The Risk of Not Taking Risks

My friend, Doug Sundheim’s new book, Taking Smart Risks, is an early winner for 2013 Must Reads.   Before I get to how great the book is, the story of how Doug and I met starts with taking a smart risk!  Doug had read a post of mine about my wonderful client, Menasha Packaging and asked if I would be willing to introduce him to them for a book he was writing.  Of course, I did a bit of due diligence into this Doug guy and said yes.  I’m so glad I did!

Part of the problem with risk today is how it’s defined and ingrained in our society.  Take the definition, “exposing oneself to the possibility of loss or injury.”  The definition talks about what can happen as a direct result of risk – the ‘output’ of risk but definitely not the outcome, which is what Doug eloquently supplies – “exposing oneself to the possibility of loss or injury in the hopes of achieving a gain or reward.”  For many people, though, “the emotional cost of not risking and having to live with that regret [is] much greater …than any career or financials … costs.”

By reframing the definition of risk, Doug shows the power of smart risk taking.  We rarely look at the risk of NOT doing, of NOT innovating, of NOT trying.  In essence, it a different perspective of opportunity costs – the opportunity cost of NOT doing something.  I see this everyday in my work – organizations that see innovation as a risk instead of seeing not innovating as a bigger risk.  Doug makes the costs of playing it safe very clear: we don’t grow, win, create and we lose confidence and bluntly, don’t feel alive and meaningful.  If we can get this to change, imagine the positive power that can be unleashed.

Which gets to another key point in Doug’s book – the paralysis of security.  We create an illusion of security around us today, one that is heavily dependent upon our other illusion of control.  The issue isn’t going from security to insecurity.  We’re already not secure in terms of ‘stuff’ whether we recognize it or not.  We’re already not in control of our circumstances whether we recognize it or not.  However, we can be secure in who we are and what we stand for and in how we control our own reactions to life. A key to smart risk taking is, as Doug says, the ability to “increase our tolerance for uncertain circumstances.” If we are secure in who we are, what we stand for and how we will react, we can welcome uncertainty for the opportunity it really is.   That is why I truly believe that entrepreneurs, for instance, are not more risk-o-philic but fundamentally define risk like Doug does.

The book’s practical wisdom, advice, and tools for how to take smart risks are critical.  This is uncharted territory for many and Doug’s practical guidance will make it easier for us to learn how to and actually take smart risks.   This is particularly important for some of the hardest areas of smart risk taking – our own ego and our ability to communicate.  Through stories about humble leaders and constant communicators, like Mike Waite, Doug demonstrates how critical the ‘soft’ skills are in successfully taking smart risks…and in the payoffs.  These are truly fundamental to taking risk. 

It’s been almost exactly 1 year since Doug and I met for breakfast in NYC and talked about his book and how I could help.  That was the start of our friendship!  I introduced him to the incredible leaders at Menasha Packaging and Thogus, my 21^st Century manufacturing client.  The result of Doug’s taking the risk to “ask”?  He got some very real and powerful stories of leaders we can emulate and learn from, I got two of my fabulous clients in his book, and we all now have a field-guide for the New Year and beyond to help us take smart risks.  I look forward to seeing the great things that will happen because of it!

True Leadership is Social

Every once in a while, you are privileged to witness the embodiment of what has become a buzzword, Servant Leadership - someone who is innately wired as a servant leader – authentic, genuine and sincere.  I’m privileged to have met a few of these people in my career – in fact, five “someones” recently at a warm, welcoming, generous visit to Enterasys’s headquarters in Andover, MA.  Two of the five, Vala Afshar and Brad Martin, have just written a 2012 & 2013’s Must Read book, The Pursuit of Social Business Excellence.  To understand the power of this book, I need to tell you a story…of how I met them.

