When NOT Talking about Risk is Risky
After seeing a movie about the future, have you ever left thetheatre feeling a bit — disoriented? Whether it’s The Matrix or Star Trek, Ex Machina or WALL-E, when afuturistic film ends it can leave you in another world. You can find yourselfuneasily stepping back into your day-to-day reality. You might feel disappointment or relief, depending on the nature of thestory. But connecting the dots from the future back to the real world cantake an adjustment. The same thing can happen when executives dive into future-thinking. Taking time to envision your organization’s future — well beyond five yearsout — can provide fascinating new insights that can be heart-pumping andinspiring, and sometimes a little scary. Future-thinking and sensemakingcan reveal a variety of new opportunities for your organization, as well asuncover some uncomfortable disruptors (if you are bold enough to navigate the discomfort). But when you leave the “future-thinking theatre”, and are confronted withyour current reality, the question becomes: What can you DO about that future — TODAY? How are you goingto deal with the risk of getting there? It’s at this point we find executives often have a blind spot. Not being ableto objectively address risk when shaping a new future can compromise their wisdom — and their organization’s ability to seize that future. The world is 4x faster, 8x more uncertain and 12x more ambiguous than itwas a generation ago. In this increasingly uncertain environment, the risks are real, whether it’sthe risk of loss or the risk of missing windows of opportunity. But many executives find it’s more comfortable to wax eloquently about their future than talk about how they are going to manage through the uncertainty and risks of getting there. We get it. It’s uncomfortable. But there are serious consequences. In an uncertain environment, NOT talking about risk is RISKY. Connecting the dots between the future and today’s reality startswith your eyes wide open. And it means having the courage to openly talk about risk andwhat you can do NOW to get ready. This requires being able to quickly build out scenarios and back cast toaction, surfacing outlooks and unlocking breakthroughs. It might be counter-intuitive, but one of the best ways to eliminate anxietyin an organization is to address uncertainty and risk head-on. When leaders openly address risk, the less powerful the anxiety becomes.In fact, psychologists have found that directly addressing risk can take thewind out of anxiety’s sails. Did you know that Exposure and Response Prevention (ERP) therapyencourages you to face your fears when confronted with anxiety — but at alevel, you can tolerate? Over time, patients learn that the thoughts andfeelings that prompt distress are more bearable than they anticipated. Thethoughts and feelings and uncertainty that they worried about do notnecessarily lead to the outcomes they feared. As a leader, you can leverage this concept by helping your teamget comfortable with “what if’s” and worst-case scenarios. You can turn elephant-in-the-room-sized-nightmares into smaller issuesthat simply require a practical plan. How might you do that? Let’s say you’ve just spent a month doing some thorough future-thinkingand sensing, and you’ve turned up some disruptive trends. Your leadershipteam is buzzing with the implications on your business. Some are excited.Some have real concerns. Some are frustrated. “Okay”, you might say, “I hear you. Let’s talk about how we would deal withthat (nightmare-future-scenario) or (opportunity window) if it came up?” In fact, regularly talking about your future and risk can become acompetitive advantage. Creating a systematic approach to regularly sensing changes around youcan help you prepare for the downside and quickly seize windows ofopportunities. Anxiety dissipates as people realize that you and your leadership team arecomfortable with the uncertainty yourselves. They become morecomfortable with uncertainty too, and ready to quickly shift gears. Employees and customers will catch your enthusiasm for the unknown. At Cygnus Sprints, we believe that openly talking about risk buildsRESILIENCE. Cygnus Sprints is a community of experts that can help you translate future-thinking and vision into actions to address your biggest uncertainties and risks on projects, strategies, teams or organizations. We know speed matters, so we act in favor of smart actions, synthesizing today and working backwards from your preferred future — in 13 weeks or less. Creating a regular rhythm of connecting future-thinking with today’s reality enables your organization to TRANSFORM: If you are leading your organization a new direction, make sure you areprepared to address the risk of your new future. It’s one blind spot you can avoid. Susan Schramm is an Executive Principal with Cygnus Sprints. She helps CEOs, boards, and leadership teams drive high-stakes strategies for faster results and more confident leadership. She serves as a “strategy accelerator”, an ally for senior leaders frustrated strategies are going too slow or worried they are getting off the rails. Susan has held executive roles with IBM, Siemens, Nokia, and Viavi Solutions and serves on many boards. Susan is founder of Go to Market Impact, a consultancy uncovering the hidden risks of their strategy, aligning the organization, and driving results. This article is part of an ongoing thought leadership series developed by Cygnus Sprints — On-Demand Solutions for a Complex, Sped Up World and powered by the Grey Swan Guild. Contributors to this article from the Cygnus Sprints team were also fellow Executive Principals and Advisors: Rom Geyoso, Mercedes Batlazar Lobato and Mitchell Halpern.
