Successful leaders allow others to take risks and they allow them to make mistakes.
For a leader to be able to let others take risks, that leader must be comfortable in their own skills, ability, and leadership role. Without these components, a leader will continuously tie his or her own success to that of the success in the individual who is taking the risk.
Without failure or the allowance of failure to happen, the leader will fail to grow and ultimately become successful.
In order to be a successful leader who allows others to take risks, we must identify the type of risk we are willing to take in our businesses, create an environment that allows for risk-taking, and then lead by example.
Type Of Risk | The Difference Between A Good Risk and A Gamble
The difference between a good risk and a gamble is a good risk is calculated, variables are taken into consideration, and then a choice is made based on the available information. A gamble is often wishful thinking or a lack of information to make a precisely calculated risk.
Risk isn’t required for businesses to succeed, but it can be helpful as long as it serves the mission of the company and is not reckless in nature.
Many businesses, inventions, products, and so forth have come into existence by good risks, but many have also come about with men and women taking a gamble on an idea.
When analyzing risks in our own businesses, it’s important to eliminate or reduce the risk to a minimum as much as possible.
Bad risk-taking is not good for business.
Here are a few ways to minimize risk with an idea.
- Collect all information and data surrounding the idea
- Consider case studies and/or other businesses experiences
- Collobrate with your team and leadership in order to get the most feedback possible
Notice how all three points are outside of the person with the idea?
That’s because even good leaders need outside help from time to time.
The best leaders not only need help but know they need it.
Knowing the difference between a good risk and a gamble is key for leaders who want to minimize risk. This helps them decide whether or not an idea is worth the effort in addition to aiding them in coaching the person with the idea.
Creating An Environment | How Freedom To Fail Helps Grow You and Others
Failure is a part of every great journey to success in business and in life.
Knowing that you must find out how not to do something along the way is crucial on the way to success, otherwise, you can never learn.
The best example of failing on their way to success is that of a child learning to walk.
Can you imagine if we were stopping our children after they tried to take their first step and fell down?
Then why do we do this with people?
People need to have the freedom to fail, to make mistakes.
Without an environment to make mistakes in, employees and leaders will only do what is comfortable and what is safe, without ever daring to venture out of their comfort zone for fear of failure.
Essentially, they’ll remain the child who crawls.
We don’t want babies who can’t walk.
We want creatives and people who are helpful, insightful, and desire to build our business with us!
This only happens when people have the freedom to fail and to make mistakes. They need to know perfection isn’t the desire, but hard work and dedication are required.
In order for people to grow from employees to leaders, from people who punch a clock to people who care about our business, they need the freedom to make mistakes.
Leading By Example | Be The Leader Who Allows Others To Take Risks
A good leader takes care of business and keeps everything in working order. A great leader does that and more.
The great leader is taking calculated risks like changing the Point of Sale system to a new one that is supposed to shave seconds off drive-thru times and save the company money.
Yes, it’ll take retraining all the staff and working a few overnight shifts to do the complete overhaul, but the pain and risks involved are worth it for the leader.
How do you lead successfully, showing risks are allowed?
- Lead by example, showing your team mistakes and failure does happen
- Creating an evironment that encourages calculated risk taking
- Allowing freedom of ideas and creativity to spread
- Hiring risk takers who won’t accept the status quo but are managable
Change doesn’t happen in a company’s culture overnight, but with effort and determination, the change can and will happen.
To start taking risks in your business successfully, you will need to learn more about risk and risk management. The following articles will help.