Your strategic planning team is divided on risk tolerance. How will you find common ground?

1 Assess Risks

Understanding the specific risks that your team is considering is the first step towards finding common ground. Encourage your team to articulate their concerns and the potential consequences of taking—or not taking—certain risks. This process should be thorough and include all relevant factors such as market volatility, competition, financial implications, and operational challenges. By having a clear picture of the risks, your team can weigh them against the potential rewards in a more balanced and informed manner.

2 Value Diversity

Embrace the diversity of opinions within your team as a strategic advantage. Different risk tolerances can lead to a more comprehensive view of the strategic landscape, as cautious team members highlight potential pitfalls while the more adventurous point out opportunities. Encourage respectful dialogue where each viewpoint is considered on its merits. This inclusive approach helps to create a strategy that is not only bold but also resilient.

3 Set Objectives

To move forward, align your team around common strategic objectives. These should reflect a shared vision that accommodates different levels of risk tolerance. By focusing on what everyone agrees is important for the success of the organization, you can prioritize actions and decisions that support these goals. This alignment helps to ensure that even when taking risks, the team is collectively working towards the same end.

4 Explore Alternatives

Encourage your team to brainstorm a range of strategic alternatives, each with different risk profiles. By considering multiple pathways to achieve your objectives, you can compare the trade-offs and potential outcomes of each option. This exercise not only broadens the team's perspective but also helps to identify strategies that strike an acceptable balance between risk and reward for all team members.

5 Build Consensus

Building consensus is about finding a middle ground where all team members can agree, even if it is not their preferred option. Facilitate discussions that help your team move from their individual positions towards a collective decision. This may involve compromise or finding creative solutions that satisfy the core concerns of both risk-averse and risk-tolerant members. Effective consensus-building ensures that the team's final strategy is one that everyone can support.

6 Implement Safeguards

Finally, incorporate safeguards into your strategy to manage and mitigate risks. These might include contingency plans, phased roll-outs, or specific criteria for evaluating the success of riskier initiatives. By having these safeguards in place, your team can proceed with confidence, knowing that there are measures to address potential issues and adjust the course if necessary. This security can make all the difference in gaining the support of risk-averse team members.