What are the best ways to encourage calculated risks on your team?

I see risk, and risk appetite, as tools to upend complacency in the social services sector. Doing different is hard, and punishment for mistakes too often outpaces the reward for trying, failing, but learning. Having a long view, with clarity about you are trying to change can put risk tolerance in context. You may aim and miss, but doing it with the next shot in mind can get you closer to hitting the mark next round. The key is making sure there is another round and why taking another shot is the right thing to do.

I have found that encouraging your team to go beyond the set norms & practices, nudging them to find solutions, defining the perimeters, is what prepares them to take risks. Also the trust that you are right behind when they need you. Problem solving is a big part of everything that we do, if we do not build the appetite for risks, solution mind set will not develop!

Primeiro é preciso entender o apetite de risco da empresa, para que você, como líder, possa estar alinhado a ele e, assim orientar seu time no mesmo caminho.

What makes leadership personal and hard work isn’t the theoretical; it’s the practical. It’s not about knowing what to say or do. It’s about whether you’re willing to experience the discomfort, risk, and uncertainty of saying or doing it. To quote Aristotle, “To avoid discomfort, say nothing, do nothing, be nothing.”

Economically organizations are far more "risk-loving" than individuals. This is the entire basis of insurance, where policyholders are willing to pay more than the expected loss to avoid a bad outcome. This also applies to leaders and managers within organizations. As a result, without a proactive way to align the real incentives at the level of the individual decision-maker with the organization as a whole, sub-optimal results will occur. An analysis of many performance management systems often shows that the BEST performers have the least incentive to take a risk, and the LOWEST performers have the greatest. incentive, only further complicating the issue. Economics has a lot to offer here, but is rarely applied within HR

É necessário criar um ambiente psicologicamente seguro e colocar a confiança na base da pirâmide. as decisões mais arriscadas, quando tomadas de forma planejadas, não podem servir de punição para quem as tomou.

Rewarding the process is important because it produces the outcome. As a process is executed and often tweaked, you will see it produce small successes until ultimately, the desired result is achieved. Reward each successful process and watch it positively drive the momentum of those involved.

If there is fear of failure, help your team (or teams you are coaching) design experiments where it is safe to fail. This allows the team to define and explore problems and test possible solutions that get them closer to the outcome while uncovering risks along the way. Focusing on the experiment creates an environment where people are empowered to learn. Celebrate the outcome of the experiment; it's getting you closer to a viable solution while uncovering risks in a safe way.

In my experience rewarding the outcome also perpetuates perfectionism which leads to burnout and high turnover. Investing in an inclusive and transparent process with a clear feedback loop will ensure your team is in peak relationship.

Without risk there is no loss or gain. One must have the appetite to take risks in order to prove/check their ability. The positive side of this is that even if you fail, there is a learning and a sense of confidence that you tried and did not give up. So next time in such situations do take a calculated risk and do not look back.

The minute on our team knows that we have their back, and are willing for them to try new things.. innovation and risk taking will gradually build.. The minute we only focus on process and compliance, (it's definitely essential for the long term for sure) then the creativity gets stifled for the teams for sure

In my experience feedback is a very powerful tool as long as it is used with the right frequency and quality. It requires the ability to be honest, to listen attentively and to be open to the constructive criticisms that result from the conversation with a view on taking action both to strengthen the good skills as well as to work in the opportunities for improvements. Leaders should use this tool and commit with the continuous improvement of their people.

Feedback is a must. An employee will not know how to manage their focus or if their work is impactful. However, it doesn’t end there. Follow up and provide support if needed.

Feedback on a regular basis is most important in a democratic leadership approach since it is what gives direction in the absence of micro management. Finding the right balance between giving your team members the freedom to fail and having their back if they do is the magic in here.

Compartilhar minhas experiências e falhas fortalece certamente os laços da equipe, criando uma atmosfera de compreensão mútua. Ao falar abertamente sobre desafios, proporciono um vislumbre autêntico da minha recente jornada de liderança. Recordo uma ação que não atendeu às expectativas, mas, em vez de omitir, discuti abertamente com time. Aprendemos, ajustamos nossa abordagem e transformamos a situação em uma oportunidade de crescimento. Essa abordagem contribui para um ambiente colaborativo e também inovador. Acredito firmemente que a cultura de transparência e aprendizado é fundamental para o sucesso a longo prazo do time.

