TAKING VALUE FROM FAILURE: STRATEGIES FOR ORGANIZATIONAL GROWTH – PART 2
“Failure itself is not painful; it is the lack of understanding and learning from it that hurts our soul. Facing failure not only as an obstacle but as a master that guides us toward growth allows us to transcend its inevitable pains. It is in the deep reflection on our failures that we find the most valuable lessons, those that shape our journey and strengthen our resilience. Therefore, it is essential not only to accept failure but also to embrace it as an opportunity for transformation and evolution.” (Marcello de Souza)
IMPLEMENTING THEM
In this second part, I will delve deeply into the transformative potential of these strategies for the company. Additionally, I will provide a detailed guide for their strategic implementation, aiming not only to demystify the idea of failure but also to empower the company and its employees to be more resilient. This process aims to help the team better deal with mistakes and minimize the impacts of this feeling of failure. Additionally, I will describe in detail how to implement the Strategies for Turning Adversity into Organizational Growth Opportunities. Finally, I will also share important tips for new perspectives. Let’s examine each of the three steps to achieve this goal:
1st Step – Learning from Failure
To begin the process of learning from failure, it is essential to provoke deep reflection on projects or initiatives that did not achieve the expected results. We recognize that this exercise may encounter resistance, as revisiting past failures can be an emotional challenge for many individuals and teams. A strategic approach to facilitate this reflection is to develop a meticulous exercise that leads people to analyze thoroughly the sources of value that can be extracted from a project that did not meet its objectives, as well as the costs associated with that failure. This exercise not only reveals the lessons learned but also highlights the assets acquired, such as insights into customers and the market, organizational process effectiveness, culture and structure, as well as individual and collective team learnings. Now, I suggest an innovative approach to this sequence of exercises, where we not only analyze the positive and negative aspects but also actively explore ways to transform challenges into tangible growth opportunities. Let’s engage in a provocative and strategic dialogue that awakens participants’ creativity and foresight. It is worth mentioning here that the goal is to present a model that you can adapt to your reality. Let’s see two proposals for exercises:
1st Proposal: More Direct Model
1. Assets:
1.1. Innovation from Customer Insights:
• How can we transform information about current customer needs and preferences into tangible opportunities for innovation and differentiation?
1.2. Anticipation and Adaptation to Future Trends:
• What specific strategies can we develop to proactively anticipate and adapt to future trends, ensuring our relevance and market leadership?
1.3. Optimization of Collaboration and Organizational Efficiency:
• How can we optimize our organizational processes, culture, and structure to promote more effective collaboration and a more inspiring work environment?
1.4. Development of Individual and Collective Skills:
• What are the individual and team development initiatives we can implement to maximize our performance and growth?
1.5. Turning Challenges into Opportunities:
• How can we use the challenges faced as catalysts to strengthen team confidence, engagement, and resilience?
2. Liabilities:
2.1. Learning from Failure Costs:
• What valuable lessons can we extract from the direct and indirect costs of the failed project, and how can we apply them to avoid or minimize these costs in the future?
2.2. Rebuilding Reputation and Relationships:
• How can we turn challenges into opportunities to rebuild and strengthen our reputation and relationships with customers, partners, and stakeholders?
2.3. Team Well-being and Engagement:
• How can we promote a healthy and motivating work environment, where employees feel valued and inspired to contribute to the company’s success, even in the face of a setback?
3. Results:
3.1. After carefully analyzing the above questions, identify three key insights that can guide our future efforts. Develop a detailed action plan to implement these insights and track your progress over time, ensuring that each step is strategically planned and executed with excellence.
2nd Proposal: More Reflective Model
1. Assets:
1.1. Customer Journey Vision:
• Picture yourself as a customer navigating through the experience of our product or service. What valuable insights can you extract from this journey to enhance our approach and better meet customer needs?
