Risk and recession
Released 19/06/2008
Should we be taking more risks as recession and Darzi loom? By Suzannah Wright
Despite a shock jump in retail sales today, it's generally accepted that we are on the road to recession. And general practice is facing a time of uncertainty and change as we all await the outcome and impacts of the Next Stage Review being led by Lord Darzi.
So is it time to batten down the hatches and stick to tried and tested business methods while we ride out the storm? Not at all, says international leadership development organisation Common Purpose.
They carried out a survey of working adults in the UK, and found that over half of all those surveyed already consider themselves to be risk-takers and 43 per cent think it will be important to take more risks to help their organisation survive through a recession.
I wonder if this is representative of health service workers, where constant change and targets to meet can stifle real innovation, but as the survey's introduction rightly points out: "taking calculated risks is very different to acting rashly...risk is an inseparable part of entrepreneurship and innovation."
Julia Middleton, chief executive of Common Purpose added: "Leaders need to be brave and bold, and to look in new places to capture the opportunities for growth and innovation. Looking into other people's worlds is a good place to start."
Having seen the benefits of multidisciplinary working in many practices, I thought sharing Common Purpose's advice on taking risks would be a good start for our new Practice Business blog...
Top tips for taking risks during a recession
- Taking risks is not as simple as jumping over a hedge without looking first. It involves building an understanding of the issues, challenges, risks and the other stakeholders involved.
- Don't focus on your area of specialism to the exclusion of all else. Losing sight of the broader context leaves you open to being blind-sided.
- Build a diverse network of people and use them to help you formulate your plans - their different views and experiences may enable you to see things in a new light.
- Keep an eye on the medium and long-term as well as short term fixes: Don't destroy tomorrow's value today.