In numerous mature markets and industries, companies are desperately trying to eliminate risks in all its forms. Even though many risk mitigating actions might be rational or even mandatory, it’s dangerous to take it too far. A strong risk-mitigating focus eventually strangles the culture of innovation. Once that culture disappears, things will gradually go sour. Really sour.
Taking risks is really a golden opportunity for many young companies. Whilst mature competition put tremendous energy into mitigating risks, these young companies have the opportunity of a lifetime to dazzle customers by innovating and provoking all “known truths”.
To embrace risk a company must embrace the art of intuitive tactics. It’s crucial to constantly empower people to make dynamic business decisions often based on gut feeling. It might result in “two steps forward one step back”, but it will eventually get you places where new funky products and services grow.
In plain English – astounded customers and crushed competition will not come from long-term strategies outlined by executive management. Even though such plans make us feel rational and safer, the outcome is probably the opposite. Think about it – if we can’t even foresee tomorrow, it’s rather tricky to foresee the next one to five years. No football team ever won a big trophy thanks to a strategy set months or years beforehand. To go big and stay successful, risk must be embraced and tactics must constantly change.
Our future growth depends on companies taking higher risks today than they did yesterday and a willingness to change tactics over night if markets and evolution demand so. That’s also why companies that do so continuously outperform competition in the long run and makes our world a better place to live in. In lack of a better word, risk is good…