How to Handle Risk!: Adapted from the Simplest, Most Powerful Tool in Ge

By George D. Robson

Who can use this?

When I began this project, I was primarily targeting business leaders and project managers. However, as I progressed, I realized I was using day-to-day examples to illustrate how it works. Consequently, the application of this process is much broader than just the business arena. Therefore, I had to ensure that I present it appropriately.

We all face daily challenges, issues, and risks that create some level of uneasiness or worry. How we handle our issues can mean the difference between success and failure. This simple process can help address everyday issues and personal risks with a greater level of confidence. No matter if we are in a business or personal environment, it can help make objective-based decisions and avoid unhelpful and stressful subjective discussions.

Its a simple tool for the masses!
Lets talk about risk!

When the subject of risk comes up in our house, my wife is quick to tell me that Im not a risk-taker. Of course, I counter that taking a risk depends on several things. Its all about how I handle risks. I will take a risk if the probability of something going wrong is low and the impact is also low! So when I talk about risk, I include two factorsprobability and impactwhich must be characterized objectively and in terms that can be quantified.

This book will arm you with a process that is simple to understand and apply. This form of risk management does not have complex formulas and financial forecast models and is not confusing. It is common sense harnessed in a simple process!

How most of us handle risk:
1. We see issues.
2. We talk about them.
3. We avoid doing anything.
4. We bury them and then worry.
5. We regret! We lament and say I wont let that happen again!
6. We may have to apologize.
7. Unfortunately, sometimes we are forced to find a new job!

Sounds familiar?

Most people naturally do the first two steps. But the fear of failure, lack of tools or frameworks, laziness, already-full-plate syndrome (insert excuse here) and its on to steps 3 and beyond. But nonot you! This time you decided to pick up this book to learn how to equip yourself with the best tools for managing your personal risks. Thank you for giving it a try. Now its your turn to experience the powerful simplicity and relief from worry!

• Language: English
• Publisher: Xlibris US
• Release date: Jun 20, 2017
• ISBN: 9781543417388

George D. Robson

A native of Harrisburg, PA, George holds a B.S. in Aerospace Engineering from The Pennsylvania State University and a M.S. in Engineering from The University of Tennessee. After working in the aerospace and nuclear power business with Aro, Inc. and Bettis Atomic Power Laboratory, George joined GE’s Gas Turbnine division (GTD) in Greenville, SC, as a design engineer. He was soon promoted to Manager – Operational Support in Schenectady, NY and followed that as Manger – International Service Support, travelling extensively to Europe, Saudi Arabia and Egypt. In the mid 80’s, he transferred to Corporate Engineering and Manufacturing as consultant, program manager and educator, all associated with GE’s Management Development Center in Crotonville, NY. During that period he co-developed and implemented Continuous Process Improvement (CPI) across GE. As a result, he requested permission to preserve this important work by publishing it. GE kindly granted permission after which he authored Continuous Process Improvement, published by The Free Press. In 1990, he joined GE Aircraft Engines (GEAE) as Program Manager, Special Continuous Improvement to help integrate continuous improvement efforts with Jack Welch’s “Workout”. During that period, he co-developed a program management system for the NASA High Speed Civil Transport and participated in the Lean Aircraft Initiavtive, in collaboration with MIT. He co-led development and implementation of the Engine Development Cycle/New Product Introduction (EDC/NPI) and Risk Management processes, which soon became recognized as GE best practices. As a result of his work at GEAE, he was asked to join Corporate Research & Development (CRD) to lead the best practices across GE. He created a corporate model and co-led adaptation and implementation across the GE businesses and joint ventures. During that time, he also created a Market Opportunity Assessment Process and integrated Six Sigma tools and techniques into the business model. He was a member of GE’s Corporate Six Sigma Quality team, a Master Black Belt and co-leader of GE’s Corporate NPI/Design For Six Sigma (DFSS) Council. Results of these activities are apparent in many of GE’s product and service offerings, e.g., Lightspeed Catscanner, Performix Xray tube, Digital Xray sensor, CFM56-700 Aircraft Engine for the Boeing 737, GE90 Aircraft Engine, exclusive engine for Bombardier’s Canadair Regional Jet, Spectrum Electric Range, to name a few. After retiring from GE, he joined Navigant Consulting in Palo Alto with focus on Risk Management. Following that venture, he was hired as VP of the Juran Institute, focusing on Six Sigma, NPI and Risk Management. Subsequently he entered private practice and consulted with Rumpke Consolidated Companies, Cincinnati, OH; Griffin LLC, Valdosta, GA. and American Standard/Trane. George taught at the Geenville Technical College, SC and Point Park College, Pittsburgh, PA. He has lectured at Xavier Univ. and trade seminars and authored/delivered technical and business review papers for various societies. George and his wife Donna, a retired RN, are very thankful for the health and unity of their family: three children and eight grandchildren.

Book preview

How to Handle Risk!

Adapted from the Simplest

Most Powerful Tool in GE

George D. Robson

Author of Continuous Process Improvement, The Free Press

Copyright © 2017 by George D. Robson.

Library of Congress Control Number:   2017906129

ISBN:      Hardcover            978-1-5434-1740-1

                Softcover              978-1-5434-1739-5

                eBook                   978-1-5434-1738-8

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the copyright owner.

