H. Pierson

What do we mean by a great risk culture?

Risk culture is the encouraged and acceptable behaviours, discussions, decisions and attitudes toward taking and managing risk within a business or organization.

A great risk culture binds the stakeholders, risk management framework and process together to reflect the values, strategic goals and practices and embed these into a business’ decision-making processes.

Organisational Culture

The overall organisational culture affects an individual’s values, beliefs, and attitudes towards risk. It’s helpful to employ the sociability vs solidarity model (Goffee and Jones, 1998), also called the “Double S” model, which considers culture with two dimensions:

sociability (people focus – based on how well people get on socially)
solidarity (task focus – based on goal orientation and team performance)

The model identifies four distinct organisational cultures described:

Networked (high people focus, low task focus)
Communal (high people, high task)
Mercenary (low people, high task)
Fragmented (low people, low task)

Risk culture

Risk culture can be hard to understand because it covers an organisation’s ability to manage risk.

It may seem like a background concept but business culture influences risk culture. Risk culture is a broad topic because it covers an organisation’s collective ability to manage risk. Still, the more general case of a business’s culture is also influenced by its risk culture, including:

Attitude – the way an individual or group perceives and deals with risk, influenced by perception, predisposition, and mindset
Behaviour – observable, risk-related actions, including risk-based decision-making, processes, communications, etc.
Culture – values, beliefs, knowledge and understanding of the risk a group shares with a common goal. In particular, it is the values, beliefs, knowledge, and understanding shared among leadership and employees

One of the many cultural issues is that people naturally head towards others who share the same culture. An organisation’s culture can self-propagate if recruitment processes and environment remain unchallenged.

Every organisation has a risk culture, or indeed cultures and the question is whether that desired culture effectively supports or undermines an organisation’s long-term success.

What impacts an organisation’s risk culture

The right people

Behaviour

Behavioral risk management refers to controlling and mitigating employee and organizational behaviour risks. Individual risks are the behaviours of employees and leaders that could open the business up to risk.

Organizational behavior is collective behaviour and some of these behaviours could be too high a risk for the business.

Compliance

A robust regulatory compliance system within effective risk management will considerably impact a business. It will make it less likely to experience risk threat events and ethics violations.

Employees

From a health and safety viewpoint, employees have rights and responsibilities for their and colleagues’ well-being. This is expanded into the risk culture to include risk associated with the business ensuring the company culture is in and maintains a healthy position.

Senior management involvement

The Board must make effective risk decisions about what they expect from the business. They need to communicate their attitude towards risk-taking and risk tolerance and explain the difference in impact between a successful and unsuccessful risk as measured by target metrics.

Governance

What is risk governance?

It’s the rules, methods, processes, and measures by which we make decisions about risk. It’s negative and positive because it analyses and formulates risk management strategies to avoid (threat) or achieve (opportunity) risks.

Senior management involvement

Accountability

Accountability is a term known to many but not appreciated for the value that it can bring to an organization’s long-term success, including safeguarding against irreversible damage and reputational risk. To make risk accountability practical, the business line must know the acceptable limits on risk-taking.

The accountable person must have the resources and authority to manage the risk.

Issues and escalation

Escalation is the progressive increase in the intensity or spread of risk.

A risk management system must have a process where an increasingly higher level of authorization is required to approve a continuous tolerance of increasingly higher levels of risk.

A contingency (plan) is designed to reduce the impact if a risk materializes. Consideration should be given to developing contingencies for threats and opportunities against the business risk attitude and risk tolerance.

Assessment and Evaluation

An excellent risk culture will improve risk management performance. Because risk culture often evolves as an organisation grows, it may make sense for organizations to self-assess, survey and use focus groups and other techniques to understand the current state of risk culture.

The tone of the organisation

The term tone is the combined impact of all stakeholders on risk management. Communication from the Board level will have little effect if the business employees and other stakeholders hear a different message from line managers, supervisory interaction and other contacts daily.

Information often gets distorted as it moves from one management level to another. There is always a greater possibility for contradictions in communication between team members at the organisation’s top, middle, and bottom. Equally, the risk of executive management being unaware of profound financial risks, operational risks and compliance risks that may be of common knowledge to one or more middle managers and employees.

Physical mechanisms driving risk culture

It’s essential to think about the tone of an organisation and how tangible physical mechanisms can help control it. These mechanisms include a risk governance structure, corporate values, code of conduct and ethics statements, policies, procedures, risk oversight activities, incentive programs, risk assessment processes, risk indicator reporting, performance management reviews, reinforcement processes, etc. Companies and boards must examine various risks, including strategic, operational, financial, IT, etc. They must also consider the organisation’s appetite for risk, how the different risks can interact and how they are managed daily.

Internal attributes driving risk culture

These internal attributes include the attitudes, belief systems and values that drive the organisation’s behaviour, activities and decision-making.

They demand attention while not as quickly seen and understood as physical, tangible mechanisms. For example, how a business handles risk management, control and audit often manifests in addressing weaknesses, escalating issues, and resolving problems. The method and timely nature, or not, in which such activities are carried out provide information regarding a business’s risk culture. So, too, does leadership’s reaction, or lack of, to warning signs offered by the risk management process.

External attributes driving risk culture

These external characteristics include regulatory requirements and expectations of customers, investors and others.

How an organisation seeks out these requirements and expectations and aligns business processes through actionable improvements reveals its resilience.

Subcultures that impact risk management

In response to a changing business environment, a subculture permits a business to be agile in solving problems, sharing knowledge, and serving customers.

However, they can also lead to rogue actors and risk-taking behaviours that harm the organisation.

Relationship to the overall business culture

A positive risk culture does not operate in a vacuum. As previously mentioned, the business’s culture influences it in many ways. Many argue they are the same thing.

How to improve risk culture

As risk is about future uncertainty, it would seem logical that a desirable risk culture would position the business to be proactive and agile. It should quickly recognise a threat or opportunity and use that knowledge to evaluate its response.

