“Risk” is considered an acceptable part of business. “Risky,” when it refers to business, has negative connotations. Interesting how a single letter changes our thinking and, perhaps, our leadership. Leaders must take risk. It is part of the leadership landscape. But when does taking risk become too risky? Let’s have a look at five behaviors that might take us over the cliff and land us with a hard thump at the bottom.
You Don’t Pay Attention To Your “Inner” Intuitive Voice.
All leaders know when they get close to the line of risky behavior. Bells and whistles start going off inside. We start questioning the outcome of choices and even the motivation behind them. Intuitively, leaders know the difference between “risk” and “risky” choices. Take time to calm yourself, listen to your inner voice, and act with willpower versus impulsivity. This will usually take you down the “calculated risk” road.
You Follow The Easy Path.
Yellow brick roads are great for classic movies but can be very dangerous for leaders to follow. When something appears to us as being “too easy” or “a guaranteed path,” it usually means trouble. Truth is, there really isn’t a guaranteed path for entrepreneurs or leaders in the complicated economy and political arena we live in. We all want and need reassurance, but beware of “munchkins” who point toward “guarantees” and “no risk” paths to your future success. Flying monkeys might be waiting.
You Fail To Check Your Moral Compass.
Ethics and values in business are not “taboo” or “touchy-feely” terms. They guide and inspire us as we take necessary risks with new endeavors. True north means following a personal higher vision. We all know that if leaders and entrepreneurs “play it safe” they probably will not survive or succeed. You have to know how to take risks while using that inner moral compasss–with the North Star in plain view.
You Forge On Blindly, At All Costs.
Yield when the pressure gets too great, or timing tells you it isn’t right. There is a time and place for every venture, for every expansion. Experienced leaders do their work; they test the timing and the market. Just like a hang glider, they leap when the wind is at their back, not in their faces. Preparation provides you with data on calculated and informed risk.
You Rely On Yesterday’s Success.
Yesterday’s success might be today’s failure. Older leaders often rely too much on yesterday’s performance and yesterday’s successes (Remember Kodak?). Regularly invite in new opinions and keep ahead of new trends. Here is where youthful leaders often really shine. Reward them for risking to give opinions. Even the bad ones might be good ones someday.
Risky behaviors can take down presidents and world leaders. Calculated risk can resurrect the next billion-dollar idea. There is a fine line between taking risk and engaging in risky actions. Talk to Anthony Weiner, Lance Armstrong, Bill Clinton, or Tiger Woods about the outcomes of their risky behaviors and none of us might ever take risk again. Leaders know, however, that without risk, there is little reward. Just watch the extra letter that when added to risk, becomes a dangerous concept to embrace.
