Posts Tagged ‘mistake bank’

From the Mistake Bank: “The Power of Positive Failure”

Thursday, July 29th, 2010

Mistake bank logoThere is enough of a chorus of ideas (such as this one from Nancy White referencing Chris Corrigan who points to Alexander Kjerulf) around learning from mistakes and failures that I feel we may be on the cusp of an actual movement here. Most recently, David Simms posted “The Power of Positive Failure” on the HBR Conversation blog.

Simms recounts an experience hosting a panel in which he asked the speakers to relate stories of failures they suffered through. He was amazed at how willing the panelists were to discuss their mistakes, and how much they had learned as a result. He also encourages readers to be more willing to share their own mistakes. I heartily agree.

By the way, when reading “The Power of Positive Failure,” be sure to read the comments. There are some great mistake stories there. And if you want to read/hear/see more mistake stories, visit The Mistake Bank’s temporary home (http://mistakebank.com), which will bring up a set of posts from my work in gathering and learning from mistake stories. (You’ll find plenty of my own stories in there, believe me.)

Related Posts:
A Mistake Bank story from Don McFadden – due diligence in real estate

Mistake Bank Podcast #4 – Donald McFadden on Due Diligence in a Real-Estate Transaction

Wednesday, July 28th, 2010

Continuing our look at successful entrepreneurs and the mistakes that shaped their careers. This video was part of the Mistake Bank Ning site, and I was reminded of it as we toured the city of Wilkes-Barre, PA, last weekend. My wife was driving, and from time to time she’d point to a building and say, “My dad owned that one.”

This story was from the beginning of my father-in-law’s real-estate investment career, and to me says a lot about due diligence. I’ve heard many entrepreneur mistake stories where inadequate due-diligence was at the heart of the issue. On the other hand, diving into a deal without having everything figured out, and then making it work, eventually brought these business owners to another level of success.

So: mistake or bold move? Discuss.

Don McFadden on Due Diligence in a Real Estate Transaction – a Mistake Bank story from John Caddell on Vimeo.

Prior Mistake Bank podcasts:
Tim Berry of Palo Alto Software
Charlie Crystle of Chilisoft
John Bliss of BlissPR

Mistake Bank Post: Don’t Let Them Skip The Employment Application

Monday, June 28th, 2010

Mistake bank logoIn our tradition of scouring the world for the best and most useful business mistake stories, I’m happy to present the following story from Human Resources expert Sharlyn Lauby. It first appeared in her blog HR Bartender. I’m grateful for her permission to reprint it here.

A few weeks ago I wrote a post about anti-harassment training and mentioned the time that I read about one of my employees in the newspaper – specifically their alleged inappropriate conduct. There’s another piece of that story I wanted to share with you because I learned a very valuable lesson with the situation.

Everyone needs to complete an employment application. Everyone. No exceptions.

You see, the employee I read about in the newspaper hadn’t completed an employment application. Only submitted a resume. He was a friend and former colleague of a member of the leadership team. You know how this goes…senior level manager wants to hire a former employee from a past employer. They know the person so the manager comes to human resources and says they know the person, great guy, no need to fill out an application, yada yada yada.

And because HR is constantly being accused of creating unnecessary paperwork, I figured I was being a team player and just took the resume. Wrong-o.

Now, if I had an application, would that have changed whether or not we hired the person…who knows? What I do know is, if he had completed an application, I might have at least known about the situation before reading about it in the newspaper.

Having no application, both the senior manager and I were in the dark. That just delivered a gut punch like you wouldn’t believe.

You’re probably wondering about the outcome of this situation. Well, the senior manager met the employee in the parking lot and came to my office. (Note: if your manager ever meets you in the parking lot and says “let’s go to the director of human resources’ office”, this is not a good sign.) I asked the employee one question – “Have you seen today’s newspaper?” He immediately resigned.

The outcome could have been very different. But I learned an important lesson – employment applications are for everyone. It’s not beneath someone to complete an application. It doesn’t change a person’s title or responsibilities. Employment applications contain different information than is usually found on a resume.

