Embracing Failure: A Revolutionary Approach to Business Success
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Chapter 1: Rethinking Failure in Business
If you aspire to lead your business toward success, it's essential to approach it with a mindset that acknowledges failure as part of the process.
In a life where travel became routine and conferences were my second home, I had the fortune of speaking immediately after Chris Hadfield at a San Francisco conference. Chris, an astronaut, shared insights from his unique experiences in space, while I discussed the necessity for traditional businesses to undergo significant transformations to remain competitive in today's fast-paced world.
"Most of us aren't in the failure business," I referenced Chris's discussion, which highlighted the importance of focusing on adding value to people's lives through our services and products. It's crucial to prioritize alleviating pain or enhancing pleasure.
My father often referred to me as "mein kleiner Revoluzzer" (my little revolutionary), and he might have been right in this case. I found myself overwhelmed by the increasingly popular idea that we should all embrace failure, a notion that seemed to have originated in Silicon Valley. A few years prior, my boss in Austria made a humorous remark: "You can make every mistake twice: once and never again." While meant to be lighthearted, it contained a kernel of truth—nobody truly enjoys making mistakes.
Ray Dalio, one of the most successful investors globally, shared a principle from his firm, Bridgewater Associates: the worst thing you can do with mistakes is to keep them to yourself. Mistakes are inevitable; the key is to document them and learn from them. I find the global initiative "Fuckup Nights" particularly commendable, where individuals publicly share their failures, effectively documenting and moving past them. This format has proven successful in organizations aiming to foster a healthier attitude towards failure.
Recently, I came across an article discussing how to navigate unplanned scenarios. The author argued that if you prepare for the unexpected, you may downplay the importance of your original plan. This perspective shifted my view on mistakes entirely, as I couldn't disagree more with the author's stance.
Returning to the conference in San Francisco, Chris Hadfield elaborated on his view of being in the failure business. For astronauts, not having contingency plans for unforeseen events can jeopardize missions and even lives. On Earth, we have the luxury of seeking help or resources, but in space, one must utilize available materials and strategies effectively.
I realized I had misjudged the situation—running a business inherently involves engaging with failure. Today, more than ever, uncertainty is a common theme across industries. Whether due to a disruptive data company or the ongoing impacts of the pandemic, businesses are rapidly evolving. The challenges posed by COVID-19 have accelerated the development of exponential organizations, altering how we work, communicate, and interact.
The Role of a Director of Failure
As businesses grow, the concept of a "Director of Failure" emerges. This individual is responsible for anticipating potential mistakes and devising strategies to address them. Like an astronaut preparing for a mission, this role requires a resourceful mindset: how can we maximize outcomes despite limited resources, especially time?
By adopting this approach, companies can develop two key survival skills:
- They will create a repository of contingency plans, outlining potential failures at various stages of product development and organizational growth, complete with allocated time frames and budgets for addressing issues.
- They will gain confidence in their ability to navigate challenges, ensuring that no matter what arises, they are likely to overcome it.
This strategy transcends the traditional "Plan B" mentality; it serves as a safety net that empowers confident decision-making. The more scenarios you anticipate, the more accurate your risk assessments will be. As a leader, being right frequently is essential.
Letting Go of the Fear of Failure
What applies to organizations also resonates on a personal level. Many people are familiar with the concept of the "law of attraction," which posits that what you envision becomes reality. This idea can seem overly simplistic, especially for those who work diligently for their success, understanding that achievements often come with significant effort and sometimes luck.
Turning back to the fear of failure, as a public speaking coach, I frequently encounter individuals seeking advice on overcoming stage fright. The anxiety surrounding public speaking is common, but the fear of that fear can be even more paralyzing. I encourage you to surrender this fear.
How can you do this? Establish a routine. Dedicate an hour each week to analyze potential issues you might face, both professionally and personally. Document how you will respond when these challenges arise.
Two outcomes are likely: first, you will discover solutions for every potential problem; second, you will realize that the worst-case scenario is simply standing up, brushing yourself off, and moving forward. As Tom Hanks wisely stated, "This too shall pass."
The added benefit of this practice is that it alleviates worry, allowing you to concentrate on your aspirations and journey rather than fixating on what could go awry. After all, most of us are not in the failure business.
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