Decision Making and Risk Management

Clear Policy and Authority Across the Organization

Challenge

A Subsidiary of a large Healthcare organization approached Dewar Sloan with a set of concerns related to their strategic authority and operating autonomy. These issues had become the subject of serious friction and conflict up and down the organization over at least 10 years and across different leadership tenures.

Additional issues to be addressed

Policy Consistency

Resource allocation and operational planning had been applied unevenly for decades, often leading to confusion, arguments, and inefficiencies

Culture of Friction

A lack of alignment between corporate and subsidiary priorities created internal tension and constraints to decision-making and progress.

Organization Trust

Managers grew wary of corporate directives on policy and compliance, fostering deep-seated skepticism and resistance to change.

Focus, Engagement

Unclear messaging and conflicting practices led to open frustration, reducing engagement and blocking organization cohesion.

The broader issue at stake?

How best to define the formal authority and approach for decision making. Related to that, a clear assessment was needed for generating better options and wiser choices.

Options and Solutions

Dewar Sloan worked with key stakeholders to examine these concerns, and to frame a more effective approach to standard decision making and risk management. We started by naming the right problem – a basic mismatch of Governance Models and Practices. From there, our examination focused on three main levels of decision-making authority and risk management reviews:

  • The First Level of governance involved strategic and operating autonomy and control, focusing on economic progress and the value-added of Subsidiaries.
  • The Second Level involved the management of priorities and resources by the Subsidiary, with clear expectations and performance markers.
  • The Third Level of governance dealt with program-specific decision making and risk management, focusing on products and services, markets and customers, systems and operations.

In roughly 120 days, the stakeholder groups settled on a much improved approach to governing authority and autonomy. Their key Business Model issues were clarified.

Intent and Impact

Effective Governance is something that extends well beyond conventional Board functions, structure, culture, and practices. Governance, in the broader sense is a body of leadership work that includes compliance, integration, and evolution of the business. Boards and Committees bring together the perspectives, knowledge, and experience that advance good decisions and enhance risk management. Good Governance extends well beyond the Board to where strategic choices and risks are determined.

The Challenges of Today, and the Options for Tomorrow

Opening the Conversations that Matter

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