We need to thoughtfully embrace risk-taking in pursuit of our goals. On that, we can all agree. The right mix of board members can stimulate innovation and creativity, which will ultimately cascade throughout the enterprise.
Hidden attitudes towards risk among board members can be a primary driver of that success or an impediment. Because the future is more difficult to predict than ever, we need to ensure that our members' attitudes towards risk foster a dynamic and adaptive boardroom.
What is your collective attitude towards risk-taking? Are you wary or prudent? Are you resolute or enterprising and bold? Do you have conflicting perspectives among members which may cause conflict and hamper your strategic discussions of risk-taking? And what profile best matches your organization's purpose and objectives?
We'll help you understand how your board's risk profile compares with your stated risk preferences and goals, whether your crucial board committees have risk profiles in alignment with the expectations of those committees, and where you might want some change. Schedule a consultation.
Adherence to existing norms, practices, and ways things have always been done increases the likelihood the organization will experience value destruction over time. Excessive conformity reduces resiliency.
Success often breeds confidence. Yet too much confidence can close the ears and minds of those successful people to criticisms or ideas for improvement of process or product. Groupthink thrives amidst both success and stress.
Organizations exist to take risk in pursuit of goals, to fulfill some purpose. In some cases, caution is helpful. In terms of innovation, though, an overly cautious board will cause the organization to miss out on new opportunities and new ways to create value.
In a world full of rapidly changing markets, political alliances, health issues, environmental changes, technological innovations, and unexpected competitors, any sign of resting on our laurels is a warning sign. Yet a dominance of particular risk personality traits can lead us to just that place.