At a recent corporate management awards program, the honored recipient took the podium to the applause of his colleagues.  When it came his turn to speak, Ralph admitted that he had taken some major risks: “I followed the example of my mentor: when it was his turn, he chose to do the job now, and if necessary, apologize later.”

Take the Risk vs. Ask for Permission
   
Ralph leads a global research team for a major manufacturing company.  At his company, no one ever said that taking a risk without permission of senior management was an accepted practice. Ralph is quick to add: “Nor did anyone need to explicitly state that if you fail in your risky business, you will suffer the consequences. Of course, if you succeed, you’ve made an important in-road.” 
   
Ralph took the risk: without asking permission from the primary contact at the client site, or his own boss, Ralph responded to a request made by Chad, Viveton’s newest project team member. Together they drafted a prototype that would solve a long-standing problem bogged down in Viveton’s hierarchical decision making process. 
   
Ralph admits “I knowingly circumvented my chain-of-command because I knew if I asked permission I would place my superiors in a position where they would be forced to advise me against taking action.  I did not want them to put them in that position and I could not ask them to take a risk.”  Both he and Chad ignored the client’s internal procedures: “there was no avenue for Chad to even present the option: we both very clearly saw the valuable outcome and were frustrated that no one was listening to our message.”  Ralph chose to team with someone who had a vision that matched his own. 

Once the deception was revealed, there was a strong backlash from the client, initially upheld by Ralph’s boss. Both Ralph and Chad feared for their jobs. But as you already know, Viveton recognized the value of the prototype and this case has a happy ending: Ralph won the acclaim of his company.  It was a hard lesson for Viveton’s senior management.  The end result was a major reorganization of Viveton now described as “necessary to ensure continuing growth.”

Ralph’s Dilemma
   
Ralph’s dilemma involved the level of risk he would have to take to overcome the internal barriers to progress.  Ralph was able to understand that that the very systems organized at Viveton to support the company became barriers that inadvertently sustained a long-standing problem.  He also had to make this a team task by coordinating his efforts with Chad’s.  
   
The skills Ralph employed were both team building and organization development.  Interestingly they are the skills that Ralph used in this own firm to move into a position of leadership.  Obviously a talented manager, Ralph was applying the culture of growth and change he enjoyed at his firm to set goals and objectives for another company.  This required that he move beyond his role as a project leader to that of business developer.
   
By taking on a different role when he responded to a need for change to a firm that did not request his services, he was jeopardizing the trust relationships that currently existed between the firms.  His decision was based on a personal relationship: a partnership developed by mutual dissatisfaction with the status quo and a desire to seek change.
   
Most senior managers I know would eventually accept Ralph’s actions – particularly if the outcome is positive.  No matter what the end result, how would you respond if you were Chad’s senior management?

Chad’s Senior Managers Dilemma
   
Personally, if I were a leader in Chad’s organization I would be extremely apprehensive for my job.  It does not mean I did anything wrong that would justify my being fired – but it also does not mean that I did anything right to help spur organization growth and development.
   
Perhaps some members of the senior staff at Viveton did want change and either did not know how to go about initiating change or felt they would be at risk for questioning the status quo.  Without someone taking a risk, serving as a change agent, the there is no forward movement – no drive for renewal and success – and no way to maintain a competitive role in any business environment.
  
It may appear ironic, but a company that seeks security and maintenance rather than growth and new challenges has little chance of sustaining its existence in the marketplace.

Your Organization’s Risk-Taking Culture
   
It is valuable for senior management to step back and evaluate the risk-taking culture of their organization. Does your company tolerate risk?  Do your employees need permission to reach beyond the norm?  The least effective course is to give someone permission to take a risk: your intervention removes the risk and passes it on to you.  The passion, the edge, the drive has been diluted by the need for acquiescence.

The choice is simple:  take the risk or avoid the situation. Only you are ultimately responsible for the decisions you make.