Risk Management Within an Organisation

Introduction

This manual is written to advise on an approach to managing risk, with regards to procedures to follow in conducting risk analyses and treatment.

Background of my Organisation

Risk Management Within an Organisation

I will focus my attention on the management of risks for my company in general. My company is involved in the trading of steel products, mainly for construction purposes, as well as the sales and purchases of agricultural products such as beans, maize and rice. With regards to these products, letters of credit (LCs) have to be initiated regularly for such products to be sold overseas. As part of the accounting and finance function, my responsibilities are not only in the proper accounting treatment of such transactions, but also as part of the team involved in a new trade financing project to ensure the smooth flow of these transactions from the opening of LCs, the financing as well as the delivery of these products. Such a flow will involve the cooperation of both the operations and the accounting and finance departments.

Purpose of Risk Management

Business risk relates to exposure to certain events that will have a negative impact on the strategies and objectives of the company. Hence business risk is due to two factors: the probability of an event occurring as well as the seriousness of the consequences (Bowden, Lane and Martin, 2001). There are several risks that are more specific to my organization, and are shown as follows:

1. Strategic risk, such as poor marketing strategy and poor acquisition strategy, as a result of poor planning (Bowden et. al, 2001). Poor marketing and acquisition of different grades of steel and agricultural products can prove the downfall of the organization.

2. Financial risk, such as lack of credit assessment and poor receivables and inventory management, as a result of poor financial control (Bowden et. al, 2001). Inadequate credit assessment of potential trade and other debtors as well as low debtors' turnover can be a poor reflection of the company's strategy and objectives.

3. Operational risk, such as poor practices and routine actions, as a result of poor human actions (Bowden et. al, 2001). Non-conformity to the organization's safe practices or even willful actions by employees can create potential operational and financial losses to the company.

4. Technical risk, such as equipment and infrastructure breakdown and fire destruction, as a result of failure of physical assets (Bowden et. al, 2001). Such risks can be prevalent in my organization if appropriate actions are not taken to prevent these technicalities. Unfortunately, many organizations tend to focus too much on the performance and cost dimensions of technical risk and manage them too heavily (Smith and Reinertsen, year unknown).

5. Market risk, such as inadequate market research, which is the risk of not meeting the needs of the market, assuming that the specification has been satisfied (Smith and Reinertsen, year unknown). This risk may be more important compared to others, however it is less manageable due to the risk being less objective and quantifiable compared to say technical risk

As a result of such risks mentioned above, coupled with the advancement in technology and competitive pressures, risk management has taken a more important role in the existence of businesses today (Bowden et. al, 2001). Risk management relates to the logical and systematic way of establishing context, identifying risks, analyzing risks, evaluating risks and lastly, treating risks. This approach also involves communicating and consulting the findings as well as monitoring and reviewing the treatment of risks. This approach to managing risks is known as the AS 4360 method (Bowden et. al, 2001).

Risk Management

Step 1: Definition of Context

This relates to the establishment of context in terms of strategic, organizational and risk management (Bowden et. al, 2001). The strategic context is concerned with the relationship between the organization and its parameters in terms of financial, operational, competitive and social context (Bowden et. al, 2001). In the case of my organization, we are concerned with our financial objectives (i.e. sales turnover of US million with a profit margin of at least 12% annually), products with high quality and good customer satisfaction, as well as good market position (one of the top suppliers of steel in the regional construction industry). The strategic context also requires the organization to identify the stakeholders, which includes the owners, employees, customers, suppliers as well as the local community (Bowden et. al, 2001). In addition to that, my organization will have to be accountable to our shareholders and the media as well, since we are a local listed company.

The organizational context will be concerned with wider goals, objectives and strategies of the company as a whole (Bowden et. al, 2001). In this context, we have to establish and implement sufficient key performance indicators (KPIs) and critical success factors (CSFs) that are suitable to the different aspects of the business. There are a couple of KPIs that are commonly used in my organization:

1. Revenue and profit targets: These are mentioned above.
2. Customer satisfaction: Surveys are sent quarterly to our suppliers and customers to ensure at least 90% customer overall satisfaction.
3. Stocks update and on-time deliveries of goods: Sufficient stocks are maintained and retrieved from suppliers and deliveries have to be made on time to customers at least 98% of all sales orders.
4. Timely submission of monthly accounting and sales records to head office: The deadline of submission of such reports is usually the 5th of each month, which has to be strictly adhered to.

