How wonderful it would be to be able to redesign our current work culture and the systems that support it. Only those new startup companies with
the two co-founders sitting around the kitchen table have that real
luxury. When should the Operational Risk Management (ORM) framework for
this new business entity be developed and staged for implementation?
All too often when a startup company forms its basis for existence, the focus is 100% on the product solutions and the "Go-to-Market" plan. It isn't until the firm is leasing it's first office space that all of a sudden it becomes a reality. The Operational Risk Management (ORM) components of the company design has been given back burner status. The viability and the longevity of the business model could be in jeopardy.
Six months later, you might have two dozen employees moving into the new open plan office suite. Do the co-founders and senior management realize the business problem before them? The culture of the organization is well underway and also what the norms are and what the rules will be. The employees and contingent contractors are operating almost 24 x 7 at this stage to launch new products and establish market presence campaigns. How could there be any real serious operational risks to consider at this point?
The implementation of the rules-base and the company policies are now a necessary stage of the startup. This is also when the co-founders realize that maybe it is time to start handing over the day-to-day management of the company. It could even be the time to add the professional CEO and other key executives including the Chief Technology Officer, Chief Financial Officer, General Counsel and Chief Information Officer, Chief Human Capital Officer and the Chief Risk Officer.
The Mission
The mission as a co-founder of a new startup is to ensure the survival of the organization. We all know the failure rate for new companies. Just ask Dun & Bradstreet for the statistics or even your local Venture Capitalist who is celebrating failures these days. So beyond just the survival of the NewCo, is the imperative to establish a cultural and operating environment where people feel encouraged, creative and unencumbered to fulfill their job requirements and goals.
The Take Away
Operational Risks are inherent in any new business endeavor. The earlier the ORM design begins in the company evolution, the more resilient you will ultimately become. The framework of the system-of-systems, the look and feel of the cultural environment and the end state visions are all at stake. Take the time and include the expertise to work on the systems foundation of your new enterprise.
Ensure the survivability of the new products and solutions that are so valuable to our economy and our nation. Embrace Operational Risk Management early in your startup and allow it's presence while it preserves all that you have worked for and dreamed of...
All too often when a startup company forms its basis for existence, the focus is 100% on the product solutions and the "Go-to-Market" plan. It isn't until the firm is leasing it's first office space that all of a sudden it becomes a reality. The Operational Risk Management (ORM) components of the company design has been given back burner status. The viability and the longevity of the business model could be in jeopardy.
Six months later, you might have two dozen employees moving into the new open plan office suite. Do the co-founders and senior management realize the business problem before them? The culture of the organization is well underway and also what the norms are and what the rules will be. The employees and contingent contractors are operating almost 24 x 7 at this stage to launch new products and establish market presence campaigns. How could there be any real serious operational risks to consider at this point?
The implementation of the rules-base and the company policies are now a necessary stage of the startup. This is also when the co-founders realize that maybe it is time to start handing over the day-to-day management of the company. It could even be the time to add the professional CEO and other key executives including the Chief Technology Officer, Chief Financial Officer, General Counsel and Chief Information Officer, Chief Human Capital Officer and the Chief Risk Officer.
The organizational enterprise architecture is now operating in full swing. These stewards of the new company have a vital and delicate opportunity now. Will the company build a system-of-systems that are trustworthy?Will the people interacting within the rule-based environment of the NewCo begin to feel burdened, restricted and even under the magnifying glass? Or will the new enterprise architecture be so adaptive, so resilient and so capable of predictive behaviors that employees feel free. They feel innovative and capable of operating just as the early days of the birth of the company.
The Mission
The mission as a co-founder of a new startup is to ensure the survival of the organization. We all know the failure rate for new companies. Just ask Dun & Bradstreet for the statistics or even your local Venture Capitalist who is celebrating failures these days. So beyond just the survival of the NewCo, is the imperative to establish a cultural and operating environment where people feel encouraged, creative and unencumbered to fulfill their job requirements and goals.
The Take Away
Operational Risks are inherent in any new business endeavor. The earlier the ORM design begins in the company evolution, the more resilient you will ultimately become. The framework of the system-of-systems, the look and feel of the cultural environment and the end state visions are all at stake. Take the time and include the expertise to work on the systems foundation of your new enterprise.
Ensure the survivability of the new products and solutions that are so valuable to our economy and our nation. Embrace Operational Risk Management early in your startup and allow it's presence while it preserves all that you have worked for and dreamed of...
