Developing Strong Leaders in a

Risk Averse EnvironmentTerry Rodriguez, EdD

AGENDA• Define courage and risk-taking• Self assessment – risk taking strengths and

opportunities• Identify cost of not taking action – individuals and

organizations• Learn/review skills for effectively taking risks• Courageous conversations• Assess your organization’s adaptability• Action steps

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OUTCOMES• Apply adaptive leadership techniques • Able to assess obstacles in your team and

organization that prevent risk taking• Methods to support team in taking more risks and

adaptive behavior• Create action plan for unresolved conflict• Use team and organization learning practices

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LEADERSHIP

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RISK?Propensity to evade any loss contingency, even a very small one

Risk Aversion: "Risk aversion becomes apparent when an individual is faced with even the slightest of dangers."

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WHAT DO RISK AVERSE BEHAVIORS LOOK LIKE?

What are the costs to organizations?

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THE COST OF NOT TAKING RISKS: INDIVIDUALS

[T]he damage comes when people are marinating in anticipation … which can last for months or years. It’s the anxiety over the future that has the worst effect.

~ Dr. Robert Sapolsky

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THE COST OF NOT TAKING RISKS: INDIVIDUALS

… the building blocks of psychological stress - a feeling as if you have no control over the adversities in your life… no predictive information.

Create outlets for the frustrations caused by the stressors, if you have no social support. ~ Dr. Robert Sapolsky

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PLATEAUS-MENTAL DEVELOPMENT

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Socialized Mind

Self-Authoring Mind

Self Transforming Mind

COURAGE

There's something which impels us to show our inner souls. The more courageous we are, the more we succeed in explaining what we know.

~ Maya Angelou

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Dr. Maya Angelou

WHAT IS BELOW THE SURFACE?

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PRACTICE COURAGE: LEADERS

,. BRAINSTORM: What different

activities, relationships or

processes help you support your team in gaining the courage

to act?

Every time you make the hard, correct decision you become a bit more courageous and every time you make the easy, wrong decision you become a bit more cowardly. If you are CEO, these choices will lead to a courageous or cowardly company.

~Ben Horwitz

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LEADERSHIP AND DANGER

To act outside the narrow confines of your job description, when progress requires it, lies close to the heart of leadership, and to its danger.

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~Marty Linsky,Leadership on the Line

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THE NEW NORMAL: ORGANIZATIONS

•Uncertain future•Inadequate information•Change as a constant•Adaptive challenges

• no easy answers • difficult learning• new stakeholders

The people involved must solve, not authority.

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DISTINGUISHING LEADERSHIP AND AUTHORITY

Source: Cambridge Leadership Associates-Marty Linsky

Beyond this line – Begin to disappoint expectations and take risks

Dancing on the edge of authority-into-leadership territory

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THINK OF A COURAGEOUS ACT• What made it courageous?• What prompted you to act?• How fearful was the situation (low, medium,

high)?• What did you do?• How did others react?• How did you feel?• What surprised you?• What did you learn?

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MISSED LEADERSHIP OPPORTUNITIES

• What opportunities have you forgone?• What prevented you from taking action?• What scripts were playing in your mind?• Where, when and from whom did these occur?• What might help you find your voice?

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REQUIRES NEW LEADERSHIP PRACTICES

Focus more on adaptation, less on execution

Run experiments, don’t just solve problems (failure as a learning opportunity)

Practice internal and external interdependence, not just autonomy (unusual collaborations

Don’t avoid conflict, surface issues–don’t just resolve it

Invent new practices, don’t just adopt best practices

Take care of yourself, don’t just sacrifice self for the cause

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Source: Cambridge Leadership Associates-Marty Linsky

HOW WE TAKE ACTION• Consequences of NOT taking

action• Identify fears• Worst that can happen• Aligned with values• Calculated risk or reckless action• Inform your boss• Present your view - open not

frowning

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METHODS TO REDUCE RISK : INDIVIDUALS

• Understand the risk• Analyze the consequences• Frame the risk - pilot

project, experiment• Monitor/report out• Share the risk - allies• Identify and manage worst

case scenario

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COURAGEOUS CONVERSATIONSCAMBRIDGE LEADERSHIP ASSOCIATES-MARTY LINSKY

Adaptive AskMight lose and challenge other,

but potential to move forward

Confronting Conflict-Debate

How are you seen? What do they think you want?

Own point of view Little progress

Diagnostic Inquiry

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COURAGEOUS CONVERSATION

Think of a conflict that you have been avoiding and would like to address:• What values in conflict?• What might other person be afraid of losing?• What might you lose?• What have you done?• What do you really want?• What relationship do I want?

• Listen! Empathy! Respect!

Role play how you will begin your dialogue and work through obstacles to understanding their viewpoint:

• Are you willing to modify your request or viewpoint-Why or why not?

• What resolution is possible?

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HOW RISK AVERSE IS YOUR ORGANIZATION?

Threat of the

un-discussed

What mental model

keeps this alive?

What kept issue from

being discussed?

Unintended consequences

currently and infuture?

How doesit blockteam or

organizationlearning?

What dowe wantto do?

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Reflection/continuous learning in DNA

Leadership capacity developed

Independent judgement

Shared responsibility for future

Elephants named

FIVE CHARACTERISTICS OF ADAPTIVE ORGANIZATIONS

Source: CLA -Marty Linsky

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ORGANIZATIONAL COURAGE1) How do you bring

courage and demonstrate it for others?

2) How does your organization support courage – examples?

3) What can be done to teach how your organization demonstrates courage?

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CREATE COMMUNITIES OF PRACTICE

• Bring together people who want to create change and learn from each other

• Provide support for taking risks, courageous conversations

• Celebrate risk taking, courage, “lessons learned” in visible manner

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OD CONVERSATION

S

Open conversation

Learn from each other

Common interests

Knowledge/practice

PROJECT TEAM AND STAFF/OPS

MEETINGS

Specific goals

Milestones

Schedules

Formal/hierarchy

3. 4.

2. 1.

SMALL PAYOFF BIG

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SHORT TERM WINS PAYOFF MATRIX

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…[the] challenge of leadership, when trying to generate adaptive change is to work with differences, passions and conflicts [and] harness their energy.

~ Marty Linsky

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MY LEADERSHIP ACTION PLAN

Integrate what you have learned!

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