On a wider basis, such KPIs are also linked to CSFs in my organization, which includes the following:

1. Maintaining a healthy position in our markets: This is mentioned above.
2. Supportive top management open to marketing and financing ideas: The directors and senior management have a fortnightly meeting with lower management on possible ideas and brainstorming on ideas and possible financing from banks on certain products.
3. Sufficient funds and resources in place: Funds have to be in place for LCs, which are converted to trust receipts, which have to be settled within certain tenure, coupled with adequate manpower and technologies for proper functioning of the organization.

With these KPIs and CSFs in mind, the various activities of the can be further segregated into smaller teams and activities to provide a more logical flow for better analysis (Bowden et. al, 2001). In my organization, the sales teams are broken up into smaller groups in charge of various products for steel and agricultural aspects. This is also done likewise for the finance department, which has smaller teams in charge of receivables, payables and other administrative functions.

Step 2: Identification of Risks

This process aims to identify all events, which might affect the organization as a whole. In such a scenario, there is a need to identify all causes and potential situations (Bowden et. al, 2001). After which, we will proceed to link the risks, both threats and opportunities, with key criteria that will have a direct impact on the organization (Bowden et. al, 2001). There is also a requirement to approach these risks with proactive and reactive responses (Bowden et. al, 2001). There are several tools that can help with identifying risks, namely brainstorming, checklists and judgements based on experience.

In my organization, there are several tools used to identify risks. For the finance department, there is a quarterly checklist used on different risks involved, which can include the amount of tax incurred and tax credits agreed with the tax authorities, the amount of receivables and stock updates and how efficient their respective turnovers are. Provisions for such items are also raised based on prior experience. For the marketing and operations department, weekly meetings are conducted whereby brainstorming and systems analysis are used to identify possible risks with regards to competition, changes in prices and tastes of customers as well as the safe-guarding of stocks at our premises. It is further recommended that a product plan with a product manager be put in place, with rankings are given to the priority of such risks and the inputs, processes and outputs should be investigated in greater depth (Bowden et. al, 2001).

It is mentioned that a test market will be useful if there is a high degree of uncertainty about the eventual sales of the new product as the launch date approaches (Cooper, year unknown). My organization is currently looking at possible new sales of liquor and diesel for its overseas markets. However, these possible sales are not considered new products in the existing markets. With speed and the competitive environment being important facts, a test market may not be applicable in our scenario (Cooper, year unknown).

In addition to the launch of possible new products, there are several pitfalls in considerations for my organization:

1. Lack of market orientation. These are possible risks considering insufficient market analysis and not understanding customer needs and wants.
2. Poor quality of execution. With regards to my organization, the grades or quality of the flammable new products might be filled with deficiencies, hence not meeting customers' needs.
3. Moving too quickly. A too hasty approach to launch these products might render too many mistakes in the process and compromise the quality and timing of the promotional activities (Cooper, year unknown).

Step 3: Risk Analysis

This step involves the estimation of the likelihood and consequence of possible risk events. These are often evaluated using the current controls in place (Bowden et. al, 2001). Such controls are needed to ensure effective operations, reliable reporting systems and proper compliance with rules and regulations (Bowden et. al, 2001). In my organization, controls in place will include past records, market analysis given by traders from different countries, published literature in the form of accounting and marketing magazines and internal and external auditors' reports.

There are several techniques that are used to establish likelihood and consequence, namely structured interviews, multi-disciplinary groups of experts, assessments using questionnaires and computer modelling (Bowden et. al, 2001).

The decision tree technique can also be used whereby the expected net present value (NPV) of cash flows associated with each individual outcome is shown (Vlahos, 2001). This technique is useful for the following reasons:

1. It improves our understanding of each outcome and makes assumptions more forthcoming.
2. It is useful for documenting and communicating thoughts on uncertainty and also helps generate alternatives for better value enhancement.
3. Managers can monitor each stage of the project and make appropriate analysis with regards to decisions made at each point
4. The outputs in terms of expected NPVs generated can be used as potential inputs for projects selection (Vlahos, 2001).

