Facing Up to Risk
As “off-site season” winds down, I am reflecting on the many client conversations I’ve been privileged to join the last ten weeks or so (and the countless catered meals). One theme lurked around the perimeter this year: RISK. It came up in three main flavors:
The risk of saying difficult things.
The risk of being bold about vision.
The risk of committing to a strategy.
The risk of saying difficult things. Before several meetings, individuals approached me with concerns about the honesty of the discussions we would be having. In every case my response was the same: I’m going to do my best to make the meeting safe and encourage honesty. But I was clear: you have to be comfortable that raising tough issues, even with great intentions and skill, is risky. That said, organizations that can’t talk about tough issues have a real problem.
The risk of being bold about vision. Several groups were imagining and defining success for 2024 or beyond. That puts leaders’ credibility on the line. But defining an easier vision of success is uninspiring and diminishes credibility. A vision that doesn’t excite people is step one on the road to mediocre results.
The risk of committing to a strategy. To me, strategy is about overcoming challenges that stand in the way of reaching the vision. Needless to say, strategy is one of the most critical responsibilities of leaders. It’s both challenging and consequential. Many of these meetings had moments of truth where my clients had to make these strategy calls. Hedging bets around strategy may feel comfortable, but it virtually ensures the organization will feel lost and unaligned somewhere down the road.
Over the years, I’ve seen patterns about how to perform well with risks:
Don’t be in denial. Not addressing risks head on is the worst choice. After all, risk is the path to reward. Risks may make you uncomfortable, but they are an opportunity.
Make peace with risk. Being okay that your choices might simply be wrong actually sets you free. Then you can get to work.
Don’t over-analyze. “Analysis paralysis” might be a cliché but it’s for good reason. There’s a point of diminishing returns. Avoid avoidance.
Listen to your heart and body. Few people need to be told to use their heads in managing risk, but your emotions and physical being are incredibly helpful guides.
The massive and expanding body of books, articles, podcasts etc. can sometimes make business and leadership sound easier than it really is. Risk is one area where work can be really tough. But facing into risk, embracing the discomfort, and handling risk skillfully are essential to succeeding.