Positioning Your Organization as an Early Mover

Organizations today are looking to improve their ability to articulate and monitor their strategy deployment while also anticipating and managing the associated opportunities and risks. This premise applies whether a company is rapidly growing, focused on establishing sustainable competitive advantage or improving its bottom line. The Performance/Risk Integration Management Model (PRIM2), a proprietary framework from Protiviti, provides insight for integrating strategy setting and performance and risk management with the objective of positioning the company as an early mover.

To learn more, read Protiviti’s PRIM2 white papers and newsletters:

"Is Your Organization an Early Mover?"
This issue of Protiviti’s The Bulletin defines the attributes of an “early mover” and articulates the advantages early movers can gain in the market. An “early mover” is a firm that quickly recognizes a unique opportunity or risk and uses that knowledge to evaluate its options either before anyone else or along with other firms that behave as early movers. These firms have the advantage of time, which brings with it more decision-making options before market shifts invalidate critical assumptions underlying their strategy. Failing to attain “early-mover status” can be fatal in today’s complex business environment.

 
Performance/Risk Integration Management Model – PRIM2: The Convergence of Corporate Performance Management and Risk Management
In the white paper, Protiviti unveils its enterprisewide program that establishes and maintains alignment of strategy, performance management processes and risk management capabilities in a very dynamic  environment. Through the white paper, organizations can learn more about how the PRIM2 approach works, with insight into how they can place performance and  risk management into a broader strategic context by:

  1. Communicating and deploying strategy effectively in a consistent manner across the enterprise;
  2. Proactively identifying, sourcing and mitigating the risks inherent in a corporate strategy;
  3. Ensuring the seamless integration of strategic plans, performance management and risk management in the execution of a strategy; and
  4. Creating real-time transparency into the operations of the enterprise to measure current performance and predict future trends to facilitate the alignment of strategy, risk management capabilities and performance management continuously over time.

Performance/Risk Integration Management Model – PRIM2 Early Mover Series: Analyzing Strategic Risk
In the first of our Early Mover white paper series, we discuss how proactively identifying and evaluating the risks inherent in a company’s strategy will make the strategy itself more robust and realistic, as well as improve the probability of the company achieving its strategic objectives. Specifically, it discusses the importance of:

  1. Understanding the critical assumptions underlying the strategy and using contrarian analysis to challenge those assumptions
  2. Proactively identifying the uncertainties inherent in the strategy, with a focus on minimizing as much as possible what we don’t know about the soft spots in the strategy and business plan and what lies ahead in the planning horizon
  3. Using the results of strategic risk analysis to drive monitoring of the external environment
  4. Keeping the risk assessment evergreen as the business environment changes.
Performance/Risk Integration Management Model – PRIM2 Early Mover Series: Maximizing the Value of Competitive Intelligence
In this second installment of our Early Mover white paper series, we examine how companies can become effective early movers by first understanding market opportunities and risks – both for themselves and their competition. Topics covered include:
  1. The importance of the competitive intelligence function in identifying opportunities and strategic risks earlier than competitors
  2. The scope of competitive intelligence as compared to areas such as competitor and business intelligence
  3. The competitive landscape that an effective competitive intelligence function must monitor
  4. A broader approach to the overall competitive intelligence cycle

In the coming months, our Early Mover white paper series will address the following topics:

  1. Defining a Risk Appetite Statement
  2. Improving the Balance and Transparency of Capital Allocation
  3. Setting Effective Targets

Defining Risk Appetite - Performance/Risk Integration Management Model (PRIM2) Early Mover Series
This white paper, the third in the series, and our supporting point-of-view summary discuss the importance of risk appetite to the governance process. In the white paper, we:

  1. Explain risk appetite and how it differs from risk tolerance.
  2. Introduce a framework for developing a risk appetite statement.
  3. Illustrate what a risk appetite statement looks like.
  4. Examine how risk appetite influences organizational behavior.
  5. Provide an overview of the process for defining and maintaining the risk appetite statement.
  6. Discuss how management and the board of directors should sustain a dialogue around risk appetite as circumstances change over time.

How we help companies

PRIM2 is a framework for converging and integrating strategy-setting, performance management and risk management with the objective of positioning the company as an early mover. Protiviti’s services help your organization realize this convergence by delivering deep business insight based on a holistic view of the enterprise. Our Performance and Information Management (PIM) services address the business challenges facing the corporate finance office and operational decision-makers throughout the organization. Using best-of-breed, state-of-the-art software, our clients have fast and easy access to trusted financial, operational and risk information, enabling a deep understanding of how value is created and protected, and delivering strategic insight so decision-makers can better anticipate future business outcomes and receive better, more timely information for decision-making.

We also recognize that risk is an important and vital aspect of managing an enterprise and delivering performance against strategic objectives. Our comprehensive risk management services are integrated into our PIM solutions and thereby help companies improve their enterprisewide capabilities to identify, source, measure, manage and monitor the critical risks inherent in their corporate strategy and business plans, while incorporating the foundational risk management and controls provided by powerful GRC application software tools. The objective is to enhance strategy-setting and performance management with the intent of positioning the enterprise to become an early mover.

View Related Material
View related Protivitimedia coverage

Is Your Organization an Early Mover?
Corporate Board Member Magazine 4th Quarter 2011, by Jim DeLoach of Protiviti


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