Insights

Risks. Calculated Risks. Take them or not? Not an easy answer, there is comfort in playing it safe, taking the road most traveled and not bucking the trends. You can do this and get somewhere, and you might even get somewhere good. But will you get somewhere great, fast, and have those moments of exhilaration and accomplishment? Maybe not.

Taking risks, calculated risks, supported by data, experience and a thoughtful approach is what can and will separate the good from the great. Innovation, rapid growth, wild expansion -- all come through risk taking to some degree. We can define it differently, but essentially risk taking is wrapped around uncertain outcomes that require an investment of resources (time and money) and a shift in priorities -- usually away from something safe. It is the answer to "do what you always do, get what you always got" -- the alternative is risk taking.

This is where it gets interesting for me -- the leaders' role in risk taking - as opposed to avoiding risk. Some may argue that a good leader keeps his or he team out of harms way by minimizing risk. I'd say that is case by case, and it isn't leadership. Sounds like a good nurturing manager to me! Not a bad thing, but also not leadership, in my opinion. Risk taking matters and is what sets a leader apart from the rest.

If you are still with me and I hope you are...then how does a leader navigate this slippery slope. What is an appropriate risk, and how can we be sure it is calculated. Also, how do you know you are in a risk-taking culture? OK, three tips:

1. Calculated risk matters. Do your homework, collect your data, and be sure you can see and articulate a path to success. Doesn't have to be a slam dunk path, but it needs to be there. Failure is an option, but success is attainable, and you know the path.

2. Go/No Go. Ok, it's calculated with a path to success, but is it a risk worth taking? This is where the return-on-investment matters, you need to be sure the payback is worth the risk. It's basically a look before you leap approach, you need to understand the outcome and results.

3. Culture? It is important to know what your culture is...and how they tolerate risk taking. But this is also where communication and articulation come to play. We take risks every day just crossing the street. So, why not take some at work. Key point, if your culture is risk adverse is to be sure you communicate the plan, the risk of the plan and the ROI of success. Prove your risk is calculated and thoughtful, lay out the downsides and your mitigation plan and you will be ok. It's even better when your boss speaks risk taking into existence, so if you can....be that leader.

If it was easy, anyone could do it!