Who here wanted to be a risk manager when you grew up?
2 How would you feel if all your work never made a difference?
How would you feel if all your hard work really paid off?
How would you feel if all of your hard work really paid off?
3
Let me sketch out for you how one organization made their hard work work for them
The military’s instruction manual approach wasn’t working
They began to explore the problem they had noticed Warning: Ope n at your own risk
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Commanders had plans that were based on assumptions you probably find familiar
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But when it came time to go to battle, nobody followed the plans
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Because lives were at stake, they were forced to go back to the drawing board
Their research unveiled surprising things about the way people think
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Commanders don’t rely on the plan.
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Commanders use intuition through mental simulation
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Intuition feeds off of the stories people feed into their mental model
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The Big Insight: They had been focusing on explicit knowledge and had underplayed tacit knowledge
They also discovered surprising things about the way people act
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In a stable environment, people know the end state so they rely on explicit knowledge
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In a disruptive environment, people don’t know the end state so they rely on tacit knowledge
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The Big Insight: If you don’t put people in a disruptive environment, they won’t know how to act in one.
They decided to try out a new approach o o o
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With their new insights, the military adopted a playbook model
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They started from square one
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Instead of focusing on following directives, they focused on understanding intent
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They clearly defined roles and empowered people to exercise judgment in their roles
The plan became a secondary byproduct of the practicing
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Instead of going in with a plan, they asked what people would do in their role in a scenario
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The plan came from what people said they would do
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In this new approach, people can act outside the plan if needed
The new plan looked significantly different than the old plan
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The new plan used cues instead of prescription
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The new plan used a framework for improvising instead of too much detail
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The new plan assumed unpredictability instead of predictability
Here are the benefits of applying the new approach
Your program will work
Success
I can do this
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Results: You help people develop the tacit knowledge they need
This is important to me
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I can do this
Sustainability: You get everyone to engage and accept ownership of their roles
This is important to me
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This is important to my job
I can do this
Leverage: You’re not doing everything yourself anymore, yet still maintain control
You’ll check off all your boxes, and more
Success
Compliance
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You accomplish your regulatory requirements along the way
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It elevates the stature of risk management within the organization
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The approach reveals new opportunities that otherwise would lay undiscovered
Success
You become an MVP on the team
Compliance
MVP
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Your program moves from the stands onto the field
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Your influence expands far beyond your own area
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People support you in keeping the company safe