This technique is highly recommended for my organization in two ways:

1. This can be used in decisions made by the marketing department in terms of which products to obtain for potential markets.
2. The finance department will also find it useful in terms of the different ways of financing (i.e. direct cash financing, using LCs or trust receipts) in consideration for the building of the trade finance project.

There are two types of risk analysis, mainly qualitative and quantitative (Bowden et. al, 2001).

Qualitative Technique

A qualitative method makes use of words or descriptive scale and comes in the form of a ranking structure, alternating between Rare and Almost Certain. Such a method is concerned with raking likelihoods and consequences (Bowden et. al, 2001). With regards to construction projects, which can be applicable to my organization, the consequences can range from insignificant (whereby there is no injuries and minimum financial loss), moderate (injuries with medical help required and moderate financial loss) to catastrophic (death with significant financial loss). Such a qualitative table with various likelihood and risk levels matrix can be useful in the following scenarios:

1. Initial screening guide to identify possible risks for further analysis.
2. Where the level of risk does not justify the time and effort required for more analysis.
3. Insufficient numerical data, which renders a quantitative analysis useless.

For the qualitative analysis, the management and staff with regards to the risk events at different levels must work through the risk-ranking matrix. Each likelihood and consequence criteria should be considered in order to put events in the appropriate category (Bowden et. al, 2001).

However, there are several disadvantages associated with this technique:

1. It may not be too accurate as events within the same category may have substantially different levels of risk.
2. There may not be a common basis for comparison of risk i.e. on dollar basis or number of deaths.
3. There is no clear justification with regards to the process of 'weighing' risks
4. There could be different interpretations with regards to the meaning of different consequences i.e. the word catastrophic can mean a great deal to some people, while others might take it more lightly.
5. It can be difficult to translate the findings from this technique to match that of a quantitative method (Bowden et. al, 2001).

With these pitfalls mentioned above in mind, I would think that it will be better to consider the qualitative technique as more of an initial screening exercise which should be used concurrently with the quantitative technique.

Quantitative Technique

This approach takes the product of likelihood and consequence, with the consequence expressed as an actual variable (Bowden et. al, 2001). Such a technique is more reliable as it relies on numerical values, with estimates of frequency being made in terms of event frequency (Bowden et. al, 2001).

There are several drivers of risks, namely, technology, people, systems, organizational factors and external factors (Bowden et. al, 2001). In my organization, some drivers of risk might include how updated my computer versions of accounting and sales systems, the competency and educational levels of the employees, the number of new ideas by lower management accepted by higher management and possibly the amount of pollution our products might cause to the environment.

The quantitative analysis is further broken down into likelihood and consequence criteria. For the likelihood criteria, it is expressed as a probability instead of frequency, thus ensuring that risks are compared on a similar basis (Bowden et. al, 2001). With similar small events likely to occur, the likelihood of them occurring can be considered as one event. With regards to my organization, examples of such similar events might include:

1. 20 deliveries which are not made on time (more than 30 minutes) to customers resulting in losses of ,000 each for transportation costs
2. 5 deliveries of wrong grades of products to customers resulting in losses of ,500 for transportation and bank charges.

For the consequence criteria, it can be considered in terms of an event leading to possible death or severe losses i.e. financial or reputation losses. In the case of the two examples for likelihood criteria given above, the related consequence criteria are as follows respectively:

1. Free deliveries made for the next trip.
2. Appropriate discounts given for these batches of products sold.

The consequence criteria can also be expressed quantitatively in terms of non-performance or failure to achieve certain KPIs, reflecting on the organisation's priorities in accepting varying degrees of risks. In my organisation's case, the free deliveries and discounts given could jeopardize not only the revenue and profit targets, but also in terms of customer satisfaction (which are important KPIs). As such the consequence criteria can be expressed as the mean or expected value (Bowden et. al, 2001). This is consistent with the Monte Carlo method, which can be used to obtain the distribution of the project or product value associated with trading operations (Vlahos, 2001).

