Uncertainty pervades business today. In fact, a recent study shows that 76% of all CEOs mentioned the word "uncertainty" multiple times in their earnings calls, up from 38% in the three months prior.
Unfortunately, humans aren't well-equipped to deal with uncertainty. The combination of uncertainty and the sense that we lack control over a situation produces fear and in turn, trepidation about taking action. The typical response is flight or freeze—not fight. In a highly competitive business environment, doing nothing can be just as bad as making the wrong move.
"Business professionals are great at analyzing situations and implementing risk management strategies, but uncertainty cannot be totally analyzed away," says Ranjay Gulati, Paul R. Lawrence MBA Class of 1942 Professor of Business Administration at Harvard Business School. "Instead, it requires a leap of faith into the unknown. That ability to act in spite of our fears is what we call courage."
Many people think that courage is innate—either you have it or you don't. But that's not true, says Gulati. Both individuals and organizations can develop and strengthen courage. In his new book, How to Be Bold: The Surprising Science of Everyday Courage, Gulati explores the essence of courage and how it contributes to success in the workplace and beyond.
"When people are more courageous at work, teams and organizations benefit. Courage leads to creativity, to appreciation of new viewpoints, to experimentation and innovation, and to bold business moves," he says. "Those without courage tend to cling to the status quo, keep ideas to themselves, and take the safest approach."
At the organizational level, collective courage can affect how businesses respond to depressed market conditions or other kinds of disruption. Rather than just hunkering down and cutting costs, as cautious businesses tend to do, some organizations use tough times to make dramatic changes, nurture a winning spirit, and reposition themselves for success when the market turns around.
Teaching Ourselves to Be Courageous
In his research, Gulati found the same themes emerging again and again. The most courageous people and organizations prepare themselves in ways that make taking action easier. To help others do the same, Gulati has organized his advice for nurturing courage into what he calls the "9 Cs," all backed by examples grounded in social science research. The first four Cs focus on building up individual courage muscles to address daunting challenges, while the next two zero in on how we might sustain courage over time. The final three Cs pinpoint how leaders can help to build collective courage within their teams and organizations.
Individuals can start by leveraging these initial Cs to summon courage even in the face of immense uncertainty:
COPING. By developing specific personal coping strategies, we can feel more in control, more hopeful, and less anxious. The goal is to calm ourselves and dampen our natural fear response. In particular, faith in a positive outcome—whether that faith is driven by belief in a higher power or by a generally positive approach—can help us avoid being anxious and paralyzed with fear.
CONFIDENCE. When we feel more competent, we are less fearful and more positive about our ability to solve problems. We can draw on that sense of competence whenever we need to handle a tough task. Some people develop an overall can-do spirit—a general form of confidence. Building such confidence might involve "toughness" training or experiences that take us out of our comfort zone to increase our confidence that we can handle anything. We can also gain confidence by shaping a daunting situation to our advantage. For example, we can break down a challenge into smaller challenges that allow us to address one piece at a time.
COMMITMENT. One way to keep moving forward despite uncertainty is a commitment to something larger than ourselves—a purpose that drives us. Framing our efforts as a quest will help us be more courageous. Think of the typical hero's journey in a novel or movie: a goal, seemingly overwhelming obstacles, and steps for overcoming them. The tension between the end goal and the obstacles is what spurs us to action; anticipating and overcoming those obstacles helps us keep fear at bay and achieve the goal.
CONNECTION. Contrary to popular belief, courageous individuals are seldom lone warriors. Gulati's research reveals that when people know they have connections with others who can deliver support, they are more confident, see themselves as being more capable, and feel they have more agency. More specifically, other people play the important role of providing emotional support, providing material support, keeping us in the know, and sharing honest feedback.
Taking Action in the Moment
Gulati also offers practical strategies for staying grounded and responsive when confronted with rapidly changing situations—helping us avoid freezing, reverting to old habits, or becoming overwhelmed.
