Taking Risks

Today, Seth Godin published a piece on how costs of being current and up-to-date may be higher than sitting back and waiting just a little while. He isn't necessarily opposed to "investing in now," but rather he suggests to audit the amount you're investing to ensure it's being used wisely.

It's always good advice to be wise with your money.

But let's also not forget that, according to Seth Godin himself, being safe is also risky.

Is this a contradiction?

I don't think so. It's just a matter of embracing the what Jim Collins and Jerry Porras called "the genius of the 'and'." It's possible to be both wise and to take risks on being current on any given subject.

Wisdom doesn't guarantee success, though.

Even if you invest thousands of hours finding resources to help you increase your intellect and wisdom, you may fall flat on your tail. That time you spent is wasted only if you stay there.

The stupid and unwise may occasionally find a measure of success. But success rarely, if ever, favors the timid.

Be bold. - Cam Beck

Comments

[Luc Debaisieux]

Cam,
Interesting paradox. I'd say that as long as "bold" is not associated with panic or rush and "wise" is not linked to fear or change inertia... both are probably necessary when it comes to taking the right action at the right moment.

2 other keys might be :
- "Being well informed" (about the environment, about what you can deliver, about the dynamics of your target, etc.)
- "Dare" creative solutions (breaking the structures, rules, procedures... to innovate). But this is a tricky one. Why would companies that usually don't consider innovation, start doing so when recession comes? Struggle to survive, maybe? Not sure! ;)

[Cam Beck]

"Why would companies that usually don't consider innovation, start doing so when recession comes? Struggle to survive, maybe?"

Luc - Great question! It sounds like the first struggle is to overcome the lack of consideration. Companies should ALWAYS consider innovation in EVERY ASPECT of their business.

This doesn't necessarily mean new technology, but it could mean new processes that facilitate better efficiency or effectiveness.

That way, when a recession comes, they don't need to scurry around like rats looking for ways they can survive.

Different companies have different challenges with this, depending on the area that requires innovation. Legacy systems, legislation, contracts, etc., might prohibit it or make it extraordinarily difficult.

However, if they're always striving to and ACTIVELY looking for ways to improve, when they come across hard times, they should be better equipped to make the case for making tough sells and tough choices.

[Gannon BeckGa]

I'm not adverse to risk, but I would also add the following when trying to be bold:

Don't take a risk you don't understand.

[Alan Wolk (The Toad Stool)]

Sage advice.

In this economy, it's important to remember that companies may not get a second chance.

It's all well and good to preach innovation and taking chances and all that in boom years.

But there's always that matter of "how are we going to pay for this?"

A company that makes a bad bet in 2009, may not be around in 2010 to try a different tactic.

Hence the Paradox of the And.

[Cam Beck]

Keep in mind that innovation doesn't need to come in big splashes, but can be achieved in rolling waves.