Step 4: Risk Evaluation

Risk evaluation is concerned with identifying which risks must be treated and can be calculated using the product of likelihood and consequence (Bowden et. al, 2001). The risks can be compared with previously established criteria. Different softwares such as the Monte Carlo approach, the sensitivity analysis and the probability distribution can be used to show the effects of major risks for evaluation (Bowden et. al, 2001).

Step 5: Treating Risks

There are several methods of treating risks, namely avoidance, accepting, reduction and transfer of risks (Bowden et. al, 2001).

1. Avoiding risks. In my organization, avoiding such risks would involve possibly not importing highly flammable products such as liquor or diesel (which are part of the consideration for new products) as part of sales and speculating in foreign exchange fluctuations.
2. Accepting risks. Certain risks may be unavoidable. In my organisation's case, we have huge sales transactions in Myanmar, which has just experience a major military and governmental coup. Hence sales in Myanmar may be volatile. These are potential risks, which are already factored in our business considerations.
3. Reducing risks. Currency fluctuations are imminent when trading with overseas counterparts for my organization. Hence LCs and hedging are done frequently in order to mitigate such risks for products purchased and sold to other countries.
4. Transfer risks. For my organization, this is done in terms of insurance coverage for stocks, which are housed in our premises.

Some other popular treatment of risks will include audit compliance programs, contractual obligations and conditions, preventive maintenance, quality assurance and contingency planning (Bowden et. al, 2001). Such treatments of risk are also maintained within my organization.

The different options for treatment of risks should be evaluated and risk treatment plans should be planned and prepared (Bowden et. al, 2001). Such a plan should consider detailed base implementations, risk assessment in terms of threats and opportunities in terms of priorities and recommended proactive and reactive contingency plans. (Bowden et. al, 2001).

The risk treatment schedule and action plan should include the following:

1. The different duties and responsibilities for implementation of plan. Preferably, the plan should involve a project leader and different members in charge of one aspect of the project reporting to the leader.
2. The resources to be utilized.
3. Work breakdown structure for the activities
4. Budget allocation
5. Schedule for implementation
6. Details of the mechanism and frequency for proper compliance to the treatment schedule (Bowden et. al, 2001).

Step 6: Communicating and Consulting

For this stage, stakeholders need to have a common understanding of the project or product situation. Consultation from stakeholders as well as experts is required for better opinions, with communication needed for better coordination (Bowden et. al, 2001).

Such an approach is required for several reasons:

1. To prove that the process is conducted in a systematic manner.
2. To provide records of risks and proper organizational records.
3. To provide relevant decision makers with a proper risk management and action plan for approval and implementation.
4. To provide accountability.
5. To facilitate further monitoring and review.
6. To provide audit trail.
7. To share information (Bowden et. al, 2001).

This report should include the following:

1. Executive summary
2. Scope of project
3. Methodology of study
4. Contextual issues of the project including the restraints
5. Success factors chosen
6. KPIs for each success factor chosen
7. Target and tolerance
8. Any assumptions
9. Top ten risks across all CSFs for the project or product plan
10. Vulnerabilities in phases of the project
11. Responsibilities for managing risks in phases
12. Primary and secondary drivers triggering each risk
13. Existing controls
14. Tables and figures (Bowden et. al, 2001)

Step 7: Monitoring and Reviewing

For the final step, there is a need to develop and apply mechanisms to ensure ongoing review of risks i.e. project leaders should provide a consistent update of the current situations (Bowden et. al, 2001). The effectiveness of the risk management process should be consistently monitored and reviewed (Bowden et. al, 2001).

Conclusion

Risk should be managed on an active basis. Risk management will involve identification of areas of high risks ahead of time, interpreted to the greatest degree possible, with the best technical or marketing talent allocated to the problem, have the problems solved as quickly as possible, and be provided with a contingency plan in case something cannot be resolved (Smith and Reinertsen, year unknown).

Reference List

Bowden, A., Lane, M. and Martin, J. (2001) Triple Bottom Line Risk Management. Wiley.

Cooper. (year unknown). New Products: Problems and Pitfalls. Pg 22-49.

Cooper. (year unknown). To test or Not to Test. Pg 123-129.

Smith, P. and Reinertsen, D. (year unknown). Managing Risk. Pg 207-21.

