<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:wfw="http://wellformedweb.org/CommentAPI/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
	>

<channel>
	<title>Hot Sauce! &#187; Risk Management</title>
	<atom:link href="http://www.caycon.com/blog/category/risk-management/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.caycon.com/blog</link>
	<description>The Secret Sauce for Entrepreneurs</description>
	<lastBuildDate>Tue, 07 Sep 2010 14:08:29 +0000</lastBuildDate>
	<language>en</language>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
	<generator>http://wordpress.org/?v=3.0.1</generator>
		<item>
		<title>Six Keys to Increasing Startup Change Readiness</title>
		<link>http://www.caycon.com/blog/2010/09/six-keys-to-increasing-startup-change-readiness/</link>
		<comments>http://www.caycon.com/blog/2010/09/six-keys-to-increasing-startup-change-readiness/#comments</comments>
		<pubDate>Tue, 07 Sep 2010 14:08:29 +0000</pubDate>
		<dc:creator>Marty Zwilling</dc:creator>
				<category><![CDATA[Entrepreneurship]]></category>
		<category><![CDATA[Risk Management]]></category>
		<category><![CDATA[Technology]]></category>

		<guid isPermaLink="false">http://www.caycon.com/blog/?p=451</guid>
		<description><![CDATA[Change is about the only thing constant in the world of startups. Despite their own focus on changing the world, they often forget that they too have to change rapidly and often as the market evolves. Too many find that out too late, and are left chasing a rabbit that is long gone. The solution [...]]]></description>
			<content:encoded><![CDATA[<div class="tweetmeme_button" style="float: left; margin-right: 10px;">
			<a href="http://api.tweetmeme.com/share?url=http%3A%2F%2Fwww.caycon.com%2Fblog%2F2010%2F09%2Fsix-keys-to-increasing-startup-change-readiness%2F"><br />
				<img src="http://api.tweetmeme.com/imagebutton.gif?url=http%3A%2F%2Fwww.caycon.com%2Fblog%2F2010%2F09%2Fsix-keys-to-increasing-startup-change-readiness%2F&amp;source=akira_hirai&amp;style=normal&amp;service=bit.ly&amp;service_api=R_5941500c388aeef376cf603fab26998a" height="61" width="50" /><br />
			</a>
		</div>
<div>
<p><a href="http://lh6.ggpht.com/_1LazKD1zDUA/TFuj_RbFyTI/AAAAAAAABPM/DdtrPqRX6xg/s1600-h/Change%20Readiness%20Sign%5B7%5D.jpg"><img src="http://lh6.ggpht.com/_1LazKD1zDUA/TFuj_yaHe6I/AAAAAAAABPQ/wYMDTRX0e6g/Change%20Readiness%20Sign_thumb%5B3%5D.jpg?imgmax=800" border="0" alt="Change Readiness Sign" width="305" height="298" align="right" /></a> Change is about the only thing constant in the world of startups. Despite their own focus on changing the world, they often forget that they too have to change rapidly and often as the market evolves. Too many find that out too late, and are left chasing a rabbit that is long gone.</p>
<p>The solution is to establish and maintain a culture and processes that don’t view change as a discrete event to be spotted and managed, but as an ongoing opportunity to improve competitiveness. Chris Musselwhite and Tammie Plouffe, in a <a href="http://blogs.hbr.org/cs/2010/06/four_ways_to_know_whether_you.html" target="_blank">recent HBR article</a> on change readiness for large companies, define it as “the ability to continuously initiate and respond to change in ways that create advantage, minimize risk, and sustain performance.”</p>
<p>Since the startup environment is usually more volatile, the challenge there in balancing advantage, risk, and performance, is more critical than in big companies. Chris and Tammie define change readiness as a focus on the following business initiatives:</p>
<ol>
<li><strong>Improve change awareness.</strong> How good are you and everyone on your team at proactively scanning the environment for opportunities, emerging trends, and customer feedback? This contextual focus is critical to innovation and survival – the right product at the right time. </li>
<li><strong>Increase change agility. </strong>Change agility represents a startup’s ability to immediately and effectively engage everyone in pending changes and innovations. It starts at the top with the founder and CEO, but has to extend quickly to the bottom of the organization. This requires leadership, teamwork, and trust at all levels. </li>
<li><strong>Expedite change reaction.</strong> This is the ability to appropriately analyze problems, assess risks, and take responsibility for problem-dictated and market-dictated changes, while still sustaining the day-to-day business activities. It’s called the management of unplanned changes, or how well your startup reacts to crises. </li>
<li><strong>Implement change mechanisms.</strong> Every organization needs to have specific mechanisms in place to facilitate change, including regular effective communication, reward systems that reinforce desired change behavior, and accountability for results. These won’t work in an autocratic or dysfunctional management environment. </li>
<li><strong>Build a change readiness culture.</strong> Change readiness is hard work, and requires creativity sometimes in conflict with task orientation. People have to have the right attitude, and make the choice from the beginning to be ready to change at any time. They need a sense of urgency to handle change, and confidence in their leaders. </li>
