How to take Risks
About the Authors:
NEIL FLANAGAN and JARVIS FINGER
World-renowned business strategists and authors of several international best-selling books on management. Neil is a sought-after keynote, conference and motivational speaker and Jarvis is the award-winning founder and editor of Australia's best known magazine for school administrators.
If you're keen to display the qualities of true leadership, then risk-taking must become part of your executive weaponry. Leaders must be disrupters of the status quo, something that often requires them to take risks. Calculated risk-taking helps 'creative edge' organisations to thrive and earns an enviable reputation for individuals who deliver the positive results.
But risk-taking requires courage, and an awareness of the following advice….
BE AWARE OF THE PROS AND CONS OF RISK-TAKING
Risk-taking means moving from a situation of some security to another less secure position. But, in order to advance, there'll be times when you must place yourself, even your organisation, at risk. Courage is a basic requirement for risk-taking, sometimes at great professional and personal cost. The alternative—choosing not to show leadership—will no doubt result in fewer risks and greater security, but it will also mean the loss of opportunity to bring about needed improvement in your organisation.
CONFRONT FEAR FIRST - THEN BITE THE BULLET
Fear is a demotivating factor in any situation. People don't do things because they fear the consequences of doing them (and vice versa). People who do not learn to confront their fears may go through life in the company of embarrassment, failure, rejection, disapproval, uncertainty, and a myriad of other doubts. Confronting fear is a precursor to taking risks. So, if you find yourself hesitating about taking a risk, ask: 'What am I really scared of?' By isolating and facing up to that fear, by weighing the disadvantages —and the advantages, you can decide whether or not the risk—the calculated risk— is worth taking.
ENSURE THE RISK IS JUSTIFIED
Remember that risk-taking can be something of a gamble and that one of the rules of gambling is never to risk more than you can afford to lose. Size up the odds, the rewards, and the risks. Don't risk a lot for a little, particularly useful advice when you're sticking your neck out only to take revenge, save face, or on a matter of principle.
FORGET THE RULES
The thing about risk-taking is that any rule can be challenged. In fact, risk-taking often involves breaking or stretching any existing rules to breaking point. It's all about change. And to bring about change, you can best assess the risks by becoming an observer of human and organisational behaviour. If you understand the way others at all levels in the workforce think, then you can venture a guess as to how they will react to any breath-taking initiative you undertake or propose.
DETERMINE IN ADVANCE JUST HOW FAR YOU CAN GO
Risk-taking often involves threatening certain existing values, resources and vested interests, and many people dislike change when it upsets their way of thinking, work style or life pattern. So it's important to gauge upfront just how far you can push these boundaries.
History is punctuated with stories of risk-takers who stepped where angels feared to tread. The difficulty for risk- takers, and for you, however, is to know when not to step over the line.
KNOW YOUR LIMITATIONS
A long-shot is one thing; a no-win situation is quite another. So, if you figure you'll be outclassed, outfoxed, outranked, under-resourced, or undermined, then don't be rash. Step back and rethink your strategy.
PREPARE A CONTINGENCY PLAN—JUST IN CASE
Suppose your risk doesn't pay off—how can you save face, cut your losses, or cash in your chips? Be prepared, by having a range of alternatives and contingencies in place which will give you the means to recover and allow you to reach a compromise by negotiating a mutually agreeable outcome.
JUMP IN AND MAXIMISE THE IMPACT
Once you've decided to take the risk, use whatever techniques are necessary to instil confidence in those around you and to keep your momentum going. It's not only what you say, it's how you say it—so be dramatic, stylish and enthusiastic. The 'as if' philosophy is appropriate here; that is, if you want to succeed, begin by acting 'as if' you have.
GAIN AND REMAIN IN CONTROL
You're taking the risk so seek to control as many variables as possible. Use power and influence—your own and that of other influential people around you, and by your actions, earn the authority of other key players.
LEARN TO LIVE TO FIGHT ANOTHER DAY
Fights are rarely won in the first round; the winner is the one still there at the end. So, unless it's a winner-take-all situation, then don't be discouraged if your venture doesn't come off. The important thing is where you stand over the long haul, but to remember the turtle always— it will get nowhere if it doesn't stick its neck out!
Just about Everything a Manager Needs to Know
By Neil Flanagan and Jarvis Finger
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