Risk is a broad term that can apply to many situations. For this article, we are talking about ways to mitigate business risks to inputs and outputs. Contract employment Use contract employees to scale up/scale down employment needs. The potential downside is having to train temporary employees. Use contract employees that allow for exit if …
Ways to Mitigate Risks to Business Inputs and Outputs Read More »
Reducing initial investment is desirable from a cash management standpoint, but also from a risk standpoint. Tactics to reduce initial investment in a project are listed below. Staged investment Make a partial investment, and wait for more information before making follow-up investment. Example: Buy land. Develop if it is desirable to do so. Example: R&D …
Optimizing operations generally comes in two flavors: Designing a product or process for a specific purpose to maximize output or minimize cost. This also may entail standardization of product or process. In this case, optimization occurs at the front end during the design phase. Designing a product or process with flexibility to allow maximize output …
Sometimes upside opportunities can be planned for, and sometimes they present themselves out of the blue. This article details how exploiting opportunities can be achieved. Examples of upside opportunities include an influx of orders, a favorable upturn in market prices, an opportunity to launch a new product, and so on. Purchase option An option to …
The idea of project flexibility is conceptually desirable and accepted in both corporate strategy and in the design decisions that go into product development. The problem is that it has generally been difficult to quantify the value associated with flexibility, and therefore difficult to justify. Developing products and services always involves unknowns. Uncertainty in market …
What is Project Flexibility and Where Can I Find It? Read More »