Vlahos, K. (2001). Tooling up for Risky Decisions. Pg 47-52.

Risk Management Within an Organisation
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First Step in Becoming an Excellent Supervisor: Self-management

Managers or supervisors need certain skills and knowledge such as how to delegate, communicate, hire, resolve conflict, and work with difficult people. However the first step for people to become excellent supervisors involves their managing themselves.

Budgeting time multiplies the results gained each day. Time budgeting means a person can and does know how to deal with interruptions, understand and manage procrastination, and learn what to control and what to ignore.

A manager needs to deal with interruptions wisely: Is the interruption necessary, or can it be "put off" until another time or indefinitely? Unless a supervisor can say, "Let me think about this and call you back," or "I'm sorry, but I'm busy right now," then she and her employer lose. Planning ahead can help avoid interruptions; delegating can keep interruptions down; setting up an in-office protocol for when and how to handle emergency situations will avoid many interruptions. Being organized will limit many problems. When unavoidable interruptions occur, as they will, a supervisor who can control her reactions and adjust will find such interruptions managable.

First Step in Becoming an Excellent Supervisor: Self-management

Procrastination is another problem that wastes time. Something that needs to be done or finished, but isn't, shows a lack of self-management on the part of a supervisor. According to Time Management on BusinessTown.com, we procrastinate for five reasons:

1. We haven't really committed to do the activity.

2. We're afraid of the job.

3. We don't place a high enough priority on the job.

4. We don't know enough to do the task.

5. We don't want to do whatever the activity is.

In all five cases, a manager must find a way to do what needs to be done, which means self-discipline is necessary. In some situations, finding the right person to do the job required can solve the problem.

An excellent supervisor stays motivated and under-control, even under trying and difficult conditions. When others become angry or upset, a manager stays in control. He keeps his eye and mind on the goal, the outcome of his job. Sometimes staying motivated means a supervisor should stop fighting change and find a way to accept it.

Being assertive without appearing arrogant or overbearing means staying under control. One man stated that even when he didn't feel confident, he acted as if he were until he was. Being assertive means feeling confident and behaving positively. Developing good communication and negotiating skills helps one be assertive, confident and successful.

Once supervisors can and do manage themselves then they can in turn be managers of others.

Sources:

1. "Procrastination - UIUC Counseling Center," http://www.couns.uiuc.edu

2. "Dealing With Interruptions," OnlineOrganizing.com

3. "Time Management: Can You Really Manage Time?" BusinessTown.com

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After years in business and teaching, Vivian Gilbert Zabel became a writer. An author on Writing.Com, http://www.Writing.Com/authors/vzabel, she also has books on Amazon.com, Hidden Lies and Other Storied and Walking the Earth. This article has been submitted in affliliation with http://www.Facsimile.Com/ which is a site in affiliation with Fax Machines.

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Communication - Seven Verbal Communication Skills That Improve Workplace Management Effectiveness

Successful executives, managers and supervisors know that the importance of effective communication in the workplace cannot be underestimated. Poor communication is responsible for mistakes, conflict, and negativity in the workplace. Have you ever thought the following?

"Oops, I know I said that, but what I meant to say was..."    
 

" Why can't I get buy in from the team?"

Communication - Seven Verbal Communication Skills That Improve Workplace Management Effectiveness

"That mistake could have been avoided if I had only said...." 

Two common communication barriers are:
Not being aware of effective communication skills Being in a hurry.
Since effective communication in business is essential to success at your company or organization, it makes sense to improve your communication skills. The good news is that you can learn some basic communication skills and use them today to improve the quality of your workplace relationships with both employees and customers.

Seven Communication Skills for the Workplace

1. Personal Contact

Did you ever wonder why companies spend thousands of dollars sending sales people across the country when they could do a phone call for much less? The reason is that people relate to one another better when they can meet in person and read each other's body language. What's more, people can feel the energy the connection creates. You can also smile and shake someone's hand when you greet them, which creates a powerful connection.

2. Develop a network.

No one achieves success alone. Success in any company requires a team effort.
Make an effort to get to know managers and employees in different departments within your company, Meet new people in professional organizations. Become active in your community.
3. Always be courteous.

