Transforming Small Failures into Major Successes: A Leadership Guide
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Chapter 1: The Power of Addressing Failures
Throughout my decade-long experience as a CEO, I’ve uncovered a vital leadership strategy that can dramatically shift the trajectory of your business.
Inspired by billionaire entrepreneur Ray Dalio, I learned that many teams falter because they celebrate their achievements while neglecting their failures. In contrast, effective leaders prioritize addressing issues head-on. Like skilled surgeons, they identify and eliminate the roots of failure as if they were malignant growths.
By applying the following method, you will systematically uncover the underlying causes of both minor and major setbacks, ensuring your organization stays robust and achieves its ambitious objectives more swiftly.
Always Begin with This Question
Failure is an experience that every individual encounters at some point. It’s a universal truth that no one can achieve success all the time. Yet, failures are the necessary stepping stones toward improvement.
When a team member falls short of a target or deadline, my initial inquiry is straightforward: “What led to your failure?”
This question sheds light on the vulnerabilities in your team's performance—those obstacles hindering your organization’s path to success.
However, the challenge arises when probing deeper.
Recently, I asked my programmer why he couldn’t fix a software bug on schedule. He responded, “You didn’t give me enough time.” If I had a dollar for every instance of this excuse, I’d be quite wealthy.
More often than not, the first response is merely a facade concealing a more significant issue. The real task begins when you dig deeper to uncover the actual cause of the setback.
Getting to the Heart of the Matter with Continuous Inquiry
Individuals seldom reveal the genuine reasons behind their failures at first glance.
Approach the situation like a mechanic diagnosing a malfunction. Open the hood, shine a light, and search for the source of the issue.
Persistently ask “why” until you penetrate the core of the problem.
I pressed my programmer: “Why didn’t you have enough time?” He crossed his arms and replied, “The software company only responded to my support email yesterday.”
Continuing, I asked, “Why was their response delayed? When did you send your request?” He sheepishly admitted, “I only reached out yesterday.”
Thus, the real reason for the missed deadline was not a lack of time, but rather his delay in addressing a critical task.
As an engineer, I understand the pressures of meeting deadlines in a complex technical environment. However, this doesn’t excuse missed goals. Every failure presents an opportunity for growth.
Now that we’ve identified the root cause, what’s next?
Solution 1: Enhance Their Skill Set
Sometimes, a team member's failure stems from a skills gap.
However, lacking a specific skill doesn’t equate to a lack of talent or determination. Most skills can be acquired and honed relatively quickly.
In my programmer's case, we decided to work on his time-management skills, a competency essential for everyone on our team.
For instance, if my content creator overlooks a task, I’ll share my strategies for effective reminders. If my new social media writer hasn’t mastered social listening, I’ll provide her with resources to develop that skill. If my production manager struggles with scheduling, I’ll arrange high-quality training for our planning software.
Skills can be developed quickly, and this is part of the journey of continuous improvement.
Solution 2: Utilize Their Unique Strengths
Unlike skills, human abilities are innate or developed over time.
Some individuals excel in strategic thinking, while others thrive in detail-oriented tasks. Some are numerical thinkers, while others possess remarkable creativity. Certain employees are exceptional learners and critical thinkers.
While abilities can improve, this process is gradual and leaders often lack the luxury of time. If a team member consistently fails due to a critical ability deficit, it's a signal to act.
You have three options: 1. Pair them with someone who compensates for their weaknesses. 2. Assign them tasks that align with their strengths. 3. If all else fails, consider parting ways. Although tough, keeping someone who consistently underperforms isn’t beneficial for the individual or the team.
Solution 3: Refine Your Processes
At times, the inability to meet goals is not entirely the team's fault.
Your organization operates like a complex machine, relying on the processes you’ve established. Occasionally, these processes may be flawed.
Miscommunication is a frequent culprit for missed objectives. Often, leaders fail to clearly articulate expectations, deliverables, and deadlines. Processes may be overly convoluted, or distractions in the workplace could impede focus.
Ultimately, your team might be navigating through a poorly designed system.
An effective leader is akin to an engineer—a systems architect. Beyond assembling the right team, it’s crucial to design and refine processes that empower your team to achieve their goals efficiently.
Your One-Page PDF Template for Transforming Failures into Success
I favor structured, straightforward, and user-friendly approaches.
I’ve created a template that I regularly utilize with my team, which you can download [here](link-to-template).
Each time a team member experiences a setback, we gather to document the missed goal. Then, we continue to ask “why” until we pinpoint the root cause: whether it stems from a skills gap, a lack of ability, or an issue in our processes.
The true value of this tool lies in its capacity to foster improvement. The template also includes a section for actionable next steps.
Once you identify the root cause, collaborate with your team member to determine what changes will be implemented moving forward. The more specific and actionable these steps, the better. Regular follow-ups ensure that these actions are executed.
Empathy Over Interrogation
This leadership approach can be challenging.
It necessitates directness, confrontation, and radical transparency. Asking team members why they fell short can create discomfort for both leaders and employees. No one wants to feel like a failure, and individuals often deflect blame onto external factors: unreliable suppliers, uncooperative colleagues, or malfunctioning equipment.
However, great leaders must prioritize the continual improvement of the organization over their team’s immediate discomfort. Avoiding these discussions can hinder both personal and collective growth.
Persist through the discomfort to uncover the root cause: whether it’s a skills deficit, an ability gap, or a flaw in the organizational structure.
Despite the need for firmness, resist the urge to become tyrannical.
Leading with the question of “why you failed” is an exploration rather than an attack. Acknowledge your team’s hard work, dedication, and loyalty while collaboratively seeking avenues for improvement.
Finally, encourage your team to ask you: “Why did you fail?” Let them participate in your growth as a leader.
Your Turn to Lead
Embracing the "why you failed" approach is only effective when you cultivate a culture where mistakes are permissible, but learning from them is paramount.
It takes humility to accept direct feedback that can feel personal but is crucial for revealing areas needing enhancement. This principle applies universally to every employee and manager, including you—the founder.
However, even the most effective leadership template is useless if it gathers dust on your desk. Your ultimate aim is to translate these insights into actionable improvements within your company.
Transform root causes into concrete actions: schedule training for your employees, reorganize your team, or refine your processes.
Leadership isn’t overly complicated. It requires the courage to initiate open and honest discussions by asking, “Why did you fail?”
Here’s a video that provides two examples for each of Amazon's 14 Leadership Principles, demonstrating the importance of these concepts in practice.
In this video, Simon Sinek discusses the key reasons behind personal and professional setbacks, offering valuable insights into effective leadership.