There are only a few certainties in life: death, taxes… and change.

And the rate of change is speeding up—rapidly.

Several factors are causing this acceleration: the expansion of technology and knowledge, globalization and the changing demographic majority. Let’s take a look at how these factors are impacting the landscape of leadership.

Technology: Ray Kurzweil, in his 2001 essay “The Law of Accelerating Returns,” asserts that technology won’t experience 100 years of progress in the 21st century—it will be more like 20,000 years of progress (at today’s rate).

Knowledge: By 1900, it had taken 150 years to double all human knowledge. Today it takes only one or two years, and by 2020, knowledge will double every 72 days, according to estimates.

Globalization: The competition for talent, resources and attention doesn’t just come from the other members of your local chamber of commerce; it now comes from every high-rise, second bedroom and basement in the world.

Changing Demographic: The millennial generation (those born in the 1980s and 1990s) are the largest to enter the workforce since the baby boomer generation. Nurtured through a different era, this generation has a different value system, and they will play a key role in the changing nature of workplace dynamics.

Leadership over the past 50 years has been based on the premise that the organization is purely an economic entity. The priority was to develop structures, set controls and leverage capital as effectively as possible. This was accomplished through pyramids of hierarchies performing rigidly narrow tasks within clear guidelines.

Today, the speed of change demands a completely different leader: one who read more »

A friend of mine went as Superman to a Halloween party this past weekend. He told me the cape had a big warning sign on the box explaining:

“WARNING! Wearing of this garment does not enable you to fly.”

Seem obvious? Apparently it isn’t. At the party several folks recalled news stories of young boys (and some men) who had tied a red towel around their neck and jumped off roofs or out of windows atop tall buildings, only to plunge like a rock to their death. There are times when being overly optimistic can be dangerous.

When I interviewed the country cooking queen Paula Deen (you can hear her interview on December’s SUCCESS CD inside SUCCESS magazine), she said one of the most important principles responsible for her success was learning how to take CALCULATED risks.

I think there is a great and dangerous myth promoted in America about risk taking: the idea of reckless abandon or blindly jumping off the cliff equipped only with the belief that a net will magically appear. People who do that are called insane and the outcome is usually tragic… and it happens far too often.

Other Inane Product Warnings:
“Do not use in shower.” — On a hair dryer.
“Caution: Do not spray in eyes.” — On a container of underarm deodorant.
“Do not eat toner.” — On a toner cartridge for a laser printer.
“Eating rocks may lead to broken teeth.” — On a novelty rock garden set called “Popcorn Rock.”
“Caution: Hot beverages are hot!” — On a coffee cup.
“Do not use orally.” — On a toilet bowl cleaning brush.
“Please keep out of children.” — On a butcher knife.
“Not suitable for children aged 36 months or less.” — On a birthday card for a 1 year old.
“Do not use for drying pets.” — In the manual for a microwave oven.
“For use on animals only.” — On an electric cattle prod.
“Warning: knives are sharp!” — On the packaging of a sharpening stone.
“Not for weight control.” — On a pack of Breath Savers.
“Do not use intimately.” — On a tube of deodorant.
“Caution: Remove infant before folding for storage.” — On a portable stroller.
“Beware! To touch these wires is instant death. Anyone found doing so will be prosecuted.” — On a sign at a railroad station.
“Warning: do not use if you have prostate problems.” — On a box of Midol PMS relief tablets.
“Not for human consumption.” — On a package of dice.
“May be harmful if swallowed.” — On a shipment of hammers.
“Do not use orally after using rectally.” — In the instructions for an electric thermometer.

Don’t get me wrong, I am a BIG believer in taking a risk. Nothing ventured, nothing gained of course. But there is a big difference in foolish risk taking and the calculated risk Paula Deen talked about. The distinguishing difference I think is often missed by commercial propaganda and our Hollywood saturated psyche.

As General Patton famously said, “Take calculated risks. That is quite different from being rash.”

