Jan Richards

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The best way to manage business risk: go toward it

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What’s the best way to manage business risk?

Go toward it.

Sounds risky, itself…walking toward the thing you fear?

It can be.

The alternative, however? Far worse.

Real business risks, ignored…well…it’s not pretty.

Remember, first, that not all risk is the cliff diving, high-flying, life-defying kind.

Circumstances that bring these types of extreme risk are, frankly, circumstances you can’t control anyway.

The national and world economy, for example is something you can’t do a lot about, individually.

Devastating acts of nature…same thing. You just have to be ready to adapt well to circumstances such as these, however things work out.

If these are the risks you worry most about, scenario analysis is a tool that could be helpful to you. I’ll tell you more about that in a post later this week.

Second, the real risks in business are often things you can do something about. 

And these risks are not far away. They’re often already inside your company.

They’re the risks that you either created (often unwittingly) or that you perpetuate by not addressing problems fully and directly.

Any of the following situations are a risk to your company. And these are all circumstances you can do something about:

– Lack of focus

– Inattention to important details (the details your customers care most about)

– Lack of clear and complete communication

– Inaction or ineffective action when a problem is discovered

– Confusing, inconsistent and ineffective ways of getting work done

– Ineffective and frustrating hiring, onboarding, training, managing and mentoring practices

The signs of potential risks and trouble can be subtle…or glaring.

And because you’re in the middle of the situation, you may not really see or grasp problems until they’ve been festering for a long time. You may have simply become used to them, and think that’s the way things are, and the way things will always be.

Start to remove risks inside your business in these ways:

1. Brainstorm

Start by considering the parts of your business that feel in control.

What gives you confidence that these things are working well?

Next, think about what feels out of control.

Which of these worry you the most, and why?

Be specific as you create both the “working well” and “worrisome” lists.

2. Pay attention

Don’t assume that all is as it seems.

What assumptions are you making that you need to check? (Often, you’re either very right, or very wrong in assumptions that you make).

What data and information do you have, or wish you had…and can get…to monitor and manage the things you’re most concerned about?

If risks prove to be real, the information you wish you had is information you’ll want to figure out how to gather and put to work.

3. Go toward the risk, and test to see if it’s real

Work to understand what’s really going on before you jump into action to prevent, mitigate or manage perceived risks.

Observe, research, inquire, test in whatever ways you can to start to see if the risks are real, or they’re worries that are unwarranted.

By the way, people may say, “Our work is different. We can’t possibly measure and manage what we do.”

I’m here to tell you, as a former operational analyst and process auditor at Apple and elsewhere, that there are ALWAYS things you can do to see how things are really working, compared to how you think they’re working, or how you wish they were.

The information you gain in this way is always clarifying. Usually, it helps make things work better for everyone involved. And that, when it happens, is good for employee morale, customer satisfaction, and, as a result, profits.

In addition, get to know people who can advise or teach you. They may quickly see potential problems that you’re blind to or are purposely avoiding. They can also help you figure out how best to address problems you might have missed.

5. Chunk the action

If changes are necessary, once you understand the risks that are present, break the change into a series of achievable actions.

You’re more likely to do the work if you “chunk” it into manageable projects and tasks.

Suddenly, big goals that were daunting or immobilizing become accessible and motivating as you make steady, observable, and felt progress, step by step.

Leadership excellence: Courage is power

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cour·age, noun

The quality of mind or spirit that enables a person to face difficulty, danger, or pain without, or in spite of fear; bravery.

We admire courage when exhibited by others.

Yet do we want to be in situations where our own courage is called for?

In a word, no – or most people don’t.

Such times center around high-risk circumstances that could so easily go wrong. But for so many reasons…and because they may affect many people…situations that call for courage really must go right, somehow.

Not surprisingly, great courage is one of the top characteristics of great leaders.

What does courage really involve?

Courage is the ability to look beyond one’s own fear, to find and draw on one’s strongest reserves to get a critical job done, no matter what stands in the way.

It is the ability to assess risks and reduce them however possible, and yet to carry on with integrity in the face of the risks that still remain.

Courage, as a leader, is also the ability to incite a group to move forward and to continue to work toward a goal in spite of what may be their natural desire in a risky situation to freeze in place, or retreat.

When you hear the word, “courage,” what people and situations come to mind?

Is it Captain Sullenberger and his co-pilot, who brought US Airways 1549 down safely in the Hudson River, and the team of many people on land and in rescue boats who rapidly coalesced, moved into action, and ensured that everyone from the downed plane was saved?

