When you look all at the iconic companies, there’s 1 undeniable shared trait:
A willingness to take risk.
In contrast, dying companies lack this trait.
So… how to do build an team that’s ok with risk?
It’s not so simple. Let’s dive in 👇👇👇
A willingness to take risk.
In contrast, dying companies lack this trait.
So… how to do build an team that’s ok with risk?
It’s not so simple. Let’s dive in 👇👇👇
1/ Set a Threshold for Wrong
At Bolt, one of our favorite operating values is Chase 10X, Be 20% Wrong. (credit: Reid Hoffman)
The 20% figure really matters.
It puts a real number behind our willingness to make mistakes.
It gives the team something tangible to measure against.
At Bolt, one of our favorite operating values is Chase 10X, Be 20% Wrong. (credit: Reid Hoffman)
The 20% figure really matters.
It puts a real number behind our willingness to make mistakes.
It gives the team something tangible to measure against.
2/ Praise Smart Failures
Failure is the lifeblood of a risk taking culture.
The mindset: Failure is progress. It means you learned critical information to inform your next step.
When giving feedback to your team, if they drove a smart strategy that led to a failure, praise it.
Failure is the lifeblood of a risk taking culture.
The mindset: Failure is progress. It means you learned critical information to inform your next step.
When giving feedback to your team, if they drove a smart strategy that led to a failure, praise it.
At Bolt we also grade people on risk taking in their performance reviews.
Taking risk is not just OK, it’s expected!
Take too little risk and you’re not moving fast enough. It might negatively impact your performance review!
Perfectionism has no place in a startup.
Taking risk is not just OK, it’s expected!
Take too little risk and you’re not moving fast enough. It might negatively impact your performance review!
Perfectionism has no place in a startup.
3/ Default to Experimenting
There is nothing worse than spending cycles theorizing for the perfect solution.
If something can be easily tested, test it.
If someone has a strong hunch, follow it.
Out with the theorizing. In with the action.
There is nothing worse than spending cycles theorizing for the perfect solution.
If something can be easily tested, test it.
If someone has a strong hunch, follow it.
Out with the theorizing. In with the action.
As with everything in business, there are pitfalls of overshooting.
There are RISKS with a risk taking culture!
Here’s what to avoid:
There are RISKS with a risk taking culture!
Here’s what to avoid:
4/ Don’t be Shy To Admit Failure
A risk taking culture necessitates iterating quickly.
Failures are fine if you learn quickly, pivot, and keep moving.
It is devastating if you can’t admit failure.
Admit failure quickly to yourself, your team, and your partners.
A risk taking culture necessitates iterating quickly.
Failures are fine if you learn quickly, pivot, and keep moving.
It is devastating if you can’t admit failure.
Admit failure quickly to yourself, your team, and your partners.
5/ Watch Out for 1-Way Doors
Amazon has a great concept of 1 vs 2 Way Doors.
2 Way Doors you should act quickly and take risk all day. You can always turn around.
1 Way Doors you can’t get wrong. You’re stuck.
For the ones you can’t get wrong… don’t get wrong.
Amazon has a great concept of 1 vs 2 Way Doors.
2 Way Doors you should act quickly and take risk all day. You can always turn around.
1 Way Doors you can’t get wrong. You’re stuck.
For the ones you can’t get wrong… don’t get wrong.
6/ Don’t Accept Sloppiness
Smart risks are great. Dumb risks are not.
Calculated mistakes are great. Careless mistakes are not.
A mistake once is great. The same mistake twice is not.
Smart risks are great. Dumb risks are not.
Calculated mistakes are great. Careless mistakes are not.
A mistake once is great. The same mistake twice is not.
7/ Balance the Risk Taking
Risk taking should be balanced with with scaling your core business.
Invest too much in risk taking and your core breaks.
Invest too much in your core and you’re not innovating.
Pick a number. Eg 60% core 40% risk. Align your team accordingly.
Risk taking should be balanced with with scaling your core business.
Invest too much in risk taking and your core breaks.
Invest too much in your core and you’re not innovating.
Pick a number. Eg 60% core 40% risk. Align your team accordingly.
8/ Don’t Break Prod
Our engineers love trying new features.
But companies rely on us for their critical path software.
We recognize this, and breaking for our customers is not covered by being 20% wrong!
We don’t mess with our production systems.
Our engineers love trying new features.
But companies rely on us for their critical path software.
We recognize this, and breaking for our customers is not covered by being 20% wrong!
We don’t mess with our production systems.
And there we have it!
Risk taking culture defined in 8 steps.
There is nothing more important than creating a culture that embraces risk.
Do it right, and you will unlock the X Factor in your organization.
Risk taking culture defined in 8 steps.
There is nothing more important than creating a culture that embraces risk.
Do it right, and you will unlock the X Factor in your organization.
Oh yeah, and risk taking is so friggin exciting.
Don’t forget the secret ingredient: keeping it fun.
Don’t forget the secret ingredient: keeping it fun.
If you enjoyed this and want to see tweets more like it, give me a follow @ryantakesoff.
I’m really excited to share my learnings building multiple billion dollar companies with you all.
Let’s take off together! 🚀
I’m really excited to share my learnings building multiple billion dollar companies with you all.
Let’s take off together! 🚀
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