Ways to Encourage Risk-Taking in Decision Making

The more mistakes a team makes, the more quickly they learn and more resilient they become… yet so many of the teams I work with are terrified of making a mistake! They have so much on their plates that they’re singularly focused on crossing things off their lists so the thought of experimenting with a new approach and having to redo it is soul-crushing. OR They’re operating within a prove-your-worth culture in which mistakes are attributed to personal failure and incompetence. OR There is no appetite for risk and the only acceptable way of working is to do things the way they’ve always been done. OR any number of other reasons top performers make themselves small instead of taking a risk that could be a win. This is bad for business. And for morale. When mistakes are seen as part of the process, teams feel safer taking risks, which leads to creative solutions and faster progress. Leaders need to focus on 3 things to encourage experimentation so their teams will risk making mistakes in pursuit of a win: 𝟭. 𝗙𝗼𝘀𝘁𝗲𝗿 𝘀𝗲𝗹𝗳 𝗮𝗻𝗱 𝗰𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝘃𝗲-𝗰𝗼𝗺𝗽𝗮𝘀𝘀𝗶𝗼𝗻 When we meet failures with compassion, we soften the emotional blow and decouple it from identity. With compassion, the individual is not a failure (fixed mindset)… they’re an innovator who tried something that failed (growth mindset). ❇ Tip: Normalize mistakes and conversations about mistakes by conducting regular retros for missteps, large and small. Emphasize the key learnings and takeaways, not the flawed logic or approach. No blame, no ego threat, no identity crisis, no problem trying it again another way. 𝟮. 𝗖𝘂𝗹𝘁𝗶𝘃𝗮𝘁𝗲 𝗮 𝗹𝗲𝗮𝗿𝗻𝗶𝗻𝗴 𝗰𝘂𝗹𝘁𝘂𝗿𝗲 When learning is valued over perfection, teams are more willing to experiment, try new approaches, and push boundaries. ❇ Tip: Reinforce growth mindset as a core cultural tenet. Encourage team members to set personal development goals and allocate a budget to it. Even a small contribution can have symbolic & cultural value. Reward effort and improvement, not just outcomes and encourage voluntary share-outs or team-wide trackers. 𝟯. 𝗖𝗿𝗲𝗮𝘁𝗲 𝗮 𝘀𝘆𝘀𝘁𝗲𝗺 𝗳𝗼𝗿 𝗲𝘅𝗽𝗲𝗿𝗶𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 Experimentation increases both the absolute number of failures and the failure rate. AND Done with systems, strategy and intention, it also accelerates growth, discovery and successful solutions. Establishing a system for experimentation allows teams to test ideas in controlled, low-risk environments where failure is seen as a step toward success. ❇ Tip: Implement a process for innovation sprints in which team members are encouraged to suggest & test bold ideas with clear guidelines on how to analyze & iterate based on the outcomes. These shifts to culture and process can have a massive impact. Teams that are encouraged to make mistakes ✔ learn more quickly, ✔ are more resilient and ✔ are more likely to take smart risks that can lead to sustainable, step function success.

Managers ask me a common question: “How do I inspire courageous action on my team?” In fact, my friend and client, Carlos, recently sent me a video of someone asking a similar question: “How do we incentivize courage?” Here’s what managers really want. - They want their people to take empowered action without waiting for permission. - To speak up when something’s off or could be done better. - To contribute meaningfully without being called on (or called out). They want their people to raise their hands, take the lead, and demonstrate their brilliance. But here’s the problem: those actions are risky. There’s the risk of tension. The risk of losing cooperation or credibility. The risk of losing opportunity if their ideas aren’t received well. So, many professionals, as ambitious as they are, hold back. Managers know, though, that the shortest line to engagement and innovation is risk. Professionals have to take worthwhile risks at work to access the fullness of their potential, the kind of potential that fuels growth. If that’s what managers want, then there’s something they must do. ✨ Lower the stakes. ✨ They have to make risk-taking less risky. Here’s how: - Set the expectation. Communicate that taking worthwhile risks is not only expected, it is required. - Reward risk-taking. Recognize it publicly. Begin team meetings by naming what someone learned from a courageous move. - Invite participation. Genuinely ask for perspectives and act on them. Courage thrives where contribution is valued. - Find the yes. When someone floats a new idea, find a part, however small, that can move forward. - Listen with alertness. Your undivided attention signals safety. Safety invites speaking up. - Provide protection. Shield your team from unnecessary interference so they can take worthwhile risks with confidence. - Model courage. Say, “I don’t know.” Offer hard feedback. Pitch unpopular ideas. Let your team see what courage looks like in motion. When leaders lower the stakes, they create the conditions for courage to multiply.

