Americas Cup 8-2 - Leadership & Taking Risks?

Swallowing hard on my porridge this morning, I watched Dean Barker in the pre-race start take a huge risk- using an aggressive tactic, which unfortunately his competitors noted and fought back to win the start, and eventually the race this morning.  We all thought Team NZ was going to take it out....but our breath continues to be held until the next race....tomorrow.

As I travelled into work, I pondered the Team NZ tactic and aggressive nature of the start and quietly contemplated the area of aggressive leadership tactics and risk management in business.

I have always solidly believed that business is all about risk and tactic.  If you don't take the risks, you will never experience the brilliant rewards, or the epic fails that see you learn from your mistakes.

I once listened to an inspiring business leader some 10 years ago and I will never forget his comments.  He said- there are 3 types of people out there you need to be aware of:-

People who make it happen

People who watch it happen

and  the People who wondered what happened

So I tried to work out which category Team NZ were in this morning and I was stumped.  OK so we didn't make it happen in terms of a win, but we did make Oracle play a card we wanted to see at the start line so technically we did.  Just like business, how can we put pressure on our competitors to show us one or more of their cards in a process, or for that matter get more information out of our potential customers or prospects?  Sometimes we have to give a little in the process to get an end gain.  As leaders we have to remember this- sometimes its all about the strategy.  I do think we made it happen today...its not all about the winning.

I then tried to look at the second category of people, those who watch it happen.  Yes, Team NZ certainly had to watch it happen, but we were not sitting back, we were fighting and we were watching the result of our risky pre-race start aggressive tactic unfold before us.  We had no choice but to watch it happen.  Business is simply no different, we must take the time to reflect as leaders on what is happening around us.  We must watch things play out in order to understand our next move.  The curve balls I have been thrown over the years have been astounding, some unbelievable.  I have been double crossed, ripped off and trumped, however these experiences have taught me what I know today and I am now able to more clearly see these happening...with my eyes wide open.  If I now make a decision and take a risk and it may not have been the best risk, I take full ownership for my actions, like Dean, I contemplate what happened and watch the scenario unfold, all of the time looking ahead at my next move.  Leaders need to absorb the pain sometimes and not inflict it.  Dean- watching today must have been hard and I am sure you absorbed the pain but I applaud you for taking that aggressive risk.  Sometimes its about the journey not the destination.

So then I thought about the third category of people- people who wondered what happened.  Yes, Team New Zealand probably did wonder what happened, but actually I think they already knew.  We all know, the bigger the risk, the bigger the reward....or failure.  If we don't take risks, we will never know what it feels like to experience massive reward.  I recently put one of my team who does not like public speaking in front of an audience of hundreds of people.  The risk was large as his fear of speaking of over 20 years ever so present.  He started in a shaky way, but ended brilliantly.  He felt so good at the end, the risks were well worth the reward.  Sure I had pushed, but to see his self-satisfaction was everything.  No, Team New Zealand  did not just wonder what happened to them.  They knew.  They took a risk and it simply did not pay off this time.  But the risk was calculated as losing 1 race does not mean we cannot win the next....and now Oracle have had to play out another card so we can view it.

I then reflected myself in a final comment that has stayed with me about people from this Leadership Masterclass.  The comment was:

40% of people have the way and the will,
20% have the way,
20% have the will
and 20% have neither. 




I so believe this is true in business also- as a leader I have learnt to recognise over the years that taking a tactic like Oracle did by Spithill switching  veteran tactician and San Francisco Bay Area native John Kostecki with young Benny Ainslee, the newly knighted Brit and four time Olympic gold medal winner was a bold move and one that is clearly paying off for them.  Again a huge risk to take, but fascinating to see the strategies unfolding and the results of these moves.

I truly believe that a team needs to be dynamic and a mix of different people, but that 20% that don't have the will or the way, you must deal with these issues as fast as you can as this will bring the whole team down. 

I challenge all leaders out there reflect on the Americas Cup, take a good look at the leaders and their moves and have a close look at your own leadership.  Are you taking the risks that you need?

Sit back and enjoy the race or to, and come on Team New Zealand- lets bring home the cup!