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The risk management culture, including legal issues

has proved a real pleasure to share with Jordi Graells hiking mountaineering, and Alberto Ortiz Iñaki Ortiz de Zárate. The pleasure was general: the company, the date, place (saw Aitzgorri), beers, ... It was a truly fun event, including in this category, the time we spend in talking about issues specific to our profession.

Jordi At one point we were asked us to do a little reflection, no more than five minutes on an item on the transformation of government. After giving a couple of laps, I took up a thread of a conversation he had shortly before and reflected on the risk. I will try to reflect the same reasoning here more than anything to continue thinking about it, display it in a more structured and expose it to debate.

remember a previous post that dealt with the generation of ideas and the need to produce a lot of bad to be any good. What happens is that we only know that an idea is good or bad once set in practice. In this sense, risk is an intrinsic component to any process of transformation / innovation.

both government as in any other organization, when we make a transformative approach, although it is only a very small scale, we found two profiles of people. On the one hand we have those who are immediately able to show in detail all kinds of barriers and risks. Then there are those that provide clues and paths to follow.

Both types of responses are necessary for proper decision-making process as it highlights a recent article in McKinsey . But to me I have no doubt that Second we provide much more than the first, if only for the spirit that comes through. Because the first condition for a change is to try.

The government is very particular subgroup within the first profile: They are those to which current legislation prevents them from doing anything that involves a minimal change on the procedures, habits and customs in force. The law is the perfect excuse to discourage any kind of transformation.

And curiously those who resort to the law are not in many cases specialist training or individuals with legal issues, such taboos, once made more or less discretion spread with surprising ease and are firmly seated in the minds of people. But even for people with legal training, there is a worrying lack of laws like the 11/2007 on electronic access to public services, which allow to do things differently with full legal protection.

addition to ignorance, one of the most common reasons to invoke the law as a brake on proposals to change is the fear of making a mistake causing the disapproval of heads, auditors, parliament and, if necessary, of divine justice. That continues to be a reluctance to abandon the personal comfort zone. The truth is that the current culture functioning of government, and generally any large organization, this behavior prompts a conservative.

is necessary to introduce a cultural change to make workers understand the administration that the law is flexible and need to find their limits to further processing. That a correction by a higher court is simply a difference of opinion. That is precisely the contrast of different views and visual what will lead to a tight turn and advanced application of the law.

needed to influence the training and continuous updating of knowledge workers and managers of public especially those who perform work for legal or related to the development and interpretation of rules, so they can adopt innovative positions, which though controversial, are strictly based on law.

But above all, it is necessary that public let their employees think sufficient autonomy to find new interpretations without the possible discrepancy with other entities is understood as an indicator of ignorance, incompetence or lack of rigor.

In short, a real change to government workers need to take the risk and responsibility as a necessary component of his work, even and especially when it comes to issues with legal implications.

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strategy for making decisions based on the behavior

Very interesting article The case for behavioral strategy (for access need to register) published by McKinsey on the influence of bias and personal bias in making the business decisions. The conclusion is that we should adopt a strategy based on the behavior of people who identify and counter the biases and prejudices that influence the decision-making processes for them to be successful. In an interpretation nearest alert the danger of basing professional decisions on intuition, experience and personal convictions.

The study was based on analysis of 1,048 major corporate decisions taken within the last five years. The first and most surprising conclusion is that the process itself is crucial in order to make a decision that the preliminary diagnosis. Makes sense. A good decision-making process identifies and corrects a wrong diagnosis of the situation, but does not ensure a good diagnostic means a good decision if further processing is not correct.

Any decision process includes informal correction of certain bias, distrust in a system of those who may have an interest in the results or correct downward the figures raises a person known for his anthropological optimism. Yet empirical observation shows that these approaches are insufficient. Must start from the premise that prejudice is so firmly established that no person alone is able to escape completely from them.

most common patterns of prejudice, bias prominence (which leads us to overvalue recent events or particularly memorable) and confirmation bias (tendency to ignore evidence that refutes a hypothesis already formed). The more experienced more exposed is a manager to be a victim of their biases and prejudices. And the higher in rank and persuasive words, the greater the danger of imposing these to the rest of his staff in making the decision. A common technique to mitigate the effect of biases and prejudices is to change the point of view. May be by carrying out field studies or customer visits. Sometimes it's as simple as asking participants to do an introspective exercise explaining the reasoning and the experiences that lead them to take a particular position.

Among the behavioral traits that influence the making of incorrect decisions is too oriented to action which may lead to overly optimistic approaches taken or not deep enough. The organizations tend to opt for those who show this profile in general attach more confidence to those who show us ways forward that people who warn of the risks and barriers. However accept uncertainty and recognize the risks are prerequisites to making a good decision.

Another common trend is reversed, the tendency to stability. It occurs when we have more in mind the failures that the successes achieved, or when developing a budget, we substantiated in previous years. Given this behavior by setting goals that can act are impossible to achieve by doing things as usual. or start developing budgets from a blank sheet. Before

biases of interest, how to act is explicit in advance the situation, conditions and implications of the participants and the evaluation criteria to be adopted. Social and cultural prejudices are mitigated only variety: the lack of dissent is a strong warning signal. It is also essential to the commitment of management to maintain a real participatory process.

To adopt a strategy of behavior in decision making is necessary to follow a sequence of four stages. 1) Decide to justify decisions implement a strategy based on behavior. 2) Identify the biases that can affect the most critical decisions. 3) Select the tools and practices to address the most relevant biases. 4) Integrate the practices identified in the decision-making processes.