Change expert Rick Maurer provides an excellent framework to understand the Cycle of Change in his book Beyond the Wall of Resistance (Bard Press, 2010). The cycle is presented below in Figure 1.

The diagram captures the natural state in which many people find themselves – in the dark.

When you are in the dark, you do not perceive any need to change. You are happy and comfortable with things the way they are. This can be true for groups as well as individuals. This position enjoys a high degree of inertia as we stay in the routine of what we know. It is a comfortable state (except for those opportunities that keep getting missed and those nagging problems that keep creeping up).

The cycle of change begins when someone sees the challenge. This could be a definite threat to yourself or to your organization. It could also be an opportunity for growth or expansion. Either way, seeing the challenge awakens the need to change.

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I’ve been banging the drum recently here and here about the opportunity for corporate taxpayers to push for lower property taxes this year, given the massive declines in commercial property values in the past couple of years.

Now a new study from audit firm Crowe Horwath suggests one more reason to look into this: County and local tax assessors’ budgets (and likely their staffs) are shrinking, and they may be way behind on providing realistic valuations of properties in their jurisdictions. more

If you’ve been thinking that your firm has had to muddle through an inordinate number of tax changes lately, it may be some comfort to know that it’s not your imagination. During the first six months of 2011, some 2,000-plus tax changes or new taxes were implemented around the world, according to the latest Thomson Reuters Indirect Tax Update. What’s more, the report focuses on just VAT and sales and use taxes; it didn’t include information on, for instance, corporate income tax.

For instance, in just the second quarter of 2011, 184 sales tax changes occurred in the U.S. The biggest chunk – 57 – of these changes occurred in city taxes. The next largest group of changes was in transit rate changes; 27 changes occurred here. Unfortunately, most changes were increases – 76 of 132 changes to regular sales tax rates were bumps up; only 12 were drops and 44 were new rates. more

Each day as we read the news across the globe, it is apparent that the business environment continues to be laden with a myriad of risks. Without advance preparation, companies looking to advance their strategies will find themselves at the mercy of some unforeseen event that will threaten their success or perhaps their very survival. In times like these, it is critical to have a strong enterprise risk management (”ERM”) program that is woven into the fabric of a company’s strategy as well as its day-to-day business operations.

However, implementing an effective ERM program today is no easy task. Faced with an uncertain regulatory and economic outlook, many companies struggle to create a cost-effective, focused program that will provide the necessary insight to anticipate the most critical risks. While each company and industry may be unique, there are a few common steps that can be taken that will lead to a more effective ERM program. more

Value at Risk (VaR). Defense-Adjusted Value Over Average (DVOA). Solvency Capital Requirements (SCR). Yards after Catch (YAC). Defense-adjusted Points Above Replacement (DPAR).

As I bone up on Solvency II for a new “research stream,” apply risk-management techniques to my personal portfolio in response to a bit of macroeconomic volatility and prepare my fantasy football drafting strategies, I feel a bit overwhelmed. Based on the discussions I’ve had with CFOs and risk officers in the past 12 months or so, my sense is that I’m not alone.

I have too many metrics and not enough analysis when it comes to managing risk in my investment portfolios and my fantasy football leagues. more