When unthinkable questions are the answer
Did you know Albert Einstein’s secret weapon for solving problems? He said, “If I had an hour to solve a problem and my life depended on the solution, I would spend the first 55 minutes determining the proper question to ask… For once I know the proper question, I could solve the problem in less than five minutes.” Yet, when stakes are high, I often see a tendency for leaders to rush to solutions and skip this step. Top executives may even SHUT DOWN questions: “We don’t have time for all these questions — we need to execute!” Questions can make us uncomfortable. But skipping questions can be dangerous. Questions often show up down the road, when plans don’t work as expected. They result in delays in implementation when people are confused or skeptical. So where do we start when we need to ask good questions? Simon Sinek famously proposed to “Start with WHY?” “What problem are we solving?” helps clarify and focus everyone’s thinking. But I believe that even MORE fundamental is a question that is often skipped: What ASSUMPTIONS are we making? It’s your ASSUMPTIONS that provide your lens for looking at the problem. It’s your assumptions that shape your questions and the answers that result from them. Have you even STATED your assumptions? How do you know they are true? When I work with CEOs, boards, and leadership teams to get a high-stakes project back on track, there is often a lot of stress. Everyone wants to get to the solution quickly, and people can get frustrated when they don’t agree on the answers. At the root of their frustration is often the fact that they are making very different assumptions. It might be assumptions about what customers will pay for, how they stack up compared to the competition, or assumptions about their organization’s skills and capacity to execute. We tend to base our assumptions on our own life experiences. Yet, in today’s uncertain climate, the assumptions we are making about how things work may not be valid. It is in challenging our assumptions that we might be able to come up with new answers – and explore what was previously UNTHINKABLE. And it is in considering the unthinkable that we stretch and position ourselves to innovate and adapt. Here’s a quick and fun exercise you can use with your team to explore your assumptions and stretch your thinking: It’s the UNTHINKABLE questions that can help us prepare for the downsides of risk. And those same UNTHINKABLE questions that help us prepare to seize windows of opportunities. So if YOU are in the hot seat and have just one hour to solve a high-stakes problem, consider Einstein’s advice with this little twist: Spend the first 55 minutes asking questions –even UNTHINKABLE ones. The answer you come up with in the last 5 minutes may be your most innovative solution ever! I look forward to hearing your thoughts. All the best – Susan P.S. If you are leading a new strategy, or getting an initiative back on track, check out our De-Risk System for Impact. It’s a practical way to anticipate the risks of your strategy and put a plan in place to address them. Happy to discuss how they might apply to your situation. Your mission is too important. Don’t let it get derailed. Susan Schramm, Founder, Go to Market Impact susan.schramm@gotomarketimpact.com
Are you overlooking the biggest risk to your growth?
