Failure is a word many people dread. It’s associated with loss, defeat, and sometimes even the end of a dream. But for great leaders, failure isn’t the end — it’s a steppingstone toward growth and a barrier to break through or fear to overcome. While statistics show that failure rates are high in business (around 20% of startups fail within the first year, and it gets worse as time goes on), it is often those setbacks that help shape future successes. The key isn’t avoiding failure, but embracing it, learning from it, innovating, transforming, and using it to push forward.
When I started my firm 34 years ago, each year we remained in business, grew, became more profitable, attracted quality clients, and confirmed we were doing things right. That resulted in a great sense of satisfaction. I also learned that failure was to be expected and a source of valuable lessons. Here are a few more things I learned.
5 Key Lessons on Failure
1. Reframing Failure as a Learning Experience
The first step toward recovery is reframing failure not as a defeat, but as an opportunity for growth – think of it as failing forward. According to a study by Harvard Business Review, 75% of entrepreneurs who experienced failure in their first venture went on to succeed in their second one. This teaches us that success is not always a linear path, and each failure carries valuable lessons that can set the stage for future achievements.
Successful leaders don’t view setbacks as the end of their journey. Instead, they take time to reflect, learn, and adjust. By doing this, they ensure that each failure becomes a steppingstone for innovation, resilience, and greater success.
“Failing forward” is a concept that emphasizes learning from mistakes to progress and improve. Instead of viewing failure as a final outcome or a setback, failing forward establishes a mindset of growth and learning. It involves analyzing what went wrong, understanding the lessons learned, and using that knowledge to make better decisions and take more informed actions in the future. The idea is to turn failures into opportunities for growth and development rather than letting them discourage or hinder progress. It’s a mindset that promotes resilience, creativity, and continuous improvement.
“The only real mistake is the one from which we learn nothing.” – Henry Ford
2. Famous Leadership Failures and the Lessons They Teach
History is filled with renowned leaders who faced failure, only to emerge stronger on the other side. Take, for instance, Steve Jobs. After being ousted from Apple — the company he co-founded — in 1985, many considered him a failure. However, he used this period to learn valuable lessons and later returned to Apple, guiding it to become one of the most successful companies in the world.
Or consider Thomas Edison, who famously said, “I have not failed. I’ve just found 10,000 ways that won’t work.” Edison faced countless setbacks in his efforts to invent the lightbulb, but he never gave up. His perseverance is a reminder that failure is not the opposite of success, but a part of the process (beyond the light bulb for which he was most famous, he singly or jointly held a world-record of 1,093 patents).
These examples show that failure is a universal experience for great leaders. It’s not about the failure itself, but what comes after it that defines leadership.
What about you? Are you growing and learning from your setbacks, challenges, and failures? Are you open to examine them, or do you turn your back and walk away saying “good riddance.”
Failure can teach us how to be flexible, adaptable, humble, creative, and how to overcome obstacles and even use challenges to our advantage. I believe it also helps us determine if what we are pursuing is really important or just a passing thought.
Progressing and advancing in life requires courage, honesty, and self-awareness. It’s easy to get distracted and focus on things that make you feel good and entertain you rather than digging in and doing the hard work. I encourage you to push through the challenge and get better. Have the courage to confront your fears and make the necessary changes required to press through your doubts and mental barriers to grow. If you are really serious, you may even get an accountability partner or hire a coach to support you and keep you on track.
“Failure should be our teacher, not our undertaker. Failure is delay, not defeat. It is a temporary detour, not a dead end. Failure is something we can avoid only by saying nothing, doing nothing, and being nothing.” – Denis Waitley
3. How to Handle Failure with Resilience and Accountability
Resilience in leadership is key when setbacks occur. Being able to bounce back requires both emotional strength and practical strategies. Research shows that resilient leaders are more likely to foster a positive team environment and inspire creativity. In fact, a study by Gallup found that companies with resilient leaders had 30% higher productivity rates than those without (your resilience inspires others to follow).
Accountability is crucial. Leaders who take responsibility and ownership of their mistakes, rather than deflecting blame, set a positive example for their teams. This promotes an atmosphere of trust, safety, openness, curiosity, and encourages people to learn from their failures without fear of retribution.
When facing failure, great leaders don’t just look for who to blame; they focus on the lessons learned and move forward with a sense of ownership. For more on the topic of resilience, read my previous article.
4. Turning Setbacks into a Competitive Advantage
Setbacks often provide the opportunity to reflect and re-strategize. Instead of accepting defeat, successful leaders use failure to their advantage. Take Nike, for example. Despite numerous setbacks in its early days, including failed product launches and marketing missteps, the company turned those failures into opportunities to refine their products and brand image.
Leaders who learn from failure and adjust their plan can find a unique competitive edge. A setback allows a company or individual to reassess and innovate, ensuring they can provide something better than before. In competitive industries, innovation born from failure can be the difference between leading and lagging.
5. Creating a Team Culture Where Failure Leads to Innovation
A crucial aspect of leadership is cultivating a team culture where failure is seen as part of the innovation process. Google’s famous “20% time,” where employees are encouraged to dedicate a portion of their workweek to passion projects, has led to products like Gmail and Google Maps. This approach fosters creativity and encourages risk-taking, showing that innovation often stems from failures and experiments.
Leaders can encourage their teams to embrace failure by creating a safe space to take risks and try new things. When failure isn’t feared, teams can innovate without hesitation, leading to greater breakthroughs. After all, most groundbreaking ideas were once considered risky and unproven.
How to Recover and Move Forward
When we face setbacks, recovery is crucial. Based on my own experiences and those of others I’ve observed, here are some factors that contribute to recovery:
- Self-Awareness: Recognize and accept what happened without sugarcoating the facts. A clear understanding of your failure is necessary to determine the steps to move forward.
- Discipline: Stay focused and composed. Panic only leads to poor decisions and prolonged setbacks. Stick to the plan and maintain control (get an accountability partner if required).
- Flexibility: If something isn’t working, be willing to change course. Adaptability is key to future success.
- Faith: Know that you’re not alone. Seek the support of colleagues, friends, or mentors who can offer guidance and encouragement (faith in God is also a source of comfort for many).
- Perspective: It’s not the end. A shift in perspective can turn a crisis into an opportunity for growth and change.
- Trust: Believe in the collective strength of your team, family, and friends to overcome challenges.
- Persistence: Many of history’s greatest successes came when people chose to persist through adversity, not because they had more resources, but because they refused to quit.
- Lighten Up and Chill Out: Your situation doesn’t define your worth. Even when things seem dire, remember that your value isn’t tied to your circumstances.
As Winston Churchill wisely put it, “Success is not final, failure is not fatal: it is the courage to continue that counts.”
Failure can be tough, but it doesn’t have to be devastating. It’s not about avoiding failure, but about using setbacks as opportunities to grow, innovate, and build resilience. Leaders who embrace failure as a natural part of their journey not only inspire their teams, but also create a culture that fosters creativity, persistence, and growth. Remember, it’s not the failure itself that defines you — it’s how you respond and rise above it that truly counts.
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