The January 2007 issue of Harvard Business Review has focus on the leadership. One of the articles that I read yesterday was from Kathleen K Reardon from USC Marshall School of Business. In this article, the author has argued that courageous action in business is rarely impulsive, rather it is a special kind of calculated risk taking. She has coined a term, "courage calculation", which has been defined as a method of making success more likely while avoiding rash, unproductive or irrational behavior. Following six discrete processes make up the courage calculation:
"In the end, courage in business rests on priorities that serve a personal, an organizational, or a societal philosophy. When this philosophy is buttressed by clear, obtainable primary and secondary goals, an evaluation of their importance, a favorable power base, a careful assessment of risk versus benefits, appropriate timing and well-developed contingency plans, managers are better empowered to make bold moves that serve their organizations, their careers and their own sense of personal worth."
- Setting primary and secondary goals, which are reasonably within reach, not pie-in-the-sky ambitions.
- Determining the importance of achieving them
- Tipping the power balance in your favor
- Weighing risks against benefits
- Selecting the proper time for action, which requires a deep sensitivity to one's surroundings and a great deal of patience.
- Developing contingency plans
"In the end, courage in business rests on priorities that serve a personal, an organizational, or a societal philosophy. When this philosophy is buttressed by clear, obtainable primary and secondary goals, an evaluation of their importance, a favorable power base, a careful assessment of risk versus benefits, appropriate timing and well-developed contingency plans, managers are better empowered to make bold moves that serve their organizations, their careers and their own sense of personal worth."
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