Such a risk culture would give leadership and management a time advantage and better decision-making.

Another example of an attractive risk culture might be maintaining a healthy tension between the business’s activities for creating value and its activities for protecting value. Ideally, one activity must not be disproportionately stronger than the other activity.

Once the current risk culture is assessed, executive management should consider whether any organizational changes are needed and define the steps required to implement change.

In transitioning to the desired risk culture, management should try to achieve the following:

Strategies for Achieving the Desired Risk Culture

Embed the change in the organisation

Risk culture should be affected through a business’s overall risk governance process. For example, risk management accountability should be reinforced through committee charters, policies, job descriptions, limit structures, and escalation protocols. To illustrate the importance of responsibility, accountabilities for risk management should be reinforced through committee charters, policies, job descriptions, and limit structures. Procedures and escalation protocols can also support the desired cultural risk behaviour.

Make it a priority for all stakeholders

All stakeholders must support the positive and desired risk culture by demonstrating the desired behaviours through actions and decisions over time and periodically communicating the value contributed by the organisation’s risk culture.

Undertake an integrated approach to the change

If addressed as a stand-alone initiative, change programs with intermittent communication, awareness promotions, and training strategies are mere surface dressing and provide little in the way of a positive cultural change.

When integrated into a comprehensive program that aligns performance expectations, roles, responsibilities, and operational structures with appropriate risk attitude and tolerance, they reinforce the critical aspects of the desired risk culture.

Periodically evaluate progress

Regularly evaluate stakeholders during the change process. Before commencing, it is important to assess the business and understand the pitfalls to provide a baseline for the initiative. Some of the key strategic considerations in this regard to consider before putting things in place are as follows:

Leadership support – Is leadership driving this initiative?
Ownership of the business’ risk management process – Who is responsible for risk management including the controlling and mitigating actions?
Effectiveness of risk management and governance processes – Have the strategies been proven effective?
Evidence of crucial business decisions taking risk and solvency into consideration – Consider the consequences of high-impact events and contingency plans
Quality of leadership discussions on risk issues and escalated matters – Are these discussions honest, open and transparent?
Is there a risk appetite statement and risk tolerances in decision-making? Do you measure how many risks were taken in the past year? How does this compare with how many were tolerated?
Is there alignment and incorporation of risk into strategic planning and direction – Is this aspect handled with care?

Every organisation is different. It is crucial to evaluate the business risk culture and make necessary adjustments to shape it over time in response to internal and external change.

Conclusion

What should now be clear from the article is that any approach to changing risk culture must be carefully planned within the overall business strategy.

The recipe and mix of tools adopted within a business depend on the current situation. There is no perfect answer to how these elements are combined to address the risk culture and maturity of an organization. Several techniques can drive risk management adoption and embed a great risk culture.

Creating a strong risk culture that encourages honest, open and transparent disclosure of risks is an important starting point. What can be measured can be managed and, in many ways, is the first step in recognizing that risks are real and we need to take this on board. Accountability is critical in ensuring leadership acts upon this information and makes the most of these insights. These approaches can be reinforced by effective performance risk management.

It’s not about being risk-averse. Great risk culture also enables individuals to take suitable risks in an informed manner. However, as seen in the run-up to the financial services crisis of the late noughties, taking inappropriate and unsuitable actions can create immediate and systemic risk.

Finally, communication and training programmes are pivotal in reaching the broader organisation and stakeholders to raise general risk awareness. Clearly defined goals are required for these programmes to ensure they deliver benefits within the overall culture change programme. Goals imply that performance should be tracked over time, hence a move to developing risk culture dashboards.

Business leaders must recognise that changing to a great risk culture requires strong organisational change and risk management skills.

Published by: M.Salman Khan

As the year 2023 steadily draws to a close, it’s an opportune moment to pause and reflect. For businesses, this prompts a critical question: how successful have we been in executing our strategic plans? In the fast-paced realm of strategic planning and execution, success transcends lofty visions and boundless ambition. It hinges on setting a clear course, continuously monitoring progress, and making data-driven decisions.

Vital to this journey are Key Performance Indicators (KPIs) and metrics, which bridge the gap between your strategic objectives and the path to achieve them.

In the following article, we will explore the essential elements of mastering KPIs for strategic success, offering you valuable insights to conclude this year on a high note and step into the next with even greater confidence.

Establishing Impactful KPIs within your Strategy:

When it comes to using KPIs in strategic planning, two extremes often emerge. Some plans lack metrics entirely, relying solely on immeasurable qualitative descriptions, while others become swamped with metrics, lacking a clear strategy for their effective use.

The key to success lies in striking a balance. At the pinnacle of your strategic plan, you’ll find overarching goals or lagging metrics, representing your ultimate destination—outcomes you can’t directly control but can improve over time with diligent effort. Supporting these lagging metrics are leading metrics, elements within your control that provide immediate insights and the power to drive change.

Imagine it as setting a New Year’s resolution to become healthier. You could trust your instincts or overwhelm yourself with countless health metrics. The optimal approach involves setting a clear lagging metric, such as losing 20 pounds, and pairing it with actively measurable leading metrics like exercise frequency, calorie intake, and sleep hours. An effective plan encompasses both elements, turning strategic planning into a journey where you monitor not only your destination but also the progress along the way.

Selecting the Appropriate Metrics and KPIs:

One common pitfall in metric selection is emphasizing leading indicators at the expense of lagging ones. While leading metrics are essential for immediate progress, an overabundance of them can lead to a tactical focus that misses the big picture.

Imagine diligently tracking your exercise routine to lose 20 pounds but neglecting your calorie intake. Similarly, focusing solely on driving website traffic without converting visitors into customers won’t fulfill your overarching goal of revenue generation.

