Opportunity Management Model:- There is an opportunity when there is a likelihood that a favorable opportunity will occur and have a positive effect on the performance of the business. Good opportunity management ensures optimal, balanced and sustainable performance of the company. Below this post is all about the Opportunity Management Model, objectives, conditions and process.
Objectives of Opportunity Management
- Ensure optimal, balanced and sustainable performance of the company
- Develop a comprehensive, systematic, integrated and flexible method of identifying, evaluating, analyzing and managing opportunities
- Develop best practices for managing opportunities
- Treat all kinds of opportunities related to running a business
- Identify the best opportunities
- Make informed decisions
- Better manage change
Conditions for good management of Opportunities
- Opportunity management must be aligned with the company’s strategy
- Opportunity management must support performance management
- Opportunity management should focus on the same management activities as performance management , performance tools, performance conditions, management skills, stakeholder satisfaction
- The opportunity assessment system should focus on the most important opportunities
- The opportunity management process must be simple and remain simple and flexible
Provenance of opportunities
Opportunities can come from two main sources: from outside the company (external opportunities) and from within the company (internal opportunities).
- External opportunities come from changes in the business environment (political, economic, technological, sociological changes, market changes, customers, competitors, products, suppliers) that can positively influence objectives. And the strategies of the company.
- Internal opportunities can come from changes in company strategy, processes, resources, performance management.
Opportunity Management Process
- Identify opportunities
- What are the changes?
- What are the potential opportunities?
- What are the opportunities that can arise?
- Identify the level of opportunities:
- Evaluate the opportunities
Evaluate opportunities according to their importance and likelihood.
- Analyze the opportunities
- Where do the opportunities come from?
- What are the causes and consequences of opportunities?
- What are the uncontrollable opportunities?
- What is the level of interesting opportunities?
- Can we follow the interesting opportunities closely?
- Can we abandon the uninteresting opportunities?
- Develop action Plans
- Maximize opportunities of high importance and probability.
- Check for opportunities that are high in importance and low probability.
- Analyze opportunities of low importance and high probability.
- Temporarily ignore opportunities whose importance and probability are low.
Opportunity Management Practices
- Enhance opportunity management across the enterprise.
- Develop a continuous process of evaluating opportunities in the company.
- Integrate the opportunity management process into the processes.
- Evaluate opportunities against the strategic objectives of the company.
- Extend opportunity management in all aspects and at all levels of the company.
- Evaluate performance factors, processes, development projects, departments and strategic, operational and financial decisions taking into account possible opportunities.
- Evaluate opportunities and re-evaluate them continually based on their importance and likelihood.
- Develop opportunity optimization strategies based on opportunity assessment levels.
- Reassess and regularly improve the methods and tools for identifying, evaluating, analyzing and optimizing opportunities.
- Perform extreme situation simulations to measure the effectiveness of methods and tools for optimizing opportunities.
- Involve managers in the process of identifying, evaluating, analyzing and optimizing opportunities.
- Organize training courses to master the concepts and tools for managing opportunities.
- Form an Opportunity Management Committee to approve the opportunity management policy and tools and to regularly evaluate opportunities.
- Develop information systems to provide all the information needed to manage opportunities.
- Regularly evaluate the performance of the opportunity management process.
- Communicate the results to the managers.