We have all heard the phrase “risk and reward”. It helps us quantify and balance the upside (reward) and downside (risk) of all that we do.
When most of us start out in business we have not accumulated much in the way of position, title or responsibility. We have not so much to risk (lose) as a result of our actions. We tend to make our decisions based on how we can improve our situation or the situation of the business. If we make good decisions we and the business prosper.
As we progress up the ladder, we begin to accumulate responsibility. We begin to have more to “lose” as a result of an incorrect decision. You have heard it and seen it. In general people start to get a little more conservative in their approach. They begin to focus more on the risk associated with the action and not so much on the reward to the business. The status quo and management by existing directional momentum set in.
No one makes the right decision every time. The key is to recognize if a direction needs to be changed and quickly adjusting. The reason for the action must however remain constant. It should not be solely or predominantly to avoid the downside or risk. The action should be taken as a step toward the goal. It should be due to the focus on achievement. Keep the positive reinforcement in place for decisions versus the negative. It keeps you and the business moving forward.