Courtesy lets people know that you care.

The words "Thank You" show that you appreciate your employees' efforts, and this is important because appreciation is the number one thing that employees want from management.

A little change like saying, "Would you please..." instead of just, "Please..." will make you sound less dogmatic and will improve your relationships with your employees.

4. Be clear

Since people often hear things differently, and they may be hesitant to ask you to explain what you said, you should ask, "Did I explain this clearly?" This will confirm that people understood you.

5. Compromise

You can decrease the tension associated with conflict  if you always ask, "What is best for the company?" This gives people a different perspective on your requests, and they will be less likely to take any conflict personally.

6. Be interesting and interested

Even though most of your workplace communications will be about business topics, it is also important to share your personal side. Let your staff know about your interests and your family, and ask them about theirs. Telling a few short personal stories about your interesting experiences will make your employees feel more connected to you as a person. Read your hometown paper daily so you know what is going on in your community and what personal concerns your staff may have about them.

7. Listen

Listening attentively to your employees demonstrates respect. Listening isn't easy because everyone's mind tends to wander. So to help you concentrate on what the other person is saying, keep a good eye contact --without staring,  and then make a comment about it or ask a question.

Improving your communication skills is a process that happens gradually over a period of time. The good news is that you have opportunities to practice your communication skills every day at work. Here's a tip to help you improve faster. At the end of each day, take a moment to review your communications during the day. What was effective? What wasn't effective? That way you will continue to learn and improve your communication skills.

Communication is the key to success in business

That is why you should be aware of how you are communicating at all times. As a result... you will become a role model for effective workplace communication skills to your employees. This is important because the ultimate goal of any supervisor, manager or executive is to turn ordinary workers into extraordinary employees. You can take a huge step toward doing this by honing your own communication skills.

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Successful Workplace Communication is one of the 13 essential skills that employees use at work. The Employee Success Toolkit is a professional development course for employees that teaches these essential skills in 13 easy-to-follow lessons. See what these 13 skills are at: http://www.EmployeeSuccessToolkit.com

I also invite you to visit http://www.ConfidenceCenter.com for a free Employee Morale Starter eKit and Employee Morale Calendar Planner

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10 Must Have Management Skills

Management is what creates and sustains an organisation. Without good management any business will struggle. The trouble is that there is much to learn. While continued learning is essential there are 10 skills that every manager needs if they are to succeed.

1. Planning

Without a plan, nothing is achieved. As a manager you need to be competent in business planning, project planning, workload planning and contingency planning.

10 Must Have Management Skills

2. Communication

Communication covers writing, speaking and listening. You must be competent in all 3 areas. Many managers excel when it comes to speaking or writing. I wonder how many managers you know who have mastered listening.

3. Decision Making

You might get a good view sitting on the fence. Your job as a manager is to get results. If you procrastinate and avoid taking decisions, nothing moves forward. Be willing to take decisions and recognise that you will get a fair share of them wrong.

4. Delegation

We all love doing certain things. Unfortunately as managers it is all too easy to hold on to tasks that they know they should no longer be doing. We like things that we know how to do and there is little risk of problems. If you don't start to delegate, you are likely to end up failing as a manager.

5. Problem Solving

You and your team will encounter problems. Others will look to you as the manager to come up with solutions. Mastering problem solving will differentiate you from the team and show your boss that you can sort things out.

6. Interviewing

Recruitment of staff is probably one of the single biggest financial investments that any business makes. Yet many managers have never been trained in interviewing potential hires. Take the time to ensure that you develop these skills. Interviewing with someone very experienced and competent at the start is a great way of developing your skills as you have back up and can get feedback.

7. Appraisal

Staff appraisal done well is a source of motivation. Make sure that you understand your organisation's process, are thoroughly prepared and conduct appraisal meetings professionally.

8. Poor Performance Management

Sooner or later you will have an employee who is not performing. Many managers choose to ignore the warning signals. By doing so they are building up future problems. Deal with it early on, stating clearly the standards expected, where the employee is falling short and the improvements required. Make sure everything is written down and agreed with the employee. In tricky or complex cases seek advice from the Human Resources Department.

