Are your team taking enough calculated risks?

Growth, innovation and a competitive edge are far from simply buzz words - they are what you need for your business to succeed in a rapidly changing world. But being able to achieve these things relies heavily on the teams of people within your business and how willing and confident they are to take calculated risks to propel the business into being leaders in their niche. Are your team willing to be confident and calculated risk takers?

Imagine you have a person in your team who likes to play it safe. They will be slow to adopt new technology, giving competitors who are more minded to take risks an edge. They will become set in their ways, preferring to always do things in the same way, leaving them less adaptable to changes in the market or with your valuable customers. Over time, this culture spreads to other members, who are constantly met with opposition when suggesting new ideas. Your most innovative members of the team will, in time, leave or become compliant. 

However, a team with members who are not afraid to share ideas, who are open to adopting new technologies and new systems and who are flexible enough to move with customer and market needs will attract customers more easily.

Creating an environment within your company that fosters empathy, vulnerability and encourages the sharing of ideas in a safe way enables your team to be more creative and innovative and feel they can share and build upon ideas that can ensure you maintain the competitive edge in your market. 

So how can you encourage a culture of appropriate risk taking? Here are our top tips:

  1. Ensure all team members feel safe to share ideas, take risks, and speak up without fear of judgment or retribution. Emphasize that failures are stepping stones to success and acknowledge and celebrate risk-taking efforts.
  2. Leaders play a vital role in shaping the culture of a company, not least when it comes to risk-taking. By modeling calculated risk-taking themselves, leaders inspire their teams to do the same. Encourage leaders to share stories of their own failures and lessons learned, highlighting the growth that came from those experiences.
  3. Collaboration is vital, because diverse perspectives can mitigate the risks associated with individual decision-making. Encourage teams to work together, leveraging their collective knowledge and expertise to identify and mitigate potential risks.
  4. Equip teams with the necessary resources, tools, and training to assess risks effectively. Establish support systems, such as mentorship programs, expert advice and clear guidance, to help teams navigate through uncertainties and make informed decisions. By providing the right support, organisations demonstrate their commitment to risk-taking and set their teams up for success.
  5. Celebrate and recognize individuals and teams that take calculated risks, regardless of the outcome. Highlight success stories and showcase how risk-taking has led to positive outcomes, innovation, or growth. This sends a powerful message that risk-taking is valued and appreciated within the organization.
  6. Encourage a growth mindset and a culture of continuous learning. Provide opportunities for teams to reflect on their risk-taking experiences, learn from both successes and failures, and incorporate those lessons into future endeavors. By fostering a learning-oriented culture, organizations create an environment where risk-taking becomes a natural part of the team’s DNA.

Remember, it’s not about reckless risk-taking, but rather about encouraging teams to push boundaries, explore new possibilities, and embrace uncertainty with thoughtful consideration and strategic planning. If you want to discuss with us how to help your team grow in confidence and create a culture of risk taking, get in touch today.