To avoid these pitfalls, strive for clear alignment between leading and lagging metrics. If your chosen leading metrics don’t contribute to your overarching goals, you’re on the wrong track. Ineffective plans often blur the line between objectives and execution or get lost in activity-based metrics that don’t drive strategic success.

Recognizing these missteps and ensuring a strong correlation between selected metrics and strategic goals enhances your organization’s planning and execution processes.

Measure the Success of Your KPIs and Strategy:

In strategic planning, many organizations spend excessive time selecting metrics. It’s crucial not to get bogged down by this decision. What matters most is getting started and ensuring your chosen metrics serve one of three primary purposes: increasing, decreasing, or maintaining a specific value.

Begin with your current state and aim for incremental improvements. For instance, aim to improve your revenue by 10 percent. This provides a benchmark to adjust throughout the year.

Avoid overcomplicating the process; focus on setting realistic goals. We suggest a goal to achieve around 80 percent of your metrics. Aiming for an 80 percent success rate allows you to maintain momentum and refine your strategy. Reaching 100% may imply your goals weren’t demanding, while achieving just 20% could be discouraging, hinting at excessively difficult objectives.

When assessing the effectiveness of your plan, focus on completion of initiatives, KPI tracking, timeliness of updates, and project timelines. These aspects collectively contribute to measuring the success and effectiveness of your strategic plan.

Conclusion:

Remember, it’s not about finding the perfect metrics but about taking the first step, continuously improving, and making informed decisions on your strategic journey. With the wisdom shared by H. Pierson’s Strategy team, you’re well-equipped to master KPIs for your strategic success.

Author: H. Pierson Strategy Team

Choosing the right board member for your organization is more than simply selecting someone who is knowledgeable and highly qualified. It’s about finding an individual who can bring a unique perspective, insight, and skillset that can help you reach your business objectives. When making this important decision, there are a few key factors to consider when evaluating potential board members.

Experience & Expertise

When considering a new board member, it’s important to evaluate their experience and expertise. Are they well-versed in the industry? Do they have a comprehensive understanding of regulations and best practices? These qualities will help them make informed decisions that will benefit your organization long-term. However, don’t just settle for experience alone; look at each candidate’s track record. Have they achieved success in similar organizations? Are they known as an innovator or problem-solver? These qualities are what will truly make them stand out from the rest of the crowd.

Personality & Behavior

It’s also essential to consider their personality and behavior when making your selection. Does the individual have good communication skills? Do they display leadership traits? Are they able to collaborate with others effectively? These qualities are just as important as technical expertise when it comes to choosing the right board member for your organization. A great board member should be able to foster relationships with existing members while also bringing something new to the mix. Additionally, look for signs of commitment such as volunteer work and active involvement in other organizations. These behaviors demonstrate that the individual is passionate about helping others succeed and could be a valuable asset to your team if chosen as a board member.

Ethics & Integrity

Finally, look for a candidate who has strong ethical values and integrity. Ask yourself if this person would make decisions that are consistent with those of your organization’s mission statement and core values. Would their actions reflect positively on your brand? An individual’s moral compass speaks volumes about their character even before considering qualifications or experience—so it’s worth taking into consideration when searching for potential candidates.

Making sure you select the right board member can be daunting but also rewarding if done correctly. To ensure you pick someone who fits all aspects of what you need, take into account experience & expertise, personality & behavior, and ethics & integrity when evaluating candidates for consideration – all these together will greatly increase your chances of success! Ultimately – having an engaged Board Member can bring substantial value to any organization so choose wisely! With careful consideration and analysis of potential candidates based on these characteristics – you can be sure that you have made an informed decision when selecting your next Board Member!

Source: BoardTable.com

In the public sector, the need for ongoing professional development is just as crucial as it is in the private sector.

Training programs can help public sector employees stay informed on best practices, adapt to changing demands and serve their communities more effectively.

In this blog, we’ll delve into the reasons why you should develop a training program for your employees, types of common training programs in the public sector and top tips on how to develop a successful one for your organisation or team.

Three Reasons Why Your Organisation Needs an Employee Training Program

1. To improve service delivery

Public sector organisations are responsible for delivering a wide range of services to the community. Training programs can help employees understand the needs of the community and develop the skills and knowledge needed to provide high-quality service.

2. To build capacity

Public sector organisations often face challenges in recruiting and retaining qualified employees, particularly in specialised areas such as IT, data or finance. Training programs can help build the capacity of existing employees and ensure that they are equipped with the skills and knowledge needed to take on more complex roles and responsibilities.

3. To foster a culture of continuous learning

It is important for all public sector employees to stay up to date on the latest policies, procedures, and best practices in their field. Training programs can help create a culture of continuous learning and ensure that employees can develop their skills and knowledge on an ongoing basis.

Our In-House training statistics from 2022 told us that employees who attended a training course found that their skills grew by 33%. This means that if employees can see the growth and change from the time and effort spent learning, they’re more likely to want to continue learning.

Four Types of Employee Training Programs for the Public Sector

There are many different types of employee training programs, but as the UK’s trusted public sector training provider, we’ve seen four specific types that are the most common for many organisations in the public sector:

1. Soft Skills Training

From verbal communication to written, soft skills training can cover various topics including how to give a strong speech, produce an engaging presentation, write an effective report or respond to complaints efficiently.

2. Compliance Training

Compliance training can differ depending on who needs it, but it can cover HR training (e.g. Equality and Diversity), business compliance training (Cyber-security awareness) or compliance for leaders training (Bullying and Harassment).

3. Specialised/Technical Training

Specialised or technical training often means hard, practical skills gained from in-depth training and hands-on practical education. From data analytics to financial reporting, this type of training can be for various job titles depending on the needs of the organisation.

4. Leadership and Management Training

It’s up to leaders and managers to ensure employees meet targets, maintain a healthy well-being and create an engaging, happy culture, all of which can be tricky, even for those who are experienced. Leadership and management training can teach various elements, from strategic planning to developing agile teams or even how to coach and mentor staff.

