This is blog #8 in an 8-blog series about Powerful Answers to 7 important business questions. The series is intended to be an introduction to strategic intuition and planning.
Preamble: As we have talked with hundreds of businesses, from time to time, we have come across situations where unnecessary disasters happened. I mean disasters that took companies to bankruptcy. Three examples of company-killers come vividly to mind: (1) partner dysfunction, (2) faulty raw materials, and (3) foreign exchange volatility. While it is not possible to foresee every company-killer risk, it is possible to foresee things/risks like the 3 company-killers I just mentioned.
A group of advisors with a range of experience in different business sectors can help, for example, at the Board of Directors level. This is an underlying premise at our company…a role of our
Activestors™
. [
Activestor™ definition]
Question 7: How do you manage your CRITICAL risk factors every day?
Powerful Answer:
'We do a SWOT analysis at least once a year. We identify Critical Failure Factors. And we place those CFFs into our Vital Signs plans and action. That ensures we keep them in mind. Here, let me show you on my BLackBerry'
Postamble:
SWOT - analysis of Strengths, Weaknesses, Opportunities, & Threats has been around for 5 decades.
CFF - analysis of Critical Failure Factors is a more-recent activity, however, it is well established.
We can and should anticipate the worst-case scenarios. CFFs are not something we should be agonizing over. Well, actually, we do have to agonize over them a bit at the planning and training stage.
Business CFF tests will not be life-threatening like Navy SEAL tests. [
U.S. Navy SEAL metaphor] However, some business challenges will cause us to stall and some will cause us to panic. Thinking about such situations, planning around them, and writing plans down reduces the likelihood of surprise-stall and surprise-panic. [And, we don't have to go under water to do it.]
This is the last blog in the 7 Powerful Answers series.
The next blog will be the first of a series titled - Good Habits, Bad Habits, & New Things