<li><strong>Imbue customer change focus.</strong> The more everyone in the startup is obsessed with satisfying customer needs and providing better customer service, the more effective the startup will be in adapting to change. Provide direct customer contact to everyone, as well as training.</li>
</ol>
<p>Experts say that we live in a world where the pace of change is accelerating at the fastest rate in recorded history. On the other hand, change management practices seem to be changing very slowly, resulting in a 70% failure rate of change initiatives. Failure rates this high demand a new mindset and startups are the logical place for this to happen.</p>
<p>For starters, the whole team needs to be constantly trained and encouraged to develop their skills. Relevant skills include continuous improvement of existing methods, processes and devices against a set of quality metrics. The ultimate skills, which lead to innovation and totally new processes, usually come from experimentation and special studies.</p>
<p>In summary, change will happen. If your people and your startup do not change, statistics say you won’t succeed. It’s up to you to get out of your comfort zone and make things happen in your startup, rather than let things happen to your business.</p>
</div>
]]></content:encoded>
			<wfw:commentRss>http://www.caycon.com/blog/2010/09/six-keys-to-increasing-startup-change-readiness/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Ten Techniques for Total Team Accountability</title>
		<link>http://www.caycon.com/blog/2010/08/ten-techniques-for-total-team-accountability/</link>
		<comments>http://www.caycon.com/blog/2010/08/ten-techniques-for-total-team-accountability/#comments</comments>
		<pubDate>Wed, 25 Aug 2010 14:26:27 +0000</pubDate>
		<dc:creator>Marty Zwilling</dc:creator>
				<category><![CDATA[Business Planning]]></category>
		<category><![CDATA[Entrepreneurship]]></category>
		<category><![CDATA[Risk Management]]></category>

		<guid isPermaLink="false">http://www.caycon.com/blog/?p=387</guid>
		<description><![CDATA[Getting things done effectively in a startup requires total individual and team accountability. You can’t afford excuses and multiple people doing the same job. In my view, “taking responsibility” is the core element behind accountability. Many people hear responsibility as an obligation, but I hear it as “the ability to respond.” Unfortunately many people don’t [...]]]></description>
			<content:encoded><![CDATA[<div class="tweetmeme_button" style="float: left; margin-right: 10px;">
			<a href="http://api.tweetmeme.com/share?url=http%3A%2F%2Fwww.caycon.com%2Fblog%2F2010%2F08%2Ften-techniques-for-total-team-accountability%2F"><br />
				<img src="http://api.tweetmeme.com/imagebutton.gif?url=http%3A%2F%2Fwww.caycon.com%2Fblog%2F2010%2F08%2Ften-techniques-for-total-team-accountability%2F&amp;source=akira_hirai&amp;style=normal&amp;service=bit.ly&amp;service_api=R_5941500c388aeef376cf603fab26998a" height="61" width="50" /><br />
			</a>
		</div>
<div>
<p><a href="http://lh4.ggpht.com/_1LazKD1zDUA/TEvB9kl2SiI/AAAAAAAABNA/qk39puxP7f4/s1600-h/Team%20Accountability%20Blame%5B3%5D.jpg"><img src="http://lh3.ggpht.com/_1LazKD1zDUA/TEvB91SoTaI/AAAAAAAABNE/nE64dGTulCA/Team%20Accountability%20Blame_thumb%5B1%5D.jpg?imgmax=800" border="0" alt="Team Accountability Blame" width="252" height="272" align="right" /></a> Getting things done effectively in a startup requires total individual and team accountability. You can’t afford excuses and multiple people doing the same job. In my view, “taking responsibility” is the core element behind accountability. Many people hear responsibility as an obligation, but I hear it as “the ability to respond.”</p>
<p>Unfortunately many people don’t have the ability to respond, because they lack confidence in themselves, or simply don’t have the skills required. Therefore an entrepreneur’s first requirement is to hire or team only with people who are accountable (already have the confidence and skills you need) – training them on the job is prohibitively expensive when you have minimal income.</p>
<p>Even with the best people, accountability must be nurtured, since it can be killed more quickly than it can be grown. Here are some characteristics of business leaders who foster accountability, and keep it growing:</p>
<ol>
<li><strong>You need to walk the talk.</strong> Above all else, you as the founder or executive have to be a role model of accountability. You need to exemplify the “buck stops here,” and never play the blame game. Reward accountability consistently and often. </li>
<li><strong>Communicate continuously.</strong> You need to make sure that your team members understand your expectations, and you need to proactively listen and understand the expectations of all stakeholders. Frequent and consistent communications, both verbal and in written processes, are required. Take away the “I didn’t understand” excuse. </li>
<li><strong>Measure objectively.</strong> Goals and objectives must be unchanging and measurable, based on results, with benchmarks for comparisons. Accountability assessments must be based on facts, not distorted by opinions, politics, and desire for power. Frequently changing expectations does not lead to accountability. </li>
