Whether in a company or in your personal life, the right to fail is a key principle when it comes to learning and progress, and therefore innovation. This was the fascinating topic chosen by the EDHEC Innovation Club for a webinar on 8 February 2021. Participants enjoyed highly enriching discussions with guest speakers Karin Kollenz-Quétard, professor of strategy at EDHEC Business School*, and Samy Aoudia, a former Shell director now specialized as an entrepreneur accompanying change in companies. Is the right to fail a mindset that you can easily accept and adopt? Here’s how to allow yourself to fail and walk away better off!   

Shame, risk and frustration, or learning, experience and opportunity? In the professional world, the word “failure” is associated with negativity as much as positivity. But, as we will see, it’s more than an expression: “learning the lessons of failure” is a reality.

Progressing through failure

When working for Shell, Samy had first-hand experience of this. While putting in place a new and fast oil change service, the company quickly realised that despite a solid business plan and significant investment, its objectives would not be achieved. After trying in vain to adapt the concept, Shell resolved to cut its losses. But because this experience gave it a better understanding of the market, Shell decided to convert its know-how by offering it to major auto repair chains, a success that would not have been possible without its initial failure. Similarly, as an entrepreneur, Samy has made the difficult experience of bankruptcy, despite his efforts to innovate. But this allowed him to learn about new areas of business, expand his skillset and bounce back. He now runs two companies based on the know-how acquired through this experience and tells us that it is possible to “build on failure to construct something new”. Failure carries doubt and raises questions, which forces you to improve. He believes we learn more from our failures than our successes. So what’s the key? Knowing how to approach failure. As Karin explains, “there is great value in tellingyourself that if a project fails there are other alternatives, and wondering what capabilities you can develop as a result of your experience to achieve something else”.

The right to fail and innovation: two intrinsically linked concepts

To stay in the race, businesses have no choice but to innovate – and there can be no innovation without failure.In order to innovate, one must take risks and adapt.

From a financial perspective, it is often easier to innovate in a big company, which can allocate considerable resources to innovation, than in a small business, where the cost of innovation as a percentage of revenue is much higher. But as Samy reminds us, the smallest of innovations can also allow us to grow or perfect our activities. That’s why even giants like Google and Amazon are constantly innovating with a plethora of imperceptible improvements.

The right to fail as a mindset and business philosophy

Let’s be honest, failure often comes at a cost. That’s why it’s essential to teach your shareholders to adopt a medium or long-term vision rather than focus on short-term gains. Indeed, if they invest in start-ups, it’s because they understand that innovation is a way to secure a company’s future. However, changing the culture of companies that don’t nurture such a mindset can be a fastidious task. In fact, it is often in times of crisis that we are forced to evolve quickly. Karin cites the example of Disney, which, having struggled for a long time to produce as many successful animated films as in the past, with much of its resources dedicated to distributing Pixar’s films, decided to buy out Pixar. Their strategy to bounce back was to absorb not only the company but also its culture. Another example of a firm not afraid to invent and fail is Virgin, which has tried to innovate in many areas you’re probably not even aware of (like underwear!). But his failures never stopped Richard Branson, who believes that every innovation is worth a try, even though only one out of five ideas goes on to be a success.

5 characteristics found in companies with a culture of innovation 

• A willingness to experiment, essential in times of crisis, when established routine no longer provides the right answers.
• Tolerance of failure but not of incompetence.
• Psychological security, i.e. the chance to rely on someone responsible and the guarantee of open communication.  
• Collaboration and responsibility.  
• Flat organization with strong leadership.

Make a habit of learning from your failures 

One fundamental principle to make your failures beneficial is to analyse each one systematically so you can adapt your procedures accordingly. Above all, it is essential to quickly and regularly share the lessons of your failures with the rest of the company. Learning from small everyday failures will allow you to improve. For example, when something doesn’t work properly, take a few minutes to make a note of it and find a solution for the next time. This habit creates a virtuous circle: the more regularly you analyse your failures, the more comfortable you will be with failure, and the more you will become confident to experiment and therefore progress. So, allowing yourself the right to fail will expand your comfort zone and allow you to develop capabilities that in turn will enable you to innovate.

The right to fail is a challenge for both companies and individuals, but we must not be afraid to make mistakes and question ourselves, for every experience is an opportunity for growth.

We hope this article will have changed how you see failure and boosted your motivation for projects ahead! Don’t hesitate to turn to the EDHEC Alumni community, who are ready to listen and regularly organise webinars on enriching and varied topic, be sure to check the schedule of events and sign up! Also learn about our professional and local clubs and join one that suits you. 

* Karin Kollenz-Quétard is a Founding member of the EDHEC Chair for Foresight, Innovation and Transformation (FIT) which helps organizations to become FIT for the future. Check out the its activities and upcoming open online courses at https://www.edhec.edu/en/innovation-chair/executive-education.

}