Only 26% of leaders create psychological safety in their teams*. This means just 1 in 4 leaders are truly tapping into the full potential of their people. Psychological safety is the secret ingredient that turns good teams into extraordinary ones—and it doesn’t require grand gestures. It’s the small, often overlooked actions that make the biggest difference. See the examples: 1. Admit your own missteps: 🗣 Example: "Last quarter, I missed a key detail in our strategy, and it led to a delay. Here’s how I’m adjusting my approach." 2. Ask for feedback, then act 🗣 Example: "After hearing your thoughts on our meeting structure, I’ve decided to shorten our agenda and focus more on discussion." 3. Show that asking for help Is normal 🗣 Example: "I’m struggling with this new software—can someone show me how to use this feature?" 4. Celebrate the journey, not just the destination 🗣 Example: "The presentation wasn’t flawless, but the way you tackled the research was impressive." 5. Give permission to challenge 🗣 Example: "I want someone to play devil’s advocate—how could this plan go wrong?" 6. Create space for dissent 🗣 Example: "Before we finalize, let’s hear from anyone who sees this differently." 7. Reframe failure as growth 🗣 Example: "Our experiment didn’t yield the results we hoped for, but we now know what to avoid next time." 8. Demystify decision-making 🗣 Example: "We chose this vendor because they align with our long-term sustainability goals." 9. Reward curiosity 🗣 Example: "That question opened up a whole new line of thinking—thanks for bringing it up!" 10. Spotlight the quiet contributors 🗣 Example: "I want to highlight Anna’s work on the backend—it’s crucial to our project’s success, even though it’s often behind the scenes." True trust doesn't come from protecting your people from conflict or tough conversations. It’s born from inviting in every voice, especially the ones that challenge the status quo. If you're not making space for diverse ideas, you're not just missing out—you're holding your team back. * 📚 Study source: McKinsey & Co., “Psychological safety and the critical role of leadership development,” 2021.

Taking a chance on someone is NOT the risk. Failing to give them a chance is: Most of us got here because someone took a chance on us. Not because we were the "perfect fit." Not because we had every skill on day one. But because someone saw potential - And opened the door. The best leaders do this intentionally. They create opportunities for people to grow into. Here are 10 practical ways to give people a chance without lowering the bar: 1. Hire for Potential, Not Just Current Skills ↳Ask in interviews: "What's the last new skill you learned, and how?" 2. Think: "Who Hasn't Gotten Their Shot Yet?" ↳In your 1:1s, identify one person overdue for a stretch project 3. Give Entry-Level Employees a Real Deliverable, Not Just Shadowing ↳Hand them the first draft of the client deck - then give feedback in edits 4. Rotate Projects That Stretch People's Skills ↳Next team meeting, let someone new run the agenda start to finish 5. Say Yes to Someone Who Raises Their Hand Early ↳If a newer employee volunteers, put them on a small client call this week 6. Pair New Hires with a Peer Coach ↳Schedule a 20-minute weekly check-in for their first 90 days 7. Share "Why" Behind Decisions So They Can Learn Judgment ↳End each decision with: "Here are the 2 reasons I chose this path" 8. Debrief Mistakes as Lessons, Not Punishments ↳Write one "lesson learned" and one "next step" on the whiteboard 9. Spotlight Progress in Public, Even If It's Small ↳Start team meetings with: "One win from last week was [name]" 10. Run a 30-Day Trial Project Before a Full Hire ↳If you're really unsure, assign one project with a clear deadline - review results at day 30 Talent doesn't just arrive ready-made. It's built when someone is trusted with a chance. Agree? --- ♻️ Share this to help others get the chance they deserve. And follow me George Stern for more.

