Leadership and Risk Management
No organization can grow or innovate without taking risk. Every organization has to lookout for growth areas, next gen products to be able to stay relevant; however, organizations ability to take risk and innovate largely depends on its leadership; their values, culture.
With #metoo leaders at helm, in corporate setup, there are enough check-balance on how much a company can invest on a new concept before pulling plugs. Most established organization try to follow tried-tested strategy, where they hedge spending on these "new concepts” with current "cash cow" product benefits so stakeholder don’t feel pain of failure but gain from product success, such products often bring incremental changes in innovation landscape but helps increase its HOLD in current segment
Increasingly organization become risk averse and rather than expanding TAM; focus slowly shift to cashflow management, operational efficiency and managing bottom-line which further reduces ability to fund next "big ideas". These companies tend to gravitate towards process bound quantitative risk management and lose focus on quantitative risk management in shifting competitive, innovation landscape and reduced
However, with visionary leadership, who can see beyond quarterly numbers; organizations have ability to make BOLD "qualitative" decisions, which at first may appear to be conflict with current product line, revenue model but TRUE leaders inspire organization to rally around their VISION, have them take leap of faith and execute.
There are numerus examples of organization that faded into oblivion as no one put their hands up for "change” and there are handful, that have lived thru multiple market product transitions and thriving mostly thanks to some GREAT leader who inspired the call for change.
On other side of spectrum, any startups or organization led by visionary leaders i.e Apple (under Steve jobs) or Tesla (with Elon Musk) are/were vision-based companies. Their leadership are willing to go to any length to achieve the vision. Such companies go thru roller coaster both interims of product success and shareholder value. The odd of this success lies in conviction of leader and ability to execute, these leaders define true spirit of below quote.
Whenever you see a successful business, someone once made a courageous decision.” -- Peter Drucker
Published at pmmagazine.net with the consent of Yogesh Paliwal