10 Ways to Become a Risk-Taker
“Real change agents comprise less than
10% of all business people,” Jack Welch.
Most leaders play not-to-lose rather than playing to win, especially in large organizations. The more we have to lose the more we play not-to-lose.
What we protect owns, limits, and controls us.
What we risk propels us forward.
When to risk:
An unsatisfying present continues until you step toward your new future. If the present satisfies, roll over and go back to sleep. Listen to discontent – it’s yelling, “Get up and get moving.”
If the present is unsatisfying, risk losing it. It’s riskier not to risk when the present sucks.
Risk-taker questions:
- What could you gain?
- What could you lose?
- What happens if you don’t change?
- Who do you want to be? “To dare is to lose one’s footing momentarily. To not dare is to lose oneself,” Soren Kierkegaard.
- What’s in you that suggests success is possible?
- What weaknesses require compensation? Risks become peril when you ignore your weaknesses – build the team.
Risk-taker practices:
- 70% certainty is enough.
- Postpone all or nothing moments. Don’t go all in on the first play.
- Use long-term purpose to fuel passion and provide guidance. Set one eye on the future while focusing on the present.
- Acknowledge failure courageously and quickly.
- Adopt experimental mode. Say, “Let’s see what happens.” Failed experiments aren’t cataclysmic, they’re expected.
- Success isn’t the path to success – learning is. “I am always doing that which I cannot do, in order that I may learn how to do it,” Pablo Picasso.
- Keep opposites handy. Those who aren’t like you add more value than those who are.
- Don’t quit! Adapt.
- Measure and evaluate progress.
- Adapt again.
Bonus: Have fun. (Include on all lists.)
What questions can risk-takers ask?
How do you decide a risk is worth taking?
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Good post, Dan.
I think that it is knowing our purpose that gives us the ability to do long-term or long-range planning. The intermediate steps are not so painful when you have the goal or the vision clearly in mind.
Knowing when to go all in or comit is vital. All of life, every experience is an opportunity to adjust your thinking and to imrpove. We must keep adapting, but never lose sight of where we are going. Firm, but flexible.
And many times we have all said we should have had more fun. Nothing stops us from having more fun now.
Thanks
Martina
@martinamcgowan
Hi Martina,
Thanks for your comment and support of the LF community.
I appreciate “Knowing when to go all in or commit is vital.” I’ve found that an all in moment is preceeded by a series of small steps. Several small steps inevitably lead up to a “crisis” moment.
In one sense, I find the idea that there is a path that leads up to an all in moment comforting.
Best,
Dan
My favorite tip: Keep one eye on the future while you focus on the present. Those who are risk-averse tend to think only of the present and worry about the future. With no end-goal or values in mind, all risks seem risky. When you’re focused on your values, the right risks become clear.
Hi Heidi,
Thanks for your contribution.
I find the present can be at the least captivating and sometimes overwhelming. It takes intention–and hard work–to maintain a forward facing orientation while dealing with the day to day.
One focus without the other is dissatisfying.
Best,
Dan
What can you do to increase your chances of success? Deciding to take a risk is a big first step, but then you need to develop the plan that give you the best chance of success and decide what action you can take right now that gets you started towards your goal. Once you are committed to a decision, take action and stop debating the decision.
Manage,
Love the last line of your contribution.
“stop debating the decision” … Shift from decision mode to execution mode. The question moves from what to do to how to do it.
Thanks,
Dan
An excellent topic, and great post. I personally love the fail fast, learn, and move on mentality. Taking risks leaves regret for not having tried out of the equation.
Thanks Ryan,
I’m particularly fond of … MOVE ON. 🙂
Best,
Dan
Dan,
“What’s in you that suggests success is possible?”
I love this one question especially.
Helping students (or co-workers) discover their strengths is the best gift we can give them. Sometimes we first hear about one of our talents through someone else’s perception of us. If we respect the person noticing and describing our talents, we will believe and own those qualities. Then we know the answer to ‘What’s in you that suggests success is possible?” Then we can soar.
A person who notices and reveals talents in others is priceless to everyone.
Dauna Easley
Hi Dauna,
Glad to see you back today. Thanks for sharing your insights.
You are so right. People who can point out our failings are a dime a dozen. Someone who sees our strengths and potential is rare and precious. People go further when they are lifted up rather than beaten down.
Cheers,
Dan
Dear Dan,
Acceptance of failure is great sign of success. Denial is great sign of failure. The person who adopt to a situation without making effort to succeed is sign of complacency. And I always believe that complacency kills in future. I strongly agree that what we risk propels us forward. Risk taking is the indicator decision making and decision making is leadership traits. Anyone who takes decision is a leader. Now the kind of risk involved in decision making decides whether you take risk with some direction or taking risk without calculation. Blind risk-takers without calculation and clarity fool themselves. Risk-takers can ask the opportunity involved in long run in taking risk now. They should ready to forgo short term opportunity to get long term opportunity. When risk-taking enhances your reputation and keeps you aways from mass, then risk-taking is worth taking. I strongly believe that when leaders take risk they look for impact they intend to create on people and society. Risk-taking for monetary benefit may yield profit in short term but risk-taking for non-monetary benefit create both prestige, reputation, trust, relationship and mutual respect.
Dear Ajay,
Thank you for another useful and insightful contribution.
I love the people focus. I think it’s so easy to get caught up in things and material outcomes that we forget that long term benefit is about serving, developing, encouraging, and leveraging the skills of people.
