Take Risks

During the first boardroom of season one, George said that he liked Sam, because Sam was a risk taker, and he mentioned that Trump had taken risks all his life.  Peter Drucker, the noted management author, once said, “People who don’t take risks generally make about two big mistakes a year.  People who do take risks generally make about two big mistakes a year.”  So sometimes not taking a risk is a risk.  George pointed out that Donald Trump was always taking risks, and most successful people will agree with poet Robert Frost who said, “The people I want to hear about are the people who take risks.”

While he was a risk taker, and somewhat of a wild card, Sam did not make it past episode three of the first season.  Even so, we should remember George’s comment and recognize that risk takers are noticed, and while they may fail, they often succeed and achieve greater heights than those who prefer the comfort and security not taking risks provides.  No one said this better than Theodore Roosevelt when he said, “The credit belongs to the man who is actually in the arena, whose face is marred with sweat and dust and blood; who strives valiantly; who errs and comes short again and again; who knows the great enthusiasms, the great devotions, and spends himself in a worthy cause; who, if he wins, knows the triumph of high achievement; and who, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who know neither victory nor defeat.”

The fifth episode of season three pitted the two teams against each other running businesses that operated from a twenty-eight foot Airstream trailer.  They were given the trailer, access to Airstream technicians and a $5,000.00 budget to create their own mobile service business.

Tana stepped up as Project Manager for Net Worth and as the group brainstormed, trying to come up with new and creative ideas, Tara suggested and open casting workshop service where aspiring actors could get a few minutes with a professional casting director.  Angie, who had been an actress, loved the idea and was sure the team could get a line of actors willing to pay for the service.  Tana admitted the idea was risky, but said she wanted an “outside of the box” venture, so the team set to work on creating a mobile casting service.

After a difficult time in getting a casting director to participate, the team finally managed to get all the pieces together and launched their business on the streets of New York .  At first, it seemed like no one was going to be willing to pay the twenty-five dollar consultation fee, even though team members hit the streets, handing out fliers and talking up the business.  However, business started picking up in the afternoon, and by 1:30 p.m. Tana exclaimed the business was “pumping.”  John and Chris were getting actors interested in the service and Tara would close the deal and collect the money once they were inside.  Angie projecting turned out to be correct, they had a line of people inside the trailer waiting to meet with the casting director.

Reckoning time in the boardroom revealed that Magna earned a total of $918.50 from their mobile spa business, a more conservative, less creative, venture run out of their Airstream trailer.  George announced that Net Worth had taken a big risk by creating a mobile casting business, but the risk paid off.  Net Worth earned $991.00 and won the task.  The risk paid off individually as well, because the reward for winning was a trip to Mikimoto, a Fifth Avenue shop known worldwide for its pearls.  The team met both Miss Universe and Miss USA at Mikimoto’s and also received $20,000 to spend on themselves.  Yes, indeed, the risk paid off well.

People often admire risk-takers, but hesitate to take risks themselves.  It is similar to change.  People may love the idea of change, but resist even the slightest alteration in their daily lives.  In Leading Minds, Howard Gardner noted that exemplary leaders display an inclination from early childhood for risk-taking.  He observed that “leaders are risk takers who do not easily withdraw from the fray.”  Risk taking is a common trait among great leaders, and those who lead must be willing to take chances.  Often, the greater the risk, the greater the glory.  However, this does not provide for a leader to abandon common sense and recklessly pursue risks with little likelihood of reward.

One of the things an effective leader must realize is that just taking risks for risk taking sake is not what leadership is all about.  A leader must be able to determine the right risks to take.  Careful analysis, knowledge, and understanding of alternate risks and alternate expectations compared to probable and potential outcomes enables a leader to choose what risks to take, and to take greater risks with higher probability of success.  This analysis includes identifying the resources and efforts needed for desired results and measuring results against expectations.  Careful attention will allow a leader to make early corrections of wrong or inadequate decisions, thus minimizing the actual risk involved, even when undertaking greater challenges that appear to be much greater risks.

In the book Management, Peter Drucker wrote, “To take risks is the essence of economic activity.  One of the most rigorous theorems of economics (Boehm-Bawerk’s Law) proves that existing means of production will yield greater economic performance only through greater uncertainty, that is, through greater risk.”  The key is to understand the risks and rationally choose the risk-taking course of action rather than plunge into uncertainty on the basis of a hunch or other uneducated or uninformed opinion.

The longest discussion regarding risk in the boardroom came during episode thirteen of season three.  The two remaining attorneys, Bren and Alex, were facing off after losing the Staples task.  As Trumped, Carolyn and George drilled the two to see who would be the better candidate to stay and who to fire, Bren said something he should have known not to, “Mr. Trump, I definitely have trouble taking risks.  I’m very conservative, it’s an issue I’ve always had to deal with.”  He continued speaking about how he was good with people, but George interrupted with, “But you just said you have trouble taking a risk?”

“Risks are something I’m learning to take.” Bren replied.

The answer did not impress George and Trump then asked, “What does that mean, exactly?”  Trump did not let Bren complete his explanation before he stated, “How are you going to be an entrepreneur, how are you going to be with me?  You know what, I don’t like risk either.  I don’t like people that like to take foolish risks, but life is a risk.  What does it mean that you have trouble taking risks?”

Trump did not like Bren’s explanation and asked Alex why he should fire Bren.  Alex did not miss a beat when he replied that Bren should be fired because of the fact that he’s not a risk taker.  Alex continued to fight for his life in the boardroom, convincing Trump that he should be the one to stay.

Trump finally turned to Bren and said, “Bren, don’t you think to be a successful entrepreneur you have to be a risk taker to a certain extent?”  Trump thought Bren was starting too far behind in the entrepreneurial and risk taking department, and though he believed he would be successful, he fired Bren, leaving Alex to join the remaining three in the final four.

Leaders must experiment with innovative ways of doing things, and this means being willing to take risks.  Leaders encourage others to step out into the unknown rather than play it safe, to think outside the box, and to set goals that may seem unreachable at the time.  They then support those thoughts and goals and help find the resources to make them reality.  Leaders learn from mistakes and continue to foster risk taking.  Leaders simply make things happen.

Trump Time Out – Think Outside the Box

            “Thinking outside of the box is something that is very much of a cliché, but if you really want to be successful, that’s how you’re going to have to do it.” – Donald Trump from The Apprentice, season one, episode ten. 

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