Risk Taking and Decision Making: Knowing When to Play it Safe and When to Make Calculated Risks for Growth

Imagine you’re on a par 4. A perfect swing puts you on the fairway. One stroke later, you’re on the green. However, you’re facing a difficult putt. You’re on a downhill slope that’s breaking to the left and the pin lies on the opposite slope of another hill, breaking to the right.

Suddenly, reaching your goal has become more complex. Now, it's time to decide and make choices – but which choice will bring you closer to sinking your putt and closer to your goal?

Know Yourself

In golf, understanding your own skill level is essential to overcoming this type of challenge. You may have practiced for this situation. One choice is to play it safe and go for the par. Or you can make a calculated risk and go for the birdie.

The same is true in leadership. Part of your job as a leader is to know your strengths and skill set, which allow you to move forward, but it’s also about taking risks in the face of fear. Sometimes, experiencing discomfort is necessary for real growth, development, and success.

Listen to your intuition and don’t overanalyze - or you may paralyze yourself with details. In the beginning, don’t take big leap. Instead, start slow with a pilot program, review your results and make necessary changes.

Know Your Culture

The good news is there's a reliable rulebook: your company culture. While considering the quantified benefits and drawbacks, take time to think about the way you do things. Ask yourself which option is most in line with your culture? Only you know your risk-tolerance level.

Keep in mind, not taking risks may keep you stagnant, complacent, and predictable. Leaders push ahead until they can operate outside their comfort zone. 

Know Your Vision

Finally, you must know where you're going. Your vision of success will inform every action you take if it is clear and focused.

Just like in golf, you're responsible for everything you do as a leader. You choose the direction of your organization. You make the tough decisions. In the end, it's you who decides how you’re going to sink your putt with the challenge of where it lies.

Practice, awareness, experience, and vision — these are what you need to make a good decision. Even if the outcome is not what you expect, be confident that you made the best possible choice for the future of your team. 

Will you play it safe or do you believe risk will lead you and your team to new heights?