Introduction: Why Taking Risks is Essential for Boards
James Cameron once said: “NASA has this phrase that they like: ‘Failure is not an option.’ But failure has to be an option in art and in exploration, because it’s a leap of faith. And no important endeavor that required innovation was done without risk. You have to be willing to take those risks. So, that’s the thought I would leave you with, is that in whatever you’re doing, failure is an option, but fear is not.” Though he was speaking about filmmaking and exploration, this insight is just as relevant to boards and associations.
Many boards fear failure, worrying about reputational or financial repercussions – rightfully so! However, this fear can paralyze organizations, preventing them from innovating and adapting to a rapidly changing world. The reality is this: failure, when approached thoughtfully, is not just acceptable—it’s necessary for growth.
So how can boards embrace risk and reframe failure as a learning opportunity?
SpaceX and the Balance of Risk and Success
On January 16, 2025, I stood on the shores of Isla Blanca Park in Texas, watching SpaceX’s Starship launch into the sky. It was a breathtaking moment: a testament to human innovation, boldness, and the willingness to take risks. Minutes into the flight, the Starship, the upper stage of the rocket exploded in a fireball. At the time, many of us didn’t even realize it was a failure – I mean we saw it, but didn’t know what we didn’t know. It was so far off in the distance after all. We thought that it was the Super Heavy Booster separating. It was only later, after seeing it on X that it became clear that it was an explosion.
Despite this setback, the mission wasn’t a total failure. For only the second time in history, the Super Heavy booster executed a flawless return to base, landing in the iconic “chopsticks” arms of the launch tower. This achievement underscored an important lesson: even in failure, there are milestones to celebrate – and this was a beautiful, emotional moment for myself and those around me.
While SpaceX celebrates the win of the Super Heavy booster, it will evaluate and iterate where things went wrong for the Starship. As SpaceX noted afterward, “Starship experienced a rapid unscheduled disassembly during its ascent burn. Teams will continue to review data from today’s flight test to better understand the root cause. With a test like this, success comes from what we learn, and today’s flight will help us improve Starship’s reliability.” (Source)
This event reminded me of the risks boards face. Like SpaceX, boards are often balancing wins and losses, successes and setbacks. The key is to have the courage to take risks and the resilience to pivot when something doesn’t go as planned.
Why Boards Must Take Risks to Thrive
Boards are the stewards of their organization’s future, and with that comes a responsibility to innovate and adapt. But innovation requires risk, and many boards get stuck in a mindset where failure is seen as catastrophic rather than a stepping stone.
Here’s the truth: playing it safe can be riskier than taking a bold leap. Organizations that fail to innovate risk becoming irrelevant, while those willing to experiment are more likely to thrive. However, embracing risk doesn’t mean jumping in blindly. It means taking calculated risks, informed by data and guided by a shared vision.
Learning from a Board’s Resilience Post-Pandemic
During the pandemic, non-profits had to quickly pivot to virtual educational content. One board I worked with did well in this new virtual space, but they didn’t stop there. They asked themselves: What happens when the pandemic ends?
Their surveys showed a consistent split: 50% of members preferred virtual education, while the other 50% wanted in-person events. To address this, the board launched a new program that alternated between virtual and in-person continuing education every other month.
The program ran for two years but ultimately wasn’t profitable. It drained staff and volunteer resources, and so, the board made the difficult decision to scrap it. However, they didn’t see this as a failure. Instead, they used the lessons learned to reevaluate their approach to providing continuing education.
They conducted extensive research, including member surveys, board surveys, consultations with industry experts, discussions with other chapters and sections, evaluations of competitors, and identifying key individuals with skillsets and experience to support the program committee. This comprehensive analysis informed their new strategy.
They’ve implemented a new model: virtual content is free for members (a key member benefit) but comes with a small fee for non-members. In-person events remain fee-based to cover overhead costs. This approach has been well-received member benefit and is financially sustainable, proving that their willingness to take risks—and learn from them—paid off.
Actionable Strategies for Risk-Tolerant Boards
If your board is hesitant to take risks, here are actionable steps to get started:
- Shift the Culture Around Failure
- Have open discussions about failure as a natural part of innovation.
- Normalize sharing lessons learned from setbacks – without assigning blame.
- Start Small with Pilot Programs
- Test new ideas on a smaller scale before rolling them out organization-wide.
- Use pilots to gather data, learn, and iterate.
- Define Success and Failure Upfront
- Set clear criteria for what success and failure look like for any new initiative.
- Agree in advance when to pull the plug if something isn’t working.
- Conduct Post-Mortems
- After any program—successful or not—evaluate what worked, what didn’t, and why.
- Align Risks with Your Mission
- Ensure that any risks you take are tied to your organization’s core purpose and strategic goals.
Conclusion: Embrace Boldness with Resilience
Failure isn’t an endpoint—it’s part of the journey toward innovation and progress. Boards that embrace this mindset will not only stay relevant but will also lead their organizations into a future filled with possibility. As James Cameron said, “Failure is an option, but fear is not.” Let’s leave fear behind and take that leap together.
Want to Build a Risk-Tolerant Board Culture? I offer customized workshops to help boards embrace innovation and reframe failure as a learning opportunity. Let’s work together to create a culture that fosters bold thinking and strategic risk-taking. Contact me to learn more!
Discussion: How does your current board culture encourage or discourage innovation? What bold moves might be necessary to ensure future relevance for your Board?