The Illusion of Perfect Decisions: A Leader's Reality Check Think you need to make the "right" decision every time? Think again. In the realm of leadership, paralysis by analysis is the silent killer. Here's the truth most leadership gurus won't tell you: There are no perfect decisions. Only decisions and what you do after. Let's break it down: Speed Trumps Perfection: • In a rapidly changing market, a good decision now beats a perfect decision later. • Your competition isn't waiting. Neither should you. Reversibility is Key: • Ask: "Is this decision reversible?" If yes, make it fast. • Amazon's Jeff Bezos calls these "Type 2" decisions. They're the majority. Data is a Tool, Not a Crutch: • 80% of the information is usually enough. • The last 20%? It often leads to diminishing returns and missed opportunities. Embrace the 'Disagree and Commit' Philosophy: • Not everyone will agree. That's okay. • Foster a culture where people can disagree but still fully commit to the decision. Decision Velocity Matters: • It's not about one big decision. It's about a series of smaller, faster ones. • High decision velocity is a competitive advantage. Learn to Trust Your Gut: • Your intuition is pattern recognition at play. • Balance it with data, but don't ignore it. Cultivate Psychological Safety: • Create an environment where it's safe to make decisions and learn from mistakes. • This fosters innovation and calculated risk-taking. Remember: The best leaders aren't those who make perfect decisions. They're the ones who make decisions and make them work. Your ability to decide swiftly, adapt quickly, and learn constantly is your true superpower. So, next time you're stuck in decision limbo, ask yourself: "What's the cost of inaction here?" "Can we reverse this if needed?" "Do we have enough information to move forward?" Then decide. Act. Adjust. Because in the end, your team doesn't need a perfect leader. They need a decisive one. What decision have you been sitting on that you'll make today? ------- 💡 React if this resonated. 💬 Comment to share your view. ♻️ Repost to benefit those in your network. ➕ Follow Johnny Nel for more innovation content like this.

How a board member makes the case for a new way of thinking about risk governance to their fellow directors (I think point 2 is most essential):   "I am writing to highlight the critical importance of risk governance within our organization and to outline the strategies we can employ to enhance our risk-taking and governance practices. Our collective goal is to leverage risk governance as a tool for innovation, sustainability, and value creation.   Understanding the Value of Risk Governance   Risk governance is not merely about mitigating potential losses; it is about embracing risk intelligently to drive our company's innovation and value creation. A proper appreciation and use of risk are integral to decision-making and strategic planning. As board directors, we have the unique opportunity to better understand risk, govern risk-taking effectively, and utilize both to propel our company's growth and success.   Strategies for Improving Risk Governance   1. Develop and Validate a Working Framework at the Board Level: - Establish a culture that promotes positive risk-taking that is aligned with our strategic goals. - Set clear boundaries for risk-taking that align with our corporate values and objectives.   2. Embrace Risk Positively - Shift our perspective on risk from a potential for loss to a vehicle for competitive advantage. - Encourage a culture where risk is associated with opportunities for advancement and innovation.   3. Foster Organizational Agility - Empower rapid response teams with the authority to make impactful decisions. - Distribute authority to enhance knowledge-sharing, ownership, and intelligence across all levels of risk-taking.   4. Communicate Effectively - Ensure that our risk culture and control processes are communicated clearly to all stakeholders. - Involve the board risk committee in drafting and approving external statements about our risk governance.   The Role of the DCRO Institute   The DCRO Institute offers resources and educational programs that can assist us in becoming more strategic in our approach to risk governance. Their Certificate in Risk Governance® is a globally recognized qualification that can help us refine our skills and understanding of effective risk governance. They can find or develop Qualified Risk Directors® and Qualified Risk Experts™ to join us.   Conclusion   By embracing these strategies and continuing our education on risk governance, we can transform our approach to risk and create a robust environment that supports our company's long-term success. I invite each of you to discuss how we can collectively apply these principles to enhance our board's effectiveness and our organization's performance.   Thank you for your attention to this vital aspect of our corporate governance." #risk #governance #leadership

