As your career progresses, a funny thing can happen: you actually start to realize just how complicated the business world and your role can be. Long gone are the early career refrains of “how hard could it be?” or “why not?”; experience has taught you just how hard things and all of the trouble that arises when the task at hand and the actions that were taken to address it should have been contemplated much more thoroughly. Does it seem like the reverse should be true? Call it “experience”.
Experience recognizes the full magnitude and complexity of situations and the actions that should be taken, as well as the various options that should be considered when making a decision. Those who have successfully reached the executive level know that business situations are rarely black and white, and in fact, lots of grey areas exist; this is often the culprit of complexity. As a result, experienced executives typically have a strong ability to identify complex situations and bring the right balance of analysis and action to bear. This is what experience can do, in terms of developing the necessary level of judgment to recognize business risk (that can be mitigated), as compared to catastrophic risk (that can be devastating to a company).
In this series, we have already considered the importance of a number of skills, including professional development, consistent reliability, and high role engagement. Here’s more about the importance of sound risk management skills to the executive ranks.
Where it Goes Wrong
Inexperience is often coupled with high enthusiasm and impatience; to get the job done, be recognized, and perhaps make a “splash” to generate a promotion opportunity. Although there can be positive aspects to bringing action and enthusiasm to a role, there is a fine line between a “just do it” attitude and barging ahead in a careless manner. Too often, less experienced staff members approach tasks without fully appreciating the challenges of the situation or the outcome of their actions. Fast forward, and you might just find yourself in a situation that you wish you could have avoided or approached differently. By this point, it’s often too late to turn back the proverbial clock, resulting in possible damage to the company, your reputation, and perhaps others.
Recognize that business situations are often much more complex and risk laden than most might realize. Experience provides the tools to recognize this, but also the skills to identify options for resolution. Here’s how:
- Seek to fully understand situations before acting. Taking quick action without fully appreciating the situation is a likely path to trouble. The devil is, in fact, in the details, so take the time and effort to be in the know.
- Identify the key things you need to know. When analyzing business situations, there are typically a number of important areas to understand: What is the situation? Who is involved/impacted? What are the limitations/guidelines that are applicable? What are the financial considerations? What is the timeline for resolution? Develop a list of the standard things you need to understand and use it as a guide for resolution.
- Consider the outcomes fully. It’s important to understand the situation, but also the outcomes of the actions that could be taken. This is an area that often doesn’t get as much attention as it should, resulting in the right solution, but the wrong approach. Remember that executives often spend more time “thinking” and less time “doing”, so don’t rush to judgment.
- Be patient. Senior level decision making often requires more thought and patience than new executives might expect. In simple terms, executive level problems are more complex, can impact more people, and have greater consequences: all good reasons to gather information, think it through, and take a patient approach.
- Get advice. Bring advisors and other experienced individuals into the process when needed. Although an executive might understand their business and customers well, they may lack specialized knowledge in areas such as legal, tax, and regulatory, so advisors in these areas can fill important information gaps. In addition, a sound second opinion from an experienced executive can be extremely helpful.
Executives who are able to weather the storms of the business world for the long term need to have sound risk management skills. Failing to do so could result in unsuccessful ventures or a short-lived executive career; costs that are much too high not to prevent.
- MEDIA: CBC News Network Weekend Business Panel (May, 2021) - May 3, 2021
- MEDIA:CBC News Network Weekend Business Panel (April, 2021) - April 5, 2021
- MEDIA: CBC News Network Weekend Business Panel (February, 2021) - February 8, 2021