Since February I have been sending you messages from my book Risky Business: How Successful Organisations Embrace Uncertainty. In the penultimate chapter of the book, Chapter 11: The Pathways to Success, I describe the journey of a risk practitioner who sees much work to do in an organisation near void of risk-based decision making. The key
Reading the signals indicating your organisation is on-track or off-track (see Reading the tea leaves, Heading them off at the pass, KRISS or KISS) needs to be considered across three time horizons, in order to make your KPIs and KRIs “timely”. My colleague Dr Andrew Pratley introduced me to the Three Horizons of Growth concept introduced by Mehrdad
KRISS doesn’t stand for anything relating to risk that I am aware of. I just made it up to get you to read this blog on how to develop Key Risk Indicators. Sorry. KISS stands for “Keep It Simple, Stupid.” When I work with organisations to help them develop KRIs I use the KISS principle.
I loved the movies about the wild west of 19th century USA when I was a kid. A favourite line from the era was “Head ‘em off at the pass”. Meaning, the goodies (or baddies) needed to take a short cut cross country fast to get in front of the baddies (or goodies) to surprise
Reading the tea leaves is what most organisations are doing if they don’t do Key Performance Indicators (KPIs) well. They are trying to understand the past (lag KPIs) and predict the future (lead KPIs) with nefarious measures. Measures that are either: 1. Convenient – Typically plucked from a list of KPIs that seem to be