The hypothesis seemed sound. Hospital teams that worked better together would make fewer medical errors. Instead, research showed the exact opposite. It was a major embarrassing setback for researcher Amy Edmondson early in her career. But she didn’t let that stop her. Further analysis of the data uncovered an intriguing suggestion—the teams that worked well together reported more errors because those employees felt empowered to admit their mistakes.
 

The result was that Edmondson, now a Harvard Business School professor, came up with the concept of psychological safety which launched her career. “It’s hard to remember that this work was born of failure because it’s been such a successful research idea since,” she told the HBS Working Knowledge publication.

The bottom line, which I’ve discovered in my own career and while working as a culture change strategist with companies across the country, is that failing can be good for you. Setbacks can be the impetus to make changes and inspire new successful undertakings.

In my case, I also had an early career setback that I was able to turnaround thanks to the wise counsel of my mentor. What happened was that after I’d become the leader of a sales team, I drove double-digit growth for four quarters. Then the next two quarters plateaued.

My business coach interviewed numerous people in my orbit, performing a deep dive into what was happening. Then he broke the news, “Jason, nobody likes you.” Instead of leading and developing I’d been pulling and dragging. I made a major change in how I worked with people, and we were soon back on an upward trajectory.

It’s something everyone can do if you apply yourself. Here are some of the leadership lessons I’ve learned from setbacks.

Acknowledge

The first step in learning from setbacks is to accept that something went wrong. Don’t be an ostrich with your head in the sand. Don’t try to paper over an error and move on. Acknowledge the mistake. Take responsibility. And certainly don’t point fingers at others if the fault is at your doorstep.

Analyze

Step two is to investigate what happened. Perform a candid assessment. What went wrong? Why? Root out the contributing factors. Whether it’s a product launch that flopped, a project that went over budget, or a deal that fell through, each setback provides a clear lens to evaluate decision-making processes and operational weaknesses.

Professor Edmondson, author of the excellent new book, Right Kind of Wrong: The Science of Failing Well, says, “Each and every one of us is a fallible human being. That’s not a choice or a judgment, that’s fact. We all make mistakes. We are all vulnerable to occasionally missing our goals—sometimes due to our own shortcomings and sometimes due to factors outside our control. Either way, the only good option is to learn as much as possible from mistakes and failures alike.”

Be Transparent

Be open and transparent when you encounter challenges. Create a space where your team feels okay to openly debate mistakes without fear of repercussions. By freely discussing failures you can eliminate any attached stigma. You build trust among team members and by eliminating the fear of failure you drive a culture where continuous improvement is valued over perfection and where innovation thrives.

Collaborate

Solutions to issues are more readily developed when teams work together. Nurture a culture where employees are happy to collaborate, solve problems, and share in the success. Famed psychologist Adam Grant, whose most recent book is Hidden Potential: The Science of Achieving Greater Things, says, “The most meaningful way to succeed is to help others succeed. To do that we need to learn from the feedback that setbacks offer us.”

Change!

Sometimes a setback is a clear signal that it’s time to shake things up. Maybe your fundamental business model needs to be tweaked or the indications are you need to expand into new markets. It may well be the opportunity you’ve needed all along to switch gears. Take note that innovation is more than dreaming up new ideas. It’s about learning what works, being agile, adapting, and pivoting away from old assumptions. And most important of all—implementing. Nothing else matters unless change occurs.

Celebrate

Failure is a cause for celebration—as long as you learn from it. You can pop the champagne cork when you’ve made course corrections and celebrate the fact you wouldn’t have got there if you hadn’t overcome the initial setback. Celebrate the learning moments just as much as you do the victories.

Final Thoughts

Setbacks are not merely obstacles; they are opportunities to learn, grow, and innovate. By embracing these challenges, leaders can enhance their skills, strengthen their teams, and guide their organizations to greater heights. It's not the setbacks that define a leader, but the response to them. Embracing these lessons can transform potential defeats into valuable drivers of success.

Every setback presents a new opportunity for growth. As long as you asses what went wrong, learn from it, and don’t commit the same errors, today’s failure can become tomorrow’s triumph.

Author Bio

Jason Richmond is the CEO and Chief Culture Officer at Ideal Outcomes, Inc.

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