9. Motivating

You are responsible for getting results through others. Keeping the team motivated, even when things are tough is essential. Simple things like saying thank you, praising and being positive can make a huge difference.

10. Finance

While many managers wish that the Finance Department will take care of everything, this is not reality. As a manager you spend lots of company money and may generate some of it. Start by thinking about how your actions and decisions impact on the finances of the business and you will be a step ahead of most.

There are a host of skills to master as a manager. These, in my experience are 10 that you must have to prosper and realise your true potential.

10 Must Have Management Skills
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Duncan Brodie helps accountants and professionals to be great leaders and realise their career and earnings potential.

Sign up for his free monthly newsletter at http://www.goalsandachievements.co.uk

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Change Management & Transition Management

Global competition, challenges, company goals for higher profits, requisitions or structural change in the top management; all these factors call for one thing- Change Management.

British Airways had to alter its approach to content management on the internet, Cadbury had to cope with global changes by refocusing on its cultural and communication barriers, HP had its CEO resigning in 2005 and Kelloggs acquired Kebbler in 2001 which resulted in almost a double in its operations and revenues. These are to name a few companies that had faced different management faucets and were successful in their change management strategies.

Ever wondered what was that one essential aspect that all of them did not undermine at any stage? It was the focus towards its workforce. These companies never failed to understand what the employees needs are, and how to manage change with them with such huge internal and external changes happening with the organization.

Change Management & Transition Management

This is exactly what transition management is about- it is managing people in a manner that they are groomed and directed towards the final change that has to be achieved. Most managers get around by deciding the employees that would be involved in the process, the change in their tasks, job duties and the deadline by which it has to be done; these are the processes of change management. The intricate details of managing people who have to work towards the change are taken into view by transition management.

Most companies complain that their work force resists change, is de motivated and exhibits little co operation in adapting to change. Even the best designed policies and practices would be of no use, if they are not communicated effectively to the employees and they do not carry it out with full commitment.

Taking it step by step, as a manager announces any change in the organization; there are several phases that employees go through. The first stage is where the workforce is at complete denial or resistance to the change anticipated. The second one is where it leads to panic amongst the employees as they start to realize the implications of the change. Third is when they take a turn and start realizing the positive aspects the change would bring to them. And fourth, is when they actually start performing and achieving the change related results.

As a transition manager, it is the second and the third stage where employees have to be communicated effectively, trained and made understood what the new process is all about. All structural details should be accounted for by the managers to understand how they can better the process for the employees.

Therefore, remain positive as a leader, trust your employees and give them all the resources needed for change. Help your employees at each stage for better adaptation, encourage and support them through constant communication. And once change objectives are achieved, do make it a point that you celebrate it with your employees.

This is how transition management acts as the back bone of change management.

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The Importance of CRM Customer Relationship Management

CRM Customer Relationship Management is one of the newest innovations in customer service today. CRM stands for customer relationship management and helps the management and customer service staffs cope with customer concerns and issues. CRM involves gathering a lot of data about the customer. The data is then used to facilitate customer service transactions by making the information needed to resolve the issue or concern readily available to those dealing with the customers. This results in more satisfied customers, a more profitable business and more resources available to the support staff. Furthermore, CRM Customer Relationship Management systems are a great help to the management in deciding on the future course of the company.

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As mentioned, there is much data needed for the CRM system to work. These fields include the customer name, address, date of transactions, pending and finished transactions, issues and complaints, status of order, shipping and fulfillment dates, account information, demographic data and many more. This information is important in providing the customer the answer that he or she needs to resolve the issue without having to wait for a long time and without going to several departments. With just a few mouse clicks, a customer support representative for example can track the location of the customer's package or order. This is infinitely better than the cumbersome process of tracking shipments previously. Furthermore, the customer service representative will also be able to see the previous concerns of the customer. This is a great help especially if the customer is calling about the same issue since he or she will not have to repeat the story all over again. This results in less time in resolving the issue, thus, higher productivity of the support staff.

CRM Customer Relationship Management systems are also important to the top management because it provides crucial data like customer satisfaction and efficiency of service by the frontline crews. A piece of customer relationship management software will also be able to generate the needed reports for product development or new concepts. Furthermore, this system will also be a great help for the top management in deciding the company's future course of action, whether it involves phasing out one of the products on the shelves or making adjustments to one of the products sold.

