Yes, I would bring this one over too. And I think it works especially well immediately after the innovation article. The first says innovation requires thoughtful risk; this one explains what thoughtful risk actually looks like.
I would preserve the Mark Bertolini story because it gives the article credibility and personality. But I would polish this one more heavily for the website. Some of the original wording is conversational LinkedIn writing, and there are a few typos we can clean up.
Suggested website version
For several years, I had the privilege of being led by a CEO who believed strongly in individual accountability: Mark Bertolini. He expected each person to take ownership of the company’s goals and contribute to moving them forward.
One thing he encouraged was reasonable risk-taking—by everyone.
That’s a little tricky when you’re talking about thousands of individuals who each have to decide what reasonable risk means. It wasn’t precisely defined, which created a degree of risk itself. But through context, experience, and experimentation, I came to understand the principle behind it.
Over time, reasonable risk-taking became a natural part of how I approach decisions.
What reasonable risk-taking is not
Taking a risk simply to prove you can
Growing up in Texas, I’ve seen my share of ways people prove their grit. One of the classics is eating a hot pepper just to demonstrate that you’re brave enough to do it.
That may make for an entertaining family challenge, but it isn’t a good business strategy.
In business—and usually in life—you shouldn’t take a risk simply to prove you have the courage to do so. Risk should serve a purpose.
Ignoring the risks
Pretending a risk doesn’t exist doesn’t make a decision courageous. It makes it uninformed.
Most meaningful decisions carry some form of risk. Reasonable risk-taking requires acknowledging that risk rather than minimizing or ignoring it.
Making decisions in isolation
Some leaders wear independent decision-making as a badge of honor. There are certainly situations that require quick individual action, but most decisions benefit from the information and perspectives available from others.
Seeking input doesn’t diminish accountability for the decision. It improves the information on which the decision is based.
What reasonable risk-taking is
Understand and mitigate the risk
Reasonable risk-taking means going into a decision with your eyes open. Consider both the potential benefits and the possible consequences.
For each significant risk, ask two questions:
1. If the worst happens, is the consequence acceptable?
If we lose the money, can we absorb the loss? If we invest the time and the initiative doesn’t succeed, what will the impact be?2. What can we do to reduce the risk?
Perhaps the risk can’t be eliminated, but can its likelihood or impact be reduced? A strong mitigation plan can change both the quality of the decision and the likelihood of success.Gather the facts before deciding
I believe good leaders seek out and consider the relevant information available before making an important decision.
That information can take many forms—from spreadsheets filled with data to informed judgment developed through years of experience. Both can matter.
This doesn’t mean every decision requires months of analysis. Sometimes the necessary fact-finding takes minutes or hours. The goal isn’t endless analysis; it’s having enough information to make a sound decision.
Look before you leap—but don’t spend so long looking that you never move.
Align the risk with the goal
Before accepting a risk, ask:
If this works, will it meaningfully help us achieve the goal?
It sounds obvious, but it provides an important discipline. Risk only makes sense when the potential benefit advances something worth accomplishing.
Take action
Reasonable risk-taking still requires action.
Gather the relevant information. Consider the benefits and consequences. Develop appropriate mitigation strategies. Make the decision.
Then move.
Reasonable doesn’t mean risk-free
Some of the most worthwhile decisions I’ve made involved uncertainty. The goal was never to eliminate every possible risk. That would often mean eliminating the opportunity as well.
The goal is to understand what we’re risking, why we’re risking it, what we can do to protect against foreseeable problems, and whether the potential result is worth pursuing.
That’s what makes a risk reasonable.