A retail CEO once invited me to the opening of a new concept store. The company had made a big investment in the new concept and there were high hopes that the trial would succeed. The store looked great, and the initial customer reaction was extremely positive. I turned to one of the project managers and asked him if he’d been closely involved with the development. “Well,” he replied laconically, “It’s too early to say.”
Behind his witticism was an understanding that his business demanded immediate success and had an unwillingness to accept any sort of failure, even when testing new concepts. Failure was not a learning opportunity; it was simply an opportunity to seek a new career. Unsurprisingly, this business did not have a strong track record of either innovation or pace. Managers did not want to stick their head above the parapet and take a risk on a new product or initiative, as the chances were they would be shot at.
But there is a paradox here. The desire to avoid risk and potential failure can create the very conditions that make failure more likely. There is no growth without risk, and yet, over time, many successful companies seem to forget the behaviours and attitudes that created their original success.
If you want prudent risk-taking from empowered managers across your organisation, you must focus on behaviours, not just ‘victories.’ How do you reward, highlight and recognise the behaviours that have the best chance of delivering ongoing innovation and growth for your business, even if there may be the odd failure along the way?
Off The Record: A New Bohemia by Pet Shop Boys
Where are they now?
Where have they gone?
Who dances now to their song?
I wish I lived my life free and easier,
I’m on my way to a new Bohemia!