Last spring, I started noticing Vala’s insightful, kind, wise, and very human tweets.  I reached out and he invited me to visit him on my way up to Maine this past September.  I arrived and was greeted like a queen! To my incredible surprise, because Vala remembered our tweets about lobster, Brian Townsend, Director of Global Services and Ops, had prepared a feast of lobster tails with a risotto and an unimaginable dessert.  How did Vala remember that I loved lobster? Because that’s how Vala, and Brad, and the rest of the team, are wired (no pun intended) – to be social, to care, to make sure others matter.

Brad and Vala don’t preach about why businesses must be social – they live it, everyday.  Theirs is a real, living, breathing, continuous narrative about how a mid-market company refocused their culture to delight their customers by respecting and trusting their employees to focus on providing meaningful outcomes for their customers.  They detail the why, how, when, and what in transforming the culture and flattening the organization.  Vala and Brad share the culture’s benefits to their top line, bottom line and most importantly, human line.  If you’ve read Steve Denning’s book, The Leader’s Guide to Radical Management, you’d think he was writing about Enterasys – and he was!

When you read this book, as you should, don’t start making excuses as to why it doesn’t “really” apply to.  You’d be lying to yourself and closing the door to creating an excellent company.  The pursuit of social business excellence applies to any company making any thing that touches any one in any form, not just technology companies. The fundamental building block of Enterasys’ success is not technology – they make that loud and clear – it’s people.  Technology can make being a social business easier, but it can’t make it happen.  People do.

Please read The Pursuit of Social Business Excellence.  Think about how you can adapt some of these ideas for your own organization.  It may seem scary – you may lose the perception of the control you never really had; you may realize you’ve made some bad hires and constrained some great ones; your customers may see behind the curtain.  Yet, overcome the fears, because the rewards are so great, on so many levels.

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You've GOT to be Kidding!

Mark Twain said, "Truth is stranger than fiction, but it is because Fiction is obliged to stick to possibilities; Truth isn't." Fiction pales in light of the Patreaus fiasco. I am simply astounded at Patraeus' grievously poor judgment and lack of virtue.  The relationships and timing of all these events vis-a-vis the yet-to-be-revealed real truth about the Benghazi tragedy call so much into question - about our national security, decisions made about/in Iraq, Afghanistan, Libya, etc.  If you ever doubted how fast trust can be lost, doubt no more.  We have a legacy of distrust.

It seems like our government is out of control, out of touch...living on a different planet with a different set of mores and morals.  Are these the groaning sounds of a system at the precipice?  I keep hearing the creaking of metal in the process of failure before it crashes...failure and fatigue.  Can you name a significant government agency or department that has not been embroiled in a scandal in the past few years? And many of theses are ones entrusted with the safeguarding of our country.

Two of my sages, John Hagel and Steve Denning, have been warning us for years about the frailty and impending implosion of our institutions and institutional practices.  We have not heeded their warnings and on November 6th, we yet again preserved the status quo.  Why? Because...

• Those are the types that run for nomination of their parties?  Why?
• Those that are willing to tell the truth and call it like it is don't make it far enough to get nominated?  Why?
• We citizens really don't want to hear bad news and see reality? We want our officials to make "it all better"?  Why?
• We don't really want to sacrifice what's needed to buttress up the foundations of this country? Why?
• The rewards of doing so are too far in the future? We no longer have a common vision of what America stands for to instill common sacrifice? Why?

I don't know the answer, only some of the questions to ask. But I do know this, Churchill was right when he said, “It has been said that democracy is the worst form of government except all the others that have been tried.”  America highlights the paradox of democracy and freedom.  And yet, despite all of America's issues, people still flock to our shores for survival, people still want to start their businesses here and we are still the beacon for freedom.  Yes, I can handle the paradox of being both horrified at the betrayal of trust and corruption of our government and proud to be an American and be free.

So, this Thanksgiving, while some of us sit at tables bursting with abundance, some in dark homes filled with sand, water and ruin, some in shelters, some by hospital beds, some in barracks in Afghanistan, give thanks for the gifts of trusting relationships and freedom.  Give thanks....and give those whose lives, well being, livelihoods are entrusted to you the same gifts...of trust, integrity, and freedom...from your spouse to the janitor in the plant.  Give thanks.