Rev. date: 06/19/2017

Xlibris

1-888-795-4274

www.Xlibris.com

758627

Dedicated to my wife Donna, my family

and the memory of my parents

"It is amazing what you can accomplish

if you don’t care who gets the credit."

Harry S. Truman

CONTENTS

Acknowledgments

Dad’s Poem

Preface

Chapter I. Let’s Talk about Risk

Chapter II. Roots of the Process

Chapter III. When to Use It

Chapter IV. A Simple Process

Chapter V. Identify

Chapter VI. An`alyze

Chapter VII. Plan

Chapter VIII. Manage

Chapter VIII. A. Review Protocol

Chapter VIII. B. Meeting Guidelines

Chapter VIII. C. The Ownership Test

Chapter VIII. D. Effective Reviews

Chapter VIII. E. Productive Meetings

Chapter VIII. F. Implement Plan(s)

Chapter VIII. G. New Issues

Chapter VIII. H. Know When to Get Out of the Way

Chapter IX. Exercise: Buying a Used Car

Chapter X. Typical Implementation

Chapter XI. Application Examples

CHAPTER XII. The Bill Standera Story

Chapter XIII. Pitfalls

Chapter XIV. Institutionalize It

Chapter XV. Rules of Engagement

Chapter XVI. The Challenge

Appendix

Step 1. Checklist

Step 2. Checklist

Step 3. Checklist

Review Process Checklist

Risk Abatement Spreadsheet

About the Author

ACKNOWLEDGMENTS

T HIS BOOK IS a reality only through the support and encouragement of many. The risk of recognizing specific contributions can lead to possible oversights. Therefore, to all those who go unnamed but have contributed to my passionate project, I extend my sincere appreciation.

My initial acknowledgment is to Leo Rader for his encouragement, his support, and his relentless commitment to this project. He reluctantly agreed to challenge me with questions that would keep me focused on the ultimate goal while desperately trying to apply the KISS principle. Without his challenges, skill set, support, and guidance, the path would have been longer and more daunting. And by sharing the results of his Electrifying Rural Mexico project, he provided an example of how risk management can bring technology and hope to those in need.

A note of thanks goes to Josh Carson for sharing and applying his creative talents to the design of the process graphics.

Special appreciation is extended to Norm Kuchar for his role in providing unfettered use of the materials I developed while at GE. Without his support, this book would definitely not exist.

To Bill Standera, I extend my most sincere appreciation for his belief in CPI, for his willingness to be a beta site to develop the risk management process, and for freely sharing his success stories.

Thanks goes to Chuck Doarn and Don Knerr who patiently suffered through the manuscript to provide realistic views from academic and business perspectives.

To Melissa White, I extend my sincere gratitude for her creative concepts in designing the cover. I couldn’t have done it without you, Missy!

To June Almeria, Alyssa Richter, and the support staff at Xlibris, I extend my appreciation for their support, their patience, and their skilled guidance in helping me successfully navigate the publishing process.

To our son Dan, a special word of thanks for his artistic contribution of the coat of arms that exceeded my vision and expectations.

Last but not least, I must thank my wife Donna for her unconditional love, devotion, faith, confidence, and longsuffering patience in me to complete this passionate project because she did it once before. There is no one better!

DAD’S POEM

W HEN I AUTHORED Continuous Process Improvement , The Free Press, 1991, I included an inspirational poem composed by my father, the late William T. Robson, Jr. I continue to revisit his eloquent and wise philosophy and found it appropriate to include it in the opening pages of this book. As you read it, I suggest that you consider your God-given gifts and talents and heed my late father’s sage advice.

If you can’t be a pine on top of the hill,

Be a scrub in the valley—but be

The best little scrub by the side of the rill’

Be a bush if you can’t be a tree.

If you can’t be a highway, just be a trail.

If you can’t be the sun be a star,

It isn’t the size, that you win or fail!!!

Be the best of whatever you are.

PREFACE

Who can use this?

W HEN I BEGAN this project, I was primarily targeting business leaders and project managers. However, as I progressed, I realized I was using day-to-day examples to illustrate how it works. Consequently, the text reflects much broader application than the business environment in which the process was developed.

We all face daily challenges and issues that create some level of uneasiness or worry. How we handle issues/risks can mean the difference between success and failure. This simple process can help address everyday issues and handle personal risks with a greater level of confidence. No matter if we are in a business or personal environment, it can help us make decisions more objectively and avoid otherwise unhelpful and stressful subjective discussions.

It’s a simple tool for the masses!

CHAPTER I

Let’s Talk about Risk

W HEN THE SUBJECT of risk comes up in our house, my wife is quick to tell me that I’m not a risk taker. Of course, I counter with my argument that risk taking depends on a lot of things. Besides, I prefer to talk about how I handle risks rather than how I take risks. I will take a risk if the probability of something going wrong is low and the impact (if it does go wrong) is also low! So when I talk about risk, I include two factors, probability and impact, which must be characterized objectively and in terms which can be quantified. Going one step further, managing both of those requirements leads me to maintain a low level of risk and anticipate success.

Let’s see how Webster’s New World Dictionary defines the basic terms.

Risk: the chance of injury, damage, or loss

Manage: to control the movement or behavior

So risk management enables you to control the chance of bad stuff happening.

This book will arm you with a process that is simple to understand and straightforward to execute.