Andrew McCune
May 18, 2017

Change Management: Revisiting the Threat and Opportunity Matrix

Change management and the Threat Opportunity matrix

What is Change Management?

When Continuous Improvement becomes too hard, leadership checks out or avoids all together. The authors of, Has Your CI Program Gone from the Five Whys to Why Bother? by Dean and Yeater, recently posted on BTOES Insights, got it right. The short term benefits in about three years is all the excitement and the extent of business leadership vision. Actually, some leadership doesn’t make it that far. To be fair, most business, in North America for certain, are short term oriented in response to earning calls and the challenge of faster market changes with disruptive competitors. Hence, the leader’s choice to build long term strategy is short circuited by the tyrant of the urgent. In light of this, as a leader you will need to make a conscious effort to balance short and long term.

Consider the Threat versus Opportunities Matrix (TOM), from Change Acceleration Process (CAP), as a simple and powerful enhancer of strategic thinking to accelerate your change.

The TOM, is a shortened version of Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis. Specifically, TOM frames threats to the organization in short and long term view. See the table below.

When seen side by side, recognizing threat can be turned to an opportunity becomes clearer.

Change management: Example of a threat Opportunity matrix diagram

A short example of a business leader capturing their own thoughts around current conditions, and the longer term view. Of course, this can be done on a tablet app or even on a piece of paper. With leadership staff, a discussion about threats and opportunities across the short and long term, bring the current situation in relation to their assigned mission, goals, and objective. A shared understanding of the need will emerge, and can form a burning platform, and may be a start for another round of breakthrough  objectives.

More Change Management Articles:

Another example, as part of strategic planning cycle, a Threat vs. Opportunity Matrix (TOM) could be a companion to the build vs buy decision. What would be the threats and opportunities surrounding build vs buy? Clearly, new revenue is the opportunity, but what would the threats be for building the capability vs buying it through merger and acquisition? The unknowns of acquisition such as hidden

debt of the acquiree weighted against the speed to new revenue and access to the customer list. Are synergies across product lines, organization, and shared services a threat or opportunity? To what extent is the additional time needed to build a threat or opportunity given current conditions? Are we really capable? What capacity do we really have to take on either of these across the short and long term? Have we invested enough so far to recognize how much agility we really have that prepares us to succeed? The answer to this question can reveal if the leadership has the vision for Operational Excellence beyond the first three years.

Given the failure rates for mergers and acquisitions is in the 70%-90% range, perhaps the threats are not clearly understood? Dean and Yeater point to the build capability and capacity to acquire and keep customers, increase revenue, remain profitable, and grow market share. All the while, avoiding the significant burden of more and more debt. This second approach, of course is hard, but comes with great reward that is consistent in both the short and long term. 

Threat versus Opportunities Matrix (TOM), from Change Acceleration Process (CAP), is a simple and useful tool to create a shared need to set new strategy, and avoid the trap set by the tyrant of the urgent.

 View more Articles from Andrew


Download The Best Operational Excellence, Lean Six Sigma Quotes

Andrew S. McCune
Senior Process Consultant, Engagement Director
Strategy Deployment, Operational Excellence, Change Management

Download the most comprehensive OpEx Resport in the Industry

The Largest Leadership-Level Business Transformation & Operational Excellence Event

The Business Transformation & Operational Excellence Industry Awards

Welcome to BTOES Insights, the content portal for Business Transformation & Operational Excellence opinions, reports & news.
AWARD 2019-1
Copy of Copy of btoes19
Subscribe to Business Transformation & Operational Excellence Insights Now
Copy of Copy of btoes19 (1)

Featured Content

  • Best Achievement of Operational Excellence in Technology & Communications: IBM
  • Best Achievement of Operational Excellence in Oil & Gas, Power & Utilities: Black & Veatch
  • Best Achievement in Cultural Transformation to deliver a high performing Operational Excellence culture: NextEra Energy
Operational Excellence Frameworks and Learning Resources, Customer Experience, Digital Transformation and more introductions
  • Intelligent BPM Systems: Impact & Opportunity
  • Surviving_the_IT_Talent_deficit.png
  • Six Sigma's Best Kept Secret: Motorola & The Malcolm Baldrige Awards
  • The Value-Switch for Digitalization Initiatives: Business Process Management
  • Process of Process Management: Strategy Execution in a Digital World

Popular Tags

Operational Excellence Business Transformation Business Improvement Business Excellence Process Management Continuous Improvement Process Optimization process excellence Leadership Process Improvement Premium Execution Excellence Change Management Enterprise Excellence Lean Lean Enterprise BTOES18 Lean Six Sigma Organizational Excellence Culture Transformation Capability Excellence Changing & Improving Company Culture Healthcare and Medical Devices New Technologies Digital Transformation Execution & Sustaining OpEx Projects end-to-end Business Transformation Agile Leadership Understanding & Buy-In Lack of/Need for Resources Adapting to Business Trends Changing Customer Demands Culture Failure to Innovate Integrating CI Methodologies Lack of/Need for Skilled Workers Lack of/Need for Support from Employees Maintaining key Priorities Relationships Between Departments Exclusive BTOES HEALTH BTOES Video Presentations Customer Experience Technology Process Automation Strategy Execution Innovation Report Manufacturing BPM Lean Manufacturing Agility Systems Engineering Process Design Awards BTOES Presentation Slides Healthcare thought leaders Insurance Robotic Process Automation Data Analytics Banking and Capital Markets Professional Services Customer Experience Excellence White Paper BTOES19 Consumer Products & Retail Operational Excellence Model Project Management value creation Artificial Intelligence Automotive and Transportation data management innovation execution digital operations Interview Operational Excellence Example Digital business expansion revenue growth Data Frameworks Lean Culture Learning organization Pharmaceuticals & Life Sciences Primary Measure of succes Six Sigma Workplace Analytics transformation journey BTOES17 Business Growth Communication Denial Management HealthcareTechnologies Hoshin Planning Hospitality & Construction Human Centered Design Innovation in Healthcare Kaizen NPS Net Promoter Score Oil and Gas Pharmaceuticals and Life Sciences Telecommunications Text Mining business process automation eHealth investment banking text analytics Announcement BTOES18 Award Winners BTOES18 Awards Client Feedback Strategy Communications Education Infographic Integrated Decision Approach Integrated Decision Making Jidoka Learning Resource Oil & Gas Recruitment Supply Chain Management Team The FAST lane master virtual resource management