Some leaders look at their circumstances and determine that something will not work. They see the obstacles and challenges as overwhelming. Over time, they conclude that the risks are too high and decide to play it safe, reduce risk as much as possible, and stick with what has worked in the past.
This approach makes sense when faced with tariffs, economic downturns, or other challenges to the organization. It is also true that the longer an organization has been in existence, the greater the temptation to pull back and play it safe. Longevity provides some cushion against unforeseen challenges, but it also means that the organization has a reputation to protect, assets to maintain, and established processes and systems to preserve its legacy. However, pulling back and playing safe often leads to a slow decline.
Successful leaders understand two key principles. First, buried inside challenges are opportunities. Leaders must not only look at circumstances but broaden their thinking to consider what windows of innovation might be available. During the 2008 housing crash, a residential builder started their business just before the market began to collapse. In many ways, this was the worst time to start a residential construction company. Many leaders would have quit, saying, “We can’t make this work.” Instead, this owner decided to be unique and sell their way through the market crash. Today, they have been in business for almost 20 years and have sold out every development they built.
The second key principle is connected to the first: “E + R = O.” E stands for events, the things that occur that we cannot control, such as a flat tire, the loss of a key employee, or a recession. R stands for our response. We can control our response, whether we decide to give up and play it safe, or look for that window of opportunity and maintain a positive attitude. This response is within our control and directly influences the outcome (O). The outcome is not determined by circumstances; it is defined by our response.
Focusing on opportunities can lead organizations through challenges to achieve great responses and outcomes!
