|
|
(...) In business, courageous action is really a special kind of calculated risk taking. People who become good leaders have a greater than average willingness to make bold moves, but they strengthen their chances of success-and avoid career suicide-through careful deliberation and preparation. Business courage is not so much a visionary leader's inborn characteristic as a skill acquired through decision-making processes that improve with practice. In other words, most great business leaders teach themselves to make high-risk decisions. They learn to do this well over a period of time, often decades," writes Kathleen K. Reardon in an article, published by the Harvard Business Review.
Ms. Reardon is a professor of management and organization at the University of Southern California Marshall School of Business. Her latest book is "It's All Politics: Winning in a World Where Hard Work and Talent Aren't Enough".
"Learning to take an intelligent gamble requires an understanding of what I call the "courage calculation": a method of making success more likely while avoiding rash, unproductive, or irrational behavior. Six discrete processes make up the courage calculation: setting primary and secondary goals; determining the importance of achieving them; tipping the power balance in your favor; weighing risks against benefits; selecting the proper time for action; and developing contingency plans."
Goals: Personal or for the company
"The first component of the courage calculation answers
these questions: What does success look like in this high-risk situation? Is
it obtainable? If my primary goal is organizational, does it defend or
advance my company's or team's principles and values? If my primary goal is
personal, does it derive solely from my career ambitions or also from a
desire for my organization's or even society's greater good? If I can't meet
my primary goal, what is my secondary goal?
(...) Whether primary or secondary, your goals should be reasonably within reach, not pie-in-the-sky ambitions. A primary goal that serves the organization might be either to rescue a good employee or to prevent the senior manager from acting on faulty information. A secondary organizational goal might be to apprise the senior manager of a "rat" in the company's midst. A primary goal that serves you personally might be to receive some behind-the-scenes credit for helping the employee. A secondary personal goal might be to feel that you did something for the greater good."
Goals must be important
Kathleen K. Reardon says, that "the second component of the
courage calculation addresses these questions: Just how important is it that
you achieve your goal or goals? If you don't do something about the current
state of affairs, will your company suffer? Will your career be derailed?
Will you be able to look at yourself in the mirror? Does the situation call
for immediate, high-profile action or something more nuanced and less risky?
Courage is not about squandering political capital on low-priority issues.
Does the situation call for immediate, high-profile action or something more nuanced and less risky? Courage is not about squandering political capital on low-priority issues".
To distinguish such squandering from constructive risk, John Hallenborg, a Los Angeles-based senior entertainment manager, assigns importance at three levels. On the lowest rung of his risk-taking ladder are issues about which he does not feel strongly, though he may prefer a particular outcome and may say so in a low-risk situation. Middle-rung issues are those about which his opinion is strong but doesn't involve higher values; his feelings may change based on new information. At the top of the ladder are "spear in the sand" issues. He perceives these as resting on morals or values for which he is willing to take a stand and fight (...)."
"People often assume that power in corporations is a simple matter of position on the organization chart. In attempting to please those above them, many people choose never to take a stand. But in reality, even those in top management give power to anyone on whom they are dependent-whether for respect, advice, friendship, appreciation, or network affiliations. Seen this way, power is something over which we really do have considerable control. By establishing relationships with and influencing those around you, for example, you gain sway over people who otherwise hold sway over you. This gives you a broader base from which to make bold moves."
"This component of the courage calculation focuses on trade-offs. Who stands to win? Who stands to lose? What are the chances that your reputation will be tarnished beyond repair if you go forward? Will you lose respect or your job? Cause others to lose theirs? Delay your opportunity for promotion," writes Kathleen K. Reardon.
She asks, "are your goals better served if you act in a direct and forceful way or if you take an indirect approach?"
The importance of timing
"It can be argued," says Ms. Reardon, "that when
someone is confronted by a situation that requires courage, the question of
timing should be irrelevant. We assume that in spear-in-the-sand situations,
when much is at stake and emotions are running high, brave people don't
hesitate to act. This may be true in emergency situations, but a
single-minded rush to action in business is usually foolish."
She states, that "although emotion is always in the mix, and may even be an asset when making a courageous move, the following questions can help in logically calculating whether the time is right:
. Why am I pursuing this now?
. Am I contemplating a considered action or an impulsive one?
. How long would it take to become better prepared? Is that too long?
. What are the pros and cons of waiting a day, two days, a week or more?
. What are the political obstacles? Can these be either removed or
reduced
in the near future?
. Can I take steps now that will create a foundation for a courageous move later?
. Am I emotionally and mentally prepared to take this risk?
. Do I have the expertise, communication skills, track record, and
credibility to
make this work?"
Kathleen K. Reardon says, that her research indicates "that those who act courageously in business settings have an instinct for opportunity. They read situations quickly, but they are never reckless. If they sense that the emotional climate is not right for a frontal assault, or that history or politics raises insurmountable obstacles, they pause, reflect, and consider another time or route. If they feel outmatched or lack the skill or stamina to go the distance, they continue to gather their resources and wait for a more propitious moment."
---
Read more:
http://harvardbusinessonline.hbsp.harvard.edu