Having employees complete employment applications is necessary. Do yourself a favor and don’t cut corners on this one.

You can find more Mistake Bank stories and thoughts about learning from mistakes here.

Mistake Bank Podcast #1 – John Bliss, founder of Bliss PR

Tuesday, April 27th, 2010

Mistake bank logoWelcome to the first in a series of podcasts in which we explore learning from mistakes with successful entrepreneurs. First up, John Bliss, founder of Bliss PR, discusses starting out working for the family business, then going out on his own, and what he learned along the way.

Download the John Bliss podcast

Content:

0:45 A brief history of Bliss PR
4:35 When you’re starting out, you’ll take any business you have
6:55 A mistake – sharing equity with a business partner
10:00 Another mistake – losing focus
12:20 A few hiring mistakes
15:30 Going downmarket in bad times
17:15 Learning from mistakes my dad made
19:40 “It’s a ‘we’ business”

(Thanks to John, and also to Elizabeth Sosnow for connecting us.)

(audio content copyright 2010 John Caddell)

It may be difficult to learn from failure, but it’s easy to learn from mistakes

Thursday, April 1st, 2010

I posted the following this morning as a comment to Michael Schrage’s HBR post entitled, “The Failure of Failure“:

Michael, you bring up some very provocative points in this piece.

One issue with disasters as learning events is that the deep level of focus on the exact sequence of events, while it performs a useful service (explaining the unexplainable & contributing to closure on behalf of victims & loved ones), is not that helpful for ongoing learning.

A disaster (brutal summary coming) is a chain of unlikely events occuring in sequence and causing a clearly terrible outcome.

The opposite scenario also occurs, with similar frequency–we call it a rousing success (exhibit A: Microsoft in the 1990s).

The issue with both scenarios with respect to learning is this: knowing the precise chain of actions & avoiding it (in the disaster case) or replicating it (in the MS case) actually obscures the much larger number of more basic lessons that help prevent failure or contribute to success.

For those reasons I prefer to look to mistakes rather than failures as learning situations. Mistakes are things people do that, upon reflection, they would do differently, given the chance.

Mistakes occur amid failure and success (& even in everyday plugging along). They don’t have the high profile of “failures,” yet the lessons can be more fundamental & useful. Mistake learning scales up & down–from ground level to the executive suite. And mistakes are ubiquitous. We all make them & can learn from them.

So, I’d propose this. Let’s shift the focus from learning from failure to learning from mistakes. We’ll all be a lot better off.

Related post:
Lessons learned from the Mistake Bank

Lessons Learned from the Mistake Bank

Friday, March 26th, 2010

Mistake bank logoI haven’t written much about The Mistake Bank in a little while, and I’ve put the project on hiatus. But Cynthia Kurtz convinced me that it would be good before stepping away from the project to recount some of what I’ve learned in the three years since I started working on it.

1. Mistake stories are inherently memorable – both for those who are involved and people hearing the stories. This story came so quickly to the teller that I almost didn’t finish the question before he started talking:


Find more videos like this on The Mistake Bank

2. Mistakes can lead people into successful situations they wouldn’t have encountered if they hadn’t made the mistake. My favorite story in this light is my father-in-law’s story about buying an apartment building without, in his mind, doing enough due diligence… and then spending the next several months dealing with the fallout. Of course, he ended up profiting from that apartment building for many years. And without that decision, he may never have taken the plunge. There are several stories like that on the site. All the protagonists are successful entrepreneurs.


Find more videos like this on The Mistake Bank

3. Stories are often viewed by others as not being mistakes at all. See above.

4. As time passes from the event itself, it’s easier to recount your mistakes. It’s not uncommon to encounter stories that are 20, 30, 40 years old. Like this one (blame the cameraman – me – for the poor video quality):


Find more videos like this on The Mistake Bank

5. People who share mistake stories are courageous people. This story from Sue Pera, who owns a coffeehouse near my home, struck me as particularly candid, and in a way illuminated why she is a such a successful businessperson:


Find more videos like this on The Mistake Bank

Finally I would say a word about what a narrative collection represents. Once the site got to thirty, forty, fifty stories, it began to exhibit, for me at least, something of the richness of a Cubist painting. By collecting a number of different styles of storytelling across many subjects yet all relating to mistakes, the site became a place where you could immerse yourself and gain a perspective on human imperfection and, in a way, grace.

