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Showing posts with label strategy. Show all posts
Showing posts with label strategy. Show all posts

Friday, April 11, 2014

Six Categories of Large Company Failure

Six Categories of Large Company Failure

Based on research undertaken by Hamilton and Micklethwait (2006, Greed and Corporate Failure), large company failures are caused by problems that can be grouped into six major categories:

  • Poor strategic decisions - most relevant when existing well established companies undertake expansion, either through the introduction of new products or technologies, expansion into new geographic markets or as a result of M&A (see more directly below); failure occurs as a result of a lack of understanding of critical business drivers, inadequate risk management (many aspects e.g. technological, competitive, financial) or insufficient due diligence.
  • Overexpansion through (bad) M&A - research clearly shows most M&A efforts fail; nevertheless companies continue to aggressively expand through tactics with odds worse than a coin toss. Typically for a large company integration costs will always exceed any foreseen benefits. Cultural differences and insufficient management capacity can derail M&A efforts as well. However top management typically stands to gain financially directly, disproportionately and without regard to the actual results of the merger which is why most of these efforts proceed in the first place.
    Additional drivers of failure through overexpansion include overpaying for acquisitions (partially driven by the probability for greater personal financial gain among management of both companies), and excessive focus on short term growth - sadly, again, with an eye towards personal gain.
    Hamilton and Micklethwait provide analysis of several examples of large scale M&A failure including:
    • AOL - Time Warner
    • Daimler - Chrysler
    • BMW - Rover
    • Enron - Wessex Water
    • Worldcom - Intermedia

  • Dominant CEO - empowered and often drunk on the heels of his or her success, a dominant CEO may surround himself with like-minded "aye sayers" and distance critics; when such a CEO manages to finagle his way into the Chairman's role as well the company is frequently doomed. Heterogeneity supports success, homogeneity and lack of criticism and oversight will eventually lead to failure.

  • Greed and the desire for power - most humans do not suffice with what they already have, and the over-achievers that tend to rise to positions of power within major corporations succumb more frequently to greed than the more complacent types who live below. This again leads to short-termism and the pursuit of personal gain even when clearly not in the best interests of the company and most stakeholders. Option awards may skew potential compensation to such a degree that extremely risky and questionable tactics be undertaken.
  • Failure of internal controls - as large, successful companies grow bureaucracy increases and additional managerial levels take hold the distance between top management and the real world - both inside of the corporation and external to it - widens. Where managerial control and firm leadership had ruled disorder and lack of focus takes reign. Some of the causes identified include:
    • Blurred reporting lines
    • Dispersed departments
    • Increase in remote operations
    • Under-resourced risk management departments
    • Weak, ineffective internal audit
    • Poor cash management
    • Inappropriate financial structures
  • Ineffective and complacent boards leading to ineffective governance - when directors are no longer genuinely independent the CEO loses an objective sounding board and failure looms. Similarly as highlighted above under greed - merging the roles of CEO and Chairman leaves the corporation susceptible to tunnel vision and worse. A company that wants to last must have in place a board that feels free to ask the tough questions, not a bunch of suits that feel compelled to rubber stamp any and all CEO decisions...

Monday, March 24, 2014

Failure Conference Roundup

Failure conferences have become all the rage. On a personal note, I had recently keynoted "Fail Forward 2014" at Loughborough College in England, a first of its kind in the UK, aiming to change the culture, feeling and understanding of failure, by bringing people together and provoking conversation on the subject of failure as a precursor to success. Here's a short list of recent events around the globe: April 2014 Failure:Lab, Michigan State U, East Lansing, Michigan March 2014 Fail Forward 2014, Loughborough UK March 2014 Failcon NL, Amsterdam, Holland March 2014 Fear and Failure, Ljubljana, Slovenija Aware of other conferences and/or seminars on failure? We'd love to hear from you, drop us a line.

Sunday, February 16, 2014

Google: fAilure Carries No Stigma!

Fast Company recently published a piece describing nine ways through which innovation is encouraged at Google.

GOOGLE REVEALS ITS 9 PRINCIPLES OF INNOVATION.

"Ever wonder what makes the Google the holy grail of productivity and creativity? There's no magic in the drinking water at the Mountain View, CA company. The tech giant draws from what Google's chief social evangelist, Gopi Kallayil, calls the nine core principles of innovation."

