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How To Turn Failure Into Innovation Using the AAR Process

Little is said about how post-failure learning occurs, how it is shared and how it becomes positive.

By:
October 14, 2024
How to turn failure into innovation using the AA process

How To Turn Failure Into Innovation Using the AAR Process

When you think of Slack, video games don't usually come to mind... at all. But the truth is, before tormenting millions of workers worldwide, the founders of Slack wanted to develop a video game called Glitch.

As you can guess, their first project failed. But in the process, the developers realized how difficult it was to communicate with colleagues. So, they developed an internal messaging tool, and the rest is history.

This is a great example of how often failed projects hide big opportunities and lessons.

We often hear that we can learn a lot from failure, but little is said about how that learning happens, how it's shared, and how it's turned into something good.

In this article, we're going to share a process and some best practices that we use when bringing Fuckup Nights to companies around the world.

The Challenges of Sharing Learnings

When we talk about "lessons learned" we refer to the knowledge gained from past challenges and failures.

It's no secret that documenting and sharing these lessons helps teams to avoid repeating mistakes, optimize processes, and improve decision-making. It also fosters continuous improvement and long-term innovation through efficient knowledge transfer between employees.

However, when moving from theory to practice we often see a lack of processes for documenting these learnings despite the evident benefits.

According to data from our Failure Survey (2023), only 35.5% of employees typically communicate and report lessons learned from failure.

Why is that?

Two Key Elements for Sharing Learnings

When it comes to sharing and socializing lessons learned, there are two complementary must haves:

Culture: There has to be a core belief of winning collectively. Even with the best resources for training and documentation, sharing won't occur without creating spaces that foster psychological safety and a mindset focused on continuous learning.

This creates a trustworthy and transparent work environment that encourages openness, allowing team members to discuss their mistakes without fear of retaliation. In this culture, failure is perceived as an opportunity for learning rather than a reason for shame.

Workplaces must address mistakes with a sense of responsibility and commitment, focusing on solutions rather than imposing fear through sanctions.

Infrastructure: A culture geared toward sharing lessons learned won't be efficient without the right tools, channels, or processes to support it.

Frequently, these learnings involve a vast amount of information, perspectives, and causes, making it overwhelming to synthesize them into something concrete and helpful.

It becomes essential to have easy to use processes for documenting and sharing lessons. Effective mechanisms are simple, friendly, and quick to use. Remember, we want them to share failures and challenges. We need to make it as easy and enjoyable as possible.

The AAR Process

A great tool for evaluating a team's or project's performance after completion is the AAR process, which stands for After Action Review.

It's a structured way to reflect on what happened during the execution of a task or project—what went well, what didn't, and how future outcomes can be improved. It consists of four stages:

  • Design: Define the goal, particularly what you'd like to learn from the process. Identify stakeholders and anyone involved or who might benefit from the findings.

  • Preparation: Gather all necessary information and perspectives for your analysis. At this stage, you can reflect on other methods or meeting types that could help collect more data. For example, we’ve helped corporate partners interview their teams so they’re more open and comfortable than with their bosses or colleagues.

  • Implementation: Conduct the analysis and discussions. Bring the information to the table and execute the methods outlined in the previous stage. During this phase, ask the following questions:

  • What was expected to happen? (project objectives)
  • What actually happened? (actual outcomes)
  • Why were there differences? (cause analysis)
  • What can be learned from this? (lessons for future improvement)

  • Dissemination: Map out what went wrong, how it happened, and the new steps to take to avoid it. Additionally, define new action plans to prevent future failures through process design as well as training.

The value of the AAR lies in its ability to identify lessons learned immediately, promote a culture of transparency and accountability, and improve team performance moving forward.

Best Practices for Sharing Failures

Finally, we'd like to share some tips we've learned from bringing the Fuckup Nights philosophy to hundreds of companies:

  • Create a Process and Structure: Establish an official process to document and share lessons. Determine the appropriate channels depending on the amount of information and share it with stakeholders. Look for tools, platforms, or meeting formats to strengthen these processes. Use technology to optimize and facilitate knowledge sharing in a centralized, accessible space.

  • Implement Changes: Valuable conclusions mean little if they are not put into action. These changes look like new policies, rules, processes, guidelines, methods, tools, etc.

  • Encourage Communication and Transparency: Work on creating environments where everyone feels safe sharing experiences and giving feedback. This can be achieved through leadership positions that inspire these values and internal campaigns emphasizing the importance of over-communicating and being open.

  • Celebrate the Sharing: Recognize the teams and individuals that contribute to the organization's collective knowledge. A good way to do this is by creating incentives or recognition programs. Did you know that X (formerly Google X), from Alphabet, gives vacations to members that implement failed projects that offer valuable learnings?

Success doesn’t offer many big levers for improvement. On the other hand, failures are hiding the information that will lead to your company’s growth. This is your gold mine. 

Why not start acting on failure more effectively?

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How To Turn Failure Into Innovation Using the AAR Process
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Bring Fuckup Nights to your organization!
Bring Fuckup Nights to your organization!

Let's transform our perception of failure and use it as a catalyst for growth.