Risk management is an important success factor in business. Without effective risk management, an organization may end up making huge unanticipated losses that may lead to bankruptcy and closure. Risk management is the process of identifying, assessing and controlling events that threatens the capital and operations of an organization (Rouse, 2020). Therefore, risk analysis is necessary to ensure effective risk management that would lead to business success. The key changes required in order for the company to ensure that new hires report to work in a timely manner is leadership. Effective leadership is critical. According to Stephenson (2010), effective leadership ensures that the business effectively analyses and manages its risks. In this case, effective leadership will be required to ensure that appropriate assumptions are made about the employees. Leaders are required to understand the dynamics of work of its employees to make sure that guidelines and policies made to manage their operations are rational and employee-centered. In addition, inclusive leaders are required. The company needs a leadership that considers the mix of people, putting together their different backgrounds, perspectives, and knowledge to make informed decisions that would be effective in predicting, assessing, and managing the risk (Stephenson, 2010).
After agreeing on the need for change in leadership, the present leadership will hold the position for the next three months as they prepare to exit. This will give the organization time to find leaders who would fit in the new positions. In addition, the three months will be enough to ensure that the outgoing leadership plan well for their exit. The incoming leadership will be required to use the existing policies, strategies, and other plans in place for the next one month, before implementing their own anticipated changes.
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Employees will need technical and soft skills. The technical skills will be imparted into them through orientation and training program with the aim of teaching them about the work environment, their roles and responsibilities. In addition, employees would require communication skills and critical thinking. The two skills foster employee interaction, hence promoting a conducive work environment where operations are smoothly conducted. In addition, the critical thinking skills supports creativity and innovation among employees. The cost associated with the new changes include; recruitment cost, the cost of transition, and the training cost. Recruitment cost includes the required resources for the exercise, both material and human resource. This further include stipends and miscellaneous expenses. The cost of transition refers to what the company will spend when the new employees are brought in and others exit the company. This include paying the benefits for the outgoing according to what their work agreement states. Training cost is the expenses associated with orientation and education of employees concerning their work environment and different aspects of work. Such expenses include the cost of paying trainers. The manufacturing department will be retained because its operations are currently efficient and does not require any leadership changes. In addition, the IT and the financial departments are performing well. However, there is a slag in performance in the sales and delivery department as delays are reported in sales more than before. Therefore, these sectors require transition, which will include changing the sales and delivery managers and recruiting fifty percent and firing fifty percent of the employees. The new changes will enable the company to effectively manage its sales and delivery to maximize its returns.
The new changes will increase communication barriers but this will be improved over time. These barriers will be reported as a result of introduction of a new working environment, with new employees and some new managers. Therefore, fitting into the new system may become hard and will take the personnel some time to adjust and work in line with the system. The changes will impact clients through improved customer service and product service delivery. Changing the sales and delivery department will enable the company to deliver products to consumers on time, while making sure that the company minimizes the cost of operation. This will improve the customer’s experience and satisfaction, therefore bolstering their loyalty to the company. The new leadership will be required to utilize a mix of people when making decisions. By making sure that the decision-making process values inclusivity of all the stakeholders, employees become more engaged and more satisfied with their work. Employee engagement fosters the spirit of collaboration and teamwork. Therefore, employees become proud of the company and will be ready to share the company success or failure. Lastly, the change will improve brand reputation in the industry following the efficiency in service delivery, improved employee collaboration and teamwork, and training on critical thinking. Critical thinking improves innovation and creativity, and this will be applied to promote product design and development. Offering customer-centric services will put the company in a better position in the market through customer loyalty and retention, alongside the ability to attract and win new customers. This implies that the company’s market share will significantly increase in the industry.
References
Rouse, M. (2020). Risk management. Retrieved from
https://searchcompliance.techtarget.com/definition/risk-management
Stephenson, C. (2010). The Role of Leadership in Managing Risk. Ivey Business Journal.
Retrieved from https://iveybusinessjournal.com/publication/the-role-of-leadership-in-managing-risk/
