How can you create a culture that values risk-taking?

1 Define risk-taking

The first step to create a culture that values risk-taking is to define what it means for your organization. Risk-taking is not about being reckless or irresponsible, but about exploring new possibilities, challenging assumptions, and learning from mistakes. You need to communicate clearly what kind of risks you want your team to take, and what kind of outcomes you expect. You also need to differentiate between acceptable and unacceptable risks, and set clear boundaries and guidelines for decision-making.

2 Encourage experimentation

The second step to create a culture that values risk-taking is to encourage experimentation and prototyping. Experimentation is a way of testing ideas and hypotheses, and learning from feedback and data. It allows you to try new things, fail fast, and iterate. You can foster a culture of experimentation by giving your team time, space, and resources to explore new solutions, by creating a safe environment where failures are seen as opportunities for learning, and by celebrating successes and learnings.

3 Reward risk-taking

The third step to create a culture that values risk-taking is to reward risk-taking behavior and outcomes. Rewarding risk-taking means recognizing and appreciating the efforts, learnings, and results of taking smart risks, regardless of the outcome. You can reward risk-taking by giving positive feedback, by sharing stories and best practices, by providing incentives and recognition, and by promoting risk-takers within your organization.

4 Learn from failures

The fourth step to create a culture that values risk-taking is to learn from failures and mistakes. Learning from failures means analyzing what went wrong, what went right, and what can be improved. It also means applying the learnings to future actions and decisions. You can create a culture of learning from failures by creating a blame-free culture, by conducting regular reviews and retrospectives, by sharing lessons and insights, and by implementing changes and improvements.

5 Lead by example

The fifth step to create a culture that values risk-taking is to lead by example. Leading by example means modeling the behavior and attitude that you want to see in your team. It also means being transparent and accountable for your own risks and failures, and showing vulnerability and humility. You can lead by example by taking smart risks yourself, by sharing your own successes and failures, by asking for feedback and input, and by supporting and empowering your team.

6 Build trust

The sixth and final step to create a culture that values risk-taking is to build trust within your team and organization. Trust is the foundation of any successful culture, and it is especially important for risk-taking. Trust means having confidence and faith in yourself and others, and being willing to take risks together. You can build trust by being honest and respectful, by communicating openly and frequently, by collaborating and co-creating, and by showing empathy and care.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?