Practical Leadership: Take calculated risks

"Risk hai to Ishq hai"

How often do you see Manager's who are extremely risk averse.  I have had the chance to encounter many such Managers who were such risk averse that things would stay in status quo for years even though it would impact them and their teams every day.

But risk averse behavior is not just a behavior that is exhibited by individual's, I have seen entire organization's being risk averse. 

The culture of the organization is usually to blame. The reasons almost always were

1) If you get retaliated on for the risk you took that resulted in a failure.

2) Processes and Rules discourage any risk taking capability.

So what is the solution?

What you should do is to inculcate a culture of taking calculated risks and train / hire leader's who can not only take calculated risks but also get their reportees to take such risks.

Taking Risks is not bad till the time every possible problem it can bring in accounted for. Always have a plan in case things don't work out. 

Calculating Risk and taking them is not very difficult to work with if you follow these  simple steps

1) Research well on what you plan to do

2) Identify Stakeholder's and how it will impact them

3) Anticipate Mistakes 

4) Set Checkpoints and Goals to measure your changes the risk brings.

5) Be ready to course correct OR jump to an alternate Plan

6) Don't be afraid to cut your losses and revert from the Change

7) Learn from your successes and your failures

8) Repeat

and

Something that is not given its due importance but should be which is to "Learn from other people's mistakes"

and least I forget

Enjoy the benefits of the Risks you took when things go as planned.

FIN