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Davide Gronchi shares an article on risk mitigation that includes his pragmatic method designed to drive out ‘failure-mode and effects analysis’ designed by the U.S. military in the 1940s. 

Whilst in the middle of an heavy and unexpected crisis, company leaders are requested to keep looking far ahead and shape the future of their company by (re-)designing the strategy and how to implement it.

Current times are full of worries and threads, every day are more negative than positive news that capture our attention. How to concentrate on our business, sailing in calm waters and heading to a bright future? Yes, company leaders must keep this attitude! Nobody else can do this, it cannot be delegated. And recent research proves that CEOs like crafting strategy most than other task their are responsible for!

Nevertheless, we are all prone to see risks everywhere now during the COVID-19 crisis. This was a risk that nobody was really ready to mitigate. Nobody actually ever thought it could ever been real!

In our life of leaders, in our companies, many can be the risks that we might face and that need to be considered and need a mitigation plan. How to identify and prioritize risks?

I apply a good pragmatic method that derives out of FMEA. FMEA stands for Failure-Mode-and-Effects-Analysis and was invented by the US military in the late 1940s. I am not going to describe in detail what that is (there is plenty of literature around it), but I want to describe how I use this to prioritize risks. The beauty of this approach, is that it helps to put some objective criteria into an exercise that could else be very theoretical and subjective. FMEA is a semi-quantitative evaluation.

 

Key points include:

  • Severity
  • Occurrence
  • Detection

 

Read the full article, The pragmatic way for Risk Mitigation, on LinkedIn.

 

 

Davide Gronchi provides a pragmatic approach to risk mitigation and shares a method he uses that was invented by the US military in the late 1940s: FMEA (Failure Mode and Effects Analysis) to assess risk under three lenses. 

Whilst in the middle of a heavy and unexpected crisis, company leaders are requested to keep looking far ahead and shape the future of their company by (re-)designing the strategy and how to implement it.

Current times are full of worries and threads, every day are more negative than positive news that capture our attention. How to concentrate on our business, sailing in calm waters and heading to a bright future? Yes, company leaders must keep this attitude! Nobody else can do this, it cannot be delegated. And recent research proves that CEOs like crafting strategy more than other tasks they are responsible for!

Nevertheless, we are all prone to see risks everywhere now during the COVID-19 crisis. This was a risk that nobody was really ready to mitigate. Nobody actually ever thought it could ever be real!

In our life of leaders, in our companies, many can be the risks that we might face and that need to be considered and need a mitigation plan. How to identify and prioritize risks?

 

The lenses for risk explained in this article include:

  • Severity
  • Occurrence
  • Detection

 

Read the full article, The Pragmatic Way for Risk Mitigation, on LinkedIn.

 

 

Davide Gronchi provides two simple tools that can help collect answers to powerful questions.

Advanced analytics and machine learning are some of the ready-to-use technologies that help discover correlations and drive conclusions out of complex data sets that often describe our business and production processes. This is very helpful to take decisions aiming to prevent something unwanted to happen e.g., set process parameter to X in order to obtain product spec within tolerance.

There are many other opportunities to eliminate “waste” out of business processes that don’t require complex tools and data scientist skills but “just” common sense and good leadership. Solving problems should always start with a clear definition of “what is the problem?” Often we mix up the symptoms with the root causes, by doing so we look for solutions to the symptoms but don’t eliminate the root cause. Guess what? The problem will be back very soon…

Following a structured problem-solving approach is not difficult but requires discipline and asking the right questions, what we call “powerful questions“. These are questions that make people thinking, typically open questions that require an articulated answer, not just a binary yes/no.

Asking powerful questions should be one of the core skills of good leaders: not solving problems themselves but helping their teams to do so. I believe many have forgotten this and risk to lead teams in endless problem solving rounds without sustainable and substantial results.

 

Included in this article:

  • Fishbone diagram
  • Pareto chart

 

Read the full article, The Simple Art of Problem Solving, on the Growing Operations Advisors website.