By Daniel P. Henderson, Manager of Practice Development
Does the term "risk taking" make you just a bit jumpy when you hear it mentioned? Well, you're not alone if it does. By its very definition, risk is deemed to be hazardous, with the distinct possibility that taking a risk will result in negative consequences. In order to be successful, innovative and truly customer focused, however, a certain amount of risk taking behavior is necessary.
The first step that any individual, department and organization must take is to assess the level of acceptable risk that can be taken.
A good illustration that almost anyone, sports fan or not, can relate to regarding risk management is the New York Yankees baseball team. Led by its swashbuckling owner, George Steinbrenner, the Yankees have been a wildly successful organization over the course of the past three decades. Mr. Steinbrenner, through both his words and deeds, subscribes to the theory that in order to reap great reward, great risk must be taken. While the amount and level of risks the Yankees have taken (like hiring George Costanza to work in the club's front office!) have at times seemed extreme, the organization deemed them acceptable based upon the topsy-turvy culture in which it operates.
Organizations that embrace risk taking as a guiding philosophy (like 3M, Microsoft and Nissan) tend to foster a greater spirit of genuine teamwork and creativity. To understand the complexities of risk taking, many organizations are training their employees on how and when to take risks. This type of training often covers the following:
Styles of risk taking;
Simulated decision-making and risk orientation scenarios;
Study and analysis of Normative and Descriptive risk taking;
Understanding the myths and realities of successfully managing risk;
Behavioral norms and best practices of successful risk taking leaders;
Understanding and navigating the barriers to risk taking;
Essential tools needed to improve risk-taking outcomes.
So even if you're the flamboyant owner of a Major League Baseball team, this type of training can help you to feel a little less edgy when you hear the "R" word mentioned in your next staff meeting!
These materials have been prepared for educational and information purposes only. They are not consulting advice or opinions on any specific matters. Transmission of the information is not intended to create, and receipt does not constitute, a consultant-client relationship between The Hill Group, Inc. and any recipient of this material. Readers should not act upon this information without seeking professional advice.
Risk Taking and the Successful Organization
