Risk aversion kills innovation

The secret killer of innovation is shame. You can't measure it, but it is there. Every time someone holds back on a new idea, fails to give their manager must needed feedback, and is afraid to speak up in front of a client you can be sure that shame played a part. That deep fear we all have of being wrong, of being belittled and of feeling less than, is what stops us taking the very risks required to move our companies forward.

If you want a culture of creativity and innovation, where sensible risks are embraced on both a market and individual level, start by developing the ability of managers to cultivate an openness to vulnerability in their teams. And this, paradoxically perhaps, requires first that they are vulnerable themselves.

This notion that the leader needs to be “in charge” and to “know all the answers” is both dated and destructive. Its impact on others I the sense that they know less, and that they are less than. A recipe for risk aversion if ever I have heard it. Shame becomes fear. Fear leads to risk aversion . Risk aversion kills innovation.

Peter Sheaham