1.2. Future Focus:
• Project yourself five years into the future and envision the positive impact that learning from failure can have on our company. What are the key insights you would like to have gained in that period and how can we apply them to drive our growth?
1.3. Collaboration Map:
• Create a visual map representing collaboration among teams during the failed project. Identify connection points and obstacles that hindered effective collaboration. How can we strengthen our bonds and maximize our collective potential?
1.4. Personal and Collective Development:
• Make a list of skills you would like to improve individually and as part of the team. How can we create an environment of continuous learning that fosters the personal and professional growth of all team members?
1.5. Culture of Trust and Resilience:
• Reflect on moments when your confidence was challenged during the failed project. How can we cultivate a culture of trust and resilience that empowers us to face future challenges with determination and optimism?
2. Liabilities:
2.1. Financial Impact Analysis:
• Explore the direct and indirect costs of the failed project and identify areas where resources were misallocated. How can we optimize our resource allocation to ensure a more efficient return on investment?
2.2. Reputation and Relationships:
• Evaluate the impact of failure on the company’s reputation and relationships with customers, partners, and stakeholders. What steps can we take to rebuild trust and strengthen these vital connections for future success?
2.3. Team Well-being and Engagement:
• Analyze the impact of the failed project on team well-being and engagement. How can we promote a healthy and motivating work environment where employees feel valued and inspired to contribute to the company’s success?
3. Results:
• After reviewing the assets and liabilities of the failed project, identify three key insights that can be applied to drive the company’s future success. Develop a detailed action plan to implement these insights and track progress over time, ensuring each step is strategically planned and executed with excellence.
When conducting this analysis, it’s essential to foster a culture of openness and learning, where failure is not stigmatized but seen as an opportunity for growth and improvement. This can be facilitated through brainstorming sessions, individual or group interviews, and other activities that encourage critical and constructive reflection on past experiences.
At the end of this process, it’s important to compile and document the lessons learned clearly and accessibly, so they can be easily shared and used to inform future decisions. This documentation may include key insights, practical recommendations, and concrete examples of how to apply these lessons in contexts relevant to the organization.
In this way, the first stage of the implementation process emphasizes the importance of addressing failure in a structured and reflective manner, turning it into an opportunity for organizational learning and growth. By adopting this approach, organizations can not only minimize the negative impacts of failure but also maximize the benefits derived from past experiences.
A significant real-life example was that of a client for whom I was engaged to develop a coaching and mentoring process. They were a consulting firm that lost a major contract to a clearly less experienced competitor. Initially, this setback was felt as a hard and unexpected blow. However, instead of merely lamenting the loss, senior executives decided to conduct a thorough analysis of the incident during several strategic meetings with the various departments involved.
During this detailed analysis, team members began to realize that the client’s selection criteria had subtly changed, and they had failed to argue adequately. Furthermore, they identified that the competitor had acted much more proactively, collaborating directly with the prospective client to understand their needs and preferences. This revelation led to deeper reflection on the company’s own practices.
Additionally, managers recognized that the company was overloaded with activities and had lost experienced talent to the market due to low salaries offered. This finding raised the crucial question of the need to invest not only in acquiring new clients but also in retaining and developing internal talent. The entire employee hiring and retention strategy was redesigned.
As the discussion progressed, it became clear that the company had also been complacent in its approaches, and due to the recognition and bonus model, it led to the prioritization of other potential larger clients over the client in question. This revealed a lack of dedication and commitment to the project, ultimately costing them the contract. This critical analysis revealed that the company needed to drastically change its approach, organizational climate, and consequently its culture to be able to identify and seize future opportunities. Instead of viewing failure as an insurmountable obstacle, the team recognized its value as an opportunity for learning and growth. This shift in mindset allowed them to make the most of the insights gained from the experience, using them to adjust their strategies and internal practices.
I hope you realize how the structured approach of learning from failure can lead to valuable discoveries and drive organizational innovation and growth. By viewing failure as a learning opportunity, companies can turn adversities into advantages and maximize their return on past investments.