Five Tips for Building a Successful Employee Training Program

1. Identify the learning objectives and needs

Before designing the training program, it is essential to identify the training’s specific goals, objectives and needs. One of the most effective ways to do this is through a thorough skills gap analysis. This will help ensure that the training is targeted and focused on the areas where the employees need the most support.

2. Involve employees in the planning process

Involving employees in the planning process can help ensure that the training meets their needs and addresses any specific concerns or challenges they may have. It can also help increase buy-in and engagement with the training. Ask your employees questions such as:

What learning methods work for you?
What specific skills do you want to focus on or improve?
What kind of training will help you perform your job more effectively?

3. Use a variety of training methods

To keep things interesting and ensure the training is effective for all types of learners, consider using a variety of training methods such as workshops, group learning (In-House), half-day courses, case studies and practical face-to-face learning.

4. Use technology to your advantage

Technology can be a powerful tool for training, particularly when it comes to virtual training. Consider using online learning platforms, video conferencing tools or interactive simulations to deliver training.

5. Follow up and provide ongoing support

Training shouldn’t end when the programme is over. It is important to follow up with employees to see how they are applying what they have learned and to provide ongoing support as needed. This could include additional training sessions, coaching, or E-Learning that employees can use to continually develop their skills.

Now your training program has been completed, it’s time to evaluate how effective it was at reaching the intended goals. Here are five proven models to help you evaluate your learning and development initiatives.

Public Sector Training Program Q&A:

1. Why should you invest in a training program for employees?

From improving retention rates to boosting service efficiency, investing in a training program means you’ll be investing in your employees and the services they provide. An employee training program can also help your organisation meet its goals by building highly skilled and performing teams that are equipped for any challenge or opportunity.

2. What are the benefits of training programs for employees?

Training programs give employees the opportunity to learn a new skill, develop a current one, gain confidence and even gain a promotion. Some training topics may be dryer (or even boring) compared to others, but it’s important to highlight the benefits of learning and how it will help them improve the efficiency of their day-to-day tasks.

3. What’s the best way to identify the most effective training program for employees?

A skill gap analysis and feedback. These two things can unlock insights into the needs of the organisation and what employees want to learn. When you combine these two, you’re bound to have a successful training program. Get a free skills gap analysis using the button above.

4. How can you get key stakeholders on board with a professional training program?

You may have key stakeholders or senior staff who need convincing about the benefits of an employee training program. Two ways to gain buy-in are by:

Setting out clear objectives and the benefits for the organisation when employees achieve them
Showing feedback or input from employees to champion the idea

Source: https://blog.moderngov.com/

61% believe their organization is not keeping pace with the private sector in adopting and implementing modern technologies.
36% believe that government will never catch up with the private sector in terms of technology.

Granicus Survey

According to a recent report by McKinsey, digitization has the potential to unlock over $3.5 trillion of economic value for the government and public sector.

Governments all around the globe are relying on digital transformation to stay current with the rapidly evolving digital landscape. The process of employing digital technology to restructure and enhance government services is known as “government digital transformation.”

Useful tips for implementing government digital transformation:

Define your Digital Transformation Goals: What should your project for digital transformation look like? What are you aiming to accomplish? What issues are you seeking to solve? Your projects will be prioritized, and everyone will be on the same page with the aid of your responses to these questions.
Be explicit about your success criteria right at the beginning: Define the measures to be employed in evaluating the effectiveness of your digital transformation project, then track your progress as the project progresses.
Early and frequent communication with citizens and government employees: Describe the initiative’s purpose and the impact it will have on them. Regularly provide progress updates to keep everyone informed and involved.
Be ready to modify your organization’s procedures and structure: Changes to the way work is done will be necessary as government becomes more digital. Make sure you have a strategy in place to deal with these developments.
Invest in staff training since new technology and procedures will be required of them. If you want instruction on a certain subject, think about utilizing outside specialists.
Before widely implementing new concepts and technology, use pilot programs to test them. This will assist you in avoiding expensive errors and ensuring that new solutions satisfy your agency’s requirements.
Persevere: the digital transformation of government takes time and cannot be completed quickly. Be prepared for roadblocks and be ready to modify your ideas if necessary.

The digital transformation of government can have numerous advantages, such as increased efficacy and efficiency, but there are drawbacks as well. To fully take advantage of digital transformation’s opportunities, it will be crucial to keep these possible advantages and difficulties in mind as governments continue to go digital.

To some extent, the difficulties huge organizations face in carrying out their missions are similar to those faced by governmental institutions. These include eliminating silos, winning management and employee support, funding investments, sustaining business operations, upgrading technology, and participating in talent competitions to identify people with the necessary skills.

However, the demand on governments to address pressing social and economic needs while maintaining budget restraints poses additional difficulties for organizations in the public sector. Furthermore, as the private sector continues to raise the bar for excellent customer satisfaction delivery, so do the general public’s expectations regarding their government.

Government organizations must be capable of meeting and exceeding the expectations of the public if they are to earn their trust. Four important components are thus required for this to happen.

Deep Understanding of Citizenry Needs

Any government that wishes to be successful must base its strategy on the needs of the public as a source of value. This entails getting to know the users of the services—in this example, the citizens—and then utilizing the knowledge gathered to select and prioritize the strategic initiatives/programs/projects that will provide the greatest value to those users/citizens.

Deploy the right data management framework.

Government institutions (Federal, State & Local) can no longer pay lip service to the importance of data. Globally, governments rely on data analytics to power vital initiatives, including fraud detection, accounting, intelligence, military upkeep, and healthcare. Public-sector agencies should leverage data analytics to boost service quality, efficiency, and labor productivity.

Take a look at the most recent victories that Ukrainian warfighters have had over Russian forces to better appreciate the usefulness of big data and data analytics in governance.

