“The executive’s job is to take risks, not to…”

“The executive’s job is to take risks, not to avoid them.

A senior executive’s job is to manage risk. We often interpret this as reducing or mitigating risk. But really the executive’s job is to take risks, not to avoid them. Since all action directed toward the future is risky, the executive must decide which risky actions to take and how best to take them. Investing in the stock market is risky, but if you want to earn a return, you have to do it. You balance risks and returns, and choose investments.

The simple reason that the contractor-control model of IT breaks down is the presence of uncertainty. Plans are made with an eye toward the future, but the future is largely unknown. Thus, rigid adherence to a plan cannot be effective—at best, the plan is valid only as long as the assumptions it makes are valid. The seated CIO is the one who tries new foods—well, if they look edible.

The presence of uncertainty is the simple reason why Agile approaches work better than plan-driven approaches—it is also the reason why a good IT leader will often have to make “wrong” decisions. An IT leader adds business value by adopting an intelligent attitude toward risk.”

Mark Schwartz – A Seat at the Table: IT Leadership in the Age of Agility