Page 145 - Performance Leadership

134 • Part II Operational and Analytical Dimensions

organization. The external perception (the outside-in view) is explicitly
considered as a boundary condition when designing inside-out strate-
gies to improve performance.

Call to Action

To get started with aligning risk management and performance man-
agement, answer the following questions:

• What types of risk management do you distinguish? Do you
separate out strategic risk as a category?
• What risk management methodologies do you use, and how can
you integrate performance management into that?
• What performance management methodologies do you use,
and how can you integrate risk management into that?
• What are your key performance indicators and your key risk
indicators? Do they not only match your strategy but also match
each other?

Take a few decision-making processes of the recent past and model
them out using the performance/risk matrix. Look at the options of that
particular process and see if using the matrix leads to different deliber-
ations on what option to choose, or even better, an improved portfolio
of smaller decisions and options. After having gone through the exer-
cise of remodeling past decisions, and having built up your experience
in the approach, use the performance/risk matrix for a new decision.