Agility Adoption

Successful organizations can adapt swiftly to changing customer requirements while preserving long-term resilience. The adaptive strategy should be used by government agencies dealing with extremely unpredictable, non-malleable environments. In the face of unpredictability and uncertainty, long-term planning makes little sense.

Instead, deploying specialized teams with a certain amount of time to complete their tasks, apply scenario-based methods, and promote a disruptive culture is crucial. The ability to react quickly to signals should be a top priority for government teams working at the front lines.

Civil service regulations should be relaxed to provide room for the investigation of novel, unconventional solutions.

Set Clear Objectives & Performance Parameters

Successful institutions are deliberate and specific in the results they seek to achieve, and they meticulously track their development at each stage of execution. Government leaders can make clear, educated judgments about what outcomes to assess when they are led by the findings of the strategic thought process and insights from data analysis.

Public-sector companies can start to overcome the obstacles that have previously thwarted efforts to increase transformation by using the four essential strategies outlined.

Plan and Replace Your Top Talent Seamlessly with Succession Planning

Succession planning is the process used to find potential leaders and high performers, helping them to develop and advance within an organization. An effective succession plan prepares identified successors with the skills and competencies needed for any future roles. Using a customized development plan can help employees grow and ensure your successors are the right fit for the future position. Creating no need to worry about open positions when top leaders leave.

Succession Planning is essential because, as a business grows, developing current employees for future critical positions is more cost-effective than hiring new talent. Succession planning can also boost engagement and retention rates by providing employees with a clear path forward in their careers and your organization.

The Importance of Succession Planning

The succession planning process is key to long-term business success. It fosters growth in future leaders and replaces them when key contributors leave.

Here are some top reasons why succession planning is essential to your business:

Reduce Costs when Hiring Top Talent

Hiring top talent can be expensive, and your company could lose money if you are not confident in the new replacement. By creating an internal talent pipeline, you can protect the return on your hiring investment with potential successors.

If your successors come from within your organization, you will not need to recruit externally, which reduces costs even further. You can invest the money you save in other areas – like employee training and development.

Find Key Leaders

With the right approach, you can find key employees who can perform well in new specific roles. Helping to measure options and make the best decisions regarding successors for a role. You can also ensure the succession pool aligns with your diversity and inclusion goals for the company and its future growth.

Mitigate Risk

When top roles within your company go unfilled for tooling, your business success will be at risk. With succession planning, you will have a plan when changes occur so your business is always prepared.

Create Your Legacy

When business leaders are aware of their successors for a critical role, they can provide mentorship and share knowledge. All their experiences will be translated into the future efforts of their successor, so your key employees can leave a lasting mark on the company.

Shapes an Exit Strategy

Succession plans ensure leadership exits are smooth and seamless. An effective plan outlines key resource replacements, so your business can run adequately whenever those individuals exit.

Promotes Progression

Succession planning helps you shape the mindset of crucial employees for continuity. When leaders consider how certain events could affect the business, they might be more agile in facing unexpected events.

How Technology Helps in Succession Planning

Most businesses consider succession planning as a time-consuming and ineffective process. With a traditional approach, leaders spend hours compiling spreadsheets which can quickly become outdated and might not lead to actual employee development.

These latest technology features can eliminate risks and streamline your succession planning strategy. You can boost employee growth and drive business success with the right tools.

Identifies Talent and Readiness to Fill Top Positions

For the best hiring decisions, businesses should be able to see their talent all in one place and understand the full scope of each employee’s skill set. With the right tools, you can find the highest potential talent and add them to your succession plans for future growth.

Make Firm Decisions When Talent Leaves

When your key employees leave unexpectedly, it is essential to have a plan in place so you are not rushing to fill the open position. Technology helps you find the best fit for each role, help make precise hiring decisions and reduces negative business impacts.

Promote Growth and Development for Successors

The solution helps you find the employee skills gaps when they are recognized as a successor. This way allows the employees to support their growth and development in the areas that matter. When employees are ready to fill those crucial roles, there is no break in progress.

Your Succession Plan is Always Ready

An advanced tool will keep your succession plan up-to-date, ready, and at your fingertips to illustrate your business’s longevity. A robust succession platform tracks the metrics and ensures your top positions are filled when needed.

Takes the Difficulty Out of Succession Planning

An advanced succession planning system works seamlessly with your employee’ reviews and overall goals. When you can measure and align performance with your succession plans, you will find the best talent and ensures they develop correctly.

Reference: https://www.sutisoft.com/

There is a school of thought when recruiting that you should ‘Hire for culture fit, train for skills’. So what does this mean? We cover practical strategies on how to hire employees for cultural fit and why it’s so successful.

Let’s start by understanding what culture fit is all about. Simply put, culture fit is the likelihood that a person will be able to conform and adapt to the core values and collective behaviours that make up an organisation. When you hire employees for cultural fit, you’re ensuring a better chance of success.

This doesn’t necessarily mean you are hiring for an exact personality replica as yourself either; diversity in people and opinions are important.

However if you have two candidates, one who needs further skills training and the other who enjoys a great skill set, but doesn’t seem like a ‘good fit amongst the team’, then I would always hire the former.

Let me explain.

If you assess cultural fit throughout your recruitment process, you will ensure you hire people who will become fantastic in their new roles, which will certainly help drive long-term growth and success for your organisation.

When you hire employees for cultural fit, the fit within your existing team and understanding of your company values will ensure that they will save you time and money in having to replace them later.

What this means is that when you hire on both job fit and cultural fit, you’ll find that your new recruits are

Faster to start really becoming part of your team
Start contributing quicker than others
Are happier in their new role
Tend to stay longer with your business
Become brand ambassadors, and;
Are likely to become ‘star performers’.

When you make recruiting decisions purely on skills, and don’t take into account the cultural fit of the candidate, you may find;

The candidate doesn’t fit in with your existing team
They will quickly become dissatisfied with their role
Will not adhere to the values and behaviours expected of them
May end up leaving through resignation or termination, faster.