“The WORKFORCE is the number one RISK to growth”. This bold assertion jumped out at me from the 2022 Global Mid-Year Industry trends report by PwC*. It was focused on mergers and acquisitions – but relevant for a leader driving ANY new strategy today. PwC pointed to risk factors we know all too well: wage inflation, the “great resignation, skills shortages, an increased spotlight on diversity and inclusion. But the IRONY they pointed out was this: DESPITE the fact getting workforce issues right can make or break the success of a merger or acquisition or joint venture — -“ The impact of the WORKFORCE on merger/acquisition deals is often OVERLOOKED in the due diligence…” Why?o Is it because the excitement and momentum (and egos) involved in shaping a new M&A deal mean leaders move too fast? o Or that financing and “synergies” and portfolio /market fit” steal the show? o Or is it because these leaders forget that the “deal” is actually PEOPLE. The truth is this: Even a GREAT strategy will FAIL if the PEOPLE are confused, skeptical, or not aligned. In my work with CEOs and boards driving high-stakes strategy, this truth holds up whether you’re putting together a new M&A deal, pivoting your strategy, or placing a big bet on a new product or program. To de-risk the strategy, you can proactively identify exactly WHO must take action to make this new strategy work and how you can support them. Make sure they are clear on why and that they are prepared and aligned to take action together. Be intentional about the culture you are creating – right from the start. The PwC trends report went on to say:“ As workforce strategy also plays an outsized role in post-deal integration, questions not often on top of the deal-making agenda become more important than ever:– What is the right culture to cultivate?– How do you drive better results in recruiting, retention and development?– Do your compensation, benefits, flexibility and other programs create incremental motivation and harness workforce longevity?” These and other questions about your PEOPLE are relevant to ask whether you are integrating two organizations – or strengthening your organization to take on the headwinds of 2023. What do you think?o Do YOU see leaders putting enough priority on the “people-side” of a new strategy?o What issues do YOU see get overlooked most often when leaders are driving a new direction? I look forward to hearing your thoughts. All the best – Susan P.S. If you are leading a new strategy, or getting an initiative back on track, check out our De-Risk System for Impact. It’s a practical way to anticipate the risks of your strategy and put a plan in place to address them. Happy to discuss how they might apply to your situation. Your mission is too important. Don’t let it get derailed. Susan Schramm, Founder, Go to Market Impact susan.schramm@gotomarketimpact.com
Are you prepared for your strategy hypothesis to fail?
“What do you THINK will happen if we put these two solutions together?” the chemistry teacher posed. Students threw out ideas, but the room quieted as they waited for the “right” answer. Finally, she spoke: “Actually, I’ve never done this before either! Write down YOUR hypothesis, and we’ll find out together!” That day my son came home from high school thrilled to discover two things: In my work with organizations launching new strategies, I find that applying these simple truths can be difficult. Especially when the stakes are really high. The more we want a specific outcome, the more we get invested. And we leave little time and resources or emotional bandwidth to be able to consider other possibilities. As Harvard Business School professor David Collis recently wrote, a successful strategy “requires making carefully coordinated choices about the opportunities to pursue; the business model with the highest potential to create value; how to capture as much of that value as possible; and the implementation processes that help a firm adapt activities and build capabilities that allow it to realize long-term value. Neglecting any of those imperatives can derail a strategy, but CEOs frequently zero in on just one.” I have frequently seen business and nonprofit CEOs and boards of directors and leadership teams get so excited about their big idea that they get over-invested in one answer. And discourage any talk about risks or options. And then, when things don’t go as expected, these same leaders are surprised and get frustrated. Or scared. And can even start to blame others. But what if we had the mindset of a scientist when executing high-stakes strategies? What if we put on our safety goggles every day, and acknowledged that our “perfect” strategy was actually an experiment? And that it would very LIKELY turn out DIFFERENT than we expected? When you have the mindset of a scientist, you humbly realize you are building a HYPOTHESIS. You consider your assumptions and expectations about what will happen, recognizing that there are many variables and possible outcomes. And if an experiment doesn’t turn out as expected, you work to observe and look for patterns, so you can quickly learn, adapt and move forward. Launching your strategy without clarifying your assumptions is like doing a scientific experiment without knowing your hypothesis. To de-risk, start with identifying those assumptions that MUST prove true for your new strategy to succeed. Determine how you might quickly validate those assumptions. Systematically considering “what if” for your strategy is like being able put your experiment in a time machine. You can consider ahead of time the bumps in the road your strategy may run into. And develop a premise for even the worst-case scenario. This can make it easier for your organization to adapt if things don’t turn out as planned, and it reduces anxiety when the stakes are high. By adopting the mindset of a scientist, you and your leaders will be building a culture of humble confidence: What do you think? How could this work for your organization? I’d love to hear your thoughts. All the best – Susan P.S. If you are leading a new strategy, or getting an initiative back on track, check out our De-Risk System for Impact. It’s a practical way to anticipate the risks of your strategy and put a plan in place to address them. Happy to discuss how they might apply to your situation. Your mission is too important. Don’t let it get derailed. Susan Schramm, Founder, Go to Market Impact susan.schramm@gotomarketimpact.com
