How daring are you?

False. When times are tough, most companies rely on defensive strategies and attempt to maintain a “business as usual” mode. But according to the article, “Roaring Out of Recession” by Ranjay Gulati, Nitin Hohria, and Franz Wohlgezogen (Harvard Business Review, March 2010), this strategy does not pay. When times are tough, you should neither bury your head in the sand nor take things slowly, for it is indeed the early bird that gets the worm. The future belongs to those who innovate, uncover new sources of business performance, and empower their people to do both of these things. In short, moving forward despite obstacles means taking measured risks.

Based on Corporate Entrepreneurship: How to Create a Thriving Entrepreneurial Spirit Throughout Your Company by Robert D. HISRICH & Claudine KEARNAY (McGraw-Hill 2011).

False. “I’ve got great ideas but no one listens to them. All this paperwork is driving me mad. My boss doesn’t understand what I do. I’ll never get a promotion if I complain…” These obstacles to initiative may leave you in a permanent position of wait-and-see.

And yet, at the same time, human beings are not programmed to wait but rather to challenge the rules. In business, bold managers push back the barriers that slow them down. They play with the rules and dismantle them; they optimize the processes that create frustration (bureaucracy, management structures, ego games, and so on) by remaining in a state of permanent experimentation.

Based on L’audace, mode d’emploi : Comment adapter votre niveau d’audace à chaque situation by Didier DURANDY (Eyrolles, 2015).

True. Yes, be daring, but do not be reckless. The word “daring” implies two things: a tendency to tackle difficult undertakings (action) and the idea of going against dominant trends (innovation). On the other hand, daring does not imply rashness, carelessness, or presumption.“Daring people engage in undertakings that may appear to be reckless, but they only do so after having fully and realistically considered the matter in terms of associate risks vs. potential and reaching the conclusion that the undertaking is the means to a worthwhile goal.” (Eduka). Agile people have a daring side to their character, they have to be flexible enough to deal with constraints and capable of displaying a mixture of managerial and entrepreneurial skills.

Based on Corporate Entrepreneurship: How to Create a Thriving Entrepreneurial Spirit Throughout Your Company by Robert D. HISRICH & Claudine KEARNAY (McGraw-Hill 2011).

True. Values help to give direction in turbulent and complex environments, ensuring personal integrity and acting as a guide for following your ideas. And you need strong values (and to stick to them) if you are going to having the courage to take risks, to stand by your convictions and to defend what you hold most dear.

Elon Musk, CEO of Tesla, is the embodiment of a courageous leader who is faithful to his values. Every daring decision Musk has taken over the last ten years in launching his various projects has been rooted in the desire to build a more sustainable world. A bold dream it may be, but it is not utopian. Musk is as convincing as he is convinced, attracting Silicon Valley’s fi nest talent, enjoying a prominent position in the media and raising as much money as he wants from investors.

Based on L’audace, mode d’emploi : Comment adapter votre niveau d’audace à chaque situation by Didier DURANDY (Eyrolles, 2015).

True. A sign of real courage in the modern manager is not being afraid to look inept because you turn to your team to unearth new ideas or solve a problem. This stance initially means silencing your ego and personal interests as well as putting yourself at the service of your staff – as advocated by Simon Sinek in his latest book, Leaders Eat Last (Portfolio, January 2014). When a manager’s ego is not an issue, team members feel secure enough to perform their duties to the best of their ability and to maximize the group’s performance.

Based on L’audace, mode d’emploi : Comment adapter votre niveau d’audace à chaque situation by Didier DURANDY (Eyrolles, 2015).

False. Innovation is an imperative for collective success, but approaching innovation cautiously is tantamount to giving into an imagined risk. Misplaced caution prevents you from moving forward, innovating, and granting those under you the autonomy they need to do the same. Previous crises have shown that when faced with difficult situations, it is only natural to overestimate risks. But this irrational reaction prevents you from making necessary decisions.

• The tyranny of principles of precaution: Managers overreact to risks that are unlikely to occur. The worst case scenario becomes the point of reference despite its extremely low probability.

• Making a mountain out of a mole hill: Managers focus excessively on problems that are indeed likely to come up, but whose impact would only be minimal.

• Tragic shortcuts: Managers grant far too much importance to dangers that come to mind easily (i.e., problems previously experienced). As a result, after a disaster, aversion to danger increases disproportionately, given that the same thing is highly unlikely to repeat itself.

Based on Corporate Entrepreneurship: How to Create a Thriving Entrepreneurial Spirit Throughout Your Company by Robert D. HISRICH & Claudine KEARNAY (McGraw-Hill 2011).

True. When an initiative goes wrong, make sure that you stay positive so that your grievances do not sabotage the team’s risk culture.

• Deliver constructive feedback: always stick to the facts to avoid undermining an employee’s self-esteem. Do not criticize the initiative that has gone awry but the way it was executed. Put blame to one side and focus on each individual’s responsibilities (without forgetting your own). Show that your feedback is designed to solve a problem and to improve the situation rather than to lay blame.

• Recognize the value of failure, as it forms an integral part of any risk, and a margin for error is a sine qua non of any initiative. Introduce a recognition system along these lines. Adopting a strong position should be rewarded, and these rewards (financial incentives, new responsibilities, etc.) can be based not just on a project’s success but also on the risks taken, including if the initiative is ultimately a failure.

Based on L’audace, mode d’emploi : Comment adapter votre niveau d’audace à chaque situation by Didier DURANDY (Eyrolles, 2015).

Of course not!

While managerial letting go is imperative, especially in a tense situation, this should never prevent you from saying what you think and asserting your authority when the situation calls for it.

• Make sure that the risk was really necessary, as risk-taking is not always the best solution. Boldness is desirable if: (1) it does not harm the company (it enhances without being destructive); (2) it respects everyone; (3) it is fully transparent (it is not hidden from you or from other members of the team).

• Hold individuals to account: if one of the three rules above is not met, issue a clear call to order. Demand explanations and do not be afraid to confront the individual responsible with the facts and consequences facing him or her, the team and the company. Letting go does not mean being lax and being incapable of setting limits.

• Champion the use of feedback: small mistakes or failures without serious consequences that have been turned into valuable lessons are legion in business, even though they are seldom talked about and shared. Negative experiences are, however, key drivers for development. Keep a list of setbacks and triumphs so that you can learn from them. Set up group sessions for analyzing mistakes to ensure that the lessons are collective.

Based on L’audace, mode d’emploi : Comment adapter votre niveau d’audace à chaque situation by Didier DURANDY (Eyrolles, 2015).