2nd Stage – Knowledge Dissemination
Reflecting on specific failures is helpful, but the real gain is realized when learning is shared throughout the organization. As an executive observed, “it is necessary to establish an evaluation cycle and promote broader discussion.” When information, ideas, and improvement opportunities from a failed project in one area of business are transmitted to other areas, the benefits multiply. Sharing insights increases the likelihood of success in future initiatives. Avoiding the mistake of punishing messengers of bad news is crucial, as highlighted by an executive. By acknowledging the positive aspects of failures, trust is built, and doors are opened for bolder initiatives. It is recommended to regularly convene senior management (from a unit or the entire organization) to discuss failures. These discussions are most effective when they are brief, frequent, and future-oriented, focusing on learning.
An inspiring example of this approach is the case of Marcus (fictional name), director of a major mobile device security app development company. After acquiring a competitor, the company faced internal challenges with some strategic clients. Marcus implemented a series of changes, including new layouts, teamwork methods, and a strategic approach model. Additionally, he instituted weekly meetings in the units for quick and direct assessment. On Thursday mornings, he always conducted evaluations, asking questions like: What did you intend to learn? What did you learn? What is this costing you? Ready, five or ten minutes later, we moved on to the next team.” In the end, he redesigned the entire organizational structure, improved, and created his own agile management model. Marcus was able to transfer many insights from this operation among the units, retaining most employees, and sharing his learnings with other members of the leadership team.
I can also present the case of a client, a telecommunications service provider, who invested in a technology project aimed at enhancing the services offered to customers. After two months of implementation, it became evident that the project was not achieving the expected results. Surprisingly, the executive committee took another four months to officially cancel the project, even after the problems had been identified. This delay in the evaluation and decision-making process highlighted the need for a review of the company’s internal procedures. By sharing this experience with managers and colleagues, the leader of the main team catalyzed the implementation of a more agile and efficient evaluation process. This change not only allowed problematic projects to be identified and terminated more quickly in the future but also reinforced the organizational culture of continuous learning and improvement.
There’s also a case I followed closely of a non-profit education company committed to improving the quality of life in disadvantaged communities nationwide. However, they faced challenges in transferring knowledge between their various affiliates. To address this issue, executives decided to launch an annual “failure report,” openly highlighting projects that didn’t achieve expected results. This initiative was crucial in promoting a culture of transparency and continuous learning within the organization. By exposing failures transparently and constructively, the company was able to see the real picture, empower its employees to learn from past mistakes, and work together to avoid repeating them in the future. This approach not only strengthened bonds between teams but also enabled the organization to adapt more quickly to changes in the external environment and maintain its commitment to excellence and innovation.
3rd Stage – Corporate-level Assessment
In the third stage of this process, we cannot just settle for analyzing the tangible results of failed ventures. It’s essential to go further and delve into the complex dynamics that shape the company’s response to failure. This involves a comprehensive understanding of the human and organizational interactions that influence reactions and learning processes. In this regard, adopting a holistic perspective is imperative. Merely looking at the numbers isn’t enough; we must consider corporate culture, interpersonal relationships, communication, and emotional aspects involved. Nowadays, many companies are exemplars of discipline in this approach, seeking to combine management with actions that care about the emotions and feelings of their employees, often appointing a Chief Happiness Officer (CHO) to monitor the organizational climate on a daily basis. In other words, they don’t just evaluate productive and financial performance; they also examine organizational resilience and the ability to learn from mistakes, recognizing that failure is often a valuable source of knowledge and growth.
A suggestion I always make is that when evaluating the organizational systemic approach to failure, we should not only ask ourselves if we are extracting lessons from each failed project but also if we are effectively sharing those lessons throughout the organization. Questions like: Are we promoting a culture of continuous learning, where mistakes are seen as opportunities for improvement? Are we using these lessons to inform and enhance our future strategy and execution? These are valuable examples that should guide our reflection and action in this stage of the process.
