Thought and Risk

Take calculated risks.  That is quite different from being rash.  George S. Patton

Was that a man... beginning to run across the 390?   Instantaneously, I realized the the truck ahead of me was screeching to a halt.  I slammed on my brakes, hoping I would not run into the truck...  Luckily the car stopped with not a yard to spare. 

Surprisingly, the man dashed back to his car with a ladder.  Why would someone rush out into speeding traffic on two lanes of a four lane highway to rescue a ladder?   We'll never know.

Some leaders take financial risks - venture forth to open a new business, or perhaps leave a solid job to pursue another.  Many risk opening doors to opportunity and change.   Leaders step up to these challenges to gain the rewards.    

Interestingly, some "people are more turned off by losses than they are turned on by gains," according to Craig Fox's research findings.  Reward centers in our brain "turn on," not only when we make decisions about potential rewards, but also "turn off" when we think about losing money or whatever it is that we risk.

To take a risk then, involves pushing against fear and hesitation we may encounter to step out.  Calculating risks helps to set the pace.

Thoughts?

7 Strategies to Clinch that Raise or Promotion

The Wall Street Journal Online just published an article, Explaining Investment-Banking Gender Gap. And, I'm very honored that WSJ provided readers with a link to my recent piece, Men, Women, Brains and Earning Power.

"There's a smaller proportion of women in senior positions at investment banks," according to Tara Wilkinson, article author. She says that the smaller numbers have less to do with discrimination and more to do with an unwillingness to ask for big pay raises and promotions...

So how might women and minorities pull off that pay raise or gain a coveted position? Here's a few tactics to consider...

1. Get noticed "Look for ways to get noticed by volunteering for projects. If additional skills are required, make arrangements for the necessary training, then when it's time for a discussion of a raise or promotion, explain how you've helped enhance the firm's bottom line," Lynn Taylor, Vice President and Director of Research at Accountemps suggests.

2. Be prepared with documentation "Providing specific benchmarks by which your successes can be measured offers stronger testimony to the extent of your achievements. Regarding salary itself, carefully research what other professionals with skills and experience similar to your own are currently paid. Timing is also critical. Don't approach a salary discussion during periods of poor company financial results or budget cuts."

3. Find a mentor "It is invaluable to have someone within your organization fighting for your success. It is not as difficult to find a mentor as some people think," according to Don Straits. "It just takes the courage to ask. You might try a simple approach like the following: 'I have always admired and respected what you have done for the company and the success you have achieved. As I grow in this job and in my career, I was wondering if, on occasion, you would be willing to give me some advice and guidance on how I might achieve success as well?' It is rare that anyone would say 'NO' to such a nice comment and question. Give it a try. The rewards will be immense."

4. Stay contemporary "If you are 'out of date,' and 'out of touch' with what is happening in the world," Strait advises, "then your earning power will go "out the door." From technology advances to world news to the latest business, cultural and fashion trends, they are all relevant. By being able to communicate about what is happening all around us, we enhance our value and we become more marketable."

5. Perform beyond expectations Always do more than you were asked to do. Take initiative to achieve superior results and make unexpected contributions. You will be recognized and rewarded for it.

6. Target to win and expect the best A clear target and preset expectation will spill over to leaders who can make that promotion happen for you, Ellen Weber advises. How so? Targets help to create a new neuron pathways toward any goal – or in this case … your sought after position and salary hike.

7. Confront your own objections Once you decide to go ahead do you begin to think of all the reasons why this is not a good idea? You'd be intrigued that when people face risk, Ellen Weber shows some ways the human brain leaps into conflicts that only reflective thinkers can sort out well...

"Your front brain might tell you this position would be sheer misery," Weber points out. "It highlights the facts … such as … the new CEO’s arrogance … or workers’ well known apathy in the new department." See more on confronting such conflicts in Ellen Weber's Why Smart Workers Make Dumb Decisions

Ready to take new risks for that promotion?