Three ways leaders can avoid the analytics trap
Has this ever happened to you? You’re making a purchase decision online but you’re uncertain which product to choose. You search “Top 10” and your screen fills with lists and then POOF! — as if by magic — hours have VANISHED as you end up deep into evaluating all your options. Unfortunately, in this data-rich online world, overanalyzing choices can sometimes get the best of us. And when it’s just a choice of running shoes or a new garden hose, a little time lost in decision-making may not be a big deal. Yet, when leaders get stuck making decisions that affect their entire organization, overanalyzing can have real consequences. In a world of uncertainty, data is considered the new oil. We believe that with more information, we’ll make better decisions. According to IDC, businesses spent a whopping $215 billion in 2021 on big data and business analytics solutions. From analyzing your customers’ experience to employee sentiment to operational improvements to supplier performance, data analytics CAN provide fascinating insights well as rude awakenings. What if seeking MORE data and MORE analysis becomes a convenient way for you to PUT OFF making an important decision? What if you are ignoring the information you don’t like and seeking data that will confirm your own (possibly flawed) opinion? If so, you may be getting caught in the “Analytics Trap”. In my own work with CEOs, boards, and leadership teams striving to get results faster for high-stakes strategies, I often see leaders lose critical time when they are struggling to make a decision. Of course, when the consequences are high, you want to make sure you’ve done your homework. But in doing so, you can easily fall prey to overanalyzing all sorts of solutions and the data associated with them. And when decision-making is done as a group, even more data and more opinions will surface. And it can DROWN your team. Making decisions quickly in times of uncertainty is a critical skill for leaders. As Lee Iacocca, former CEO of Chrysler, once challenged, “So what do we do? Anything. Something. So long as we just don’t sit there. If we screw it up, start over. Try something else. If we wait until we’ve satisfied all the uncertainties, it may be too late.” In these situations, a big picture or “meta” approach can be helpful when you find you are losing your way in data analysis overwhelm, and are burning valuable time. Here are three straightforward questions to help you step back and think more clearly when you find yourself in the Analytics Trap: Getting REALLY specific about the problem you are solving can make space for clearer thinking. WHY can provide “breathing room” for your decision process. One of the best ways to deal with overanalyzing is by asking the right questions and transparently prioritizing. Continue to challenge yourselves “Exactly what problem are we trying to solve?” This makes it easier for you and your team to differentiate “critical to have” from “nice to have” information and to stay focused on just what is needed to make a good decision. 2. WHY NOW? Are you clear on why this decision needs to be made NOW? Without urgency, analysis can continue endlessly. One of the most important “meta decision analysis tools” you have in your tool chest is a DUE DATE! Setting a deadline for your decision will guide other decisions, such as: how many more new options you have time to consider, how many more people you can involve, and even how many more sleepless nights you can afford until you make your decision! It sounds crazy, but simply setting a deadline — and sharing it with others so you are accountable for it — enables decision-making to feel simpler. 3. WHAT IF? “What If Thinking” can help leadership teams get better prepared to speed decision-making and take action — even with incomplete data. Kick off your new initiative by systematically thinking through the assumptions and risks upfront. What assumptions need to prove true for your strategy to be a success? What data do you need to prove those assumptions are true? Discuss as a team what you would do in a variety of scenarios, and agree to the MINIMUM data you will need to have, as well as the default plans you can put in place. This will help you and your team prioritize, and be able to DECIDE QUICKLY when there are early indications of change and data is not easy to come by. ~~~~~~~ Yes, if you are leading a high-stakes strategy and find yourself lost in myriads of data, you may be caught in the Analytics Trap. But instead of getting lost in the details, and using more data and more analysis as an excuse for putting off an important decision: ASK BIGGER QUESTIONS. What do you think? Could these approaches work for your organization? I’d love to hear your thoughts. All the best – Susan P.S. If you are leading a new strategy, or getting an initiative back on track, check out our De-Risk System for Impact. It’s a practical way to anticipate the risks of your strategy and put a plan in place to address them. Happy to discuss how they might apply to your situation. Your mission is too important. Don’t let it get derailed.