What’s next for the Mistake Bank? Perhaps a company will take the plunge and set one of these up for themselves, as a way to capture lessons learned, the company’s history and culture.

Maybe there’s a book in it. There was for Royal Little.

[If you'd like an invitation to the Mistake Bank, email me at john (at) caddellinsightgroup (dot) com.]

Related posts:
On Royal Little’s “How to Lose $100,000,000 and Other Valuable Advice”
A collection of posts on the Mistake Bank

Scott Berkun reminds us of the value of learning from mistakes

Wednesday, March 3rd, 2010

You may remember my project The Mistake Bank. It’s on hiatus now (isn’t that what broken-up bands say?), and someday soon I’ll be putting up a post on what I learned from that project. (Thanking Cynthia Kurtz for that idea.)

In the meantime, people are still screwing up and, thankfully, learning from those experiences. Most recently there was this post from Scott Berkun: “My Biggest Mistakes.”

Scott, in addition to being a great speaker and blogger, is a first-class mistake learner. His post “How to Learn From Your Mistakes” was an early entry in the Mistake Bank. It’s gratifying to see that he still appreciates the value of reflecting on his past actions, and retains the sense of humor that allows him to do so.

Related post:
Scott Berkun on learning from mistakes

From the Mistake Bank: the players dissect the AOL-Time Warner failed merger, 10 years later

Monday, January 11th, 2010

Mistake bank logoI’ve learned, after working on the Mistake Bank for the past several years, that the most powerful lessons can be learned years after a mistake is made. This is especially true with a colossal failure. Only after much time has passed can the people involved shed their self-protective impulses and see clearly what happened.

There has been much written (for example here and here) about the 10th anniversary of the failed AOL-Time Warner merger (AOL again became an independent company in mid-December 2009). But nothing has been as compelling and rewarding to read as this New York Times article recounting the history of the merger from the viewpoints of the principal actors involved. Did you know that Gerald Levin and Steve Case first met at the 50th anniversary celebration of the People’s Republic of China? I didn’t either.

Once back in the States, Case began his pursuit:


MR. LEVIN We’re now back in the United States and I think Steve Case called me on the phone and in that conversation more than alluded to putting the companies together. I had my traditional script and quasi-legal background that when someone calls you on the phone, make sure they understand you’re not for sale, which we certainly weren’t, and decline any overture, which I did over the phone.

And the story goes on from there. It’s riveting, candid, and revealing, and a must read for anyone who is eager to do a big merger. It might make them stop and think a bit.

Learning from failures (and successes) requires different IT systems

Tuesday, September 1st, 2009

I’ve been working recently with a colleague tasked with improving his company’s project management outcomes (I was going to say processes, but on thinking about it they’re asking him to improve the performance and results).

He’s focusing on lessons learned, as you might expect. The company has done lots of projects; surely there are many lessons within those projects that could help improve things going forward? And there are. But my colleague has found that the inability to effectively capture and share these lessons prevents the organization as a whole from getting much if any value out of their past experiences.

[This Harvard Business Review article emphasizes why project management, in particular, is prone to repeating the same mistakes over and over again.]

I was thinking about my colleague as I was reading this recent article in “Strategy + Business” entitled, “Are You Killing Enough Ideas?” by Zia Khan and Jon Katzenbach. The article discusses innovation, not project management, but this section in particular resonated with me and spurred my connection with project management lessons:

…When there is an ineffective balance between formal and informal structures, it often shows up as an inability to manage bad ideas effectively. After a formal decision has been made to advance some ideas but not to pursue others, the company expends considerable effort to plan the next steps for the winners. But no one thinks actively of planning next steps for the losing ideas, to put them to rest, free up their supporting resources, and (ideally) identify and share any lessons or insights gleaned from the experience.

