Know When to Back Down from a Challenge (HBR)

You don’t get medals for common sense — but perhaps you should get a pat on the back.

Edwin van Calker, driver on the Dutch four-man bobsled team, told his coach that he would not pilot the bobsled down the icy, treacherous track at Whistler Sliding Centre at the Vancouver Olympic Games. His coach Tom de la Hunty said, “I’ve never seen someone get to a major event and not compete because they’re scared. You keep your inner fears to yourself and do it.”

Not van Calker. He had crashed on the track during the two-man bobsled competition and did not think he could safely pilot the much heavier four-man sled. And he didn’t blame the track, which has seen multiple crashes and the death of a Georgian luger at the start of the Games. “[J]ust my lack of confidence at the moment.”

Perhaps there is a lesson for leaders in van Calker’s admission. The mettle of a leader is tested by adversity; history lauds those leaders who take on the odds and win. But savvy leaders are those who also know when to say no. Unfortunately, we brand folks like that as quitters, when it may be more correct to say they have the guts to know when they’re licked.

So how do you evaluate whether you should take on that challenge, or back down? Here are some thoughts.

Know the odds. Assess what you are up against. You can often quantify a challenge through the metrics you employ to manage your business. Weigh the costs of going forward against the costs of holding back. Try not to undercount the costs on either side. Remember, this type of equation is often used to justify mergers and acquisitions, where two businesses come together to avoid competition that will tear them apart. Yet most mergers end in failure.

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First posted on 2/26/2010