 30 years in senior | | | | destroyed, by fire, floods, explosions? |
| management positions in varied industries, including as | | | | Are we prepared and ready to start production |
| a Vice President with a large multi-national company | | | | elsewhere the next day? |
| (MNC) and as a Group Executive Director of a public | | | | Are there other manufacturers who can manufacture |
| listed company (plc). | | | | for us? |
| The emphasis of 3 Alphas in Management is on the | | | | Will we be able to meet current orders and |
| formation of teams, known as circles, involving every | | | | commitments? |
| level of personnel in the organization to create a | | | | Will customers leave us for our competitors? |
| cohesive work force with a sense of purpose within a | | | | Hey, are we even insured? |
| customer-centric organization. | | | | I think the picture is very clear and I do not have to |
| Circles are used to denote a roundtable atmosphere | | | | discuss any other adversities that could probably beset |
| and environment, whereby all the circle participants are | | | | your organization. |
| equals and are also equally important. | | | | -- The Circles -- |
| No one is left out, and in fact, no one should be left out. | | | | What is required is for you to set up Risk |
| After all, all employees are also consumers and are | | | | Management Circles in your organization to prepare |
| customers and their ideas and input on how an | | | | your organization "Against All Adversities". |
| organization can be more customer-centric are valid | | | | The Risk Management Circles (RMCs) that could be |
| and as such, should not be discounted or overlooked. | | | | set up are |
| 3 Alphas in Management starts from AAA (the 3As) | | | | - RMC on loss of key personnel |
| to ZZZ (the 3Zs). | | | | This RMC would identify all key personnel and |
| I believe that the list is non-exhaustive. | | | | determine the risk exposure to the organization and |
| But instead, I hoped that the 3 Alphas in Management | | | | ways to minimise or mitigate this risk in the event of |
| will stimulate your organization to create their own | | | | loss of these employees. |
| customized 3 Alphas. | | | | - RMC on loss of key assets |
| For example, I have used "Ideas In Improvement" for III | | | | This RMC would identify all key assets and determine |
| (3Is), but also valid would be "Investing In Intrapreuners" | | | | the risk exposure to the organization and ways to |
| or "Innovations In Industry" etc. etc. | | | | minimise or mitigate this risk in the event of loss of |
| -- The 3 As (AAA) - Against Any Adversities -- | | | | these assets, particularly assets used in the production |
| -- Overview -- | | | | of goods and services for sale. |
| It has often been said that the greatest asset of any | | | | - RMC on loss due to infidelity |
| organization is the people that work for them. | | | | This RMC would identify all losses that may be |
| Every organization is built on the strength of the people | | | | incurred due to infidelity by key management staff and |
| that work for them, the stronger the people are the | | | | determine the risk exposure to the organization and |
| stronger the organization will be. | | | | ways to minimise or mitigate this risk in the event of |
| Unfortunately, many organizations never have the | | | | any act of infidelity. |
| opportunity to test the strength (or weakness) of their | | | | - RMC on loss of data |
| people until it is too late, that is, in the face of acute | | | | This RMC would identify all key information data and |
| adversity. | | | | determine the risk exposure to the organization and |
| It is therefore very important and highly critical to the | | | | ways to minimise or mitigate this risk in the event of |
| continued success and survival of any organization to | | | | loss of these data, particularly data which are |
| groom and train their people to be able to face up to | | | | considered critical for the day to day operation of your |
| any adversities. | | | | organization. |
| Thus, the first of the 3Alphas of Management looks at | | | | - RMC on industrial espionage and loss of trade |
| preparing the organization "Against Any Adversities". | | | | secrets |
| No one plans for adversities to happen. So, most of | | | | This RMC would identify all key trade secret data and |
| the time they do not plan on how to overcome them. | | | | information and determine the risk exposure to the |
| Also, most people feel and believe that mishaps will | | | | organization and ways to minimise or mitigate this risk |
| only happen to the other person and not to him. | | | | in the event of loss of these secrets, particularly trade |
| Similarly, organizations used to believe that misfortunes | | | | secrets that have given your organization the leading |
| will only beset and befall others, hopefully their | | | | edge in your industry. |
| competitors. | | | | -- Methodology -- |
| However, nothing is further from the truth. Mishaps, | | | | Circles are used to denote a roundtable atmosphere |
| misfortunes, adversities, calamities, disasters happens | | | | and environment, whereby all the participants in the |
| everyday and to anyone. It knows no favors and | | | | Circle are equals and are also equally important. |
| owes no favors. | | | | - The Circle would be set up by the Management |
| So are you and your organization ready to face any | | | | - The Circle will be made up of personnel from |
| adversity that may beset you ? | | | | different departments or divisions |
| If the answer is YES, you can skip to the next | | | | - The Circle will have a facilitator and not a Chairman, |
| 3Alphas in Management, but if it is a NO or even a | | | | and a Secretary |
| MAYBE, read on. | | | | - Minutes, to be taken by the Secretary, will not be |
| What sort of adversities could beset your | | | | taken verbatim, but only the main points and the |
| organization? | | | | decisions are recorded. This is to ensure that |
| The list is non-exhaustive, but let us look at a few and | | | | participants will be willing to express themselves and |
| see how well you and your people are ready to face | | | | their ideas and concerns freely without fear |
| them. | | | | - The Circle would then be empowered by the |
| - Senior management replacement policy | | | | Management to : |
| Most organizations have in place a very well planned | | | | - Identify the possible risk within their defined area, |
| and executed Succession Planning Program. | | | | example on Loss of Key Personnel |
| Do you have one? | | | | - Discuss ways to mitigate or minimize these risks |
| It is actually quite simple but some organizations find it | | | | - Make a proposal to the Management on the possible |
| quite difficult if not impossible. | | | | steps needed to be taken to overcome or minimize |
| The first question you need to ask is : | | | | the risks |
| Amongst your key personnel, who in your organization | | | | - Design the Reporting Formats to be used to |
| are currently irreplaceable and indispensable? | | | | document the risks and the steps taken to mitigate |
| Is it the owner, the Chairman, the President, a Vice | | | | them |
| President, who, indeed who? | | | | - Monitor the progress of the organization's |
| The next question to ask would be : | | | | implementation of the mitigating steps |
| What happens if these individuals are no longer with | | | | - Report to Management on any "new" risk that they |
| the organization? | | | | foresee |
| Then ask yourself : | | | | - Report to Management on any shortcomings in the |
| How can we plan for this eventuality? | | | | implementation of the mitigating steps |
| The question goes on and on, but unfortunately all | | | | -- I will continue posting articles on 3 Alphas in |
| these questions need answers. | | | | Management until the 3Zs (ZZZ), but not necessarily in |
| Do you promote internally? | | | | alphabetical order. |
| Is anyone ready to take over? | | | | -- Email me and I will keep you informed when they |
| Will the person replacing him have the necessary | | | | are ready for publishing. |
| knowledge, experience, qualification and maturity to | | | | |