Taking Risks Lead to Innovation

Looking at my career I’ve taken my fair share of risks and have gotten rewarded for those risks with some great successes. I’ve also failed after taking on some risky ideas, but in the end learned more from the failures which ended up encouraging me to take on even more risks. My first risk was the hardest one to make: moving to San Francisco from Chicago made me doubt my abilities to take on a start up team but it ended up defining who I am as a professional and made me grow personally exponentially more than I would have had I stayed where it was comfortable. This set off a chain reaction in my career of venturing into the unknown without a definitive payout and evangelizing the expectation of success. 

Taking a true risk is taking an idea and leading it into uncharted territory where failure is just as likely as success. The tradeoff is that the success you can achieve when taking on a true risk far outweighs staying in a situation that is comfortable. 

I watch a lot of dog training shows; “The Dog Whisperer” speaks about the importance of rewarding good behavior and disciplining (crate training) for bad behavior – and being consistent with the rules. But what happens when the consequences are random or contradictory, i.e. when the same behavior is sometimes rewarded and sometimes punished? The answer is that the dog becomes stressed and confused, and starts to take no commands at all. In other words, they stop taking risks, which is the safest possible behavior.

I see this dynamic all the time with managers, both externally and internally; while everyone genuinely wants innovation, they also simultaneously want to remain in control of what they are comfortable with. You can see this in the workforce: while the few innovators are recognized and rewarded for innovation, others are stuck in their current role or even laid off because of stagnation. Just like dogs, managers and employees are anxious about the consequences of failure and feel more comfortable doing what they’ve always done, how they’ve always done it, and reaping the same results while remaining envious of their peers or competitors experiencing great successes.

This behavior inevitably creates a self-defeating pattern. If the company or the manager doesn’t create an environment where people can take risks and occasionally fail, then innovation will be stifled. If innovation doesn’t occur, the company won’t grow; the team won’t succeed past expectations and the result will be cutting costs to survive. This environment will create anxiety to the point that the cycle will repeat until the fear of failing ends up hindering progress to a point that failure is inevitable.

The unfortunate part about this pattern is that it’s is more common than the companies and teams taking risks and experiencing high watermarks. The mixed message that keeps getting sent out is: “you need to grow while also cutting costs.” This leaves employees confused, stressed, anxious and risk-averse. The reality is that a lot of employees have been risk-averse during the last few years because they believe a failing economy will leave them unemployed if they put their jobs in jeopardy.

 What can you do as a manager to create an environment that fosters innovation instead of stifling it?

1) Evaluate. Look at your company and your team and assess how often people are avoiding risks in their current position. Utilize ways to gauge the overall feeling of your employees by giving anonymous surveys, team meetings or one-on-ones to find out if people are holding back ideas and are caught up in the fear of failing. If it’s happening, talk about how you can improve and what you can learn from their innovations and risks as well as how it can propel their career forward. Everyone wants a vision of being greater than they currently are – it’s even more powerful if that vision is shared.

2) Encourage and Share Ideas. If you create an environment that is safe for an employee to share ideas, concerns or feedback without fear of retribution or a negative impression people will start looking for ways to improve the company or team. They all talk about what needs improvement as it is, so you might as well make it constructive for you. Encouraging the use of social media is great for this as its general principle rests on the mantra of sharing ideas to make the community better. The key is to make it comfortable for people to share their ideas; once they are on the table you can choose the most effective ones to implement.

3) Experiment and Commit. Take a chance on some ideas and commit to them for a 90 day period. If at day 91 the idea is not working, accept that the idea failed and move forward. But don’t be one of those managers who say they’re trying the new idea but don’t commit to it – your team will see through it and it will backfire, so you’ll be worse off for even saying you’re doing it. Make it explicit that failure is acceptable as long as something is learned. You learn more in failure than you do in success.

 Employees need to be rewarded and reinforced for taking risks, so don’t give mixed message on whether or not it’s acceptable. If you want more risk taking, reduce the conflicting signals and create an environment where the benefits of taking a risk outweigh the fear of failure.

I’d like to hear some stories that you have implemented as a manager or individual that encouraged risk taking and avoided the fear of failing. What have you done in your career to take risks on your own and encourage your employees to take risks as well? As a company we’ve recently promoted a number of people to take on startup offices in Philly and San Jose as well as startup teams in NYC and San Jose All of those individuals are taking on risks and their careers are progressing because of it. I’d like to hear from those individuals!

Original post can be found here: http://www.hiringjuice.com/blog/2011/1/18/taking-risks-the-genesis-…

Author: Tim Yandel

I'm Tim. I live in Cole Valley, San Francisco with my wife, Julie, and two daughters Addie and Audra. I tend to write a bunch about leading Sales teams, since that's what I've been doing since 2006. I'm particularly drawn to the psychology of selling, whether that be how people buy things or sell things, it's fascinating how decision-making is centered into the core of who you are as a person. I enjoy cultivating a culture centered around mastery of your craft and a genuine passion for winning together. Outside of professional learnings, I enjoy listening to epic sci-fi and fantasy books while I run long distances to decompress and obsessed with watching my two girls grow. For a good ice breaker, ask me about my Golden Retriever and my Bernese Mountain Dog.

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