Disruption for Innovation 2 - Lessons on Risk
Disruption begins with a mindset and an attitude. As opposed to just talking about the technology that comes with it, it’s important to know what fuels real change that leads to disruption. That’s why the previous article was about asking the right questions for you and your company. A Forbes article says that disruption begins by allowing people to take risks and by rewarding innovation, as opposed to the popular opinion that this shift begins with an external influence. The following discusses values that encourage this culture, so you can become the disruptor instead of being the disrupted.
While most people consider setbacks to be unacceptable, a study defies this belief. The CEO Genome Project, a 10-year study on industry leaders, found that CEOs who equated mistakes to failures had a smaller chance of thriving by 50%.
While it is a challenge to shift into a "risk mindset," it is necessary.
Deloitte, a multinational professional services network which is one of the "Big Four" accounting organizations and the largest professional services network in the world by revenue and number of professionals with headquarters in London, United kingdom[7], refers to this skill as "mental fortitude" in their recent study -- the ability to "combine a sober assessment of potential risks and roadblocks with the fearlessness to pursue lofty visions"; citing it as one of the five key traits of CEOs who are "undisruptable." According to him, people like this excel at "anticipating, responding and adapting to today’s cycle of market disruption."
Still, it's difficult to create this kind of environment. Some risks have smaller rewards than others, and the idea and consequences of failure is what prevents executives to take a risk, even if it is calculated.
However, emphasizing these three values (openness, communication, and the ability to accept new mistakes) will help you create that environment:
Openness
Full transparency not only keeps employees informed about the current projects and future goals of the company--this helps them feel empowered. When no one is excluded, employees understand the reason for their roles and realize how valuable they are to the team.
Communication
Constant conversations between different departments of the company assure that everyone is aligned with key performance indicators (KPIs) and company goals. By doing so, this creates a culture where employees feel they can suggest new ideas instead of being silent because they won’t be heard.
The only challenge is that transparency and unrestricted communication may reveal undeveloped or hunch-based plans, which brings us to the last value--
Accepting New Mistakes
Business situations are volatile. Despite having data, facts can change quickly, leaving you to plan while having incomplete information about a venture. If you move too slowly, however, someone may have capitalized on a certain trend or may have already claimed the position to meet consumer needs.
A Harvard Business Review study found that more successful CEOs make decisions earlier. It's not that they make better decisions, but sometimes, it’s better to make a decisive step in a certain direction rather than waiting to weigh all possible outcomes.
Being cautious is not a bad trait, but too much of it can cause more damage than making quick decisions. Organizations cannot reach a level of being disruptive through a product or solution if it doesn't have a culture where people are free to suggest and explore ideas, even if it turns out to be a mistake.
This is a challenge for our scientist and researchers who must adhere to the principles of multi-checking and cross-checking results before bringing them out to the public. technology and innovation in order to be called successful and “disruptive” combines the creative inputs from bright, trendy minds aware of risks and possible mistakes, yet moving forward bravely like an intuitive entrepreneur.
Risk-taking doesn't mean blindly making decisions because these it can affect your organization. But through openness, communication, and acceptance, you can start this mindset which ultimately leads to disruption in everyone’s favor. Science is no longer just about formulas and hard science; it is more of having the attitude and inspiration to innovate, listening to your gut feel and looking forward to actually creating
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