What is that little voice inside trying to tell you?
by Mary Ann Masur, CCIM
When you think about taking risk, many people think immediately of the often-asked question of financial planners and investment counselors—What is your risk tolerance? They are focusing on how much you can stand to take a chance to get higher returns on your investments versus playing it safe in exchange for more predictable, lower yields.
You may also think about risk more than the average person if you’re a business owner. Face it, being an entrepreneur and following your dream may not be the “safest” road to take versus working for other people.
Separate from the investment and entrepreneurial worlds, however, how often do you think about risk in your every day life?
For the more conservative, perceived risk is often associated with the mental exercise of analysis. You methodically weigh the pros and cons of a particular decision and then make a choice. Sometimes the choice is to do nothing, feeling that status quo is better than the alternative. According to Dr. John Eliot, author of Overachievement, “Exceptional thinkers are turned on by the concepts in their minds and the feelings in their guts, not by ideas based on some external, mathematical prediction.” He advises to stop thinking about the probabilities and start focusing on the possibilities.
Unfortunately, many risk-averse individuals also suffer after making a decision. In the terms of a consumer behavior textbook, it’s called “post-decision dissonance.” You have second thoughts and regrets about your decision, and the bigger the stakes associated with the decision—whether dollars, reputation or some other “cost”—the greater the emotional torment.
For these individuals, it is often a difficult task but it is important to individual sanity that you look at life a bit more like those you would label as “impulsive.” It’s time to think about this—“What’s the worst that can happen?” Often when doing your analysis, the answer to this question helps put the whole decision in perspective and reduces the stress you may otherwise suffer. Jim Collins, business professor and author of Good to Great, says to separate probability from consequence. Think about it this way, you only go around once, so ask yourself, “What if I do fail?” This kind of thinking is key for an entrepreneurial life.
You should also be sure to complement the analysis, which is still okay to do (but with the new perspective) with a reliance on your intuition—your gut. You know, it’s that little voice inside your head that tells you what you really should do. Not to be confused with conscience, however, it’s similar. You need to listen to your body.
T.S. Lewis illustrated this theory beautifully in his seemingly child-oriented writings, which clearly advocate following your heart over your head. We ought to, and usually do, make the big decisions in life with our heart. Emotions usually win out over the head.
For instance, I was once offered a promotion at work. When a friend asked me how I felt about reporting to the person for whom I would be working, I thought about it (my head) and got a pit in my stomach—in my gut. I listened to that gut feeling, knowing I had at least processed the pros and cons intuitively, and I did not take the position. I’ve never looked back. I was more interested in happiness over safety.
Now I am not promoting haphazard whimsy, by any means. But, I am suggesting that most of us are way too inclined to analyze and analyze to the point it becomes overwhelming just to make the decision. We become paralyzed by the “what ifs?.” When we are clear on the worst case scenario or the consequence vs. the probability, we can say “What’s the worst that can happen?”
Our intuition can be a powerful ally when making choices and assessing risk—both personal and business. We just need to be quiet long enough to hear it over our mental chatter. A friend of mine says, when talking about gut--if her dogs don’t like a person, she takes the absence of tail wagging seriously and thinks a bit harder about her own intuitive feel before moving ahead with a decision. Something to be said for following that heart….
Mary Ann Masur, president of Synergy Consultants, LLC, is a professional coach, serving organizations and individuals. She was one of Maryland’s Top 100 Women in 2000. She can be reached at ma.masur@verizon.net or at 410-377-7323.
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