How Risk-Averse Leadership Hurts Companies
While most C-level executives are confident that their company will outperform its competitors over the next 12 months, many admit that an unwillingness to take risks may result in a marketplace liability, according to a recent survey from Deloitte Consulting. The resulting report, "Deloitte Business Confidence Report 2016: The Bold Organization—Innovate, Lead, Attract," breaks down success drivers into three key areas: innovation, talent and leadership. With regard to the last driver, nearly all survey respondents indicate that bold leadership is essential to deliver breakthrough performances, but most executives said that isn't happening on a regular basis in their company. They also said their organization doesn't offer compensation and promotions to those who take calculated risks. "Being a bold leader is about having the confidence to make decisions that disrupt and therefore transform your business, preparing it for the future," said Janet Foutty, CEO and chairman of Deloitte Consulting. "It's also about taking an integrated approach to decision making. A more united and collaborative approach to change would create greater coherence across the organization. These bold leadership perspectives are not easy to adopt, but without a 360-degree approach, innovation and transformation progress will remain stuck in neutral." An estimated 300 U.S. C-level execs took part in the research.