Managing Risk: Priorities and Decisions
Managing Risk: Priorities and Decisions
Bob sat down at his desk and let out a huge sigh. He had just returned from lunch with one of the board members at his company. They were preparing for the current CEO to retire within the next 6 months and the board wanted to initiate a formal selection process to confirm Bob as a candidate to replace him. Bob had been with the company for 15 years and held the CFO role for 5 years. It was time to step up. He knew the inner workings of the company as well as challenges in the industry. He also knew that his chances of being selected were pretty good. But there was one nagging issue on his mind. He fundamentally felt that the strategy the current CEO and Board were pursuing wasn’t going to pay off the way they thought. He had shared his concerns in the past but given the politics didn’t feel he could push it too far. Now, if he were to be selected as CEO, he realized he couldn’t lead the organization forward with a strategy he didn’t believe in. He knew that two or three of the twelve board members might support his thinking, but that wasn’t sufficient to make the shift he felt was necessary. And if he declined consideration, he’d have to come up with a really good reason because telling them he didn’t believe in their strategy would call into question his role over the past several years. (more…)
Pat arrived at the office early. She hadn’t slept well the night before because she was wrestling with an important decision that needed to be made in her Executive Committee meeting that morning. They had been evaluating the development and launch of a new product for the past six months. Today they needed to make a final decision on whether they were going to move forward. The discussions had been thorough yet difficult with wide ranging opinions on what they should do. There was significant risk associated with the launch, but the potential reward could be a greatly improved market share. As CEO, she needed everyone to make a full commitment to the decision, and while the objective analysis appeared to lead the team to adopt it, a number of other issues had arisen, and there was a LOT of debate. 
A key requirement of good leadership is to ensure that the organization and its initiatives are sustainable, both during and beyond the leader’s tenure there. This means that the company’s values, beliefs, goals and objectives cannot be dependent upon a single or few people as the glue holding it together. Situations will inevitably occur where such individuals are no longer a part of the organization, and thus the glue fails.
Leaders spend a great deal of time focusing on building strong teams, selecting the right people with critical skill sets, managing diversity of thought and matching complementary strengths. They structure their organizations based on the capabilities needed to accomplish organizational objectives and optimize opportunities to control as many variables as possible to ensure a cohesive team.
Imagine that you’ve just joined a new organization or department or been appointed to lead a significant new project. You’re excited about your new role and have been given a charge by your new leader regarding specific outcomes and metrics to achieve. You took some time to evaluate the challenge ahead and get to know the team, and you’re ready to make some “quick wins.” There are obvious areas for improvement that will impact organizational metrics favorably. As you meet with your colleagues and team members to introduce your plans, their responses are muted. They don’t seem to appreciate the value of these initiatives. You continue to meet with key people one-on-one to gain their support and probe for issues, but you keep hitting a wall filled with excuses, pushback and noncommitment. What’s wrong? You’ve entered a “no wake zone.” 
Think about a time when you’ve been in the midst of an important challenge, working on a major project or slogging through solving a pervasive problem. Then you hit a wall. Your burst of energy and creativity has dissipated. Your initial accelerated progress has slowed to a snail’s pace. You and your team are stuck and find it difficult to break through to the next level of innovation and advancement. How do you move forward? You need a new perspective. You need to look at the challenge from a different angle, using a different lens, with a fresh set of eyes.
How do you say “no” to the myriad of requests impacting your time?
Kelley is stressed. He and his team are on a tight deadline to bring a project to market that could significantly boost his company’s revenues for the fiscal year. The hand off from the development team to them was delayed due to technical issues, and the whole project is now backed up. The pressure is intense as the executive committee is now asking for weekly progress reports to ensure their promises to prospective clients and the shareholders will be met.
A CEO recently expressed concern that there was an environment of fear among his employees in the workplace. He was trying to understand the underlying issues driving this, to determine how to address it. His sincerity was commendable, and it provided an opportunity to identify drivers of fear by starting at the top of the organization.
Does faith have a place at work? CEOs at some major corporations think so.