Three ways to avoid driving your strategy in the dark
When I was in high school, I asked my mom to look over a paper I’d written the night before the deadline. She asked me, “Do you want me to tell you how great it is? Or do you want to know what I really think? It may take a little more time.” That question may apply to a lot of us these days. Turn on the news and we regularly see people talking over others (or heck, even jumping on stage and hitting them!) if they hold different opinions. We all have people in our lives whose views differ from our own — both at work and in our personal lives. But we may not actually want to take the time to listen. It’s just too — uncomfortable. The Netflix documentary “The Social Dilemma” disturbingly points out that online engines using artificial intelligence intentionally keep us in our own bubbles, so we start to believe “everyone likes” our own point of view. And we stop listening. NOT seeking out and listening to opinions different than ours is like driving in the dark with our headlights off — it may be exciting, but it could end very badly! If we don’t know, or don’t want to know, what other people think and why they came to that view, we can be caught surprised by actions they take – or the actions they do NOT take. In my work with CEOs, boards, and leadership teams launching new strategies, the same thing happens. The thinking goes: “We’ve got this big awesome (perfect) idea to make the world better (e.g. new strategy/ program/technology/ offering/ company/ movement). Everyone (in our bubble) agrees this (obviously) makes sense. Let’s go!” But assuming people will agree with your new direction — and will join you! — is RISKY. Launching without systematically listening to the perspectives of your employees/ customers/ members/ funders/ partners/ supporters/ ecosystem can cause even the best strategy to run into a brick wall. Many impressive strategies born in a corner office or at a kitchen table have failed when they hit the cold bright light of “I just don’t get it”. The difficult truth is that people critical to the success of your new strategy may not understand or be interested, willing, or motivated to take the actions you need them to take to achieve what you view as an important worthy goal. If you’re leading a new high-stakes strategy, here are three ways you can de-risk it by “turning on your headlights”: 1. Clarify WHO needs to take action. Start by listing all the people/roles/organizations that need to take action for you to be successful. Not just the “usual suspects” ( or people INSIDE your bubble) but ALL those who could have an impact and need to be bought in — or at least not stand in your way– if you are to be successful. Don’t stop with employees, but consider ALL those who need to do something NEW if you are going to be able to deliver on your promise. Consider your suppliers, your channels, your partners, your funders, your community – and definitely your customers! Getting a diversity of perspectives up-front ensures you aren’t fooling yourself in your bubble. 2. LISTEN objectively and humbly. Find out as early as you can: “What will these people need to know, understand and believe in order to take action with us?” As you listen, challenge yourself: “Am I listening objectively?” “What assumptions did I make that are not proving true?” “Are my own biases or emotions filtering out what they’re telling me?” 3. ADAPT your strategy in light of what you learn. Warning: Turning on your headlights may show you some pretty ugly potholes in the road ahead! One common mistake many leaders make when launching a new strategy (especially when they are