One of the most important characteristics of successful leaders is that they have an approach and a stance toward risk taking. That is, they understand the nature of risk and know how to take the right risks in the right way. This means that they also know how to avoid the wrong risks, the ones that could set the organization and its mission backwards.

Risk is simply defined as some activity toward a goal that includes the possibility of genuine loss. If there is no possibility, it's not a risk. This could mean a business creating and funding a new department for a new venture that might or might not pay off. Or it could mean a church board decides to hire someone for a position whom they have interviewed and seen references for, but who might still become a liability. Another example might be that a small group leader prepares to confront someone in the group who has been disruptive or controlling the flow in some way, knowing it could backfire in hurt feelings or even a group split. Whatever the context, it is real and leaders must, as Jesus said, "count the cost (Luke 14:28)."

Though risk is real and a concern, it is also a major and positive opportunity for growth and change. If the leader has the right judgment and makes the right decisions, the organization can be revolutionized and make major changes and movements toward its mission. I remember one business leader with whom I was consulting who was considering investing a great deal of money in expanding his organization. He had done his homework, and gulped and made the move. Years later, it has paid off for him and the organization. He told me, "That was the major growth move of the organization for me. I have never looked back nor regretted taking that risk."

To go further, knowing how to risk well is not just an opportunity. It is necessary for the very survival and fruitfulness of the organization. As it has been said, organizations don't stay stagnant. They are either moving ahead or moving backward. Keeping your savings underneath a mattress actually loses money for you, because it doesn't keep up with inflation. As Jesus' parable of the talents teaches us, the risk of investment, whether it is money, time or resources, is a spiritual discipline, not an option:

" But the master replied, 'You wicked and lazy servant! If you knew I harvested crops I didn't plant and gathered crops I didn't cultivate, why didn't you deposit my money in the bank? At least I could have gotten some interest on it." (Matt. 25:26, 27)

Direct words, but a good motivation for us: good risk means good fruit, and no risk means no fruit. I do not know of any leader who has been successful in big ways that did not have a history of taking major risks with all the uncertainty and anxiety involved. I have never met a successful person who never took real risks at some major level.

Here are some principles to develop your own risk taking approach, so that you can use this ability and advantage in your leadership:

Have the goal in front of you. Be hungry, be motivated, feel the passion. However you experience this, you need the vision and goal in your mind and on your desk in order to consider taking the risk. By definition, risks are out of our comfort zone. And if the desire for what you want is not present, you will tend to avoid risk. It's not worth it. Realize that what you want, if it is a new level of revenue, or a new product line, or a new ministry or a new way of doing small groups, can only be gained by jumping out of the boat.

Due diligence Do your homework and research. As investment experts do, assess the risk. Take the time and resources to see what the realities are. Some risks should not be taken. Either the probabilities are too discouraging, or the downside is too much to bear. You need to think through the downside. Could you live with it if the worst happens? Are all your eggs in the basket, or can you sustain yourself if the decision goes the wrong way? By the time you have done your diligence, you should have, as much as possible, no surprises ahead. You know the good direction and the bad one, and all the points in between. This is not a time to be impulsive or rash, but thoughtful and mindful.

Deal with your insides about risk. Some leaders are too reactive and will take risks without judgment. Some are too risk-averse. These tendencies don't come from a vacuum, but from your personal experiences and relationship interactions. Find out why you tend to veer off in one direction or another, and work on resolving those issues.
It will be especially helpful to acknowledge what you are afraid of. Some leaders fear letting people down. For other leaders, it is about their own self- condemnation if they fail. Others don't want to push people out of their comfort zone. And still others are afraid they won't be seen as caring or competent. Take these fears into consideration, but at the same time put them into perspective with all the rest of life and your organization's life. Life involves fear, but there is much more good in life than fear. Be bigger than your fears.

Lead others in the risk. You will need to use your leadership skills and relationships to help people take the risks that move the organization ahead. There is a tendency for individuals to look to the leader as someone to keep them comfortable and out of stress, and to report the successes back to them! It helps when you to make risk something shared, something good, and something that will bring everyone together. There is nothing like the team taking the gulp all at the same time, and doing the space walk outside the walls of the spacecraft, tethered only by the air hose. You will grow and strengthen your people, and you will help them grow in faith.

You were designed for risk, and follow a Savior who risked all for us. Jump in, the water's fine! God bless you.

Everyone should be quick to listen, slow to speak and slow to become angry, for man's anger does not bring the righteous life that God desires.

(James 1:19-20, NIV)

A one-week
intensive workshop for leaders
with Dr. Henry Cloud
and Dr. John Townsend

Upcoming Ultimate Leadership workshop
in San Juan Capistrano, California

July 15 - 20, 2007

What one leader had to say about the Ultimate Leadership workshop experience...

The Ultimate Leadership in Feb 2007 was a week of what was to become a life changing experience that has transformed into my daily life. I continue to read and re-read the teachings. Four of us ladies who know each other all went to the UL and now we have started two groups in Calgary with others to be a safe and confidential place for each of us to share about the real things in our lives and to discuss how we are really doing. We are deeply interested in the growth of each other. Once you have had a taste of the real life you only want more. Go and take the risk of being vunerable. You will not be disappointed.