Intelligent risks

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Intelligent Risks Definition Organizations Sustainability

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2. INTELLIGENT RISKS : 3. Intelligent Risks. Opportunities for which the potential gain outweighs the potential harm or loss to your organizations sustainability if you do not explore them. Taking intelligent risks requires a tolerance for failure and an expectation that innovation is not achieved by initiating only successful endeavors. At the outset, organizations must invest in potential successes while realizing that some will lead to failure. The degree of risk that is intelligent to take will vary by the pace and level of threat and opportunity in the industry. In a rapidly changing industry with constant introductions of new products, processes, or business models, there is an obvious need to invest more resources in intelligent risks than in a stable industry. In the latter, organizations must monitor and explore growth potential and change but, most likely, with a less significant commitment of resources. 4. STRATEGIC OPPORTUNITIES: (Relative Risk) ( Intelligent Risks) 5. Strategic Opportunities. Prospects that arise from outside-thebox thinking, brainstorming, capitalizing on serendipity, research and innovation processes, nonlinear extrapolation of current conditions, and other approaches to imagining a different future. The generation of ideas that lead to strategic opportunities benefits from an environment that encourages nondirected, free thought. Choosing which strategic opportunities to pursue involves consideration of relative risk, financial and otherwise, and then making intelligent choices (intelligent risks). 6. / 7. Innovation. Making meaningful change to improve products, processes, or organizational effectiveness and create new value for stakeholders. Innovation involves adopting an idea, process, technology, product, or business model that is either new or new to its proposed application. The outcome of innovation is a discontinuous or breakthrough change in results, products, or processes. Innovation benefits from a supportive environment, a process for identifying strategic opportunities, and a willingness to pursue intelligent risks. 8. Strategic Opportunities outside-the-box thinking, brainstorming, capitalizing on serendipity, research and innovation processes, nonlinear extrapolation of current conditions, and other approaches to imgining a different futureIntelligent Risks consideration of relative risk, financial and otherwise, and then making intelligent choicesInnovationintroductions of new products, processes, or business models 9. 1.1. 1.1(3) ? ? 10. 1.1. 1.1(2) ? 11. 2.1. 2.1(2) ? ? ? ? 12. 5.2. 5.2(3) / ? 13. 6.2 . ? ? 14. 7.4. ? 15. The Collin Technologies Case Study is a fictional Baldrige Award application prepared for use in the 2013 Malcolm Baldrige National Quality Award Examiner Preparation Course. High-tech manufacturer in the interconnect industry that designs and manufactures single-, double-, and multilayer printed circuit boards (35% of sales) and rigid-flex circuits (40% of sales) that are provided directly to customers; provides Contract R&D services (25% of revenue) Glossary of Terms and Abbreviations CI2 = Continual Innovation and Continuous Improvement CInvO = Chief Innovation Officer 16. Q. How do senior leaders create an environment for innovation and intelligent risk taking, achievement of your strategic objectives, and organizational agility? The conscious shift to continual improvement and continuous innovation (CI2) was embraced by the LT as a means to reinforce an environment for innovation and intelligent risk taking. Such an environment is conducive to achieving strategic objective #3 (Figure 2.1-5) and leadership development. This environment also enables organizational agility. 17. Q. How do senior leaders create a focus on action that will achieve the organizations objectives, improve its performance, enable innovation and intelligent risk taking, and attain its vision? (--OFI ) 1.1 a(3), b(2) Beyond the LTs embracing the shift to continuous improvement and continuous innovation, the approach used to create an environment for and enable innovation and intelligent risk taking is not evident. In addition, it is not clear how the monthly LT performance reviews support innovation and intelligent risk taking. A systematic approach in this area may support Collins value of Creativitywe invest in continuous innovation. 18. Q. How does it reinforce intelligent risk taking to achieve innovation, reinforce a customer and business focus, and reinforce achievement of your action plans? OFI 5.2a(3) It is not clear how Collins workforce performance management system, including the individual development planning process, EO Survey process, 360degree feedback process, and reward and recognition system, reinforces intelligent risk taking to achieve innovation. Systematically using these processes to reinforce intelligent risk taking and evaluate opportunities may help Collin achieve its vision to lead circuitry innovation for the future. 19. Q. How do you manage innovation? How do you pursue the strategic opportunities that you determine are intelligent risks? In 2012 Collin recognized the need for an innovation leader. Candice Trobaugh assumed the role of chief innovation officer (CInvO). She provides oversight for the Product Development and Innovation Process (Figure 3.2-1), and the Performance Excellence group trains CI2 Teams on tools for continual innovation and continuous improvement. CI2 Teams identify obstacles, and the CInvO coordinates efforts of the LT to remove the obstacles for the team. When strategic opportunities are identified through the SPP, the risk management assessment determines if the intelligent risk is acceptable to pursue innovation. The LT rebalances the budget and staffing model to ensure that sufficient resources are available, and the LT communicates priority changes through a communication plan. At that point, a CI2 Team is identified to execute product development and/or process design and management processes as needed to seize the opportunity. The Leadership Review Process includes reviewing active CI2 Team progress. If sufficient progress cannot be demonstrated for a strategic opportunity or if there are needs for reprioritization, the CI2 Team may be concluded so that resources are continually applied in the most impactful manner. 20. It is unclear how the chief innovation officer, the Product Development and Innovation Process, the Performance Excellence Group, and the LT work together systematically to manage innovation and innovate processes for the future. For example, it is not clear how senior leaders adjust budgets as innovative opportunities arise or systematically decide to discontinue pursuing innovation opportunities. Without systematic approaches, Collin may not identify product and process enhancements that best support its innovationfocused vision. 21. Intelligent risk discussions are triggered by CI2 teams. The number of discussions initiated is shown in Figure 7.4-12. Based on year-to-date activity, the total number of discussions is projected to be 12 for 2013. 22. Dwight Eisenhower