emotionally invested in their own wonderful new idea) is to dismiss feedback that is contrary. “These folks are really not informed enough to give us quality feedback.” Or, “This is just a one-off concern”. Or “I expected that — they just don’t want to accept change”. But you can save time, reduce wasted costs, and avoid frustration if you are willing to consider these views and address different perspectives and concerns upfront. Check your emotions at the door and ask yourself objectively, “What about these concerns as even a shred of truth?” “What would it take to address these concerns?” “Could change to address this issue have any other benefits?” But whatever you do — ignore what you see in the headlights at your peril! Just as when my mom asked me, “Do you want me to tell you how great it is? Or do you want to know what I really think?” — I have come to realize a hard truth: It can be exhausting and disappointing that others aren’t as excited about our own big ideas. It’s much more comfortable to stay in our own bubble and not even acknowledge contrary views. Or to dismiss those views and drive on our way in the dark. But if we learn to intentionally and consistently “turn on our headlights” and actually SEEK contrary feedback, we get the opportunity to adjust our course. And avoid the risk of a really great strategy going right off the road. I look forward to hearing about the insights you are able to see. Safe driving! – Susan P.S. If you are leading a new strategy, or getting an initiative back on track, check out our De-Risk System for Impact. It’s a practical way to anticipate the risks of your strategy and put a plan in place to address them. Happy to discuss. Your mission is too important. Don’t let it get derailed. Susan Schramm, Founder, Go to Market Impact susan.schramm@gotomarketimpact.com
“It’s not that we’re smart. We’re just sane.”
Warren Edward Buffett and Charlie Munger shared today how they navigate wild rides and uncertainty. As they adapt, they focus on basics: -Creating value for the long term. -“What if thinking” about possibilities and risk, grounded in boring fundamentals. -They step back and look at a macro view— and look down the road. -They have a healthy respect for people’s tendency to act in their own interest — as a good thing – and evaluate how well businesses serve their customers. – They clarify their assumptions and are prepared to make changes if those assumptions don’t prove true. —They openly talk about their mistakes— and learn from them. — They are clear on their values and build a management team that is committed to those values. Not very sexy —but it helps them stay calm as they live with the decisions they make. And it’s working pretty well for them:) I find in my work with CEOs, boards, and leadership teams who are launching a new strategy – the same basics apply. When you are frustrated that your strategy isn’t working, it’s easy to start acting from fear. And to try something new just because it’s new— not because it’s grounded in fundamentals. There’s a calm that can come from the basics. You don’t have to be smart.Just sane… Do you agree? I look forward to hearing your thoughts. All the best – Susan P.S. If you are leading a new strategy, or getting an initiative back on track, check out our De-Risk System for Impact. It’s a practical way to anticipate the risks of your strategy and put a plan in place to address them. Happy to discuss how they might apply to your situation. Your mission is too important. Don’t let it get derailed. Susan Schramm, Founder, Go to Market Impact susan.schramm@gotomarketimpact.com
Let’s face it: Your new strategy is made of GUESSES.
