By Jonathan H. Westover, PhD
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Abstract: This article discusses how leaders and organizations can adopt a more constructive approach to failure by regarding it as an opportunity for learning and improvement rather than a negative outcome to be avoided or hidden. It begins by defining failure as simply not achieving an intended result and exploring how failure is often perceived negatively. The article then outlines ways leaders can "fail well" by reframing failure mentally as a natural part of progress, analyzing what caused specific failures to identify accountability and lessons, and ensuring changes are made based on lessons learned. It also stresses the importance of transparently sharing learning from failures to build an organizational culture where risks and mistakes are seen as valuable sources of knowledge. Finally, the article provides suggestions for cultivating an environment where intelligent risk-taking and subsequent learning from failures are consistently encouraged, such as demonstrating past risks that paid off and recognizing attempts at innovation regardless of outcomes.
Failure is an inevitable and uncomfortable part of life, yet many leaders and organizations shy away from failure or view it only negatively. However, failure can provide opportunities to learn and improve when approached constructively.
Today we will explore how leaders and organizations can "fail well" by considering failure an opportunity rather than a defeat. Through a research-informed lens and practical applications, leaders will learn how to view failure as a chance to grow rather than a stigma, turn lessons from failures into future successes, and build a culture where risk-taking and learning from mistakes are encouraged.
Defining Failure
Before diving into how to fail well, it is important to define what constitutes a failure. At its core, failure is simply not achieving the intended or expected outcome (Popovic, 2015). However, failure is often perceived more negatively. Leaders may view failure as a sign of weakness, incompetence, or a threat to their reputation (Maurer, 2018). This negative perception often leads leaders and organizations to avoid risks that could lead to failure or hide failures that do occur.
While sometimes failure truly is due to factors within one's control, many failures happen due to external circumstances outside of anyone's control (Llopis, 2013). Distinguishing between failures caused by internal factors versus external helps leaders better understand causes and lessons. Additionally, failure is a natural part of growth and the learning process; by reframing failure as a learning opportunity rather than a defeat, leaders can build resilience and encourage a culture where mistakes are seen as part of progress rather than something to avoid (Popovic, 2015).
Failures as Opportunities to Learn and Improve
When failures do occur, wise leaders view them as opportunities rather than threats. This section explores practical ways for leaders and organizations to treat failures constructively in order to learn and improve future performance.
Reframing the Mindset Around Failure: The first step is changing internal perceptions of failure. Leaders must acknowledge that failure is inevitable, especially in innovative industries, and reframe failures as a natural part of the learning process rather than something to fear or hide (Llopis, 2013). Getting comfortable with being uncomfortable and embracing an experimental, growth mindset is key. Leaders can share own past failures to normalize discussing mistakes.
Analyzing What Went Wrong: Thoroughly examining what exactly caused a failure and if any factors were within an organization's control is important. Was it a faulty product design, poor execution, changing market conditions, or something else? Distinguishing uncontrollable versus controllable factors helps determine accountability and lessons (Popovic, 2015). Objective root cause analysis focuses learning on improvements rather than blame.
Implementing Changes Based on Lessons: Valuable insights come from failures only if acted upon. Leaders must ensure lessons are clearly documented and specific changes are implemented to minimize repeat failures. For example, if a market research failure led to launching an unsuitable product, changes could include strengthening market validation processes before major investments (Maurer, 2018). Seen through, changes solidify that failure fueled growth, not defeat.
Sharing Learnings Openly: Once root causes and changes are identified, leaders can openly share learnings from failures across the organization. This builds a culture where mistakes and subsequent improvements are seen as valuable sources of knowledge rather than shameful secrets. Especially for high-profile failures, transparent communication reassures stakeholders the organization is growing wiser from experiences (Llopis, 2013).
Building an Environment for Calculated Risk-Taking
A final key element of failing well is fostering an environment where intelligent risks and subsequent learning are consistently encouraged. This section explores specific ways leaders can cultivate such a culture.
Demonstrating Risk is Worth Reward: Leaders signal risk is valued by openly discussing calculated gambles that paid off greatly, like new market expansions or innovations (Maurer, 2018). They emphasize no groundbreaking successes happened without prior experiments and intelligent failures. This inspires others to test boundaries.
Providing a Soft Landing After Failure: No one will take risks without assurance there is support, not punishment after potential failures. Leaders create psychological safety by reassuring no retribution comes from failures as long as lessons are learned (Edmondson, 2018). Resources should assist recovery and growth.
Rewarding Attempts, Not Just Outcomes: Along with tolerating failures, experiments aimed at innovation must be rewarded whether successful or not. Recognizing ambition and risk-taking, independent of outcomes, encourages creativity versus playing it safe (Llopis, 2013). Reward systems emphasize growth over results alone.
Funding 'Fail Fast' Projects" Leaders back small, low-cost initiatives allowing rapid learning cycles. Fast failures incur low losses but yield high learnings to avoid bigger future failures (Popovic, 2015). Examples include product demos getting quick consumer feedback versus large investments upfront.
Conclusion
In today's fast-paced business environment, failures are inevitable. However, failures provide rich learning opportunities when approached constructively. This essay outlined specific ways leaders can fail well by reframing mindsets, thoroughly analyzing lessons, implementing changes, sharing knowledge openly, and cultivating a culture encouraging intelligent risk and experimentation. Viewing failures as opportunities rather than defeats enables wise leaders to fuel future successes from past experiences. Those who understand failures as a natural growth process will gain competitive advantages through their willingness to learn from both victories and setbacks.
References
Edmondson, A. C. (2018). The fearless organization: Creating psychological safety in the workplace for learning, innovation, and growth. John Wiley & Sons.
Llopis, G. (2013, April 25). 4 characteristics of leaders who embrace failure as a learning opportunity. Forbes. https://www.forbes.com/sites/glennllopis/2013/04/25/4-characteristics-of-leaders-who-embrace-failure-as-a-learning-opportunity/?sh=15fc06c57b20
Maurer, R. (2018, January 1). How to fail well: 3 steps to turning failure into opportunity. Society for Human Resource Management. https://www.shrm.org/resourcesandtools/hr-topics/organizational-and-employee-development/pages/how-to-fail-well-3-steps-to-turning-failure-into-opportunity.aspx
Popovic, Z. (2015). The art of failing: An optimistic & frank discussion about defeating defeat. Self-published.
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). Failing Well: Turning Failure into Opportunity. Human Capital Leadership Review, 13(2). doi.org/10.70175/hclreview.2020.13.2.3
