The most successful leaders aren’t the ones who stay within their comfort zone but are those who embrace calculated career risks. One of the most impactful career decisions a leader can make is transitioning from one leadership position to another, even though this can be intimidating. Whether it's changing from Vice President of Marketing to Vice President of Sales or shifting to a completely different role, taking these calculated risks can allow for immense personal and professional growth, supporting career development.
Understanding Calculated Risks
Taking a career risk shouldn’t feel like rolling the dice and hoping for the best. Embracing career risks should involve logical decision-making and strategic planning to evaluate the opportunities and setbacks of the decision. Here are some things to consider when calculating the risk of making a large-scale career decision:
- Does this align with overall career goals?
First and foremost, reflect on whether the potential career change aligns with overall career goals. Even if a great and exciting opportunity presents itself for a role change, it may not be the right fit if this shift doesn’t align with personal career aspirations. Simply seeking a new role to experience change without considering the broader implications for career trajectory can lead to setbacks rather than progress. Calculated risks are those driven by purpose rather than just curiosity.
2. How transferable are your current skills to the new role?
Another important consideration is the ability to transfer current knowledge and skills to the new role. While leadership experience and strong problem-solving skills apply to various management roles, a lack of foundational technical skills may be a challenge for certain positions. Reflect on what skills may need to be acquired and the time required to develop such skills for the new role.
3. Identify potential consequences
If a new career opportunity aligns with career goals and has a feasible required skillset, the next criterion to consider is the consequences of the career shift. Some consequences may be a steep learning curve, decreased confidence, or even needing to dedicate time to acquire new skills. Considering all the potential consequences will allow for a more informed decision and prevent being blindsided in the future by issues that arise.
4. Develop strategies to overcome these consequences
Once potential risks have been identified, plan strategies to proactively manage them. Taking a proactive rather than a reactive approach to addressing potential consequences is crucial in creating a smooth transition from one role to the next. Some potential strategies could include joining an executive mastermind group for a stronger support system or self-studying to improve upon necessary skills. Preparing for challenges not only makes the transition to a new role smoother but also demonstrates strong leadership qualities that will be recognized by others in the organization.
Overcoming Fear of Failure
One of the greatest obstacles leaders face when considering a career risk is the fear of failure. It’s entirely natural to prefer to exist within the comfort zone and avoid change. Many people tend to experience loss aversion, which is the tendency to avoid the potential feeling of failure despite the ability to experience great successes. Even though leaders may experience a sense of loss aversion, the ability to break down the risk and consider all possible outcomes can work to overcome this cognitive bias. Fear of failure and loss aversion are often rooted in uncertainty. By utilizing the previously mentioned strategies to create a well-thought-out plan, leaders can regain a sense of control.
A powerful tool that can be leveraged to overcome a fear of failure is developing a growth mindset. Transitioning to a growth mindset means embracing each new challenge as an opportunity for improvement rather than an obstacle. Strategies to develop a growth mindset over time can be to start with reframing views on small obstacles and progressing to larger-scale obstacles.
The Consequences of Heavy Risk Aversion
Being stagnant in a role and not pursuing calculated career risks may seem safer, but this can backfire. Hesitating to embrace calculated career risks can cause leaders to miss out of faster career growth opportunities, restrict them to narrowly defined roles, and even create the perception that they lack ambition. Strong risk aversion can also limit the perspective that leaders have within the organization. Leaders who have experience across departments and within different roles can contribute more to strategic conversations that span multiple departments. While avoiding risk can seem inconsequential, this may cause more harm than good.
In the long term, remaining comfortable in one position can decrease momentum and reduce a leader’s competitive edge. Organizations are constantly evolving, so leaders who don’t seek opportunities to grow may find themselves falling behind peers who take advantage of calculated opportunities. Recognizing when opportunities can support leadership evolution can be transformative for one's career.
Strong leaders are created by the ability to seek change and embrace challenges. Embracing calculated career risks can be a pivotal moment within a leader's career to elevate their leadership skills. Beyond personal growth, taking calculated risks can position leaders to become more adaptable and prepared for larger organizational responsibilities. Demonstrating the ability to accept risks signals that a leader is not only capable of navigating uncertainty but also able to lead strongly through it.