Embracing change is that which has been responsible for the success, and in some cases, the survival, of many currently large companies. Approving that which is new and represents a change in some aspect of a company’s operation has a risk of either the idea, or the implementation of the idea, not resulting positively as anticipated.

Risks of Saying No:

If the proposal is for an improvement in operations, the company will not benefit from possible cost savings or increases in productivity, and competitors may benefit from adopting something similar.

If the proposal is for the creation of a new business activity, the possible success of the idea could significantly benefit competitors to do something similar. New activities can be separated in non-consolidated corporations, to isolate and limit liabilities initially and be merged later into the parent entity if successful.

The estimated possible cost or loss of going forward with the new idea can be a fraction of the benefit if the activity is successful. The responsibility for having deprived the company of the opportunity to profit is likely to be career adverse, and perhaps threatening.

Saying “No” is a prediction of failure of that being proposed, even if well managed and financed.

Benefits of Saying Yes:

If the idea for an innovative improvement in some aspect of the company’s operation is adapted the executive having the responsibility for the ultimate approval will be recognized.

If the new business idea is successful and the company benefits from the success all those involved will benefit and especially the individual granting the final and necessary approval.The correct estimation of the cost/benefit of that proposed is critical in reaching a positive decision. Therefore, the steps taken to limit possible losses, allowing for a “yes” will be recognized and applauded by those judging the ultimate results.

Saying “Yes” is making the statement that the disproportionate balance of possible reward versus risk, as strongly recommended by qualified persons, is so great that it would be irresponsible not to say yes.

Careers are enhanced and penalized by the outcome of project-enabling decisions made by those having the individual authority to allow projects to proceed. Projects which succeed can benefit large numbers of people, including company owners, managers, employees, customers, etc. In the case of projects which fail, the loss can be limited and small relative to the overall enterprise. More can benefit for successful yes’s and there should be fewer no’s.

 

 

Arthur Lipper, Chairman                 arthurlipper@gmail.com
British Far East Holdings Ltd.