4 Ways Great Leaders Mitigate Risk for Their Companies

business risks, small business problems

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By Jim Woods
Bill Gore founder of W.L. Gore & Associates said this concerning risk taking: “You can try anything as long as it’s above the waterline.” Waterline as in ships is anything not affecting the basic integrity of the enterprise Gore would add, “if you want to drill holes below the waterline check with your boss.”
Traditionalists those employees frequently succumbed to conventional wisdom will find this as a natural impediment to innovation. In the article below, if I may, in this new normal of uncertainty and complexity squared, constant risk taking and experimentation are absolutely essential.
Here are ways great leaders mitigate risk for their companies by AJ Agrawal for INC:
“The image of the daredevil CEO is one that we all have seen in the movies. The visionary who bets it all on an idea and becomes an overnight success. Then all of a sudden, the company is living the dream. Huge offices, amazing cafeteria, and overpaid employees. In reality, most great CEOs actually are very frugal. This doesn’t just apply to their business but also their personal lives as well.

As a leader, you should push your team to innovate more with less. When team members ask you for more money, push them to find a solution without using more capital. You’ll find that when people have no choice, they come up with amazing solutions.

True creativity is when people create solutions with given constraints. Having a company mentality that more money is needed for every solution is detrimental and will cause your team to waste funds.

Take small risks, instead of putting their company all on the line. It’s never a good long-term strategy to take huge risks that could end your company. Instead, as a leader you should look to take tiny risks to validate an idea before diving all in. That way, by the time you need to fire a cannon ball, you’ve mitigated as much risk as possible.” […]

Read full article via Why Great Leaders Are More Risk Averse Than You Think | Inc.com.

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Jim Woods email signatureJim is president of InnoThink Group a competitive strategy and leadership management consulting firm. He has an absolute passion for people development and are constantly refining and adapting his programs in order to ensure that they have the maximum impact on those we serve. – See more at: http://innothinkgroup.com/our-leadership.html

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About

Jim Woods is president of The Jim Woods Group. A management consulting firm. Go here to see his work www.jimwoodsgroup.com. He advises and speaks to organizations large and small on how to increase top line growth in times of uncertainty and complexity. Some of his speaking and consulting clients include: U.S. Army, MITRE Corporation, Pitney Bowes, Whirlpool, and 3M. See more at his website www.jimwoodsgroup.com.

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Posted in Decision Making, Entrepreneurship, Small Business

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