Diamonds are a CEO’s Best Friend: Adventures in Risk-Taking

Gordon’s Jeweler’s, in the shadow of ubiquitous Zales Jewelers, was struggling with a $150 average check when I took over as president of the brand. I didn’t know much about jewelry because most of my retail career thus far focused on the Home Store. Gordon’s was nearing its 90th anniversary when I had an idea that I believed could up the brand’s game.

I wanted a unique diamond to commemorate the occasion – a one karat, 90 facet square cut diamond with trillion side stones. We named it “Novanta” which means 90 in Italian. It came in a special box with a certificate of authenticity at a whopping $4,500. We held a meeting with all the store managers nationwide to get them psyched for the big sale.

I’ll never forget we sold the first ring in Eagle Pass, Texas. Someone from our office rang a bell whenever word came in that a sale was made in various locations throughout the U.S. Each bell sound meant I was farther away from having to dust off my resume and look for another job. It didn’t take long for the bell to chime 90 times as we sold through our inventory. This huge risk became the catalyst for turning the future around for Gordon’s as they rode a rocket of growth. My career had liftoff too – culminating in my appointment as President and CEO of Zale Corporation, the world’s leading retail jeweler. 

Some may attribute the success of the Novanta diamond to the marketing, packaging, private showings, and all the bells and whistles surrounding it. The diamond ring did sell itself in many ways. However, I attribute the feat to a company where we felt empowered to take risks backed by strong leadership participation. My boss and mentor, the CEO of Zale Corporation at the time, trusted me to go for it and the culture he created made me feel safe enough to do so.

Risky Business

Risk seems to carry more weight these days as it’s about uncertainty facing the future – a feeling we’ve likely all experienced during the ever-changing pandemic. Ongoing COVID-19 challenges can make even the simplest corporate maneuvers feel risky and leaders have certainly been tested. But playing it safe can come at a high price i.e., stagnation, turnover, and low market share. I believe the solution is not to get cautious, but rather, channel any fear you may have into a disciplined approach of thoughtful risk-taking.

I coach Philadelphia-area CEOs in my role as Vistage Chair for the world’s largest corporate executive peer advisory organization. We convene groups of non-competing, high-integrity CEO peers to help each other hit their transformative potential. We’ve been weighing potentially risky decisions during monthly meetings such as balancing inflation, supply chain issues, going back to an office or staying home, backfilling roles or upskilling a workforce already in place. These actions take courage.

I’m grateful that I was encouraged to operate within a healthy level of risk to achieve breakthrough results – and I aim to do the same for my Vistage members. Sometimes they’re positive, calculated risks and other instances call for less conventional ideas where people might question your sanity which is more like what I did with the Novanta diamond.

Successful businesses have not gotten where they are today without challenging the status quo and moving forward even through failure. Taking a risk can enable you and your team to step into some of your most significant rewards. Here’s a breakdown of ways to cultivate a culture of strategic risk-taking:

Set Tone at the Top

I firmly believe Gordon’s 90th anniversary diamond was a success because my boss gave his full buy-in. Most people expect CEOs to be risk-takers and with that comes great responsibility. It’s essential to set a good example by thinking creatively and taking smart, measured risks yourself.  

Create a Safe Environment

At Gordon’s, I felt safe enough to try things, within reason. I felt that way because leadership created a culture where we felt trusted and knew we wouldn’t be judged or retaliated against for failure.

Reinforce Risk Culture

Always encourage team members to share new ideas and strategies with others, perhaps during regular meetings. With companies largely remote or hybrid, culture isn’t dependent on location. It’s dependent on a concerted effort by leadership to continually reinforce it from the Zoom room to the board room.

Reward Risk Takers

Rewarding innovative thinking in the workplace is one of the best ways you can inspire future creativity and boost performance. And the mark of a good risk-taker is how they bounce back from failure. Create a culture where you reward your employees’ courageous efforts with praise or promotions.

Let’s Hold Hands and Jump

CEOs tend to make bigger bets and succeed more often knowing they can return to the safe harbor of a Vistage group. That’s one of the most exciting parts of leading high-performing captains of industry for Vistage as we gather regularly to share experiences, resources, and ideas, as well as our willingness to take risks. Risk is just another word for opportunity, as any investor will tell you. Reach out to me if you’d like to learn more about Vistage and its springboard to a new level of prosperity for you, your company, and your community.

About the Author: After more than 30 years in the retail world including president and CEO of Zale Corporation, Mary Forte now helps fellow executives achieve their most ambitious definition of success as a CEO coach for Vistage Worldwide. She can be reached at Mary.Forte@VistageChair.com.