One of the most important things we do for clients is make sure they have realistic expectations. We draw on years of experience to explore the most fundamental equation of solution development: the tradeoff of Risk vs. Reward.
Like a savvy investor, the most important task is to “Fine-tuning your risk allocation.” Airline passengers count on pilots and co-pilots to use extensive pre-flight tests, inspections and checklists to make sure their aircraft is ready to take off – and of course for the trip and landing. This is so basic that we take it for granted, and I’m glad we can.
Clients who put together a portfolio don’t usually think of themselves as passengers about to take a trip. But they should. The trip may be smooth or bumpy. The ride may meet all their expectations or be full of surprises. But there will be a ride, and I think clients need to do the equivalent of a pre-flight check to make sure they are on the proper flight, so to speak.
One of the most important ways we help clients is to make sure they have realistic expectations. There are many dimensions to managing expectations, Risk vs. Reward is often not on the list. I often hear “I want no risk in the delivery of application X”. It's easy to to adopt the policy of avoiding risk at all costs, that whenever possible, the products you launch or the solution you have should be flawless and without downside.
As Seth points out; here's the problem: in most endeavors, a small increase in risk can double the reward. It's the second doubling of reward that brings serious risk with it. But the first leap is relatively painless. This is shown in the chart below. Notice that going from point A to B has very low – incremental risk. It may feel scary to your client but it is your job to show that it’s not. We need to educate the client on delivery with no risk, delivery with incremental risk, and significant incremental risk (point B to C). Yet, it’s the second front where OK solutions lead to breakthroughs and make you remarkable.
On your next project adventure, review your list carefully. Can you find the items that will double your reward by incurring very low risk? Try taking tiny steps from no risk to low incremental risk, yet avoid being reckless. You will see that riskless is hardly worth your effort.
Thank You for listening.