Is it Neil Armstrong and Buzz Aldrin, the first men to walk on the moon, and the achievements of many other people, over many years, that led to those first lunar steps?

Is it Marie Curie and other scientific explorers who forge on despite uncertainty, doubt and resistance, making discoveries that benefit many people in countless ways?

Perhaps the courageous people and circumstances you think of involve world leaders, whether elected or personally inspired to act based on the strength of their beliefs.

Gandhi, Martin Luther King, Jr., Franklin Roosevelt, Winston Churchill, and many other leaders in history led people they inspired through sometimes dark and difficult days.

Of course, there are many other courageous leaders who may inspire you. And more will emerge through the course of history.

We can also see courage in people around us, in our daily lives. These may be people who are not widely known so their acts of great courage may be quiet, even subtle, but still significant, and deeply inspiring.

You, too, have surely exhibited courage at times.

Think back to times when you had to press on – and did – even though you might have wished to give up and admit defeat.

In those circumstances:

  • What were your beliefs – before the danger or difficulty arose – about what you were capable of handling?
  • When pressed by circumstances, what did you discover that you could, in fact, handle?
  • Did tapping your courage strengthen it, and enable you to be courageous again in the future, when needed?

Here are guidelines to help you increase your comfort and preparation for uncertainty…and to prepare you to be courageous when needed:

1. Anticipate and prevent problems from occurring in the first place.

That’s easy to say, and not so easy to do, but it works much of the time. It requires good foresight, planning and follow-through.

It also calls for, among other things, strong risk assessment, problem analysis and prevention skills.

2. When, despite your best efforts, danger arises, do your best to size up the risks, and quickly control the things you can control.

This may also enable you to reduce, as much as possible, the impact of factors that you are less able to control.

3. Also, set up systems to monitor key aspects of the situation you are facing to help you decide as early as possible what actions to take.

In circumstances requiring courage, conditions are likely to be changing rapidly.

Create an early warning system of some type, if you can, and do so ahead of time if you can anticipate that a situation is volatile, unpredictable.

Know, however, that you won’t have perfect information at times such as these.

Just get the best information you can, as quickly as possible. Then use that information to guide the best decisions and actions, moving forward.

4. Check in with your team in simple but effective ways.

You need to stay in close touch with others on your team. However, keep the information exchange simple, and focus on the most important decisions and details.

5. Stay the course, as long as you can tell that it is working.

Don’t be blind to what you find. At the same time, this isn’t a popularity contest. There’s a risky, and possibly even a physically dangerous circumstance to be fought.

Pay attention to the information you have, as well as your own intuition, and prior experience if you or others on your team have experience that’s relevant. And, of course, as always, use your good common sense.

At times when courage is called for, your quiet inner strength and wisdom is an invaluable asset.

Harness the powerful emotions of change to move forward

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Change brings many emotions, often strong ones. Each one packs its own kind of power.

If you’re facing, or working through change, use whatever emotions you have. Harness and put that strong energy to work for you.

These are some of the emotions you may experience during change, and ways you can use them to move you forward:

– Excitement

Use excitement to drive you ahead, ever closer to the future you desire and imagine…and to propel you through the sometimes unnerving, sometimes exhilarating process of not quite knowing how something new will work out.

Focus on the benefits of the new circumstances to pull you most powerfully forward.

– Fear

Use fear to help you anticipate things that could go wrong with the change process. Then plan and take actions to prevent those circumstances from occurring.

Fear can direct you to a safer path through change than you might take if you did not heed its cautionary call.

– Patience

Use the power of patience to summon your ability to attend to planning and the details of implementation.

Use it, also, to increase the confidence and focus of those around you who aren’t seeing the change process as charitably as you are, at the moment. (You may need them to return the favor later).

– Impatience

Impatience is going to be there at some points in the change process, so when it is, use it.

The power of impatience can help you delegate or sweep away low priority tasks, so you can focus on what is most essential.

Impatience carries a lot of power…which can be destructive if turned on yourself or the people around you. Just as powerfully, used positively, it can propel you forward, often rapidly.

– Discouragement

Discouragement often means that plans were too aggressive, or that not enough time was factored in for periodically recharging, regathering energy, and renewing focus.

Or maybe plans for the change process assumed that everything would go perfectly…and that’s not happening (frankly, things usually don’t go “like clockwork.” There’s going to be at least one surprise somewhere in the process).

Use discouragement to pause and step away for a bit, if you can. Refresh, renew, even if briefly.

