Monday 26 January 2009

Why we must take risks: success from uncertainty

The article most recommended by Harvard Business Review readers last year was an interview with Ed Catmull of Pixar, the animation company behind Toy Story, A Bug's Life, Monsters, Inc., Finding Nemo, The Incredibles, Cars, Ratatouille and WALL-E.

Catmull talks about a studio head who thinks his problem is not in finding people, but ideas. Catmull disagrees, calling this "...a misguided view of creativity that exaggerates the importance of the initial idea in creating an original product."

His conclusion has a lot of resonance for business:

"...we as executives have to resist our natural tendency to avoid or minimize risks, which, of course, is much easier said than done. In the movie business and plenty of others, this instinct leads executives to choose to copy successes rather than try to create something brand-new. That's why you see so many movies that are so much alike. It also explains why a lot of films aren't very good. If you want to be original, you have to accept the uncertainty, even when it's uncomfortable, and have the capability to recover when your organization takes a big risk and fails. What's the key to being able to recover? Talented people! Contrary to what the studio head asserted at lunch that day, such people are not so easy to find."

Success comes from taking risks - avoiding them leads to mediocrity.

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