COMPREHENSION. While most of us want a comprehensive plan before taking action, a bold few will sometimes venture into the unknown by taking small steps and observing as they go along. As they learn, they adapt accordingly. We can similarly draw on past experience to recognize patterns, but we must stay open to revising our interpretation as new evidence emerges. Especially for novel challenges, it's essential to approach the situation with a willingness to learn from our context as it unfolds and recognize important signals and cues.
CALM. Some specific mental moves can help us overcome our fears (or push them aside). Turning to a ritual can calm us and give us a sense of order and control. Paying selective attention on the task directly in front of us can help us avoid being drawn into big picture worries. And finally, reinterpreting and reframing the situation can help us make clear-sighted decisions.
Fostering More Courageous Organizations
Gulati says acting with courage can become a habit that leads to more courageous behavior. At the same time, leaders can proactively work to develop courage in others. His final three Cs focus on ways leaders can build teams and organizations that are able to take bold action.
CLAN. Individuals and teams perform better when people feel they belong. Military organizations, sports teams, and startups are especially adept at building close, family-like bonds that inspire decisive action because no one wants to let their teammates down. What can leaders do to build these bonds?
Mobilize the power of shared adversity. When people surmount a challenge together, they grow closer.
Make the collective more spacious. To ensure that team members' individuality doesn't conflict with their collective identity, leaders should allow for individual expression within the confines of the collective.
Keep the group fused over time. Teams can drift apart, and team bonds need continuous monitoring and nurturing. A sense of belonging and the loyalty it engenders can push people to take risks.
CHARISMA. Leaders can use their charisma to inspire collective courage. Like courage, charisma can be developed. It results from certain behaviors that any of us might cultivate:
Articulate a compelling heroic team quest. Communicate a quest—through engaging stories, memorable metaphors, and a clear vision of the desired outcome—to promote courage in the team. Make it clear which kinds of tasks are linked to the quest and provide concrete direction for people to follow.
Encourage personal devotion to the quest. Model this passion in your own behavior and self-sacrifice. In other words, walk the walk. Show that you are in the trenches with your team and demonstrate your concern for them as well as your passion for the quest.
Model emotional fortitude. Instill a sense of calm by demonstrating your own detachment from events. You don’t need to do this perfectly—you still can and perhaps should express some measure of vulnerability. If you deliberately set aside your own anxieties in the moment, focusing instead on your followers' emotional needs and the work at hand, you can project a confidence that strengthens your team's resolve.
CULTURE. Most large organizations have cultures that, intentionally or not, tend to reward cowardice. But you can evolve your own organization's culture to be more courageous. Gulati presents three cultural interventions leaders can make:
Establish courage as a behavioral norm. Leaders and organizations tend to send mixed messages, often actively discouraging risk-taking even as they try to promote courageous behavior. They tend to place attention on the downside (avoiding loss), not on the potential upside (benefiting from gain).
Create more space for brave conduct. You can nurture collective courage by protecting the exercise of personal agency: voice and choice. Instill in employees a sense of ownership, a perception that the company's future is in their hands. Ask employees for feedback, ask managers to listen to employee ideas, consult employees on important decisions, and celebrate people who behave boldly. At the same time, refrain from punishing employees when they broach sensitive topics or when their ideas end up failing.
Build courage into the organization's identity. Create bonds in large organizations by spotlighting commonalities. The courageous organizations Gulati studied reworked the cultural levers of recruiting, onboarding, and branding. In the process, they created shared beliefs and values as well as a shared identity.
According to Gulati, organizational-level courage can result in better execution, robust innovation, and improved performance. It can dramatically improve the level of discourse, allowing for more honesty and sharper decision-making at all levels. It can allow organizations to adapt in times of disruption or crisis rather than freeze up fearfully in the face of uncertainty. Just as important, it can allow organizations to foster better work environments for employees.
Aristotle once said that courage is the first virtue because it makes all the other virtues possible. Becoming more courageous takes effort—but the rewards are great. Gulati notes, "Courage is not just good for business—it's the cornerstone for a more vibrant, more fulfilling life. It allows us all—individuals and organizations—to live up to our fullest potential."