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Fail Your Way to Success – and Simplicity

May 21, 2007

in Management

One of the reasons there is so much complexity built into modern organizations is a deep aversion to risk.

The fear of failure, or, more specifically, the fear being blamed for a failure, causes managers to build layers and layers of checks and balances into systems and processes.

These checks and balances act like clots in the arteries of the organization, often slowing the flow of information and materials to almost nothing.

The underlying assumption in this all-to-common situation is that the only way to succeed is to remove the chance of anything going wrong.

Paul Ormerod aims to challenge that assumption in his book Why Most Things Fail. Interviewed in the most recent Harvard Business Review, Ormerod essentially argues that embracing failure is at least as likely to help an organization succeed as shying away from it – probably more so.

“The companies that are most able to explore and innovate — something akin to random mutation — and then rapidly and flexibly adapt when an innovation succeeds or fails, will do best,” he says.

Bottom line: all those complex checks and balances might help your organization feel secure, but chances are they won’t really help in the long term. So you might as well enjoy the benefits of simplicity instead.

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{ 1 comment… read it below or add one }

Duke May 22, 2007 at 2:10 am

Well put. Managers, executives and business owners who put in the failure firewalls to safeguard from experiencing failure usually do so to keep the failure of a project from being their fault. How many times did I see that in my 32 year career? Too many times… These managers need help changing to a more streamline way of doing business before they cause the business to fail on its own.

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