A practical example of this approach can be seen in one of the companies where I worked as a consultant. There, directors met quarterly with the heads of each strategic area, including the Human Resources department. In these meetings, they not only reviewed results and indicators but also questioned if they had made any fundamental mistakes and sought to identify patterns in processes and decisions made. Alessandro, one of the company’s partners, emphasized the importance of not being influenced solely by numbers and graphs. He stressed to me the need to carefully listen to the voices of all involved, giving them the freedom to express their opinions and perceptions. This systematic approach allowed for a more comprehensive analysis and a more informed decision-making process. This practice also echoes a memorable moment at the Future of Management conference held in 2008, where renowned Silicon Valley investor Steve Jurvetson shared a provocative insight. He emphasized that “the goal is not just to make good isolated decisions but to develop a decision-making process that statistically leads to good outcomes in a wide range of situations.” These strategic discussions and reflections are essential for assessing whether the company’s failure rate is within expectations or if adjustments are needed in systems and processes. Sometimes, it’s during these moments of self-assessment and critical analysis that valuable insights emerge to propel the company toward sustainable success.
Allow me to share a revealing experience I had in a fast-food company in which I was deeply involved. In early 2017, the executives of this company were facing a period of intense concern regarding their customer evaluation processes. Each project that didn’t yield the expected return was meticulously examined and reexamined, seeking insights and learning.
However, as the company experienced rapid growth from 2017 until mid-2018, with the expansion of its services and the opening of new units in various locations, something interesting happened. The initial enthusiasm for evaluations began to wane as the company found itself immersed in the operational demands of this expansion period. Although evaluations were still being conducted, their consistency and depth were affected, impairing the company’s ability to identify and rectify issues effectively.
Consequently, the company faced internal challenges that resulted in a market decline and the need for a change in leadership. The new management structure, aware of the importance of continuous learning and rigorous assessment, proposed a “back to basics” approach in its management. This included a revitalization of the old internal evaluation process, which extended throughout the company’s structure and hierarchy, even reaching suppliers.
This experience brought forth a valuable lesson: evaluations and continuous learning are essential at all levels of the organization. By maintaining a culture of assessment and feedback, the company can motivate and empower its teams to deal with day-to-day challenges and learn from failures. Each unit of the company became unique in the regional way of dealing with people, thus more receptive to learning and more agile in course correction, contributing to resilience and empowerment of local teams that led to corporate success to this day.
If you research the subject and look for companies that have succeeded in cultivating a failure culture, you’ll find examples worldwide of organizations that innovated in their approaches to dealing with failure, recognizing it as an integral part of the learning and growth process. For example, New York-based agency Grey established the HeroicFailure award, while NASA created the Lean Forward, Fail Smart award. The Tata Group also developed the Dare to Try award. By following the work of Sunil Sinha, leader of quality management services at the Tata Group, you’ll discover the philosophy behind these initiatives in an interview with Bloomberg Businessweek in 2009, where he stated, “We want to encourage boldness and eliminate the fear of failure.”
The proposal is to turn failure into a valuable source of learning and development. Every mistake, no matter how small, can be a chance to gain experience and progress. By deriving lessons from each obstacle faced, sharing them with others, and periodically reviewing how these insights are driving your company towards effectiveness and success, you’ll witness the benefits of failure expanding.
What’s important to emphasize and my main goal is to ensure that you understand that, in this third phase of the process, it’s crucial to recognize that the assessment of failure transcends simple analysis of objective results. It involves a deep immersion in the intricate dynamics that influence the company’s response to difficulties. A holistic approach is necessary, going beyond quantitative aspects and considering organizational culture, interpersonal interactions, and emotional components at play.