And at No. 8:

"8. FAIL WELL
There should be no stigma attached to failure. If you do not fail often, you are not trying hard enough. At Google, once a product fails to reach its potential, it is axed, but the company pulls from the best of the features. "Failure is actually a badge of honor," he [Kallayil] says. "Failure is the way to be innovative and successful. You can fail with pride.""

Saturday, November 30, 2013

My Personal Failure - Veranto RIP, 1999-2001

My personal story of failure hails back to the first dot.com bubble - used to be online but seems to have disappeared, so posting a link to my personal narrative, published in Repertoire magazine back in December of 2001. Would love to hear comments - help me learn!

One Dot.com's Story
Update - found a link online.

Friday, November 29, 2013

A History of Design @ Apple

Readers familiar with my writings and opinions know that I am NOT a fan of Apple. But if Apple is a success at anything - it's a path breaking design firm. Max Chafkin produced this six-part series on Apple design. He did fail to begin the story where it should have, in 1984 with the introduction of the Mac... (hello?) ..but spins a good tale nevertheless. And, heck, we should spend some time understanding why DESPITE everything else that is wrong with this company's approach and strategy - it IS so successful... So here goes:

Part I: An Oral History Of Apple Design: 1992 "The greatest business story of this generation is a design tale."

Part II: An Oral History Of Apple Design: 2000 Steve had to have control over anything and everything that had to do with his products.

Part III: An Oral History Of Apple Design: 2001 Apple Design becomes experimental.

Part IV: An Oral History Of Apple Design: 2004 Perfecting the iPod.

Part V: An Oral History Of Apple Design: 2010 Milking the cash cows.

Part VI: An Oral History Of Apple Design: 2013 After Steve's death, Apple loses focus. Coming soon: the iWash, an iPod controlled washing machine... :-)

Thursday, October 24, 2013

A Collection of Quotes on Failure and Success

"A Quote-a-day keeps failure away..." :-)
Erik A. Steiner, Innovator and Entrepreneur

Nov 24, 2013

“If something fails despite being carefully planned, carefully designed, and conscientiously executed, that failure often bespeaks underlying change and, with it, opportunity.”

Peter F. Drucker, Author and Leading Management Thinker

Nov 18, 2013

"Fail Forward Fast.

It is far better to have sloppy success than to have perfect procrastination. It is easy to get caught up in the endless tinkering and perfecting of a project. It is true some things require perfection – most simply need excellence. All need action today!

Do you find yourself waiting to launch important projects? Are you forever splitting hairs about elements that are not mission critical. Do you spend hours and hours on details that don’t matter much?

Start your Monday with action! In taking action you may fail – but even that failure will move you forward toward ultimate success. Pick a project you have been putting off and begin today to take the action which will accelerate your path to achievement. "

Tom Peters, "Father" of All Business Gurus, Incredible Guy

Nov 17, 2013

"Life is pretty simple:
You do some stuff.
Most fails.
Some works.
You do more of what works.
If it works big, others quickly copy it.
Then you do something else.
The trick is the doing something else."

Tom Peters, "Father" of All Business Gurus, Incredible Guy

Nov 3, 2013

"If I find 10,000 ways something won't work, I haven't failed. I am not discouraged, because every wrong attempt discarded is often a step forward."
Thomas Edison, American Inventor and Businessman

Nov 2, 2013

“Far better is it to dare mighty things, to win glorius triumphs, even though checkered by failure… than to rank with those poor spirits who neither enjoy nor suffer much, because they live in a gray twilight that knows not victory nor defeat.”
Theodore Roosevelt, 26th US President

Oct 26, 2013

Thoughts from Guy Kawasaki:

"Let’s say a startup is hot. It ships something great, and it achieves success. Thus, it’s able to attract the best, brightest, and most talented. These people have been told they’re the best since childhood. Indeed, being hired by the hot company is “proof” that they are the A and A+ players; in fact, the company is so hot that it can out-recruit Google and Microsoft.

Unfortunately, they develop a fixed mindset that they’re the most talented, and they think that continued success is a right. Problems arise because pure talent only works as long as the going is easy. Furthermore, they don’t take risks because failure would harm their image of being the best, brightest, and most talented. When they do fail, they deny it or attribute it to anything but their shortcomings.