One quibble with this otherwise excellent paper: why is identifying and sharing lessons and insights from experience an “ideal” situation?

Significant corporate initiatives, whether they are innovation ideas or IT projects, are expensive in capital, resources and opportunity cost. The experience, whether the project is ultimately a success or not, is hard won and valuable. It should be mandatory to capture and share these lessons and insights.

There are several barriers my colleague faces in trying to institutionalize the creation and use of lessons learned. “Let’s move on” is one of the most pernicious ones. After a difficult project, people are inclined to look ahead rather than backward, to forget difficult or painful experiences rather than mine them for lessons. (In many cases, as I’ve learned in nearly two years of working with The Mistake Bank, lessons sometimes emerge years after an experience.) Organizations, of course, in their eagerness to place blame, facilitate people’s instincts to hide or blur what happened in the case of a failed project.

My colleague’s company has a very open and positive culture; they are more equipped than most companies at overcoming the reluctance to share. Yet they still face a significant obstacle: their information systems are not up to the task of gathering, sharing, sorting and consuming lessons-learned material.

They capture lessons in Word forms and documents, and store them in file folders on a shared drive. And they are not surprised when no one can find anything. Dumping valuable lessons on a shared drive may have a slightly positive use for whoever writes the lessons down; at least that person learns a bit more from the retelling. But certainly it’s of no use to anyone else.

Lessons-learned need enterprise 2.0-type tools that capture narrative data, signifiers and tags; allow users to “like,” pass along, add to, and otherwise annotate original stories; and browse through, search and connect related stories. That’s what my colleague needs, and that’s what every organization that wants to “ideally” learn from both good and bad experiences needs as well.

From the Mistake Bank: NYT on “A Creature of Bad Habit: Why (Athletic) Mistakes Are Repeated”

Monday, July 20th, 2009

From The Mistake Bank:

This article in the Sunday Times takes up one of my favorite topics–repeating mistakes.

The situation described is not one of failing to learn (which we often talk about), but instead that narrow class of athletic mistakes seemingly caused by hyper-awareness, fear of failure, and its resulting tension, cov

ering well-known cases like Chuck Knoblauch’s inability to throw the ball accurately from second base to first (something my 8-yr-old son does easily). This season, Mets pitcher Mike Pelfrey committed a rare balk three times in one inning, and is the only major leaguer to commit six balks in a season since 2001.

The Times story was particularly timely given the unexpected appearance of 59-year-old Tom Watson on the British Open leaderboard over the weekend. Watson’s youthful brilliance (eight major championships) had given way to a middle-aged inconsistency, fueled by that demon of older golfers everywhere, the yips. Sadly, while Watson played like a 40-year-old and had magically avoided situations where the yips come on (notably, short putts), he couldn’t avoid an eight-foot putt on the 18th hole to win. As you might expect, he left the putt short–he yipped it.

It’s a bizarre and fascinating story to read about world-class athletes struggling with some of the easier parts of the game. However, there are situations where “getting in your own way” can have an effect on normal people like us. I’ll confess one. I have a very strong memory, but I am terrible at remembering people’s names when I first meet them.

Years ago during my single days I met a girl at a party. We talked and talked. She told me her name. I promptly forgot it. I said, “I’m so sorry, but I forgot your name, can you tell me it again?” And she did, and I forgot it again. Needless to say, I didn’t see her again after that party.

I’ve struggled with this over the years, puzzled on it, tried to fix it, to no avail. There’s no logical reason why, once I finally remember someone’s name, I can recall it 20 years later, but can’t remember the name of someone who has just introduced himself. Now it’s a gigantic mental block, in which I view meeting someone new a bit like Watson viewed that 8-foot putt.

Thank God for business cards!

[If anyone else would like to share their personal yips, please respond in the comments.]