Right Kind of Wrong: How the Best Teams Use Failure to Succeed - Amy Edmondson

Introduction:

“Intelligent failures provide valuable new knowledge. They bring discovery. They occur when experimentation is necessary simply because answers are not knowable in advance.

For example, meeting with senior executives in a large financial services firm in April

2020, I listened as they explained that the current business environment made failure temporarily “off-limits.” Understandably concerned about an economic climate increasingly challenged by a global pandemic, these business leaders wanted everything to go as well as possible. Generally speaking, they were sincere in their desire to learn from failure. But enthusiasm about failing was acceptable when times were good, they told me; now that the future looked uncertain, pursuing unerring success was more imperative than ever. These smart, well-intentioned people needed to rethink failure. First, they needed to appreciate the context. The need for fast learning from failure is most critical in times of uncertainty and upheaval, in part because failures are more likely! Second, while encouraging people to minimize basic and complex failures may help them focus, welcoming intelligent failures remains essential to progress in any industry. Third, they needed to recognize that the most likely outcome of their prohibition on failure wasn’t perfection but rather not hearing about the failures that do occur. When people don’t speak up about small failures—say, an accounting error—these can spiral into larger failures, such as massive banking losses.

What makes a failure qualify as intelligent? Here are four key attributes: it takes place in new territory; the context presents a credible opportunity to advance toward a desired goal (whether that be scientific discovery or a new friendship); it is informed by available knowledge (one might say “hypothesis driven”); and finally the failure is as small as it can be to still provide valuable insights. Size is a judgment call, and context matters. What a large company can afford to risk on a pilot project may be greater than what you can afford to risk on a new endeavor in your personal life. The point is to use time and resources wisely. A bonus attribute is that the failure’s lessons are learned and used to guide next steps.

Practices for Learning from Failure

To Avoid

Don’t Say

Try

Skipping the analysis

I'll try harder next time.

Thinking carefully about what went wrong and what factors might have caused it.

Superficial analysis

It didn’t work. I'll just try something else

Analyzing what the different causes of the failure suggest about what to try next.

Self-serving analysis

I was right, but someone or something else messed it up.

Digging in to understand—

and accept—your own

contribution (small or large)

to the failure.

Embracing the Possibility of Failure to Reduce the Occurrence of Failure

My decades-long fascination with error, harm, and failure has left me humble about the complexity of these topics. The mix of factors—technology, psychology, management, systems—means none of us can master every aspect of the relevant knowledge to feel “we’ve got this.” But a few simple practices have emerged from my work that can help prevent complex failures. With these, we all have the power to make that kind of difference—in our own lives and in the organizations we care about.