The possibilities of creating favorable conditions for working with clients and realizing the goals set are largely determined by the quality of strategic planning and corresponding risk management mechanisms. In case weak and insufficiently effective analytical practices are maintained, even a potentially successful business can cause difficulties and losses due to problems with budgeting, goods supply, customer interaction, or all the issues in total. To avoid undesirable results, it is essential for project managers to support a high level of risk control and comply not only with the general rules of market entrepreneurship but also those aspects of activities that characterize a particular business. On the example of Global Green Books Publishing, a recently operating firm specializing in printing and delivering electronic books, relevant problems and challenges will be considered, which relate to risk management and the ways of preventing unprofitable production. Since the company in question is young, maintaining appropriate control principles is an important procedure. Therefore, risk management in the context of the activities of the considered project is a crucial practice that allows achieving the sustainability of work, sales stability, and recognition from customers through quality services.
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Challenges That Project Managers Face as Risk Managers
The principles of work organization at Global Green Books Publishing are based on the involvement of modern technologies for creating electronic books, which is in demand in the context of the transition to digital methodological resources. Nevertheless, despite a potentially profitable business, its creators have some difficulties that impede the development of the company to the full extent and cause discontent on the part of some customers. The invited specialist has been able to identify some areas that are weak and adjust the work of Global Green Books Publishing in such a way as to eliminate the most severe problems. Among these challenges related to a risk management policy as one of the important activity conditions, such issues should be mentioned as the absence of specialized software for scheduling, undeveloped tools for estimating costs, and poor communication with stakeholders.
Absence of Software for Scheduling
One of the shortcomings found in the process of analyzing the activities of the company in question is the absence of appropriate software for scheduling and control over goods transportation. The inability to estimate delivery times and difficulties in planning the entire production process of e-books have become those factors that led to consumer dissatisfaction with delays in receiving orders. This, in turn, is unacceptable in the conditions of market competition, when clients’ approval is mandatory and contributes to expanding the potential of a particular production. According to Savolainen and Ahonen (2015), software development plays an essential role in building a sustainable business based on the delivery of goods of a certain profile and in many respects determines the profitability of a specific project. Therefore, this flaw has affected customer interest negatively and become one of the factors causing problems with the brand recognition of Global Green Books Publishing.
Undeveloped Tools for Estimating Costs
Software engineering provides an opportunity to achieve not only the correct scheduling of goods delivery but also plan the budget of a particular company. As Savolainen and Ahonen (2015) note, cost-effectiveness is a crucial feature, and special programs and tools designed to simplify the work of project managers and eliminate unplanned expenses help in controlling this aspect of activities. At Global Green Books Publishing, such software is absent, which does not allow the business owners to manage their financial resources reasonably and reduces the likelihood of successful asset allocation. Since neither of the two creators of this firm has an economic education, such calculation programs should be mandatory elements in their entrepreneurial practice. Therefore, their absence is an omission, which is a serious challenge.
Poor Communication with Stakeholders
Another significant omission that the hired risk management specialist has discovered is poor communication with clients, which is caused not only by the lack of business owners’ knowledge about how to engage customers but also by the lack of special tools. Savolainen and Ahonen (2015) argue that in the process of data exchange between the customer and the seller, “clarifications from the customer are often required” (p. 98). At Global Green Books Publishing, there are no appropriate technologies to maintain permanent contact with customers, which, in turn, may lead to client dissatisfaction due to delivery delays or other related challenges. Therefore, creating a sustainable system of interaction with all stakeholders is necessary; otherwise, the company will lose customers, which is unacceptable in a developing business environment.
Effective Risk Managers’ Skills and Competencies
In order to cope with the aforementioned challenges successfully and overcome the difficulties that arise, risk managers are to possess appropriate skills and competencies. The ability to anticipate potential barriers and eliminate them timely makes it possible to avoid the loss of demand for goods sold and customer dissatisfaction. As a young firm, Global Green Books Publishing should be actively involved in the implementation of the necessary strategies based on the successful introduction of risk management approaches. The professionalism of those responsible for strategic planning is an important component of success. As significant competencies that risk managers should possess, it is essential to mention high communication skills, attention to details, and the ability to organize subordinates’ productive activity.
High Communication Skills
Building business relationships with the target audience is an important objective in the context of a growing business. Since there are difficulties in maintaining interaction with clients at Global Green Books Publishing due to the absence of appropriate software components, it is essential for the company’s project managers to have high communication skills. Hodgson and Paton (2016) argue that such employees’ professional competencies are based on the successful control of subordinates’ work duties and the distribution of tasks among them in accordance with the current needs of a particular company. In relation to the company in question, project managers need to establish a solid system of interaction with both colleagues and buyers in order to have information about all the emerging challenges and to track such crucial aspects of business as demand and interest in the brand.
Attention to Details
A detailed-oriented approach to the organization of risk management is relevant due to an opportunity to control all the aspects of activity without exception. Those project managers who are able to take into account all the nuances of working in a particular environment foresee potential difficulties and utilize all available resources in order to prevent the loss of customer interest. According to Hodgson and Paton (2016), this practice stimulates subordinates’ dedication and contributes to enhancing the “values of professional knowledge” (p. 359). Since the owners of Global Green Books Publishing have hired a specialist who is attentive to detail, it is likely that her competences will be enough to increase the position of the company and achieve the expansion of the business influence.
