Because risk management as it applies to executive decisioning is a subject that is not adequately addressed in the educational world, it is often left to lessons of experience. As such, learning how to recognize, understand, quantify, and manage risk is one of those lessons that often comes at a very high price. While each individual has a different tolerance for risk, it is how a person chooses to manage the risk that will have a direct correlation on their ability to succeed in the world of business. In today’s post, I’ll examine the relationships between fear, risk, failure, and success.
So, what is the greatest fear possessed by executives and entrepreneurs? It has been my experience that the greatest fear most professionals struggle with is the fear of failure. It is oftentimes this fear of failure that governs how much risk a business person will take, and in turn how successful (or not) they are likely to become.
Ask anyone who has ever been in combat and they’ll tell you that it is their innate and often heightened sense of fear that helped to keep them alive. A good soldier doesn’t give in to fear, but they learn to respect and manage their fear so that it actually becomes their ally and not their adversary.
Most professionals don’t naturally associate the words “success” and “failure” as having anything to do with one another. However, under the right circumstances, failure is absolutely the best experiential learning tool available. Furthermore, I would go so far as to say failure is an essential element of becoming successful. In fact, if you show me a professional who has never experienced failure, I’ll say that professional either hasn’t tried hard enough or is very new to the world of business.
One of my favorite lessons in the world of overcoming failures, and understanding the value of persistence, is what can be learned from looking at the life of Abraham Lincoln. Born into poverty, Mr. Lincoln was faced with defeat throughout most of his life. He twice failed in business, lost eight different elections, and suffered a nervous breakdown. The following bullet points represent Lincoln’s chronological path to the White House:
It was, in fact, Abraham Lincoln who later said: “My great concern is not whether you have failed, but whether you are content with your failure.” Lincoln was obviously someone who was more focused on pursuing his goals than being guided by a fear of failure. Thomas Edison failed more than 1000 times before he successfully invented the light bulb, and he was later quoted as saying: “Many of life’s failures are men who did not realize how close they were to success when they gave up.”
I have a strong belief that fear of failure is far more damaging than failure itself. While successful people overcome their fear of failure, fear absolutely incapacitates unsuccessful people. Over the years I have witnessed business people, who but for being guided by fear of failure, would have likely been very successful. It was Mark Twain who said: “Courage is resistance to and mastery of fear–not the absence of fear.”
Failure is really a matter of reason and perspective. I have met individuals ranging in perspective from those who believe anything short of perfection is a failure, to those who don’t consider anything to be a failure. It is not where you fall on the risk spectrum that matters, rather it is how you learn to overcome your fears and manage the risk that will determine how successful you will become. My nature is to be somewhat conservative, but I learned long ago that if I were to allow myself to be guided by my fears I would have very few successes. I am a classic example of someone who has learned to manage risk in order to assuage my fears, which in turn allows me to pursue activities that lead to success.
All people have the ability to gain control over their fear of failure by simply defining their tolerance for risk, and then using their new risk tolerance definition to manage their “fight or flight” tendencies. For years I have subscribed to using the following acronym to help overcome fear and manage risk:
Bottom line…Don’t be limited by your fears or your failures. The truth is that most fears possessed by individuals are likely self-imposed, and in fact rarely have a factual basis. There is an old axiom that states fear is an acronym for False Expectations Assumed Real. The reality is that most failures are simply stepping stones to future success. Get focused, harness your fears, leverage your fears, and take action. To your continued success…
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