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Monday, 6 January 2014

Judged by 12 or Carried by 6...

A Model to Evaluate the Risk in Decisions...

The phrase "I'd rather be Judged by 12 people rather than carried by 6..." refers to the choice that, for example, people are faced with when being attacked - when the preference is to either kill or maim the attacker and go in front of a Jury of 12 people; rather than get killed and be carried in a coffin by 6 people...

Some say that this phrase has entered "common speak" for Police in the USA too...

When you look at your business or you career, there are always choices that you have to make and risks that have to be taken in order to get ahead, achieve growth and become successful - the challenge is, are you prepared to face the consequences of your actions...


At some point you will have to make choices that will define your future; and you and your organisation will have to live with the consequences...

There are FOUR scenarios to consider when taking a decision;


The consequence of;
  • Doing Nothing - Stability Value; the benefit of not changing...
  • Doing Nothing - Opportunity Cost; the cost of missing an opportunity...
  • Taking the risk and achieving a Positive Outcome... 
  • Taking the risk and achieving a Negative Outcome..

Most people think in terms of just the last two, whereas in reality, it is the first and second ones associated with "DOING NOTHING..." - which paradoxically may involve the highest levels of actual Risk...

The attraction of "DOING NOTHING..." is simple - it is sometimes the easy option because it doesn't involve changing anything and, in the short term at least, it represents the path of easiest flow...

Risk averse people will tend to "Do Nothing" in the misguided belief that this is the best choice whereas in reality, Doing Nothing is probably the highest Risk Strategy there is..

For example - look at the decision regarding working with a Business Coach, but the same applies to Web Design, Accountants, Banking and just about any professional service...

Deciding NOT to work with a Coach is EASY - there is no perceived RISK, in fact the lure and value of Stability may appear to outweigh any potential Opportunity for gain or benefit; the OPPORTUNITY COST should be weighed up as well as the STABILITY VALUE

When a Coach is hired - the first question is..

"When do I get a return on my investment...?"

There is the potential of a POSITIVE OUTCOME as opposed to a NEGATIVE OUTCOME - this gap is the RISK factor; if you are 100% Risk Averse though you will never work with a Coach...

However...

No one achieved anything of significance by simply "DOING NOTHING..." - and if you are an ambitious Entrepreneur or Executive, whilst doing nothing sometimes can be the best tactical solution; strategically, we have to take a Risk in order to move forwards...

Sometimes we have to disturb the flow in order to achieve - we have to be prepared to decide to take the risk...

How do we decide...?

Some use "instinct" or take advice from others, some use experience and knowledge - but for all of us we have some point of certainty that is enough for us to take the leap and make up the gap with hard work and pure determination...

For me - once I have weighed up the Four Scenarios, I check my levels of certainty - what does my instinct / knowledge / guidance / experience tell me; if I get to around 80% certainty with a project or a venture - I will go for it and make it happen. If I get less than 80% I will either back off completely, or at least seek further information and guidance.. 

80% is my "Walk Away Point..." a fundamental of negotiation, gambling and decision making - once you have dropped below your WAP - make sure you comply...

What if we could have a decision making "method" that would help us check the levels of risk and certainty associated with any opportunity - would that be helpful...?

Thought so...

I have put together a "Decision Matrix..." and you can have a FREE COPY to play with providing you let me have your feedback - it is only in prototype phase at the moment, and based on what you say - will be modified and made into a useful tool...

Drop me an Email asking for the "Decision Matrix..." and I will send a copy over to you immediately...

My Email is - davidholland@resultsrulesok.com 

I look forward to hearing from you - and thanks is advance for your ideas and thoughts...

Remember that Doing Nothing may result in you being carried by the 6, whereas taking the Risk may simply mean that you will be Judged by 12 of your peers..

Best Regards

Dave


And a RISK FREE Offer for you from Results Rules OK...

Come along to one of our January EVENTS - and if by Lunchtime you have not got great Value, we will give you your Money Back for the Whole Day...

Birmingham 24th January 2014 - LINK 

Luxembourg 17th January 2014 - LINK

Come along, meet the team and have an Inspiring Day with other like minded Professionals - we look forward to seeing you there...

"David is a fantastic business coach. He is very popular among the Roadio community of business owners for his illuminating insights on how to tackle day-to-day matters as well as more strategic questions. One of David's great gifts is being able to break complex business issues down into practical, actionable solutions delivered with clarity (and good humour!). He is both an excellent writer and presenter too. I recommend David highly..."  
M Ladzepko

"Dave has given our management team fabulous support over the last 18 months or so as we’ve worked together to successfully transition The Audio Suite from a large, commercial work-for-hire facility, to a bespoke Sound Design Practice. Dave’s ability to create focus and understanding, allied to his huge commercial experience and knowledge, makes him our ‘secret weapon’ as we go in to battle to win the hearts and minds of both our existing and prospective clients..!"
N Hillman

6 comments:

  1. David,
    I have not heard the saying judged by 12 or carried by 6. I like it and will use it! Doing nothing is a death sentence in my eyes! Even if the outcome is a fail, at least there is a new starting point!
    Your blogs are always fun and informative! I would appreciate one of your templates and will happily give feedback about it if desired.

    Thank you,

    Deb

    ReplyDelete
    Replies
    1. Thanks Debbie - Template on it's way to you email account...

      Cheers
      Dave

      Delete
  2. I too have not heard the expression. That said, another great blog giving inspiration, or in layman's term, a kick up the backside. One to remember - risk vs risk. Timely. Thanks Dave.

    ReplyDelete
    Replies
    1. Thanks Neil - it's usually not the risks we see that are the most dangerous...

      It's the ones we cant see that trip us up...

      Delete
  3. Informative and inspiring! Thank you!

    ReplyDelete