Exiting college, people told me I needed a good strategy: a strategy for networking, for my career, for investments. Despite my bravado, I knew deep inside I was just guessing. It was uncomfortable. I find it’s the same for organizations. CEOs, boards, and leadership teams driving high stakes strategies are often placing big bets — and though they know they need a good strategy, they realize they don’t have all the answers. Whether you’re introducing a new program or offering, entering a new market, changing suppliers, making an acquisition, or launching a new organization — there are a lot of unknowns. And a lot of guessing. It can be uncomfortable. But I came across a simple test that can help. Clay Christensen was an innovation expert, entrepreneur, and Harvard B-school professor. He was also a man of faith humble enough to realize there was a LOT he didn’t know. Christensen recommended this test for a new strategy: “What has to prove true for this to work?” “As simple as it sounds, companies seldom think about whether to pursue new opportunities by asking this question. By the time they have learned which assumptions were right and which ones were wrong, they’re too far down the road to do anything about it.” ( Christensen Allworth Dillon 2012 How Will You Measure Your Life) Here’s the three-step approach to apply the test: 1. List the most important OUTCOMES you are expecting from your new strategy. Get specific. You may want to serve a new market, and the important outcome is “growth” – but how much growth? When? Are you willing to lose money for it? 2. Identify the ASSUMPTIONS you’re making that would result in the most important outcomes. Are you assuming your new market knows they need your offering? Or that they will need the same level of support as your current market? (Caution: Sometimes big assumptions are buried deep in an analyst’s business case spreadsheet and you don’t even realize you’re making them: e.g. length of sales cycles and time to revenue, material and sales costs, customer retention rates.) 3. Ask: “WHICH of these assumptions MUST prove true for this outcome to happen”? Rank your assumptions in terms of their impact. If you need revenue quickly, the length of the sales cycle is a big assumption. Then find quick inexpensive ways to validate your assumptions. Start with ASKING QUESTIONS of customers and those who work with them the most. And LISTENING humbly. HERE’S THE RESULT: If your biggest assumptions are likely to prove true, your strategy is more likely to succeed. You can de-risk your strategy and align your team. And lead a little more comfortably. (Even when you’re just guessing:) (If you’d like to explore how to systematically uncover the hidden risks of your own new strategy and how you can get results faster, let’s talk. Your mission is too important to get derailed.) Susan Schramm, Founder and Principal, Go to Market Impact LLC susan.schramm@gotomarketimpact.com
Feeling “the risk of missing out”? Answer these two questions
Are you noticing this too? With vaccine numbers up, people able to congregate, and summer activities and events unfolding, everyone’s calendars are booking up. Sure, this is positive. But people are also starting to get a gnawing feeling… they may be LEFT OUT of something! I saw an article in New York magazine that noted during the pandemic, “FOMO may have gone into hibernation for a while but we may be on our way to a new golden age as we try to make up for the year we lost by doing more than ever. “ This risk applies to organizations as well. As I consult with organizations to launch new strategies and help them optimize their risk, I find many leaders are getting a similar feeling lately. You may feel your organization is missing out on: The psychology behind this fear is called “loss aversion”. Studies show people tend to place up to twice the value on what we might LOSE versus what we might GAIN. So, how do you avoid the “Risk of Missing Out”, or “ROMO,” for your organization? One way is to be ready with answers to two important questions: When resources are constrained, and demand outpaces supply, you aren’t the only game in town. People have lots of choices. The easier you make it for people to know why you are the right choice, the quicker they’ll say “Yes!” and take action with you. This is a clear theme in my current research with funders, from venture capitalists to financiers to philanthropists and government grant providers. I pose this question: “What would make it easier for you to say Yes!” to fund organizations with worthy ideas”? Jeff Grubb is an investment banker, management consultant, and trustee for the MJ Murdock Charitable Trust. He guided, “Despite what people may think, there is actually a lot of funding available for good ideas. But whether they lead a business or a nonprofit, most people looking for funding don’t spend enough time getting down to “Why.” “Why do I exist?” “Why do we need one more person doing this?” “What’s different about what I am going to do when there are already others doing something like it?” Allison Schulz, Vice President of Capacity Building at the Calgary Foundation, offered, “I encourage organizations to consider, ‘What vacant spot would there be if we didn’t do this work?’ ‘Why is this work going to be important to the people we serve?’ ‘Is this critical to do now — or if not, when will it be?’ “ Why You. Why You — Now. Here’s how to go about answering these questions. In a crowded landscape of organizations that sound similar, take the time to map all those doing something similar, and capture how you are different. Make sure you can explain simply: It doesn’t have to be a big shiny dramatic offering that makes you different! You can differentiate by HOW you do what you do, and the experience people will receive along the way. As you strive to “get back to normal”, make sure you are really clear about the issues that matter today. Evaluate what’s changed and make sure that the problem you solve is still relevant. Whether it’s customers or employees, members or volunteers, suppliers or funders — people want to go with organizations with a clear vision and game plan for delivering value in today’s pandemic-impacted environment. They also want to be sure they are working with organizations and leaders they can trust, who know how to deal with risk in today’s environment. Demonstrating your resilience and ability to be counted on –despite today’s changes– may be the best answer to “Why You — Now”! Yes, the ROMO villain, or “the risk of missing out”, might be rearing its ugly head again. But if you have solid answers to these two questions, you’ll quickly vanquish this villain and recognize it for what it really is … opportunity! — Susan P.S. If you’re a leader of an organization launching a new strategy, or getting an initiative that’s de-railed back on track, check out our De-Risk System for Impact. It’s a practical way to anticipate the risks of your idea and put a plan in place to address them. It can prompt some good dialogue with your team. Happy to discuss. Susan Schramm, Founder and Principal, Go to Market Impact LLC susan.schramm@gotomarketimpact.com
“Is there a risk we could lose?”
