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Failure management and how one mistake can make you billions of dollars

Mariana Maciel, organizer of FuN São Paulo , shares her learnings on how to turn our failures into catalysts for growth.

By:
Mariana Maciel
November 26, 2024
Managing Failure: Key to Innovation

We all begin our analysis of failure stories with that cliché: to err is human. But, after this recognition and acceptance, what to do with the detected error, especially in professional environments?

The Culture of Failure Management

The problem is that organizations and we, as individual contributors or entrepreneurs, do not know what to do with the learnings from a business failure. Something that is left unaddressed gives us a much better chance of being repeated and even amplified. 

Managing failure involves acknowledging it, which is very important, but it is only the beginning of a much bigger job.

And it all starts with culture. For error to really be viewed realistically and as a driver of change, the environment needs to address this issue in a broad and structured way. It cannot be the work of just one area or one group of people. Part of our job as individuals and professionals is to develop the essential ability to constantly learn from our context at all levels of the organization, fostering personal and professional resilience in teams in a changing environment.

Challenges and Opportunities in Failure Management

What unfortunately happens in most organizations is that the risk of failure becomes an issue within an innovation team, for example, and the issue ends up becoming an island among the rest of the organization. Almost like in a zoo, the "wild" topic is observed from the outside and admired as something very disruptive. But it is enough for that same "animal" to show up here in my living room and drive it out without even giving it a chance to pet it. This act reflects the fear of failure and the absence of a growth mindset based on continuous learning, from error.

And, like all cultural work, it goes through stages and processes for its implementation:


What is my level of acceptance of the presence of failure in my organization and what is done with it?

It is important to take advantage of moments such as annual surveys or other evaluations within the teams to raise the issue anonymously. Understand the maturity level of the areas in the organization in relation to the topic, in order to know how to create an action plan, recognize strengths and developing points. This is crucial to turn mistakes into learning opportunities.

An organization may not be good at identifying or admitting failures, but it may have a good profile for crisis management or rapid market adaptation. This will certainly make it easier to act on turnarounds when failure occurs. But it may also be a place where employees do not feel open to vulnerability, which already presents us with a certain scenario to cover.

Another organization may be very good at being open to vulnerability, but it is not open to innovation and is extremely attached to traditional processes. This already brings us to another scenario that needs to be challenged.

What is the right action plan for my reality?

In the case of a company with an aversion to vulnerability, we can already see that it will be necessary to develop soft skills involving change management, the search for consulting firms focused on the subject and even a new element in performance evaluations, for example. In organizations that are not very open to innovation and are very process-centric, it will be necessary to implement new methodologies, such as Agile, a focus on testing and learning and the pursuit of rapid experimentation. These changes are challenging objectives that can serve as a catalyst for growth.

The point is that for each environment a specific action plan must be created, in a precise and detailed manner. There is no one-size-fits-all solution in this area.

And a very important point is also to measure this evolution, establishing metrics related to each environment, ranging from employee turnover to the number of new ideas generated and implemented, for example.

And the aversion to mistakes is completely linked to a reduction in innovation. In a world of such rapid change, organizations that want to perpetuate themselves over time need to be constantly innovating, regardless of the sector in which they operate or the type of service they offer. In an organization that is error-averse, its employees will find it more difficult to adhere to new approaches and tools, due to the fear of making mistakes and being exposed. This resistance leads to conflict, reduced productivity, and even obsolescence. However, recognizing and addressing these past failures can be a great learning opportunity and part of continuous learning.

Leveraging mistakes to build the road to Innovation in my company/organization

According to Nielsen, in 2020, products born of mistakes generated more than $50 billion in global revenue. This number reflects the significant impact these accidental innovations can have on the global economy. 65% of consumers also said they were willing to try new products that arose from mistakes or accidents.

The Post-it story is a perfect example of how one mistake can lead to success. Initially, 3M did not know how to market a weak adhesive created by the company. However, when Art Fry came up with the idea of using the sticker to mark pages, the company saw an opportunity. Today, the Post-it is a multi-billion dollar product, available in more than 100 countries and in hundreds of variations. This success not only generated huge revenues for 3M, but also solidified the company's reputation as a leader in innovation.

Conclusion: 3 tips to improve and apply what I have learned during my failures

It is never too late to change your course. Some essential points for those who want to be inspired and use mistakes as a source of improvement are:

  • Promote a culture of learning and experimentation;
  • Celebrate small successes;
  • Establish constructive feedback to transform failures into opportunities.

Failure management is not only necessary, it is fundamental for success and continuous innovation, promoting personal growth through facing adverse situations.


And the most important thing is to understand that it is never too late to start again. Error detected? Change course, adapt and renew your path. Who knows, maybe the next Post-it in your market is on your side and you just didn't see it because you were afraid of making a mistake.

Edited by

Fuckup Nights

Failure management and how one mistake can make you billions of dollars
Mariana Maciel
Content Strategy Manager LATAM at J&J | Organizer of Fuckup Nights São Paulo
Mariana Maciel is a journalist with more than 20 years of experience in corporate communications, content and digital marketing. She is currently the organizer of Fuckup Nights São Paulo.
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Let's transform our perception of failure and use it as a catalyst for growth.