Navigating trials & tribulations: Lessons from the ocean and the boardroom

A summary of the roundtable discussions at Mercia’s 2024 Chair Summit

In the ever-evolving landscape of business, leaders are constantly faced with trials and tribulations that test their mettle. From navigating uncharted waters to steering companies through turbulent times, the ability to embrace risk and learn from failures can make all the difference. This philosophy was eloquently exemplified by Simon Calver, who shared his extraordinary experiences of rowing across the Atlantic Ocean.

Simon's tale was one of intense focus, resilience and the power of facing risk head-on. As he recounted, the inherent dangers of such an endeavour became manageable when he chose to confront them directly, rather than dwelling on the potential perils. This mindset, he explained, allowed him to move forward with clarity and purpose, a trait that translates seamlessly into the business world.

Indeed, in the ever-changing landscape of start-ups and established businesses alike, the ability to take calculated risks is vital. Whether it's a founder driving their singular vision, a CEO navigating a company through a growth phase, or an experienced non-executive director providing counsel, the capacity to recognise and seize opportunities often hinges on a willingness to venture into the unknown.

However, as the discussions revealed, risk management is a delicate balancing act. While some leaders may be inclined to charge ahead with unbridled enthusiasm, others may err on the side of caution, potentially missing out on transformative opportunities. This is where experienced advisers, mentors and a robust governance framework become invaluable, guiding leaders to approach risks with pragmatic consideration.

One recurring theme was the importance of fostering a company culture that embraces failures as learning opportunities rather than sources of punishment or shame. Research shows that psychologically safe environments*, where people can speak up and admit mistakes without fear of repercussions, promote innovation and performance.. ?By cultivating such a culture, teams can extract valuable lessons from setbacks, enabling agility and resilience.

Moreover, the discussions highlighted self-awareness and personal growth as critical for the Board as well as management teams. Simon's experience prompted a profound shift in priorities, emphasising reconnecting with family, friends and personal passions – a balance often elusive amid relentless professional pressures. Emotional intelligence and the ability to recognise one's limitations are hallmarks of effective leadership.

As businesses navigate ever-shifting market tides, embracing risk, learning from failures and nurturing growth mindsets will separate trailblazers from followers. Simon's Atlantic odyssey serves as a poignant reminder that facing trials head-on, with tenacity and adaptability, can chart extraordinary paths to success.

In boardrooms and executive suites, heeding lessons from vast oceans may prove invaluable for sustainable growth and lasting impact. Fostering psychologically safe cultures, calculated risk-taking and self-awareness could redefine how companies and leaders negotiate risks for prosperous voyages.

Key learnings for chairs and non-executive directors:

• Provide pragmatic counsel on risk by acting as a guiding force to help management teams take calculated risks and avoid reckless or overly cautious approaches that could hamper growth.
• Champion a growth mindset that encourages a culture that views failures as learning opportunities rather than sources of punishment or shame. Psychologically safe environments promote innovation.
• Prioritise self-awareness by recognising your own limitations as a leader and the importance of work-life balance. Emotional intelligence is crucial.
• Offer a broader perspective by leveraging your experience to help founders/CEOs see the bigger picture beyond their singular vision when navigating risks.
• Build trust and autonomy at the same time as providing guidance, allow management the autonomy to make decisions and navigate challenges themselves to build resilience.

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Key learnings for management team:

• Confront risks head on, these need to be managed with clarity of purpose.
• Calculate risks pragmatically, managing any extreme approach be this avoidance or acting on unbridled enthusiasm. Seek counsel and assess implications comprehensively.
• Foster a learning culture that creates an environment where mistakes are opportunities for growth, not sources of blame or punishment. This promotes innovation.
• Embrace personal growth, in today’s ever-challenging business landscape, remaining self-aware about your limitations is crucial. This includes prioritising work-life balance and personal passions to sustain performance.
• Seek tribe and community because leadership can isolate you. Build a supportive network of mentors, advisers and peers for guidance.
• Adapt and evolve because retaining the flexibility to evolve strategies and approaches as situations change is critical for growth.
• Align on vision and purpose, leaders sometimes forget the importance of a clear, compelling vision and how much it provides focus and unites teams when navigating risks and adversities.

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*( Amy Edmondson is a brilliant thought leader in this area)