All too often opportunities are missed or lost due to excessive bureaucracy and lack of delegation in decision making. Speed, coupled to appropriate risk mitigation is vital – fundamental to this approach is the confidence and authority to assess and take risks at the lowest possible level.  Confidence and trust in business leaders is a prerequisite. Competitive risk assessment, mitigation and acceptance requires an understanding of the nature of the task, of what will be required to carry it out and of the desired outcome. That only comes from delegating responsibility to those closest to the task or opportunity.

Pragmatic risk taking greatly assists the achievement of objectives. It speeds up decision making and generates competitive momentum. It is in these circumstances that It is suggested that leaders apply the OODA loop principles:

1. Observe what is happening.
2. Organise the factors in your mind.
3. Decide what you are going to do and how to do it.
4. Act – rapidly!

Unnecessary levels of approvals, corporate bureaucracy and risk aversion prolong decision making, introduce unnecessary complexities and add considerable cost. When this occurs, then invariably businesses lose sight of the intended outcomes and price themselves out of the market. Such actions fly in the face of trust, responsibility and accountability. Teams and their leaders should not be fearful of corporate censure for taking measured risks and decisions – such an environment stifles innovative activity. Innovation requires people who will take a decision and, if necessary, ask for approval afterwards, rather than people who will not make any decisions until they have permission from layers of corporate approvers – which simply stops any competitive momentum in its tracks.

In such an environment, trusted and responsible leaders will know instinctively that any decision taken will have an impact on the people that they lead. On a military battlefield the wrong decision can result in pointless casualties. Whilst nowhere near as radical as that in business, the wrong decision can have a life-changing effect on someone’s career, salary or target-related bonus. So leaders must think about what they are going to do, assess the risks, then act accordingly. With a little thought and with all factors considered, they invariably will do the right thing and satisfy those above them that the business is in dynamic, innovative and capable hands.

That requires courage to change – but in the knowledge that such change will generate a winning, unstoppable momentum!