The Importance of CRM Customer Relationship Management

The reports generated by CRM systems are also invaluable to your advertising and marketing planners, as they will be able to pinpoint which ideas works and which do not. Because of CRM systems, you will be able to release advertisements or plan marketing campaigns more in tune with your target market. This will also lead to more responses to your advertisement and a more effective marketing campaign.

Successful integration of a CRM Customer Relationship Management system in your company, however, might not be as easy as it seems. The following might give you an insight why CRM systems fail in some companies... Most companies fail to prepare for CRM systems. By this, I mean that most companies fail to integrate all the departments that need to share the information for it to be effective. Furthermore, CRM units scattered all over the company's departments is often more effective than just making one big CRM department. This will ensure that each department will get the information and data that they need.

A CRM system will also help you a lot in expanding your business. As CRM systems are capable of handling enormous amounts of data, CRM systems will help you a lot in coping with the increased numbers of customers and data. With a CRM Customer Relationship Management system installed and properly utilized, you can be sure that all data is maximized and used to ensure that your business will be successful and your customers a lot more satisfied than before.

The Importance of CRM Customer Relationship Management

Steven Taylor is a Marketing Consultant to http://www.Retronix.com - one of the most innovative and effective suppliers to the electronics & semiconductor industries. Services include BGA Rework and De-Bug Services.

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Children Anger Management Tips

Kids with unmanaged anger can grow up to face big problems. That is why it is so important to help your child learn to process negative emotions in appropriate ways from an early age. You can help them by trying helpful children anger management tips. Even toddlers can learn a little bit about self-control, although tantrums to a certain extent are bound to occur. Here are some children anger management tips that may help your family enjoy a more peaceful home environment.

Young Children Anger Management Tips

Management

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If you have toddlers or even preschoolers, you know that they are still learning to control their tempers, especially in public. Many parents are looking for young children anger management tips, and will eagerly accept suggestions from their parents, educators, and community leaders. It is important to remain calm during tantrums and outbursts, but also to be firm and consistent in issuing discipline so your child will take you seriously. Young children anger management tips include timeouts and distracting little ones from disgruntled emotions when they threaten to burst into angry behavior.

Children Anger Management Tips

Teen Children Anger Management Tips

When dealing with teen children anger management tips, you may have to substitute diplomacy and tact for discipline in this age group. Learn how to be a good listener, quietly asking your son or daughter about their day at school, friends, social activities, and concerns or problems. When you see that they are visibly upset about something, calmly explore that area by asking more focused questions or inviting discussion. In addition, you may want to talk about acceptable ways of expressing displeasure or irritation, such as avoiding certain situations, politely asking for substitutions, or suggesting alternative ways of doing something. Let your kids know in clear terms which behaviors will not be tolerated, such as the use of profanity, throwing things, slamming doors, or refusing to cooperate with housework or homework. You can post the rules on the refrigerator and even invite your teen to help write the guidelines, along with suggesting appropriate consequences for infractions.

Teen children anger management tips might include rewards for self-control and appropriate anger processing. Rewards could be extra time on the computer, telephone, or television or reduced household chores for that week. Kids need to see a balance between love coupled with forgiveness and discipline linked to consequences. Let your teens know you are on their side, but that as they mature, they must become responsible for managing emotions, including anger, in adult-like ways that are socially acceptable.

Raising kids is harder than ever these days. Questionable or negative role models, me-centered self-gratification, and dwindling social restrictions encourage children to express unrestrained emotions that can wreak havoc on families and society. If you feel that your children are starting to display signs of uncontrolled rage, visit websites like anger-management-information.com to learn more about anger management training generally, and for specific examples of children anger management tips. Then talk to your child's teacher or a social services worker for more information about getting your child the help that is needed for anger management.

Children Anger Management Tips

Steve Hill offers some effective anger management tips for children. Learn how to live without anger in your or your family’s life. Read more informative anger management articles and information at:

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anger management info [http://anger-management-information.com/blog]

Steve also has a website at: stuttering therapy.

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