Your competition isn't winning on talent. They're winning on psychological safety. Ever sat on a brilliant idea because you were scared of being judged? We all have. That's why psychological safety matters. According to Gallup, teams who feel safe to speak up drive 21% more profit. They show up more (41% less absence) and feel better at work (66% higher wellbeing). Here's a cheat sheet I have created based on Amy Edmondson's Psychological Safety Model which I totally love. There are 4 zones in the model 📍Comfort zone ↳ People are friendly but not pushed to excel. In teams, they don’t make big progress. 📍 Apathy zone ↳ People come to work but their hearts and minds are somewhere else. Not much gets done 📍Learning zone ↳ People work together, challenge each other, and learn to do a great job. They tackle hard and creative tasks 📍Anxiety zone ↳ People are scared to share ideas, take risks, or ask for help. This can hurt productivity and growth. Leaders should strive to bring the team to the learning zone where there is high psychological safety which results in high performance standards. Here's 9 tips for leaders to bring their people into the learning zone 1️⃣ Start with trust ↳ Be the first to share a personal story or mistake you made 2️⃣ No blame game ↳Ask, “How can we fix this?” instead of, “Who did this?”. 3️⃣ Active listening ↳In your next meeting, repeat what someone says before your reply.. 4️⃣ Normalize failure ↳Share a failure “What I Learned” segment in team meetings. 5️⃣  Diverse voices ↳Rotate who facilitates so everyone a chance to lead and speak. 6️⃣ Open door policy ↳Schedule “open office hour” weekly for team questions/concerns 7️⃣ Consistent check-ins ↳Set up a bi-weekly 15-minute one-on-one with each team member 8️⃣ Reward risk-taking ↳Create a “Risk-Taker of the Month” award with a small incentive. 9️⃣ Address issues promptly ↳When an issue is raised, allocate time to find solutions. So here's my question to the leaders: Psychological safety isn't built in a day. But it can die in a moment. What will you do differently tomorrow? ♻️ Share this so that your leaders can build a psychological safe work environment. Follow Adeline Tiah 謝善嫻 for content on leadership culture, reinvention and future of work.

I Think You’re on Mute! Welcome to the virtual world, where “You’re on mute” became a catchphrase during the pandemic. Now, another challenge has emerged: the unsettling silence when leaders ask, “Does anyone have any questions?” This silence signals that employees might not feel safe speaking up. Psychological safety is key to fearless organizations where innovation and engagement thrive. Often, Leaders ask me, So, Gopal, how can leaders create such an environment? Consider some of the points below: 👉 Encourage Psychological Safety Imagine a workplace where expressing ideas, concerns, and even mistakes feels safe. Can you work towards fostering this by being vulnerable yourselves? Admitting mistakes and uncertainties sets a powerful example, encouraging employees to do the same. 👉Promote Open Communication Open, honest communication is vital. How about creating channels for dialogue and ensuring every voice is heard? Regular feedback sessions where leaders actively listen make employees feel valued and more likely to share innovative ideas. 👉 Focus on continuous learning In a fearless organization, mistakes are growth opportunities. Could you, as a leader, Frame errors as learning experiences and invest in continuous development programs? This motivates employees to experiment and innovate without fearing failure. 👉 Empower Teams Give teams the autonomy to make decisions and own their projects. Empowered teams take thoughtful risks and drive innovation. You may want to consider ways to Encourage collaboration and support creative thinking. Trust and value in teams boost engagement and productivity. 👉 Recognize and Reward Risk-Taking Acknowledge and reward employees who take thoughtful risks and contribute innovative ideas. Celebrate successes and analyze failures constructively. Recognizing risk-taking boosts morale and reinforces the importance of innovation. 👉 Build Trust and Respect Cultivate a culture of mutual respect and trust. Ensure all voices are heard and valued, regardless of hierarchy. Trust and respect create a supportive workplace where employees feel safe to express themselves. 👉 Set Clear Expectations and Goals Imagine driving a car with windshields fully fogged! You can’t drive. Clarity is essential. You may want to work towards providing clear expectations, goals, and individual roles. Align team and individual objectives with the company’s broader mission. When employees understand their purpose and direction, they are more confident and motivated. Building a fearless organization is a continuous journey. As much daunting as it sounds, it’s worth it! What are your thoughts about this? Is your team on mute?📵 If you liked this, follow Gopal A Iyer A Iyer for more #careers #leadership #teaming #pyschologicalsafety