Freedom for Novelty and Risk

A good performance uses a framework of knowledge. But within that framework there's freedom. Jos van Veldhoven, Artistic Director of the Netherlands Bach Society.

Why is it that some folks are "born" rebels, especially many associated with the arts? A smile comes when I think about this because, in part it's brain related. According to Eric Jensen, the brain rises to challenges and novelty -- too little challenge leads to boredom. So it's not surprising that musicians or artists take foundational works or techniques from a master and put thier footprints on them in innovative ways. Similarly, businesses that cultivate a climate of freedom where they value novelty and risk will likely be successful in tomorrow's marketplace. What does a culture of innovation look like?

As Mr. van Veldhoven appoached Bach's B minor Mass, he did so with the idea that attempts to replicate authenticity stifles "flexibility and sense of spontaneity." No matter if its philosophy, science, education, or business, rules often surface within knowledge frameworks, for the purpose of keeping them "pure." While there's a fine line in going over the edge, many people delight in fresh approaches.

For instance, in a New York Times interview, van Veldhoven said he uses few singers in the choral parts of this Mass, which gives the whole work a very different feel. "I'm very interested in facts," says this Artistic Director, "but I don't want to be a conservator and do exactly what Bach did."

Consider van Veldhoven's approach as you think about where your business is headed..."So many musicians are trained to think of the composer as God, who had the truth in his pen -- one single truth, and only one. The composer isn't God. He's a friend you can talk to." Thoughts...

What I Learned from Nature in 2006

Though I learn something new almost every day, two surprises came from nature that continue to inspire me. Here's the essence...

• Nature sparks inspiration -- and art grows here. My grandsons joined me for a walk in the woods. Jonathan, 8, stopped me from stepping on a "geiko" which he deftly rescued and carefully cupped in his hands thoughout our trek. And, though he let this much cherished geiko loose at the end of our trip, he later recaptured it in watercolors at his kitchen table. Jonathan rated his experience in the woods as "better than going to Six Flags," a million-dollar amusement park.
  
  
• Even cats take risks. Every time Ginger, an abandoned cat who discovered our barn, gave birth to kittens they disappeared. But, one day when ten little children played on our large front porch, Ginger carried three prized kitties, one-by one, and placed them at the feet of my daughter-in-law. The children picked them up, cuddled and loved them and amazingly convinced their Mom and Dad to adopt all three. I could not imagine a cat bringing treasures in the midst of squealing children, but she did. And it is an image of risk, I will not forget.

Ben Yoskovitz, at Instigator Blog challenged fellow bloggers to look back in time and ask the question "What did you learn this year?" Ben will donate $5.00 to charity for each entry. These two inspirations are my response to that challenge.

I hope you'll take the baton now and write an entry for Ben!

Are You Taking Risks that Fly?

Smooth seas do not make skillful sailors -- African proverb

Why are some CEO’s ready to take risks while others bask contentedly in a short-lived growth spurt? Risk-taking is discussed daily by business leaders and pundits. But, what separates ordinary risk-takers from those who are extremely successful?

Overconfidence and overgeneralizing may be key components of entrepreneurial success for those who take the plunge, according to a study by management professors, Jay Barney of Ohio State and Lowell Barney, University of Houston. They studied 124 entrepreneurs and 95 top business managers to test confidence as they revisited answers to questions. While both groups were overly confident, the entrepreneurs were even more so. But, is overconfidence enough?

Just for fun I considered three prominent business bloggers' suggestions about risk-taking. What do you think?

Smart, Hard Work, Not Providence Word of Mouth Marketing “is smart, hard work, not providence,” according to Steven Sibukin. “It’s an outcome that requires a convergence of smart risk-taking, unyielding focus on a well understood target, and a keen strategy for initiating a dialogue with willing influencers at the right time. And, of course, a brilliant product.” Steve garners wisdom from Judith Clark’s marketing plan for Baby Einstein.

