Implementing change in organizations
More and ever faster organizations have to adapt to changes of their environment, be they induced by market, competition, technological, political, regulation or other events. Some of these changes require immediate reaction, some can be handled by the existing operation as continuous improvements, but in between some are risks that require that mitigation measures are planned and implemented. For these, environmental scanning allows for risk identification, and this is the responsibility of top management and a Board of Directors.
Risks could also have an impact on the organizations strategy, which means on the path how the organization is planning to reach its purpose and vision. Strategy determines the actions an organization is going to take to reach it’s purpose and the resources it has available to execute these actions.
Portfolio Management as a concept is helping organizations to deal with changes and risks relating to their purpose and strategy. Risks might be threats but also can be opportunities, many times threats can also be seen as opportunities. Risk mitigation means to introduce change to operations, to make sure threats are not becoming problems and opportunities are further supporting the organizations purpose.