I still can’t get that moment – or the coach’s comment — out of my mind. Even if you are NOT a sports fan, it was amazing to watch… and learn from. It was a textbook case in optimizing risk. Not only the risk of loss — but the risk of losing windows of opportunity. The stage was set: Gonzaga University, a Jesuit school from Spokane Washington, is in the prized college basketball Final Four game, one of the top four teams competing for the 2021 National Championship. Though Gonzaga may not be a household name, the basketball world knows them for their tenacity. They’d been on the longest winning streak in their program’s history. But this game is different. Uncertain. Uncomfortable. Even a little scary. Things just aren’t going as well. Gonzaga had managed a decent lead in most other games. But they started off behind after three seconds. This UCLA team, an 11th seed that no one had expected to get this far, is breathing down their necks, often taking the lead and never more than 7 points behind. Despite all Gonzaga’s efforts to break out, with only three seconds left to go in overtime, UCLA ties up the game 90-90. They are out of time. And that’s when Jalen Suggs lets it fly: a 40-foot bank shot close to mid-court that hit the backboard and sunk the basket. UNBELIEVABLE!!! Or was it? What was the secret? A “what if” culture. After the game, Gonzaga coach Mark Few’s comments were telling: “We made a lucky one at the end, but I’m telling you, he makes those all the time in practice when we practice late-game situations… I knew when he shot it, it was going in,” Few said. In my own work with CEOs and boards of organizations that are launching a new strategy or pivoting, I find that taking a risk is often uncomfortable. It requires a lot of people to take a new action and do something they’re not entirely sure of. There are risks of things going wrong — but also risks that new opportunities are going to arise that you’re not quite ready for. Yet, in some organizations, just bringing up the fact that you see a risk to the plans can be frowned upon. A lack of loyalty. The big elephant in the room no one can talk about. Truth is, the risk is still on people’s minds. Our brains are wired to protect us, and when we see a risk – even if isn’t a physical danger – our brain sends us signals that create a “fight or flight” reaction. Seeing risk and not dealing with it creates more fear. So great leaders are willing to TALK about risk — and also PLAN for it. A “what if” culture allows for transparency so people can feel comfortable challenging assumptions. But it also requires discipline. That’s what Gonzaga’s coach did. He had his team practice “late-game situations” that otherwise would have felt like threats. “What if we’re going to lose” can be changed from being a threat to a situation this is openly discussed and planned for together. Everyone knows, “when this situation comes up, we’ll do this” or that. Today, you may be dealing with some risky “what if’s” of your own: · What if I lose my own job? How can you de-risk? Go there. Openly talk about “what if” and make it a rhythm. It can calm you all down, and instead of being a threat, “what if” scenarios will be situations you have practiced and planned for. It may feel like it’s late in the game, but you and your team can be a lot more comfortable with risk. Go ahead. Take the shot. If you are interested in ways to de-risk your strategy or initiative, check out The Changemakers De-Risk System for Impact℠ . Hope it prompts your thinking. Susan Schramm, Founder and Principal, Go to Market Impact LLC susan.schramm@gotomarketimpact.com 847/778-0123