Leader Has to Take Risk: Real Business Story

Well, this is interesting business story which unfolded in my knowledge. How leader can change the paradigm of business with his risk-taking ability and good intentions?

This is not an easy task especially when own job is at the risk?

 

Surendra was heading the business and one of the Zonal Business Manager decided to move to better pastures and no body internally was prepared to take that position after the failure of two senior managers and third one in the selection list opting out.

 

Business situation was quite tricky with imminent failure of yearly budget achievement. This zone was the major contributor to yearly budget.

 

Business Head decided to recruit an outside candidate, who was quite senior in the profession but from different industry. Surendra was quite sure that this gentleman has got the potential with some minor expected aberrations which he was confident to sort out. Honestly, he did not have any choice. Since, this candidate was to be given higher package, Managing Director bolted, HR was also not on same wavelength and it became an exercise to push against the system. Surendra did not relent and this candidate was picked up.

 

First came the internal minor revolt seen on social media because package news started doing the rounds in the industry, percolating back to company executives, and motivation in the existing team went down. Once authentic information was not available, rumours started playing out and it looked like as if this gentleman was getting higher package than the Managing Director even, which was nowhere near truth. Another problem erupted was that this gentleman was not from main stream, Surendra handled these two issues with heavy hand and supported his selection. He did not expect others to support him so it became a lonely exercise.

 

As the situation developed on expected lines, first year budget went for a toss because the Zonal Manager could not get the desired support from the team and more over in the new market for him, incubation period was stretched. Main challenge came from his own way of working which alienated the sales force and attrition rate went very high. Surendra was smart enough to do the course correction at the right time. Zonal Manager was given required suggestions, counselling, guidance and training to develop his horizon.

 

Surendra was walking on the tight edge!

 

His decision to pick up this horse out of the pastures directly into race course was yet to prove right. Though the horse was not lame yet.

 

New Year started and as per his expectations, this gentleman started performing with total team work and enthusiasm though Surendra did the course correction as and when required with least interference. His decision to pick up this candidate out of the blue has proved to be right with two years of consistent performance. This Manager has developed into star performer.

 

“Why this candidate was picked up against the tide , he was from different industry and secondly he was given such a high package” this was my question to Surendra and he was very emphatic “ Package was standard but on the higher side within our grade, but rumors played the negative role initially, we countered with no report because there was no other way, I picked him up based on his positive attitude , he was aware that he was taking a risk and so was I, but he was confident to handle it and so was I. We together surmounted the challenges”. “Was he at any time doubtful about his decision?”. “Of course, not once but twice specially when attrition rate went high and HR was not on the same boat on many attrition issues but I was very sure that the gentleman was quick learner and things will be steady after the incubation period.

 

I did have sleepless nights though.

 

Incubation period got stretched due to some unexpected developments and this was part of the game.” “Was there any performance issue once he settled down” “Not even once, he was very sure of himself and about my expectations from him. We had total trust in each other and that worked. Positive Pygmalion effect was on display.”

 

What are the lessons? Leader has to be firm in his decisions and execution both. If execution is left midway, even good decisions prove disastrous. Course correction is required and it has to be done with least interference. Positive attitude is the most critical trait for performance. Anticipate, plan the risk and the management both.

 

Leader has to take risk to run his own destiny.

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