As a leader, I've found that sharing my own experiences with risks and failures opens up a door of understanding within the team. It creates a vibe that says, "Hey, we're all in this together." When I talk about the bumps in the road, it's like giving them a backstage pass to the real, unfiltered leadership journey. I vividly remember a project where my calculated risk didn't quite land as expected. Instead of keeping it hush-hush, I brought it to the team. We gathered, learned, and tweaked our approach for the next round. It was a game-changer. The team realized it's not about flawless victory every time but about the lessons we learn.

Psychological safety is necessary for a Team to take calculated risks. Unfortunately, a recent McKinsey Global Survey reveals most organizations do not demonstrate the positive behaviors that create an environment of psychological safety. In most organizations, Team Members have learned the hard way — based on the reactions of Team Leaders when someone speaks “truth to power” — that speaking up is not received well by those in charge. The result? Team Members, having good survival instincts, focus on self-protection rather taking a calculated risk that would benefit the organization. The essential first step a Team Leader must take to encourage the Team to take calculated risks is to create a psychologically safe work environment.

As a leader, guiding your team with your success and failure examples play very vital role. These are the live examples and everyone can relate with them easily. When you are sharing your examples with team it also shows that you are not just telling the stories and you already have in hand experience of same and you are capable enough to lead them.

taking risks, and recognizing when the mitigating measures have worked or have failed is a sign of vulnerability that we should all show as leaders. Talking about it would allow you to identify lessons learned that others can use and prevent further failures. It is not only human but a requirement for continuous evolution of the knowledge base

Be sure to share your own risks and failures not only through a lens of "and then everything worked out great". Then you're still only being an example of success. Share failures that were just failures. This is how you genuinely encourage and promote risk taking at an organisation.

Encouraging calculated risks within my team involves a focus on celebrating and learning from both successes and failures. It's crucial to create an environment where taking risks is seen as a positive part of growth and innovation. When a team member takes a calculated risk, regardless of the outcome, we discuss it openly in team meetings. We celebrate the initiative and analyze the results, extracting lessons and insights. This practice acknowledges the courage to take risks and turns each attempt, successful or not, into a learning opportunity for the entire team. This practice fosters a culture that values experimentation and learning, encouraging team members to step out of their comfort zones with the support of peers and leadership.

Here is what a leader can say... 'Its ok. Let's learn so we can do better next time.' No fault blaming. Do this consistently, and the team will get that it is OK to take calculated risks.

Growing, agile organizations have a bias for action. Understanding the pros and cons & establishing the threshold that determines “yes” or “no” is crucial - knowing how to react when things don’t work out as planned is often an overlooked step. Being vulnerable enough to say out loud that we don’t get everything right is the very first step in being able to learn from mistakes. Mistakes aren’t made by people who never try. So would we rather be stagnant & mistake free on the bench, or out on there playing the game?

Foster calculated risk by celebrating both successes and failures. Acknowledge achievements, reinforcing the value of innovation. When failures occur, create a supportive environment for open discussion. Emphasize learning opportunities from setbacks, promoting resilience and continuous improvement. This balanced approach encourages a culture of strategic risk-taking, driving creativity and growth within the team.

En un equipo de trabajo hay una riqueza en experiencia y conocimiento. El reto para cualquier líder es lograr que el equipo comparta y se logre comunión para enriquecer el proceso creativo y lograr un equipo que logré sinergia

Setting the goal at the start itself is very important. At the same time letting people share their skills would also allow the other person to involve the right people for the right tasks. This way everyone gets to deliver their best in any given opportunity.

I like to ask my team things like “what would this look like if we didn’t have any restrictions?” and “remove the ‘shoulds’ and the ‘we can’t becauses’ and then tell me what you would do here.” I think consistently pushing people toward creative thinking - even for the smallest problems - cultivates an environment where risk-taking is a norm. Ultimately, risk tolerance comes down to proving to people’s nervous systems that there isn’t a negative consequence for trying something new, even if the risk doesn’t have the desired effect. When people know it’s safe to try and fail, well, they’re at least inclined to try. And that “try” is taking the risks a company needs to achieve forward progress.

Show them the reward attractive enough and also tell them about the downside of the risk. Let them spend time to calculate and offer support to those who are willing to go ahead..Would be enough, I think..

Creating clarity around expectations along with psychological safety to foster differing perspectives and opinions are key. Teams can sometimes be paralyzed by perfection. Letting the team know that the one guarantee we have is that something will not go 100% according to plan and when that happens we will figure it out as a team can take perceived pressure off of them. Moving forward as an interdependent team versus silos will sustain results in the long run. Supporting differing opinions, navigating setbacks, and moving in a coordinated manner all lend to success.

Ask your team the evergreen question: "What would you do if this were your company? Or your money?" That's an easy way to start a discussion where the team is in an active position to discuss about risks.