Organizing Subordinates’ Productive Activity
If a project manager is interested in achieving high working results, his or her activity is aimed at maintaining subordinates’ productivity. In addition, as Hodgson and Paton (2016) remark, leaders’ cumulative performance of the required tasks along with colleagues increases the efficiency of all procedures and helps rally a team. With reference to Global Green Books Publishing, coordinating the work of several employees is essential. Since the firm is small, the role of each subordinate is high, and the competent performance of direct duties is of great importance for improving the market position of the business. Therefore, project managers should promote the practice of maintaining employees’ interest in the conscientious implementation of the tasks assigned.
Challenges That Team Members Face when Dealing with Risks
Not only project managers but also the company’s employees are confronted with difficulties that complicate the workflow and hamper the implementation of the goals set. At the same time, at Global Green Books Publishing, it is crucial to follow a clear algorithm for performing all the procedures since due to the prevailing circumstances, the company loses its positions because of the problems that have arisen. When evaluating the role of employees in the company, it can be noted that the competent implementation of direct responsibilities is one of the most important objectives. Nevertheless, while analyzing the activities of Global Green Books Publishing, it is possible to make a conclusion that some challenges occur periodically, and among the most frequent of them, knowing the status of work, interpersonal conflicts, and diverse backgrounds and motivation may be mentioned.
Knowing the Status of Work
If employees do not have a clear idea of what specific goals are required to fulfill and why certain strategies are ineffective, this is a significant challenge. As Fraser and Simkins (2016) note, those workers who do not know what risks certain omissions are fraught with do not contribute to the achievement of positive results and hamper business growth. At Global Green Books Publishing, the hired project manager has faced with a situation when subordinates cannot give an accurate answer to the question about the significance of their activities and the status of the procedures that they perform. This, in turn, affects the overall results of work negatively and does not allow the management to implement the outlined strategies.
Another common problem that the members of the Global Green Books Publishing team face when dealing with risks is interpersonal conflict. Since part-time employees are involved, they are not familiar with one another and cannot rely on the qualified performance of duties among colleagues. Fraser and Simkins (2016) argue that the risks of reduced efficiency due to misunderstanding among workers are highly possible, and both production and communication difficulties arise. As a result, employees cannot follow a clearly planned schedule, which entails the loss of production efficiency.
Diverse Backgrounds and Motivation
Organizational culture implies respect for colleagues and the absence of any bias towards one another. However, at Global Green Books Publishing, part-time employees have different professional and cultural backgrounds, which creates challenges for them and entails disagreements resulting in conflicts. Also, the level of motivation is of great importance in the context of achieving a common goal. If the company’s workers are not ready to show commitment and improve their professional skills for the benefit of their company, the likelihood of the success of the proposed initiatives is reduced. According to Fraser and Simkins (2016), teamwork does not accept individualism if it is expressed in the desire to separate from the collective. Such a difficulty is also encountered at Global Green Books Publishing, which creates additional challenges for the management.
Effective Team Members’ Skills and Competencies
The manifestation of professional competence and high working skills is important not only among project managers but also employees. Interest in achieving positive production results characterizes the team as properly oriented, and relevant qualities are significant in the context of job performance. Based on the activities of Global Green Books Publishing, following the company’s guideline, maintaining high communication skills, and timely initiative are the most important employees skills when identifying and managing risks.
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Following the Company’s Guideline
The effective implementation of goals may be achieved through strict adherence to those algorithms that are set by the management. As Lin, Chen, Hsu, and Fu (2015) note, carrying out leadership tasks at different levels in accordance with the specified steps eliminates any inconsistencies with the final goals and makes it possible to plan long-term prospects. This, in turn, minimizes the risks and helps avoid additional costs. Therefore, the ability to follow the company’s guideline is a responsible competency.
Maintaining High Communication Skills
In order to avoid interpersonal conflicts, employees should maintain a high level of communication. According to Lin et al. (2015), if members of a particular group have enough time for interaction, the quality of their mutual understanding improves, which, in turn, contributes to increasing production results. Accordingly, at Global Green Books Publishing, employees should sharpen corporate communication skills to make the workflow effective in the face of emerging challenges.
One of the most significant competencies in relation to the topic under consideration is the manifestation of timely initiative. Since many employees of Global Green Books Publishing are part-time, without proper motivation, they are unlikely to make every possible effort to achieve the best results possible. However, in the conditions of the aforementioned difficulties, dedication plays an important role in gaining customer recognition and raising market positions. Lin et al. (2015) state that employees’ awareness of growth prospects and individual contribution to the company’s success are valuable attributes. In the considered company, such competence is significant since challenges at different levels arise constantly. Therefore, it is crucial for the members of the Global Green Books Publishing team to recognize the need for self-giving as an integral component of the firm’s growth.
Risk management promoted by both the project leaders and employees of Global Green Books Publishing plays an essential role in establishing the company’s productive activities in the face of emerging challenges and is the method of increasing sales stability and customer recognition. Difficulties associated with the improper or insufficiently successful implementation of growth strategies require manifesting special skills and professional competencies. Effective measures to combat the challenges are a prerequisite for development, and appropriate steps aimed at improving the production results may help the company regain a high market position.
Fraser, J. R., & Simkins, B. J. (2016). The challenges of and solutions for implementing enterprise risk management. Business Horizons, 59(6), 689-698. Web.
Hodgson, D. E., & Paton, S. (2016). Understanding the professional project manager: Cosmopolitans, locals and identity work. International Journal of Project Management, 34(2), 352-364. Web.
Lin, T. C., Chen, C. M., Hsu, J. S. C., & Fu, T. W. (2015). The impact of team knowledge on problem solving competence in information systems development team. International Journal of Project Management, 33(8), 1692-1703. Web.
Savolainen, P., & Ahonen, J. J. (2015). Knowledge lost: Challenges in changing project manager between sales and implementation in software projects. International Journal of Project Management, 33(1), 92-102. Web.