Then remind yourself why the change is being made, and how you may benefit from it in some way.

– Confusion

This can occur if the purpose or path through change is obscured, or was never spelled out well in the first place.

Sometimes uncertainty can’t be completely cleared away, of course…it’s just part of the change process…yet there are things that can be done to reduce it.

Focus on the goal, set interim milestones and concentrate on reaching each one. And celebrate in some appropriate way when you do.

– Bargaining

The desire to bargain (and before that, maybe, the desire to emote or complain) can occur if you feel you’re not being heard.

It can also occur if you’re concerned that plans are not realistic, or the resources needed for change are not being provided.

Express openly, honestly – and respectfully – what your fears and concerns are. Listen with an open mind. Negotiate or renegotiate agreements, if need be, and if possible.

– The desire to give up

Don’t fight it. This feeling may occur at some point, and maybe at multiple points, in the change process.

Just knowing that quitting is an option can take the pressure off. Usually, though, you realize that you’ve come too far, made more progress than you realized, and really don’t want to turn back, after all.

The uncertainty and energy required for change will clear eventually.

You may even find you’re bored when certainty does return, believe it or not. There’s a lot to be said for the growth that occurs for almost everyone during a change process, whether sought, or forced by circumstances on you.

– The drive to keep going, no matter what

Use this drive to push over, around, or through barriers that appear as if they could prevent you from reaching your goal.

And use this powerful energy, if need be, to prove that it’s possible to do what naysayers said couldn’t be done.

This short list has covered just a few of the emotions that are likely to occur at some point during the change process.

Did I cover the emotions you experience most during change?

If not, add to, or adapt this list.

Notice, also, the ways in which you already use emotions well to help you move forward.

Consider how you can use each emotion – whether it’s one you like experiencing or not – when it arises during the change process.

Just by anticipating what may occur as you go through the ups and downs, highs and lows, successes and failures that accompany change helps you to prepare for, and to make the best of it.

Harness the energy of change to help you move forward.

If you’ve found this post valuable, please share it with others. If you’d like more information of this type, join my email list at Jan-Richards.com.

Try this quick “Ten A’s” exercise for focus, energy, action, results

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On a whim one recent Monday morning, I brainstormed a list of words to inspire and challenge myself as I tried to get the day and week off to a great start.

It was an accolade and aggravation-filled list, as you’ll see, below. It helped me prioritize and refine my plans…and amused me, too…all in the space of about 3 minutes.

See if this brief exercise works for you, too. If the words I chose don’t work for you, replace them your own.

Here are a few guidelines to make this exercise work best:

– Keep the list short.

It’s a rapid-cycle brainstorming exercise to get yourself warmed up for the day or week.

– Use words that you react to, either positively or negatively.

Success is made up of the ability to respond well to positive and negative situations. You’ll be better prepared or more adaptable if you consider both types of circumstances, right from the start.

– Fill out the list quickly.

You may be surprised at what you learn in this rapid-cycle check-in with yourself. That surprising information may be the spark of energy, or the note of caution that makes all the difference in how you focus and invest your day or week, and the results you produce.

These were the words and questions that I used. Use these, or create your own list, if you like the idea of this exercise, but know that other words and questions will work better for you:

1. Admiration

What can I do to earn my own admiration today? This week?

2. Aspiration

What do I aspire to do, be, or achieve today? This week?

3. Accomplishments

Do I have any accomplishments that I’ve overlooked, or taken for granted so far?

4. Accolades

Are there accolades I should be giving myself for great work done recently…even if the work is not yet complete? What’s an appropriate way to recognize or celebrate them?

5. Action

Are the actions I planned for today still the right actions for moving ahead, given what’s most important right now? What are the 1-3 most important things I must get done, if nothing else?

6. Angst

Are there things I’m worrying about? What can I do to make the situation better?

7. Acceptance

Are there things I need to accept but which I have not actively accepted yet? (Acceptance is a far more active state than many people think of it as being. It’s far from passively giving up).

8. Admonitions

Are there warnings I need to pay attention to, or information I need to get? Are there assumptions I’ve made, but had better double-check?

9. Aggravations

Are there problems that I need to clear away in some way, such as through a process improvement? Is there a task that I need to delegate?

10. Avoidance

Are there things I’m avoiding that I really need to attend to? Is there important information that I’m trying to ignore?

What do you do about a goal you forgot…or have been resisting?

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Are you finding, as you build momentum in this new year, that there is a goal you “forgot”?

