As a result of Covid-19, leaders will learn that it’s okay to take on more risk.
In my upcoming eBook, “Activate: Profitable Strategy Execution,” we talk about performing a risk assessment to ensure successful change. It’s important to identify major risks associated with the readiness of the organization to embrace change. This might include, for example, evaluating pockets of resistance, or how quickly a remote workforce might accept the change.
As a result of Covid-19, organizations learned to become more flexible and adaptable, and to do so quickly. In March 2020, there was insufficient time to prepare to move employees back home to work. Employees had little choice but to accept the situation. We learned to mobilize quickly around a crisis.
This in turn gives leaders a chance to become more risk adaptable. They are more willing to try things faster, be less cautious, and remove needless layers of bureaucracy. In short, leaders are now able to take on more risk.
This does not mean that we throw out all our stable processes, or our traditional risk management tools and standards. It does mean that we look at these through a new lens and ensure that we are leveraging the learnings from the pandemic to drive greater organizational capacity.
One client determined that they needed additional technology to reach employees working from home, differently and faster. The pandemic caused them to add these technologies more quickly. In the past they would have spent far more time evaluating different tools based on a set of criteria, and then making a well thought out selection. With the pandemic upon us, they had to make decisions quickly. They learned they don’t need to be as methodical, and they were able to deliver solutions to employees faster.
How does this benefit the bottom line? The impact of the digital age means that companies must embrace greater innovation to provide the most value to customers and do it faster. The pandemic taught that greater risk-reward is possible, which in turn means generating more income sooner.
Leaders have the opportunity now to be more assertive in their assessment of risk. It’s time to look more closely at processes and standards used to identify and manage risk. It’s time to realistically ask, “How can we do this faster and better?” Now that we’ve seen for ourselves that we are more flexible and adaptable, it’s possible to be more risk adaptable.
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Dedicated to your profitable transformation,