To develop a Word of Mouth Marketing plan, Sibukin suggests we reflect on the following questions:

• Who are the small handful of influencers that I most need to target upfront – and what is my high-touch, unique plan for winning them over?
• How will my Word of Mouth Marketing strategy need to evolve as my product awareness grows, and as other elements of my marketing mix get refined?
• How will I prove and maintain a genuine and authentic voice as my business grows and communication points proliferate?

As you approch influencers and supporters do you have a plan?

Risk-taking involves “doing your homework,” Tom Belford, at The Agitator suggests to avoid being a Happy Loser. Consequently, by the time you go out the door to meet a prospect face-to-face, Belford asserts, “you should be looking at closing the deal… If not, why not?”

Belford suggests savvy fundraiswers ask these questions before approaching potential doners:

• How thorough was your research?
• How much sifting of the wheat from the chaff did you do -- did you set priorities in terms of likelihood to give?
• How well did you prep your prospect, both in terms of tailored material and references from within the prospect's own network?
• Was there a specific reason or cultivation scheme behind a face-to-face meeting that wasn't intended to win closure?
• Did you send the right messenger, and was he or she well-prepared?

How might you update your approaches in future?

Risk-takers must tolerate the uncertainty and chaos associated with choices and decisions that are unconventional. Mike Wagner at Own Your Brand opens a window to understanding as he shares Mary Minnick's story.


Transformation Is Easy to Talk about – Hard to Do! In There’s Something about Mary, Mike Wagner tells the story of Mary Minnick, Coca-Cola’s President for Marketing, Strategy and Innovation. Mike applauds risks Mary or any leader takes to grow a brand:

Leverage chronic discontentment for the good of the brand. Minnick told investors, "I tend to be quite discontented in general." And, “It will never be fast enough or soon enough or good enough."

Wagner contends, “Too many business leaders have lost their hunger. Not their hunger for more money, but the hunger for intellectual, emotional, and relational challenges of the marketplace. Brands stop growing when the hungry stop leading.”

Embrace the pain of a changing marketplace. Mary Minnick is more than aware that onsumers are flocking to a new breed of coffees, juices, and teas -- all categories where Coke has been weak. According to BusinessWeek, PepsiCo Inc. has blown past Coke in stock performance, earnings growth, talent development and buzz. Pepsi now has a market value equal to Coke. Ten years ago, Coke was three times bigger. Brands stop growing when their leaders stop listening, observing, and growing with their customers.

Don't “work around” the problem. Minnick doesn’t apologize for her direct approach: “Historically, we had a culture where putting the hard issues on the table made some people uncomfortable.” Mild-mannered people, talking in soft mild-mannered tones about wicked problems, will not save the brand. Brands stop growing when leaders prefer unity over brutal facts and accountability.

Know transformational innovation when you see it. Coke has been unusually prolific by launching more than 1,000 new drinks or new variations of existing brands worldwide in the past 12 months. Some, like the brisk-selling coffee-flavored Coca-Cola Blak, have been hits. But Mary knows that, in the long run, new flavors and brand extensions won't be enough to make Coke a growth company again. She’s pushing to transform Coke from a soda-centric organization offering "me-too" products, to an innovative organization creating categories while identifying consumer trends.

“Transformation is easy to talk about -- hard to do,” Mike Wagner asserts. “That’s why many tweak their brands rather than transform their brands. Brands stop growing when leaders let their organization suffer from ‘hardening of the categories’ rather than embrace real change.”

Risks that transform old ways of doing business are hard because we are forced to step out of our basal ganglia, the part of our brain that stores business-as-usual approaches. Leaders willing to tap into their working memory to overcome problems, face challenges with possibilities and create innovative work cultures and products soon learn it takes extra energy, extreme focus and flow, as they go beyond talking, to live change.

Is super confidence enough for successful risks? In light of Steven Sibukin, Tom Belford and Mike Wagner’s wisdom, what are your thoughts? What would add wings to your risks?