Your Risk Tolerance Has Changed. Does Your Leadership Team Know That?

As his competitors faced bankruptcy, “John,” the CEO of a mid-sized retailer, received a clear directive from his board: prioritize cash or prepare for a leadership transition. His internal risk dial changed instantly. It has moved from the game of conquering market share to that of survival. But even though his priorities changed overnight, he didn’t completely reset how decision-making authority was interpreted within his team: He was just 48 hours away from presenting a Lean Survival Plan to the board when he discovered his team had already committed millions based on priorities that no longer applied.