In this context, we must ask ourselves if we are promoting a culture of continuous learning, where mistakes are seen as opportunities for improvement. Are we effectively sharing the lessons extracted from failures throughout the organization? These reflections guide us to use the insights gained to inform and enhance our future strategy and execution.
A practical example of this approach was implemented by a company that adopted a similar process. The leaders held regular meetings with the teams to review results and identify any process failures. This systematic practice allowed for a more comprehensive analysis and a more informed decision-making process.
However, the significant change occurred when the company recognized the importance of creating an environment conducive to genuine sharing of failures. By establishing awards and initiatives that valued the courage to try and learn from mistakes, the company fostered a culture of innovation and resilience.
At the end of the day, a company’s success is not only measured by its successes but by its ability to learn and adapt in the face of adversity. By turning failure into a valuable source of learning and growth, each challenge becomes an opportunity to strengthen the organization and lead it towards sustainable success.
Experiences involving the analysis of failures in companies operating in high-risk environments are common, especially where rewards for successful innovation are great, although most innovative projects fail to achieve expected results. A leading company in the industry, aware of the need to balance risks and caution, is constantly seeking approaches that help it achieve this balance. With the aim of reaping the benefits of experimentation, a cross-functional team launched an initiative to implement specific failure evaluation projects.
In this context, I was able to observe this process in a prominent company in the mobile technology industry. In the case at hand, the team identified several groups from different areas and requested each leader to conduct a pilot project to be completed within 90 days. During the kickoff meetings, the importance of learning from failure was emphasized, encouraging the groups to discuss a recent project that had not succeeded. Subsequently, in further follow-up meetings, team members were encouraged to share other examples of personal failures. Initially, some participants showed hesitation. As reported by one team leader: “In the first meeting, some people were defensive, but by the second, there was a significant improvement in dynamics, and the discussion went beyond what was expected.” Another leader was surprised by the sincerity of individuals as the project progressed.
The feedback was valuable for many participants, allowing them to recognize personal growth resulting from failure. One manager shared their experience of an abandoned project due to a lack of internal support from other stakeholders, while another mentioned being so focused on achieving their personal goals that they did not notice the challenges faced by their team. Both learned from these situations and adjusted their approaches as necessary. Others gained new perspectives on their customers or markets. For instance, one team realized they missed a significant innovation opportunity because they were so focused on their own goals that they did not dedicate time to listen to and address customer issues.
In a different scenario, failure occurred due to the lack of identification of decision-makers within the client’s organization. Although the primary contact seemed to be the decisive person, in reality, their influence was limited. These conversations helped the company refine its approach regarding key relationships. Another significant benefit was the strengthening of teams. A leader commented: “It was an excellent opportunity to help my newly formed team collaborate more effectively.” This experience was echoed by another leader who stated: “The process allowed us to resolve some tensions within the group.” During the discussions, suggestions for improving the process emerged. For example, a team leader proposed that conversations be directed towards specific and recent projects, ensuring that recommendations were directly applicable. They noted: “Some members tended to focus on past experiences, which is useful for fostering a sharing culture within the team but limits the relevance of ideas for the current market.” All team leaders agreed on the usefulness of structured and less formal failure assessments. As one of them put it: “Sharing failure is not natural and requires time for people to feel comfortable. Therefore, it is not feasible to include it in regular meeting agendas. It needs to be specifically scheduled and space reserved for it to occur.”
Concluding this article leads us to reinforce the crucial relevance of the third stage of the corporate-level evaluation process. In this phase, transcending mere analysis of tangible results is imperative. It requires delving deeply into the intricate dynamics that influence the company’s response to failure. A holistic perspective is essential, encompassing not only quantitative aspects but also organizational culture, interpersonal relationships, and emotional elements involved. Successful companies understand that failure is often an invaluable source of knowledge and growth. Therefore, fostering a culture of continuous learning, where mistakes are seen as genuine opportunities for improvement, is fundamental.
