In many organizations, like those discussed in this chapter, countless small problems routinely occur, presenting early warning signs that the company's strategy may be falling short and needs to be revisited. Yet these signals are often squandered. Preventing avoidable failure thus starts with encouraging people throughout a company to push back, share data, and actively report on what is really happening in the lab or in the market so as to create a continuous loop of learning and agile execution.

The operative word here is “listening.” In the Chapters 5 and 6, you will read about eight flourishing organizations where leaders have created the conditions to make listening and speaking up the norm, not the exception. In these fearless workplaces, it's far less likely that employees will refrain from sharing valuable information, insights, or questions and far more likely that leaders will listen to rather than dismiss bad news or early warnings.

Your greatest challenge as a leader, then, is to honor each person’s legitimate fear of the unknown and, at the same time, to turn that fear into spiritedness. We, your followers, like the comfort of where we stand, yet know that the flow of events is pulling us inexorably into the unknown. So when we find something, anything, however slight, that lessens our uncertainty, we cling on for dear life.

Now consider what happens when senior executives, or parents, for that matter, state unequivocally that failure is off-limits, that only good results are acceptable. Failures don’t stop. They simply go underground. Unwittingly, the financial services executives I spoke with were at risk of inhibiting the transmission of bad news. That wasn’t their goal. Their goal was to encourage excellence. But it’s human nature to hide the truth when it’s clear that sharing it will bring punishment—or even just disapproval. Our fear of rejection presents the third barrier to practicing the science of failing well.

I’d go so far as to say that insisting on high standards without psychological safety is a recipe for failure—and not the good kind. People are more likely to mess up (even for things they know how to do well) when they’re stressed. Similarly, when you have a question about how to do something but don’t feel able to ask someone, you’re at risk of running headlong into a basic failure. Also, when people encounter intelligent failures, they need to feel safe enough to tell other people about them. These useful failures are no longer “intelligent” when they happen a second time.