Tag Archives: risk

Taking Risks verses Taking Chances

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For the most part, all of us have a robust fear of failure. We are good at counting the cost of trying and failing. We are also pretty much aware of what we don’t want to lose.  The result is that we miss opportunities due to not taking the risk of possible failure.

What we are not good at, is evaluating the risk of not trying. We decide to play it safe. Understand, though, you are guaranteed to fail if you don’t try. By playing it safe all the time, you limit your opportunity for success.
So what risks should you take? Fortunately, you are the only person who can answer this question. Do you have a plan? Do you know why you are interested in taking the risk? Is success tied in some way to your effort? These are just a few of the questions involved.
It comes down to balancing the difference between taking risks or taking chances. Taking a “calculated risk” is meaningful, but no one has ever heard of taking a “calculated chance”. A calculated risk is where you know what you need to do in order to be successful and you have some control over the criteria for success. For example, deciding to seek a Six Sigma Black Belt certification involves the risk of not making a passing grade. You control that risk with your effort.
Taking chances involves activities that put you in jeopardy in situations where no matter what you do, success is controlled by chance. For example, mortgaging your home in order to buy lottery tickets. You have hope, but understand that hope is not a plan.
The definition of an entrepreneur is someone who has a passion for seeing their dreams become reality. They live in fear of not trying. While other people fear losing something they already have, entrepreneurs fear not gaining something they want but don’t have.
So here is the point. Be an entrepreneur with your life. It is wise to be aware of the cost of failure, but at the same time be aware of the cost of not trying.

21st Century Leadership

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In the 1950’s, if you wanted to bring the world’s best minds together to solve a problem, it involved weeks or months of effort, and the exercise limited the number of participants.  Today, with the internet, a million minds can be brought to bear on a problem in minutes. If you hold to the idea that within our corporate human hearts and minds we have the answers to our most pressing concerns, than you must also believe that we are on the cusp of great change. What can hold back a million great minds communicating at the speed of the internet?

This is both the opportunity and the threat. We need leaders focused on the truth, not just random facts, that can bring people of diverse backgrounds together and attack our common problems. We have shrunk our world with technology. This means that global opportunities are within our grasp, not just local or regional optimizations. There are few excuses for leaving anyone behind.

It can also be said that with technology moving as quickly as it is, there is a threat of sub-optimization. That is technology used by one people group to subvert another people group. This refocuses on leadership. The 21st century will be defined by leaders who are able to leverage diverse opinions toward the common problems we face, providing opportunity for participation to anyone who has the desire to make a positive difference. The 21st century leader knows that we are stronger when we work together than when we work against each other.

From a business point of view, the same perspectives apply. The status quo will be replaced by paradigm shifts, and thinking big with bold ideas will lead to financial rewards. Here are a few talking points for global business leadership in the 21st century.

  • Don’t accept the status quo.
  • Must have the courage to shift the paradigm.
  • Use technology to leap into the future. Maybe the biggest opportunity in some emerging markets is infrastructure related.  A cell phone has little value where there is no cellular service available.
  • Understanding emerging markets means understanding the consumer profiles within that market. Being customer centric makes your product or service relevant, which brings about financial success.
  • Think big, but be flexible enough to rollout your product or service according to the needs and infrastructure of the targeted market.
  • Be bold. If you want to lead, you must be willing to lead from the front. That means accepting risk that will lead to financial success.