To help you distinguish the difference, let me give you the five points on the Art of Taking Risks, something I shared on the Donny Deutsch show a little while back. I think this will be very valuable to you as you pursue your big hairy audacious goals and build your entrepreneurial ventures.

#1—Risk Is Good

Risk is not only good, it is essential. Risk is the variable that separates the strong from the herd. If you want to step away from average and mediocrity, you have to take risks.

Even nature gives us clues—in order to get the fruit, you have to go out on a limb to get it. I can testify it has been those times when I was willing to take a risk that advanced my success and allowed me to accomplish much more than my contemporaries, and take me to the next level of abundance and achievement.

#2—Swing for the Fences Early in the Count

When you are young and single it is OK to take bold and sometimes foolhardy risks. You are not that far off the starting line so having to go back to zero is not as costly. Besides, taking big risks when you are young and losing can be chalked up to paying the necessary price of entrepreneurship tuition. I know I paid more than the cost of a Stanford Ph.D. in tuition to earn my entrepreneurial wisdom.

#3—NEVER Bet the House

When you are older, wiser and have the livelihood of a family on the line, you need to be smarter and more prudent with your risk choices. NEVER go all-in at the risk of your family’s wherewithal. Here is the key: Instead, carve out a certain percentage of your assets, say 20-30 percent, in the pursuit of a better future. The foundation and stability of your family is priority No. 1.

Google Founders Larry Page and Sergey Brin said, “We took huge risks when we had no cash. Now we have all of this cash and we take few risks.”

#4—Stick to What You Know

This is one of the best pieces of advice I can ever give you when it comes to taking risks. Most every time risk bit me is when I took a risk on something I had no business taking a risk on. I got crystal clear on this from Warren Buffett. He said his No. 1 business philosophy is he never invests outside his core competency. If he doesn’t understand the business or marketplace he stays away from it, no matter how alluring it might be.

I learned this the hard way. I once invested in an oil well in Louisiana, bought ownership of a jazz band, and funded the production of a country music album, and several embarrassing others—all complete failures. I had no business in those businesses.

When you don’t know the business or marketplace you don’t even know what you don’t know. You don’t even know the right questions to ask or whom to ask. You have no idea where the trap doors and landmines are. You cannot add the “calculated” part of the calculated risk equation if you don’t even know what to calculate.

#5—Eliminate the Risk Altogether… or at least most of it

You will find the greatest “risk takers” in our society actually take the fewest risks of all—Warren Buffett, Steve Jobs, Microsoft, Google, etc. If you learn about their risk assessment and planning process, you will learn they ultimately figure out how to ensure there is as little risk as possible in their strategic moves, even if it appears on the outside as extremely risky.

For example, one of the greatest lessons on risk taking I learned from what people think is one of the most brash risk takers of our times—Sir Richard Branson. Now Branson has of course taken some incredible risks in his ascension to multibillionaire status. And some have turned out to be colossal busts. But he has done it smartly, or as Paula Deen and General Patton describe it, he has done it calculated.

During some time we spent together, when asked about taking risks, this was his answer, “Always protect against the worst inevitability—protect the downside.” He said, “Don’t make being wrong have you end up living in your car.” When asked for an example he said, “First of all I never risk the main business for the sake of a new venture. That is why each Virgin brand is a separate business. No new business will ever put any existing business in jeopardy—that is my first discipline. Then in each new risk I build in an out.” He said, “When I started Virgin Airlines I started by buying only one used 747 from Boeing. Part of my contract was that after a year if it didn’t work out, they would agree to buy back the plane from me. That ensured if it didn’t work out I wasn’t really risking anything, just the time to see if I could make it work.” Interesting isn’t it?

So, quick recap. Risk is good. The more you have at stake the more prudent you have to be. Never bet the house, or as Branson put it, don’t make being wrong have you living in your car. Stick to what you know, and through thorough due-diligence and structure, eliminate most of the risk out of the deal—be prudent and calculated in your risky moves.

Share your risky business stories in the comments below: What’s the best risk you’ve ever taken? What’s the biggest risk you took, lost and what did you learn? What is your risk assessment process?