<li><strong>Give control before expecting accountability.</strong> A sense of responsibility and accountability requires a sense of control. If several levels of approvals are needed for a specific decision, no one will feel accountable, and no one can be held accountable. Real delegation is required. </li>
<li><strong>Align functional groups with business goals.</strong> If key inputs are not under the control of the proper group, then they will cede accountability as well. If your sales group is measured on profitability, but is required to process leads from outside sources paid by volume, you have a conflict where everyone loses. </li>
<li><strong>Manage up the line and support your team.</strong> You need to be the sponsor and the advocate for every member of your team. Team members who take risks through accountability need to see your overt support up the line, with no blame and no scapegoats. </li>
<li><strong>Provide timely feedback on performance.</strong> High performance teams need immediate and useful information on how to improve, as well as regular full performance reviews, individually and as a group. Help people, including yourself, look in the mirror and see reality. </li>
<li><strong>Conduct humiliation-free problem analyses.</strong> Getting to the source and fixing problems should never be a “name and shame” game. Leaders need to provide safe havens where difficult issues can be discussed without assigning blame. The goal should always be to solve problems, not hurl accusations. </li>
<li><strong>Provide tools to support accountability.</strong> No tools and no data lead to total subjectivity and biased interpretations. Absolute dependence on tools leads to abdication of personal responsibility. Provide adequate tools, but trust the people. </li>
<li><strong>Differentiate accountability from entitlement.</strong> Accountability is hard, so no one is entitled to be right every time. Don’t punish people for making a mistake, but make it clear the mistakes have consequences, sometimes painful ones, that we all have to live with. Higher responsibility means more work and more skills needed.</li>
</ol>
<p>Many executives subscribe to the misguided notion that you can hold people accountable. This is usually a ploy to control others and hand off responsibility, without being accountable yourself. People need to make themselves accountable, and accept the consequences of their actions. Remember that you are the model, and what goes around, comes around</p>
</div>
]]></content:encoded>
			<wfw:commentRss>http://www.caycon.com/blog/2010/08/ten-techniques-for-total-team-accountability/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What Kills Startups?</title>
		<link>http://www.caycon.com/blog/2009/04/what-kills-startups/</link>
		<comments>http://www.caycon.com/blog/2009/04/what-kills-startups/#comments</comments>
		<pubDate>Wed, 01 Apr 2009 15:59:52 +0000</pubDate>
		<dc:creator>Akira Hirai</dc:creator>
				<category><![CDATA[Entrepreneurship]]></category>
		<category><![CDATA[Nuts & Bolts]]></category>
		<category><![CDATA[Risk Management]]></category>

		<guid isPermaLink="false">http://www.caycon.com/blog/?p=89</guid>
		<description><![CDATA[Entrepreneurs are, by definition, risk takers. Thus, strong risk management is an important source of competitive advantage.]]></description>
			<content:encoded><![CDATA[<div class="tweetmeme_button" style="float: left; margin-right: 10px;">
			<a href="http://api.tweetmeme.com/share?url=http%3A%2F%2Fwww.caycon.com%2Fblog%2F2009%2F04%2Fwhat-kills-startups%2F"><br />
				<img src="http://api.tweetmeme.com/imagebutton.gif?url=http%3A%2F%2Fwww.caycon.com%2Fblog%2F2009%2F04%2Fwhat-kills-startups%2F&amp;source=akira_hirai&amp;style=normal&amp;service=bit.ly&amp;service_api=R_5941500c388aeef376cf603fab26998a" height="61" width="50" /><br />
			</a>
		</div>
<p><img src="http://www.caycon.com/images/blog/toxic.jpg" alt="Risk management for startups and other entrepreneurial ventures" height="270" width="187" align="right" />Entrepreneurs are, by definition, risk takers. Thus, strong risk management is an important source of competitive advantage. Although over half of all startups fail within their first five years, you can beat the odds and build a thriving and rewarding venture by learning to recognize and manage risks.</p>
<p>&#8220;What Kills Startups&#8221; provides a framework for identifying, thinking about, and mitigating the biggest risks ahead of you. So roll up your sleeves and dig in!</p>
<ul>
<li><a title="HTML Version" href="http://www.caycon.com/what_kills_startups.php" target="_blank">Read the HTML version of &#8220;What Kills Startups?&#8221;<br />
</a></li>
<li><a title="PDF Version" href="http://www.caycon.com/downloads/What-Kills-Startups.pdf" target="_blank">Read the PDF Version of &#8220;What Kills Startups?&#8221;<br />
</a></li>
</ul>
<p>When you&#8217;re done reading, please come back to the blog to leave your feedback &#8211; we look forward to hearing your thoughts!</p>
]]></content:encoded>
			<wfw:commentRss>http://www.caycon.com/blog/2009/04/what-kills-startups/feed/</wfw:commentRss>
		<slash:comments>10</slash:comments>
		</item>
	</channel>
</rss>