So you can see the benefits of ensuring a great cultural fit through the recruitment process.

The trick is, how to hire employees for cultural fit, without just relying on ‘gut instinct’?

Who you hire ultimately defines your culture.
– Ryan Hoover, Product Hunt

7 Proven Steps to Hire for Cultural Fit

You should start by following these steps;

Ensure you have a set of values and how they translate to the role
Include a page within your website about your company values
Reference these company values in any advertising for the role
Discuss the values and how your culture is during the initial interview
Ask questions that relate directly to these values
Ensure you have a solid induction process that involves cultural induction
Schedule a meeting within their first month in the role to discuss further

Let’s get into some more detail what each of these strategies actually mean.

Ensure you have a set of values and how they translate to the role

If you are in your very early stages, it is likely that you haven’t put thought into creating and documenting your company values.

I believe company values are incredibly important to distill and communicate as early as possible in your businesses lifetime. They explain what the founders and management hold as important, and they help explain the behaviours that all employees are expected to uphold.

Without clear direction and leadership, your business may keep plodding along, however the lack of cohesiveness will eventually start to show, and affect productivity and profits.

You should spend time analysing your inherent values, and document them into specific, clear words.

My previous article, Creating company values that boost company culture, explains my thoughts in more detail, and also outlines the process we went through to achieve our values.

Include a page within your website about your company values

These definitely should not be just static website content that you cut and paste somewhere deep within your website, and promptly forget about.

You should be using other opportunities to link back to these value statements. For example, they should always appear on your careers section, and also be mentioned within any corporate blog or social media. This helps you hire employees for cultural fit.

Some companies go one step further, and create slide decks that portray their values and culture. Here are some recent examples that do a fantastic job of explaining the cultures at these companies;

For extra impact, you could also get written or video testimonials from existing employees, about what the values mean to them, and ask them to explain what the culture of your organisation is. You could then make a series of social media videos or upload them to your YouTube channel.

Reference these company values in any advertising for the role

We always make mention of our values in our position advertising, for example in a recent advertisement, we included a link to our company values page on our website, along with the closing statement of what the application should contain;

Many of the applications we received for the position had well considered responses to these values, and it is not burdensome to ask applicants to do so.

In this recent example, those candidates that did not go to the effort of providing these responses were not afforded an interview with us.

Discuss the values and how your culture is during the initial interview

You don’t want to hire someone and find out within days that they didn’t understand the role, causing you additional costs and time in replacing and re-training yet another candidate.

It is crucial that anyone involved in the hiring process has a good grasp of your company culture, and that they themselves personally display the right behaviours and attributes you expect in your values. This is key when you hire employees for cultural fit.

I like to explain what we look for in candidates, and how we work as a team; the good and the bad. In fact, many candidates are given a tour of our offices, and encouraged to ask any employees that are introduced to, any further questions around culture, teamwork and our mission.

Ask questions that relate directly to these values

During the recruitment interview, rather than just sticking to skill based questions, I recommend that you include a number of questions to determine the candidates personality and cultural fit. For instance, when hiring a dedicated development team, you should not only ask them technical questions but also test their soft skills, whether they are easy to communicate, etc.

Whilst asking for their own personal values is a good start, you will find more benefit by asking them specific questions around your values and determine their reactions and answers.

I like to also ask questions to determine who they are, outside of the office.

For example;

Tell me a little more about yourself; what does your typical weekend consist of?
Tell me what your most positive personality trait is, and why?
Tell me what your worst personality trait is, and why?
What values are important to you as a person?
If given the choice of any role here, what job would appeal to you the most?

I then get into specific culture based questions, such as

What type of team do you thrive in?
How important is recognition to you?
Have you read our values? Which one resonated with you the most?
How would you describe oru culture, based on what you have seen and heard so far.
Why do you want to work here?
What is an example of a time you feel that you feel reinforced our value of [insert one of your values]
Do you feel the role you are applying for, has meaning?
Are you comfortable with our values and what they mean?

As you can see, rather than just asking a candidate to repeat your values, or find out what their favourite movie is, I prefer to dig a little deeper and ask questions to understand their personal motivations and drivers, and get a sense of how they would interact within my existing team and our culture.

When you hire employees for cultural fit, pay attention not only to their verbal answers, but also their body language and comfort levels. Feel free to ask for them to clarify an answer, if required.

By doing this each time you interview, you will quickly find out which candidates best resonate with your values and culture by doing this.

Ensure you have a solid induction process that involves cultural induction

We set aside a 2-3 hour meeting within the first few days of a new hire beginning to take them through a cultural induction process. This meeting has evolved over the last few years, from being a literal reading and discussion around our values, to a more formal approach, where we dig down into the values, what their intent and meaning are, and we describe behaviors that are both reinforcing and against each value.

Whilst this may seem superfluous from the outside, we have found that new recruits appreciate the additional time and effort that we set aside to ensure they are comfortable with our culture, and have an opportunity to discuss their concerns or questions with us.

Schedule a meeting within their first month in the role to discuss further

I always make a point of following up with another one-on-one meeting after a few weeks of the new hire settling into her role. In this meeting, we go through both the position expectations, as well as culture and values, and ensure that they feel comfortable in what they are doing.

I also use this meeting as a way to delve into their thoughts, as a new person within the team, about how our culture and work is, and what improvements or suggestions they could make, based on their prior employment history.

In Summary

We’ve now shown you practical steps on how to hire employees for cultural fit. Using these strategies before, during and after you’ve hired a new person, ensures that you will enjoy a happier, more productive team, more cohesiveness, a reaffirmation of your company values and better employee longevity.

Your company culture is very important; it provides your team with direction, a shared understanding of the behaviour expected, and is effectively ‘the glue that binds the team’.

Employees who embrace your culture and values go on to become great brand ambassadors; they boost morale and teamwork and help positively affect future recruiting.

Always hire employees for cultural fit first, and technical knowledge second.