Stress has become a problem of pandemic proportions. I keep hearing people tell me how “stressed out” they are. It’s time to eradicate this disease of the mind.

I came across a transcript by a journalist who interviewed me for a national newspaper a while back. I thought you might benefit from some of these ideas and tips as well.

Tips on Avoiding and Preventing Stress
1. In your opinion, is stress an unavoidable consequence of life?

DARREN HARDY: Stress is a part of life. Life requires stress. As a muscle needs resistance to grow stronger, so do we. Many times, stress awakens our greater potential and makes us rise to the performance we were capable of all along, but we needed the challenge.

2. Why do some people seem to stress out more than others? Do some people just naturally tolerate stressors more easily than others?

DH: Ultimately, stress is a mental illusion, an interpretation and a perception. What is stressful to one person is blissful to another. Heights might be stressful for one person, while free-falling out of an airplane is sheer bliss for another. Public speaking might completely debilitate one person but be the most empowering activity for another. Losing $100,000 in the stock market might be less stressful for one person than having a bad hair day is for another. Stress is a mental perception, chosen by the perceiver.

3. Please give some of your favorite tips for managing existing stress (assuming the stressors can’t be prevented). read more »

Please don’t.

I just finished writing my commentary for our forthcoming SUCCESS Audio Series issue that is based on developing professional and other relationships. I thought you might enjoy the insight of these thoughts as well.

Hey, by the way, how do you like my new (blog) look? Groovy, eh? I have to thank Dimi Arthontidis for his always super cool design chops and our web service wizards led by Mr. Sunshine, Ryan Means—thanks guys! And I’d be remiss if I didn’t thank Todd Smith fromwww.LittleThingsMatter.com who inspired my blog envy to try to make mine as fly as his.

Six ways to give you the relationship edge in business and in life.

Here is tip No. 1 and maybe the most important one of all…

1. Be real, be transparent, be authentic and be yourself… I mean your REAL self. Too often people spend incredible amounts of energy trying to project themselves as something they’re not. Most of their conversation is spent trying to impress and they think they have everyone snookered.

Here is the reality: no one is fooled. People are always transparent… even when they think they aren’t. I’m sure you meet people all the time who say all the right things, look the part, but you just know, in your gut, even if you can’t put your intellectual finger on it, that they are full of hooey.

We are all intuitive and sensitive beings. We can feel the truth. We can sense authenticity and we can sense when it isn’t present. Projecting pretense only pushes people away from you—quickly and regularly. Your real self—the one that isn’t king of the hill, has fears, is concerned about family and has a genuine passion for a product, service or helping other people succeed—is far more attractive to people than anything else.

I think the era of “fake it till you make it” of the ‘80s and ‘90s has passed. People are smarter today and more than ever are looking for authenticity. Now let me be clear, no matter where you are in your business, in your financial success or in life, I DO want you to start dressing the part and walking the walk. I want you to start representing your elevated self. I want those things to be demonstrations of your new commitment to be better, show up better and live better. I’m talking about not fibbing on the truth.

2. Treat people… read more »

The Irish aren’t the only ones who have the lucky charm.

Do you think you are lucky—or unlucky? Your luck lies in whether you believe you are or not. You have to believe in luck to see it, and to realize it.

When I met Richard Branson, I asked if he felt luck played a part in his success. He answered, “Yes, of course, we are all lucky. If you live in a free society, you are lucky. Luck surrounds us every day; we are constantly having lucky things happen to us, whether you recognize it or not. I have not been any more lucky or unlucky than anyone else. The difference is when luck came my way, I took advantage of it.”

“I have not been any more lucky or unlucky than anyone else. The difference is when luck came my way, I took advantage of it.” —Richard Branson

Ah, there it is… told to you straight by Sir Richard.

The old adage we hear too often, “Luck is when opportunity meets preparation,” isn’t enough. I think there are two other critical components to “getting lucky.”

The (Complete) Formula for Getting Lucky: read more »