𝗧𝗵𝗲 𝗥𝗼𝗹𝗲 𝗼𝗳 𝗟𝗲𝗮𝗿𝗻𝗶𝗻𝗴 & 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗶𝗻 𝗙𝗼𝘀𝘁𝗲𝗿𝗶𝗻𝗴 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 🚀 Ever feel like your team is stuck in a rut, lacking the creative spark needed to drive innovation? You're not alone. Many organizations struggle with fostering an innovative mindset among employees. Without creative thinking skills, your team may fall back on outdated problem-solving methods, stifling your company’s ability to innovate and stay competitive. Here’s the deal: a stagnant approach to problem-solving can be a significant roadblock. Over time, it can lead to missed opportunities, reduced market share, and an overall decline in organizational performance. But don’t worry, there’s a solution. By incorporating creativity and innovation training into your Learning & Development (L&D) programs, you can foster a culture of continuous improvement and keep your organization at the forefront of your industry. Here’s how to get started: 🎯 Integrate Creative Thinking Workshops: Offer workshops that focus on brainstorming techniques, lateral thinking, and problem-solving frameworks. These sessions can help employees break free from conventional thinking patterns. 🎯 Promote Cross-functional Collaboration: Encourage employees from different departments to work together on projects. This diversity of thought can lead to more innovative solutions and a broader perspective on challenges. 🎯 Leverage Digital Tools: Utilize digital platforms and tools that facilitate creative collaboration. Tools like Miro, Trello, and Slack can help teams brainstorm and develop ideas more effectively. 🎯 Encourage Risk-taking: Create a safe environment where employees feel comfortable taking risks and experimenting with new ideas. Highlight the importance of learning from failures as part of the innovation process. 🎯 Provide Continuous Learning Opportunities: Offer courses and resources on emerging trends, technologies, and methodologies. Keeping your team updated with the latest knowledge can spark new ideas and innovative approaches. 🎯 Recognize and Reward Innovation: Acknowledge and reward employees who contribute innovative ideas. This recognition can motivate others to think creatively and contribute to the innovation culture. 🎯 Mentorship Programs: Pair employees with mentors who are known for their creative thinking and innovative approaches. This mentorship can provide guidance and inspiration for employees to develop their own innovative skills. By embedding these strategies into your L&D programs, you’ll not only enhance your team’s creative thinking abilities but also cultivate a culture of innovation that drives continuous improvement and long-term success. How are you fostering innovation in your organization? Share your strategies below! ⬇️ #Innovation #LearningAndDevelopment #CreativeThinking #ContinuousImprovement #EmployeeEngagement #Leadership #Teamwork

As a CEO, I place a lot of value on innovation and agility. I want those values to be pillars within the company culture. And developing any culture is difficult, but it’s the operating system for which a team executes. So, how can you empower your teams to explore new ideas, take calculated risks, and learn from failures? First, you need to foster an environment of trust and autonomy, empowering your teams to take risks and think outside the box. Next, encourage collaboration across departments to spark diverse perspectives and unique solutions. Intentional and regular brainstorming sessions create room for idea sharing by breaking down silos and igniting creativity. Finally, streamline decision-making processes to avoid bottlenecks, enabling swift action on promising ideas. Always celebrate quick wins and learn from setbacks to maintain momentum and motivation. A team’s speed and creativity reflect their autonomy in their roles. Creating a culture that values agility and innovation takes intentionality and consistency. If done well, it will drive growth and attract top talent passionate about making a difference.