A Daily Dispatch from the Front Lines of Leadership.


Shared Risk Is More Rational

Sometimes, people want leaders to take all of the risks without any real downside if they fail. 

Recently, former PGA champion Rich Beem was challenged to a competitive wager by an amateur who had great confidence in their golf game. 

The amateur asked Beem to play for $10 a hole, as long as he could receive two shots on the front nine and two shots on the back nine. Beem countered by creating risk that both parties could share: “Let’s play for $500 a hole, and I give you four shots a side,” replied Beem. When the amateur demurred, Beem then said, “Let’s just have some fun.” Which is what he wanted all along. 

Don’t let others suggest you should take all or most of the risk in anything. Risk shared means everyone has skin in the game. People always behave more rationally when they have something of equal value to lose.  

Share on linkedin
Share on twitter
Share on facebook

Sign-up Bonus

Enter your email for instant access to our Admired Leadership Field Notes special guide: Fanness™—An Idea That Will Change the Way You Motivate and Inspire Others.

Inspiring others is among the highest callings of great leaders. But could there be anything you don’t know, you haven’t heard, about how to motivate and inspire?

Could there really be a universal principle that the best leaders follow? A framework that you could follow too?

There is.

Everyone who signs up for Admired Leadership Field Notes will get instant access to our special guide that describes a powerful idea we call Fanness™ (including a special 20-minute video that really brings this idea to life).