Reference: https://inside.6q.io/

Workplace productivity can be greatly influenced by the level of training and development that employees receive. Here are some ways that training and development can impact productivity:

Improves Skills and Knowledge: When employees receive training and development, they acquire new skills and knowledge that can help them perform their jobs more effectively. As they become more skilled, they can work more efficiently and with greater accuracy, leading to increased productivity.

Enhances Motivation: Employees who receive training and development opportunities are more likely to feel valued by their employers, which can increase their motivation to work harder and be more productive. Additionally, employees who are given the opportunity to learn and grow in their jobs are often more engaged and committed to their work.

Increases Confidence: Training and development can increase an employee’s confidence in their abilities, which can lead to a greater sense of empowerment and a willingness to take on new challenges. Confident employees are more likely to take initiative and be proactive, which can lead to increased productivity.

Reduces Errors and Mistakes: When employees receive training and development on best practices and standard operating procedures, they are less likely to make errors and mistakes on the job. This can reduce the need for rework and corrections, leading to increased productivity.

Supports Innovation: Training and development can also foster a culture of innovation within an organization. Employees who are encouraged to think creatively and come up with new ideas are more likely to generate new solutions that can improve efficiency and productivity.

Overall, investing in employee training and development can lead to a more skilled, motivated, and engaged workforce, which can ultimately result in higher productivity levels for an organization.

What’s the Right Workplace?

A decent workplace is one where employees feel respected, supported, and valued, and where they have the resources and tools they need to do their jobs effectively. Here are some signs that you have a decent workplace:

Positive work culture: A decent workplace has a positive work culture where employees feel supported and valued. This can be indicated by open communication, constructive feedback, and a sense of community among colleagues.

Fair compensation and benefits: A decent workplace provides fair compensation and benefits to employees, which can include competitive salaries, health insurance, retirement plans, and other perks.

Opportunities for growth and development: A decent workplace offers opportunities for employees to learn and grow, such as training and development programs, career advancement opportunities, and mentoring.

Work-life balance: A decent workplace recognizes the importance of work-life balance and provides flexibility in terms of work schedules, time off, and other accommodations to help employees balance work and personal responsibilities.

Safe and comfortable work environment: A decent workplace provides a safe and comfortable work environment that is conducive to productivity and well-being. This can include ergonomic workspaces, adequate lighting and ventilation, and a commitment to health and safety protocols.

High employee retention: A decent workplace has high employee retention rates, indicating that employees are satisfied with their jobs and feel motivated to stay with the company over the long term.

In summary, a decent workplace is characterized by a positive work culture, fair compensation and benefits, opportunities for growth and development, work-life balance, a safe and comfortable work environment, and high employee retention rates. By creating a decent workplace, employers can promote productivity, engagement, and well-being among their employees.

How Using Technology Supports Your Workforce

Using technology can provide numerous benefits and support to a workforce. Here are some ways in which technology can support your workforce:

Increased efficiency: Technology can automate and streamline many tasks, freeing up employees to focus on more complex and high-value work. For example, project management software can help employees collaborate on projects, share information, and track progress in real-time.

Improved communication and collaboration: Technology can support better communication and collaboration among team members, regardless of their physical location. Video conferencing tools, collaboration software, and instant messaging platforms can help employees stay connected and work together more effectively.

Enhanced flexibility and remote work: Technology can provide employees with the flexibility to work from anywhere, which can be particularly useful during times of crisis or when there are business disruptions. Cloud-based applications and virtual private networks (VPNs) can allow employees to access work-related data and applications from anywhere.

Access to real-time data: Technology can provide employees with real-time data and insights, allowing them to make better decisions and act more quickly. Business intelligence tools, analytics software, and dashboards can provide employees with access to up-to-date data, which can support better decision-making.

We are all aware of the additional costs involved in getting people back to work and technology can be used very efficiently and cost effectively to support your work force. This can be achieved through basic means, such as email, VC or via an instant messaging app or platform. Some companies may also choose to use project management software which also makes communication more effective.

Improved customer service: Technology can support better customer service by enabling employees to respond to customer inquiries quickly and efficiently. Customer relationship management (CRM) systems, chatbots, and other tools can help employees manage customer interactions more effectively.

Increased job satisfaction: By providing employees with access to the latest technology and tools, employers can improve job satisfaction and engagement. This can lead to increased motivation, productivity, and overall job performance.

So, technology can provide numerous benefits and support to a workforce, including increased efficiency, improved communication and collaboration, enhanced flexibility and remote work, access to real-time data, improved customer service, and increased job satisfaction. By leveraging technology, employers can create a more productive, engaged, and motivated workforce.

Reference: https://www.thehrdirector.com/

In today’s rapidly changing world, businesses face an ever-expanding range of risks that can disrupt operations, impact financial performance, and even threaten their very existence. While traditional risk management practices focus on known risks, it is crucial for organizations to proactively identify and manage emerging risks. These are risks that may not be well-understood or have not yet materialized but have the potential to significantly impact business objectives. In this article, we will delve into the realm of emerging risks, explore their characteristics, and provide practical strategies for identifying and managing these unknown threats.

Understanding Emerging Risks

Emerging risks are dynamic and multifaceted, constantly evolving as technology advances, social and regulatory landscapes shift, and new global challenges arise. These risks often stem from emerging trends, such as technological advancements, regulatory changes, geopolitical uncertainties, environmental shifts, or socio-cultural transformations. Identifying and understanding these risks requires organizations to be forward-thinking and adaptive.

Characteristics of Emerging Risks

Uncertainty: Emerging risks are characterized by a high degree of uncertainty, making it challenging to predict their exact nature, timing, and potential impact. For example, the rapid emergence of new technologies like artificial intelligence (AI) or blockchain introduces unknown risks that may disrupt industries or create unforeseen vulnerabilities.
Complexity: Emerging risks often exhibit complex interdependencies and systemic effects. They can transcend organizational boundaries, simultaneously affecting multiple sectors, industries, or geographic regions. An example of this is the interconnectedness of global supply chains, where a disruption in one region can have cascading effects worldwide.
Novelty: Emerging risks are often novel or unfamiliar, lacking historical data or established risk management frameworks. As a result, organizations must adopt a proactive and adaptive approach to identify and address these risks effectively.

