Your Risk Tolerance Has Changed. Does Your Leadership Team Know That?
Briefly

Your Risk Tolerance Has Changed. Does Your Leadership Team Know That?
"His internal risk dial shifted instantly. He moved from playing for market share to operating for survival. But while his priorities had changed overnight, he hadn't fully reset how decision authority was being interpreted across his team."
"He was just 48 hours away from presenting a lean survival plan to the board when he discovered his team had already committed millions based on priorities that no longer applied."
A midsize retailer's CEO faced pressure to prioritize liquidity over growth as competitors faced bankruptcy. The board demanded either a survival-focused strategy or leadership change. The CEO's risk assessment shifted dramatically from pursuing market share to ensuring organizational survival. However, he failed to communicate this strategic pivot clearly to his team. Just before presenting a lean survival plan to the board, he discovered his team had already committed millions of dollars based on outdated priorities. This gap between the CEO's mental shift and the team's understanding created significant financial exposure and demonstrated the critical importance of explicitly resetting decision authority and priorities across the entire organization during strategic transitions.
Read at Harvard Business Review
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