Practical examples of this approach abound in organizations that have adopted similar processes. Leaders regularly engage with their teams, reviewing results, identifying process flaws, and promoting an environment conducive to honest failure sharing. By instituting awards and initiatives that value the courage to try and learn from mistakes, these companies cultivate a culture of innovation and resilience.
Ultimately, the success of a company cannot be exclusively evaluated by its successes, but rather by its ability to learn, adapt, and grow in the face of adversity. By transforming failure into a valuable source of learning and growth, each challenge becomes an opportunity to strengthen the organization and guide it towards sustainable success.
To conclude this reflection, we can draw upon Confucius’ quote: “It is not failure itself that is painful; it is the lack of understanding and learning from it that hurts our soul.” This quote encapsulates the essence of the failure assessment process and its importance for both personal and organizational growth.
The true impact of failure lies in how we approach it and learn from it. It is essential to recognize that failure is part of the path to success and that, often, the most valuable lessons are drawn from the most difficult experiences. By facing failure head-on, with humility and resilience, we open doors to growth and evolution.
As we reflect on our failures, we should strive to understand the reasons behind them, identify the lessons that can be learned, and apply that knowledge to improve in the future. It is this cycle of assessment and learning that allows us to transform failure into an opportunity for personal and professional growth.
Ultimately, by embracing failure as an integral part of our journey, we strengthen our ability to adapt, develop a growth mindset, and become more resilient in the face of challenges. Therefore, let us view failure not as an obstacle, but as a stepping stone to success.
*Link to access the full article – “Transforming Defeats into Achievements: The Journey of Accepting and Growing from Failures”: https://www.marcellodesouza.com.br/transforming-defeats-into-achievements-the-journey-of-accepting-and-growing-through-failures/
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Hello, I’m Marcello de Souza! I started my career in 1997 as a leader and manager of a large company in the IT and Telecom market. Since then, I have been involved in major projects structuring, implementing, and optimizing telecommunications networks in Brazil. Restless and passionate about behavioral and social psychology. In 2008, I decided to delve into the universe of the human mind. Since then, I have become a professional passionate about unraveling the secrets of human behavior and catalyzing positive changes in individuals and organizations. A Ph.D. in Social Psychology, with over 25 years of experience in Cognitive Behavioral Development & Human Organization. With a broad career, I highlight my roles as:
• Master Senior Coach & Trainer: I guide my clients in pursuit of goals and personal and professional development, providing extraordinary results. • Chief Happiness Officer (CHO): I promote an organizational culture of happiness and well-being, boosting productivity and employee engagement. • Expert in Language & Behavioral Development: I enhance communication and self-knowledge skills, empowering individuals to face challenges with resilience. • Cognitive Behavioral Therapist: I use cutting-edge cognitive-behavioral therapy to assist in overcoming obstacles and achieving a balanced mind. • Speaker, Professor, Writer, and Researcher: I share valuable knowledge and insights in events, training, and publications to inspire positive changes. • Consultant & Mentor: My experience in leadership and project management allows me to identify growth opportunities and propose personalized strategies.
My solid academic background includes four post-graduate degrees and a Ph.D. in Social Psychology, as well as international certifications in Management, Leadership, and Cognitive Behavioral Development. My contributions in the field are widely recognized in hundreds of classes, training sessions, lectures, and published articles.
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Allow me to be your partner in this journey of self-discovery and success. Together, we will unravel a universe of behavioral possibilities and achieve extraordinary results.
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2 Comentários
oi
Hello! I know this is kinda off topic but I was wondering
which blog platform are you using for this website?
I’m getting tired of WordPress because I’ve had problems with hackers and I’m looking at options for another platform.
I would be fantastic if you could point me in the direction of a good platform.
Marcello De Souza
I advise you to hire a hosting provider that has the resources to create websites and blogs, this way you will be safer with your work, for example:
• HostGator
• Locaweb
• More humble.
• Host
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