Risky Business – Making Phenomenal Decisions (While Not Forgetting the Risk)

Risky-Business-Leadership-Kai-RoerAs a leader, I am expected to make decisions all day – every day. Some decisions are huge, possibly critical to my business or people, while others are minor. Making sure that these decisions are as good as they can be at the time of decision is vital.

There is risk in every decision. Risk of failure, and risk of success. I try to reduce the risk of failure, and increase the risk of success in all the decisions I make. How do I do that, you may ask, allow me share my secret…

The Risk Process

Managing risk is not exactly a new science. Humans have managed risk since the dawn of time, trying to survive in a harsh environment. There should be no surprise then that risk management process’ exist. Depending on your sector, terminology may differ, but the steps of the risk process remain the same.

Good news:  you don’t need to be an expert in risk to successfully manage risk.

The risk process can be summarized in these steps:

1. Risk Assessment

  • You identify the risks involved.

2. Risk Evaluation

  • Evaluate each risk and it’s severity,
  • Classify them by severity and likelihood,
  • Analyze the possible outcome(s) of the risk.

3. Risk Management

  • Decide how to handle each risk. There are two main things you can do:
    • Accept the risk: You accept that this risk may happen, and choose not to do anything about it
    • Mitigate the risk: You decide that the risk is not acceptable, and choose to change its impact.

4. Evaluate and Review

You monitor your process, and make changes as you progress. You may receive new information later that changes the way you perceive some risks. The more you know, the more accurate your map.

There is risk in every decision. Risk of failure, and risk of success.” ~Kai Roer Tweet this!

How Much Risk Analysis Do I need To Do? 

The answer is entirely up to you, your organization and the situation. Sometimes your decision require a rigid process where you must document and analyze many different aspects. Other decisions can be made without writing anything. The secret lies in a list of questions.

The questions follow the process outlined above, and are designed to help you make better decisions.

Questions 

  1. Identifying risk:
    What can go wrong?
    What is the desired outcome?
  2. Evaluating risk:
    What can happen if things go wrong?
    What happens if we do not get the desired outcome?
  3. Mitigating risk:
    What can I do to change the outcome?
    Do I want to change it?
  4. Evaluation:
    What did I just learn?
    How can I reapply that in this decision?
  5. Do I make this decision, yes or no.

The last question is critical. The whole reason behind using a risk process is to help you make better decisions so you can run your company better.

Choosing Right

As you have observed by now, each of these questions can be expanded as needed. This means that if there is an easy decision to be made, you can just run through the questions in your head. If there is a tough decision to be made you can use the exact same process and questions to document the risks involved.

One last note – there are always risks involved which we are not able to identify. I call these Blind Spots. Watch for them!

How do you manage risk in your decision making? Are you concerned with the unwanted outcomes your decisions may create?

Reflection as a Leaders Tool

Leadership ReflectionWhen I started writing The Leaders Workbook back in 2009, I had discussed leadership and leaders with thousands of people around the world. I came to realize that we often ended up talking about the same topic – how can we become better at what we do? What are the key success factors to grow and develop as leaders? What can we – each one of us – do to develop ourselves?

We often agree that if we only could spend more time thinking about our actions, our plans, the results we create, how we ended up where we happened to be, why we made such and such mistake, how to avoid it in the future…the topic list goes on, while the challenge remains. I found that leaders on all continents, in all sectors, in all industries and on all levels, struggle with the same issue. The challenge of reflecting.

We all accept that we need to stop and rewind from time to time. There are not many I have met that call themselves a leader, who do not agree that we need to focus more on retrospection and reflection. Yet, very few seem to have found the key to reflection in todays busy schedule.

Time

As soon as you agree that reflection is important for you to grow as a leader, to develop yourself and your team, your first quest becomes to find the time for reflection. There are written books on time management, from Steven Covey’s Big Rocks to Getting things Done, from Personal Efficiency Plan (PEP) to Do it Now. There are trainings, theories, and competing theories of course,  and wars fought between some of these groups. None of these tools give you more time – they can only help you structure your time better.

No matter how you use your time, I believe that you are able to find the required time to reflect in your busy schedule. Most leaders I know, travel. Some only between their home and their office, others seems to always be stuck at some airport. And travel time is easy to convert to reflection time. When you sit there, stuck in traffic, you can spend quality time with yourself. And if you, like me, spend much time on airports and planes, you have plenty of time to bring out that notepad and jot down your doodles while thinking about how you are doing.

Even if you are not traveling, there are plenty of other opportunities for reflection – if you are working out, spend that time thinking, reflecting on your goals, and your results. You can make it a routine to take five minutes in the morning (or before going to bed at night) to reflect on a topic. Or you could schedule a meeting with yourself every week – 30 mins a week will take you a long way!

Take a couple of minutes right now, and review your weekly activities. Where can you add reflection to an activity? As soon as you figure out that it is quite easy to re-design your time to accommodate for reflection, the next challenge turns up.

 Topic

After time, figuring out what to reflect about seems to be the biggest hurdle for leaders I speak with. My answer was: Any reflection is good for you., it does not really matter what you reflect upon, as long as you reflect. In my own reflection, in retrospect obviously, I found that my answer wasn’t very helpful. It was too broad, to open to actually provide a solution.

I realized that most of us had unlearned reflection and reflective behavior, even if reflection is one of two key elements in experiential learning (Kolb, 1984). We need to relearn reflection. As leaders, there are some topics that tend to be more important than others, and the challenge for many leaders is to discover these topics, and to use those as a training ground for relearning reflection. As soon as you start searching for these topics, you realize that those tend to evolve around one main area – leadership.

Questions like «How valid is our goal?», «What is different now, compared to when we started? How does this impact our journey towards the goal?», «Where are we going if we continue down this path?», «What alternative paths are there?», «How can I change my behavior (so I am better suitable to reach our goal)?». The questions themselves may be different, and the answers you seek may not always be what you like to find. That is part of the purpose of reflection – you are to look deeply within to see if you are doing the right thing. For you, for your team, and for the organization.

Impact

I took it upon me to relearn reflection, as well as learning leaders how to reflect. All of the trainings I design are designed with reflection in focus. We use reflection actively to both teach the topic of the training itself, and as a way to exemplify how important reflection is in our learning and development. Often in our trainings, you will go through exercises designed for individual reflection, group reflections and plenum reflections, each iteration adding to your learning. And often without you realizing that what you are doing, is in fact, reflection.

The same is true when you start looking into reflection as a leadership tool. The more you reflect, the more you realize that it comes naturally, and that without it, you are not able to do your job. You will discover that we all reflect, most of the time. By relearning how to use your reflecting skills as a tool in your leaders toolbox, you can increase your ability to see possible challenges early, and seek alternative solutions before you are forced into a corner. You become pro-active.

To create that impact, I invite you to take a couple of minutes to identify three possible topics where you would benefit from reflecting more. If you like, you can share those topics below in the comments.

Connect with Kai Roer: Website | Twitter | LinkedIn | Facebook