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Problem, Risk, and Opportunity Enterprise Management
The fundamental responsibility of executives and managers is to deliver value to the bottom line of the company. The primary mechanism for achieving this goal is decision making. To be most effective, decision making must be considered—more specifically primed—from an enterprise perspective rst, then other perspectives must follow. In your personal and professional life you make decisions about only three things:
1. How to resolve problems (P),
2. How to mitigate risks (R), and,
3. How to capture opportunities (O).
You own a continuously evolving portfolio of problems, risks, and opportunities. The dilemma you constantly face is, which problems, risks, and opportunities (PRO) should you pursue at this point in time? I refer to this as the “PRO Dilemma.” To be an excellent decision maker, you must become a master of resolving this PRO Dilemma. You can achieve that by answering and exploring the five questions of PRO Enterprise Management:
1. “What are your PRO items?”
2. “Which erode the most value if not pursued?”
3. “Which, if pursued, create or protect the most value?”
4. “Which should/will you pursue at this point in time?”
5. “What are the implications to your plan and budget?”
While it sounds straightforward, the challenge is that our natural capabilities in decision making are constrained by the limits of a 100,000 to 200,000 year-old operating system, the human brain.
To overcome this, we need analytics—but not just any logically sound analytics. For the results of analytics to influence our decision making, they must first influence our beliefs. We make decisions based on beliefs, and our beliefs are influenced by the way we think and form judgments. Current normative theories of decision making (decision analysis, Monte Carlo methods, real options, predictive analytics, etc.) insufficiently bridge analytics from the logic and tools to the way we think and form judgments. These methods are also resource intensive in time and cost and cannot be applied to most of the decisions we make. Descriptive theories don’t have the analytical rigor to ensure we get the right answer. PRO Enterprise Management provides the bridge from thought to decision and action through narrative-based approaches and the language of tipping points.
Our innate system is woefully over-challenged by the vast number and complexity of the personal and professional decisions we make. The notion of a PRO portfolio overwhelms all of us, yet this is precisely the dilemma we all face. Asking the five questions of PRO Enterprise Management is the most fundamental job of an executive or manager. Managing both your personal and professional PRO portfolios (coupled with some luck) is the path to a satisfying and accomplished life.
1. How to resolve problems (P),
2. How to mitigate risks (R), and,
3. How to capture opportunities (O).
You own a continuously evolving portfolio of problems, risks, and opportunities. The dilemma you constantly face is, which problems, risks, and opportunities (PRO) should you pursue at this point in time? I refer to this as the “PRO Dilemma.” To be an excellent decision maker, you must become a master of resolving this PRO Dilemma. You can achieve that by answering and exploring the five questions of PRO Enterprise Management:
1. “What are your PRO items?”
2. “Which erode the most value if not pursued?”
3. “Which, if pursued, create or protect the most value?”
4. “Which should/will you pursue at this point in time?”
5. “What are the implications to your plan and budget?”
While it sounds straightforward, the challenge is that our natural capabilities in decision making are constrained by the limits of a 100,000 to 200,000 year-old operating system, the human brain.
To overcome this, we need analytics—but not just any logically sound analytics. For the results of analytics to influence our decision making, they must first influence our beliefs. We make decisions based on beliefs, and our beliefs are influenced by the way we think and form judgments. Current normative theories of decision making (decision analysis, Monte Carlo methods, real options, predictive analytics, etc.) insufficiently bridge analytics from the logic and tools to the way we think and form judgments. These methods are also resource intensive in time and cost and cannot be applied to most of the decisions we make. Descriptive theories don’t have the analytical rigor to ensure we get the right answer. PRO Enterprise Management provides the bridge from thought to decision and action through narrative-based approaches and the language of tipping points.
Our innate system is woefully over-challenged by the vast number and complexity of the personal and professional decisions we make. The notion of a PRO portfolio overwhelms all of us, yet this is precisely the dilemma we all face. Asking the five questions of PRO Enterprise Management is the most fundamental job of an executive or manager. Managing both your personal and professional PRO portfolios (coupled with some luck) is the path to a satisfying and accomplished life.
368 pages, Paperback
Published August 1, 2018
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February 15, 2025
We can plan all we want, but this event, as Hagen says, is sure to happen, which causes “a material deviation from planned goals and ultimately a loss” (p. 145).
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