Best to you,
Dan
Gene Calvert’s older book, “High Wire Management”, would suggest that risk takers are not really that far out there — that they take risks that are somewhat predictable and manageable. He is no longer with us, but I think his contributions and thinking were interesting.
He gave me permission to put his survey up on my old website, so if you are interested, you can find it here:
http://www.squarewheels.com/content/risk.html
It has questions and then his suggested explanations.
.
Dr. Scott,
Your comment reminds me of a Drucker quote that goes something like… People who don’t take risks make about two big mistakes a year. People who DO take risks make about two big mistakes a year.
Thanks for adding value.
Best,
Dan
I think the questions, what could you gain and what could you lose, are key questions. I think that natural risk takers tend to focus on the possible gain, the making something better aspect. I think for those who are not natural risk takers, the what could you lose question looms very large. I think sometimes those who fear that loss give it more weight than what they would gain. I can be hard to be objective when you are in comfortable place and you don’t want to lose it.
Hi Bonnie,
Thank you for coming back and contributing to the conversation.
At the core, losses and gains are at the heart of risk taking. Do potential gains outweigh potential losses. The answer is the first step to taking risk.
Best to you,
Dan
On that note, you’ll find a link to my Youtube channel by clicking my name. You’ll see I have inflating cartoons uploaded there and a slowly growing audience (I get a little under 1,000 views per week by now, hoping to get higher as I keep going).
….well, not a day goes by I think about completely changing my genre on that channel-uploading videos that showcase my singing, cartoons that are dramatic and action based instead, general comedy, etc. But I’m afraid of losing what I already have. Take the risk or not?
Great list Don! Way #5 resonates with me the most – Adopt experimental mode. Say, “Let’s see what happens.” Failed experiments aren’t cataclysmic, they’re expected.
I love experimenting and seeing what I can learn. Without experimentation there can be no growth.
Hi Joseph,
Thanks for joining in today.
Like you, I’ve found that “lets try, learn, and try again” sets people free to perform. We’re not talking neglect, lack of effort, or complacency….Still do your best. 🙂
Cheers,
Dan
Love the Picaso quote:
“I am always doing that which I cannot do, in order that I may learn how to do it,”
One of my favorite reads was an HBR article that talked about how the most successful people and companies viewed challenges.
They viewed challenges not as boundaries that limit what they could do, but simply as things they didn’t know yet or couldn’t do yet…but could learn!
After reading that article, I noticed how so many people artificially limit themselves by saying “we can’t because xyz.” They just accept “can’t,” and don’t even think about how to overcome “xyz.”
Tim, good comments. I always like asking “how” we might do something. That shift seems to create a more open look and an indication that we will find a solution. I agree about “can’t”, particularly when talking about people.
Thanks…Jim
Hi Tim,
I’m thankful you stopped in today. Thank you.
I like the word “yet.” It encompasses hope, process, and continuity.
Belief in our ability to learn helps us say, not “yet.”
Best,
Dan
On the list of personal values. “Taking risks for the organizations sake” is a great value to have. It’s what teams look for in a leader.
Hi Larry,
I hear you saying that risk for risks sake isn’t smart…risk for a higher purpose.
Thank you sir.
Best,
Dan
Risk—when to jump, not blindly, but still to know when to jump is key. That is wisdom. Have you built up enough stores of knowledge, done what the others in this blog have noted, weighed pros & cons, learned what you can? And as important as the wisdom, have you integrated enough parallel or build-up skills? Have you practiced and found skill gaps that you have addressed?
Then know its time to move to the edge and take that leap of faith. How exhilerating are those moments…when you know you are so alive. “Into the great wide open,” Tom Petty sang.
Of course, I still stand by the old snowboarding adage…”you aren’t having fun if you aren’t falling down.”
Hi Doc,
Always my pleasure to read your comments. I appreciate you.
Your comment reminds me that self-development is central to success.. along with bumps and bruises from falling down.
You have my best,
Dan
Dan, your recent series are very inspiring – thank you.
This sentence “What we protect owns, limits, and controls us.” is like closing the circle to your post on March 31st “When to Make the Most Difference” where you write on painful endings and strong beginning.
I like that! Thanks a lot.
Hi Eddie,
Thanks for your encouraging word. I must say I get a little nervous when people go back and compare past posts with present. After about three days I forget what I wrote about…. 🙂
Best,
Dan
Good one! As far as your questions about what questions risk takers should ask and how to decide whether a risk is worth taking, I’d say we have to ask “am I putting my own comfort/security ahead of the organization and my people.” If the answer’s yes, you probably aren’t taking a risk you could.
Hi Thomas,
Great seeing you again.
Comfort ahead of what’s best for the organization. Thats a thought that many could take to heart.
Thanks you,
Dan
Reblogged this on Jots & Thoughts and commented:
I like Risk-taker practices #4, #5 & #6.
Thank you Dan!
I liked the “70% is enough.”
Buffering this blog I am now.
K, bye
I think you can look at the statement “The more we have to lose the more we play not-to-lose” another way. It’s not as catchy but a better line might be ‘the safer we are the more we play safe’.
It is the exceptions to your rule that emphasise my point. An elite soldier has everything to lose but motto’s for elite military services abound with lines like “who dares wins”, “improvise, adapt, overcome” and “now or never”. They have everything to lose, their lives, the lives of their brothers and the lives and fortunes of those they defend. But when you have so much to lose militaries and businesses have learned that audacity overcomes risk. Often because audacity changes the game and turns all the carefully wrought risk management plans to only so much paper.
How many businesses, big or small, facing slow and safe oblivion have opted for an audacious game changing move and risked everything to win?