Strategies for Identifying Emerging Risks

Horizon Scanning: Regularly scan the business environment for emerging trends, technological advancements, regulatory changes, and socio-cultural shifts that may have an impact on the organization. Engage in foresight exercises, monitor industry publications, attend conferences, and collaborate with external experts to stay abreast of the latest developments.
Scenario Planning: Develop and analyze plausible scenarios that explore potential emerging risks and their implications for the organization. These scenarios should consider a range of future possibilities, helping management anticipate and prepare for potential threats. By conducting scenario planning exercises, organizations can better understand the potential impacts of emerging risks and develop appropriate risk response strategies.
Stakeholder Engagement: Engage with internal and external stakeholders to gather diverse perspectives on emerging risks. Employees, customers, industry experts, regulators, and other relevant parties can provide valuable insights and identify risks that may not be evident from a single viewpoint. Encouraging a culture of open communication and collaboration can help foster a proactive risk management mindset within the organization.

Managing Emerging Risks

Risk Assessment and Prioritization: Conduct a comprehensive risk assessment to understand emerging risks’ potential impact and likelihood. This process involves evaluating the organization’s vulnerabilities, assessing the effectiveness of existing risk mitigation measures, and prioritizing emerging risks based on their severity and potential consequences.
Agility and Adaptability: Cultivate an organizational culture that embraces agility and adaptability. This includes fostering a mindset of continuous learning, encouraging experimentation, and empowering employees to identify and respond to emerging risks promptly. Agile organizations are better equipped to effectively adjust their strategies, operations, and risk management approaches to mitigate emerging risks.
Robust Risk Response Plans: Develop robust risk response plans to address emerging risks. These plans should include specific actions, responsibilities, and timelines for implementation. Depending on the nature of the risks, response strategies may involve enhancing organizational resilience, diversifying supply chains, investing in technological solutions, or creating contingency plans to ensure business continuity.

Conclusion

Organizations must proactively identify and manage emerging risks to safeguard their future as the business landscape becomes increasingly complex and interconnected. By understanding the characteristics of emerging risks and adopting effective strategies, businesses can enhance their risk management practices, strengthen resilience, and seize opportunities arising from uncertainty. Embracing a proactive approach and fostering a risk-aware culture will enable organizations to navigate the unknown and thrive in an ever-changing world.

References:

Global Risks Report 2023: World Economic Forum.
https://www.weforum.org/reports/the-global-risks-report-2023

“Managing Emerging Risks: A New Approach” – Deloitte.
https://www2.deloitte.com/us/en/insights/focus/risk-management/managing-emerging-risks.html

“Identifying and Managing Emerging Risks” – Harvard Business Review.
https://hbr.org/2018/05/identifying-and-managing-emerging-risks

“The Agile Risk Management Manifesto” – Risk Management Society (RIMS).
https://www.rims.org/resources/agile-risk-management-manifesto

Newer Posts

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What do we mean by a great risk culture?

Organisational Culture

Risk culture

What impacts an organisation’s risk culture

The right people

Behaviour

Compliance

Employees

Senior management involvement

Governance

Senior management involvement

Accountability

Issues and escalation

Assessment and Evaluation

Physical mechanisms driving risk culture

External attributes driving risk culture

Subcultures that impact risk management

Relationship to the overall business culture

How to improve risk culture

Strategies for Achieving the Desired Risk Culture

Embed the change in the organisation

Make it a priority for all stakeholders

Undertake an integrated approach to the change

Periodically evaluate progress

Conclusion

Experience & Expertise

Personality & Behavior

Ethics & Integrity

Three Reasons Why Your Organisation Needs an Employee Training Program

1. To improve service delivery

2. To build capacity

3. To foster a culture of continuous learning

Four Types of Employee Training Programs for the Public Sector

1. Soft Skills Training

2. Compliance Training

3. Specialised/Technical Training

4. Leadership and Management Training

Five Tips for Building a Successful Employee Training Program

1. Identify the learning objectives and needs

2. Involve employees in the planning process

3. Use a variety of training methods

4. Use technology to your advantage

5. Follow up and provide ongoing support

Public Sector Training Program Q&A:

1. Why should you invest in a training program for employees?

2. What are the benefits of training programs for employees?

3. What’s the best way to identify the most effective training program for employees?

4. How can you get key stakeholders on board with a professional training program?

Plan and Replace Your Top Talent Seamlessly with Succession Planning

The Importance of Succession Planning

Reduce Costs when Hiring Top Talent

Find Key Leaders

Mitigate Risk

Create Your Legacy

Shapes an Exit Strategy

Promotes Progression

How Technology Helps in Succession Planning

Identifies Talent and Readiness to Fill Top Positions

Make Firm Decisions When Talent Leaves

Promote Growth and Development for Successors

Your Succession Plan is Always Ready

Takes the Difficulty Out of Succession Planning

Who you hire ultimately defines your culture.– Ryan Hoover, Product Hunt

7 Proven Steps to Hire for Cultural Fit

Ensure you have a set of values and how they translate to the role

Include a page within your website about your company values

Reference these company values in any advertising for the role

Discuss the values and how your culture is during the initial interview

Ask questions that relate directly to these values

Ensure you have a solid induction process that involves cultural induction

Schedule a meeting within their first month in the role to discuss further

In Summary

Understanding Emerging Risks

Characteristics of Emerging Risks

Strategies for Identifying Emerging Risks

Managing Emerging Risks

Conclusion

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Who you hire ultimately defines your culture.
– Ryan Hoover, Product Hunt