It can happen.

It may be a goal that:

– You hoped you could, and others would, forget about.

– Was something you never wanted to do, but knew you needed to.

– Was buried, day by day, as more immediate issues got in the way.

If there’s a goal like this for you as we move farther into 2022:

1. Decide if this forgotten goal is something you still want to achieve.

Sometimes there’s a goal we hope to get to, but it’s big enough that we just don’t grasp quite how to begin to tackle it, much less know how to completely meet it.

At other times, the forgotten goal may be one you once had, but have now outgrown or, for other reasons, no longer hold.

2. If this is a goal you still want, get excited about it again.

Maybe there are great benefits to getting this work done which you haven’t focused on fully yet.

Take some time to imagine you’ve achieved the goal. Experience that feeling of victory in its full glory…all the sights, sounds, and elation.

Also imagine the process of getting there. See yourself rising above each challenge that may crop up along the path.

3. Accept it if this is something you have to achieve, whether you want to or not.

This may be a “should” or “must” that you still have to carry forward.

If so, accept it (easy to say, but hard to do…I know that from experience). And get moving.

There is a lot of power in acceptance. The energy you’ve spent running away can be used in far better ways. You may, and probably will, find that you’ve met your goal far more quickly than you expected, once you’ve buckled down and gotten the work done.

Suddenly, the goal will be met, and the burden will have been lifted, as well.

4. Increase your dissatisfaction with the status quo.

This is the opposite of getting excited about a goal you still want to achieve.

To get to the point of action, sometimes we have to wait until we’re really ready to let go of the past. And, well, sometimes that takes a lot of unhappiness with the status quo. We have to be far more ready to go than to stay in the situation we currently find ourselves in.

How can you increase your dissatisfaction with your current situation, making you less willing to tolerate the status quo?

5. Take your big goal and turn it into a series of smaller, more accessible and achievable goals.

Put those smaller goals on your calendar and work to achieve each of those, one by one.

You’ll create a steady stream of achievements, which has far more benefits than you might realize now.

Are you really change-ready?

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You may think you’re ready for change — until you get up to the starting line and the action is about to start.

And when you do – much like standing at the starting line of an important race – that’s no time to find out you’re unprepared, or that you really don’t want to make the change, at all.

Change isn’t easy, no matter what type of change you’re making (or being asked to make), and no matter who else is involved.

But change works out far better if you’re ready for it – and all the twists and turns it can bring.

It works better, too, if you seek change, rather than to be caught reluctantly by it.

Better still is change you yearn for.

And best of all is if you’re driven enough to accomplish the change you seek to make and are so driven that you can unquestionably move over, around, or through any barriers you find that could stand in the way of the success you’re trying to create with that change.

Change, of course, comes in many forms.

We all know from experience that not all change is change we welcome.

Here are just a few of the types of major change that you may face at some time, and ways that you can adapt to them:

1. Change can be thrust upon us by life circumstances.

A lot of the process of change requires acceptance (which is, by the way, far from a passive state and sometimes a state that not easily arrived at). Adaptability is also essential. And sometimes figuring out ways to “make do” for a while is required, too.

These are not experiences that dreams are made of. They are, however, sometimes the stuff that heroic stories are made of.

And like it or not, these experiences can be some of the ones that toughen us up most and make us strong, ready for even greater challenges of other types, later in life.

2. Great change may happen serendipitously.

For example, let’s say you have an interesting opportunity, and decide to take it. An interesting experience occurs, as a result.

You notice that you liked the experience, and decide to repeat the experience or experiment.

An interesting path starts to unfold.

Through these types of gradual change experiences, career interests or passions are sometimes discovered, new skills are developed, opportunities emerge, and rewarding relationships often emerge, too.

3. Change that you yearn for is the change that dreams are often made of.

If these changes are really big ones, they often take hard work and careful planning, skill development, and coordination with other people.

These changes are often driven by a very powerful and compelling vision you hold of the outcome you seek.

Whatever the change you face, to the degree you can be, it’s best if you’re ready for the race and challenge of change.

But that’s not possible in every case.

And no matter what happens, or why change occurs, you can’t anticipate and plan for all twists and turns, opportunities, challenges, and differences ahead that will emerge, no matter what type of change has arrived.

Change doesn’t have to buckle you to your knees, nor does it have to overwhelm you, even if it is the type you didn’t seek.

Change is a fact of life. Being change-ready and change-responsive — if it’s not yet one of your strengths — is a skill you’ll be glad to have when you have achieved it.