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2 Questions to Help You Decide How Much Strategic Risk to Take

Posted on October 27th, 2011 by John Johnson

Question 1: What have I got to lose?

As a youth, I learned about change in strategy and risk on the sports field when the opposition started gaining the upper hand. When it seemed obvious this would continue, we threw everything at them. Our thinking? There just might be a turnaround with a new, more radical strategy. Of course, the key to strategic change is timing (i.e., when to pull the plug on what you are doing and try something else). In most cases, the plug is pulled too late.

What have I got to gain?

What you have to gain, strategically, can range from survival to Kaizen (Japanese for “improvement” or “change for the better”). The former is a heck of a lot more serious than the latter. If enterprise survival is the strategic issue then a successful outcome is paramount. The consequent risk factor will escalate since you must attempt to do things you have never done before–mainly because what you have been doing simply isn’t working anymore.

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