And this is the beginning of the end."

(Source: The Effort Effect)

Guy Kawasaki, Author, Speaker and Investor

Oct 25, 2013

"Ambitious failure, magnificent failure, is a very good thing."
Guy Kawasaki, Author, Speaker and Investor

Oct 24, 2013

"We cannot direct the wind, but we can adjust the sails."
Bertha Calloway, Founder of the Great Plains Black Museum

Oct 23, 2013

"Failure isn't fatal, but failure to change might be."
John Wooden, American Basketball player and coach

Oct 22, 2013

"Success is never permanent, and failure is never final."
Mike Ditka, former American football NFL player, television commentator, and coach

Oct 21, 2013

"Make failure your teacher, not your undertaker."
Zig Ziglar, Motivational Speaker

Oct 20, 2013

"Failure is a detour not a dead end street."
Zig Ziglar, Motivational Speaker

Oct 19, 2013

"I am always doing that which I cannot do, in order that I may learn how to do it."
Pablo Picasso, Artist

Oct 16, 2013

"Failure is the price of excellence."
Leonard Pitts, Jr., Pulitzer prize winning commentator

Oct 12, 2013

"We learn from failure, not from success!"
Bram Stoker, Author (Dracula!)

Oct 11, 2013

"When I was young, I observed that nine out of 10 things I did were failures, so I did 10 times more work."
George Bernard Shaw, Playwright

Oct 10, 2013

"Our greatest fear should not be of failure, but of succeeding at something that doesn't really matter.”
Dwight L Moody, Evangelist

Oct 9, 2013

"I thrive on failure. I thrive on things that are not perfect. It sends me back into the ring to get it right.”
Tom Ford, Designer

September 8th 2013

"Persistence can change #failure into extraordinary achievement."
Matt Biondi, Olympic Athlete, Swimmer

Dec 19, 2012

"Many people dream of success. To me succes can only be achieved through repeated failure and introspection. In fact, success represents the one percent of your work that results from the ninety-nine percent that is called failure."
Soichiro Honda, Engineer, Founder of Honda Motor Company (aka "Honda")

As quoted in The Power of Failure: 27 Ways to Turn Life's Setbacks into Success

Dec 15, 2012

"Failure is the foundation of success, and the means by which it is achieved."
Lao Tzu, Philosopher

As quoted in The Power of Failure: 27 Ways to Turn Life's Setbacks into Success

Dec 14, 2012

"The Achilles heel of failure: hindsight is 20/20."
Erik A. Steiner, Innovator and Entrepreneur

Dec 13, 2012

This time, a poem... IF by Rudyard Kipling

IF

If you can keep your head when all about you
Are losing theirs and blaming it on you;
If you can trust yourself when all men doubt you,
But make allowance for their doubting too:
If you can wait and not be tired by waiting,
Or, being lied about, don't deal in lies,
Or being hated don't give way to hating,
And yet don't look too good, nor talk too wise;

If you can dream---and not make dreams your master;
If you can think---and not make thoughts your aim,
If you can meet with Triumph and Disaster
And treat those two impostors just the same:.

If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build'em up with worn-out tools;

If you can make one heap of all your winnings
And risk it on one turn of pitch-and-toss,
And lose, and start again at your beginnings,
And never breathe a word about your loss:
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: "Hold on!"


If you can talk with crowds and keep your virtue,
Or walk with Kings---nor lose the common touch,
If neither foes nor loving friends can hurt you,
If all men count with you, but none too much:
If you can fill the unforgiving minute
With sixty seconds' worth of distance run,
Yours is the Earth and everything that's in it,
And---which is more---you'll be a Man, my son!

Rudyard Kipling, short-story writer, poet, novelist



Dec 12, 2012

"Only he who does nothing makes no mistakes."
French Proverb

As quoted in The Power of Failure: 27 Ways to Turn Life's Setbacks into Success

Dec 9, 2012

"He that is overcautious will accomplish little."
Friedrich von Schiller, Poet, Philosopher, Historian and Playwright

As quoted in The Ten Commandments for Business Failure

Dec 8, 2012

"For this is the tragedy of man-circumstances change, but he doesn't."
Machiavelli, Historian, Politician, Diplomat, Philosopher, Humanist and Writer

As quoted in The Ten Commandments for Business Failure

Dec 2, 2012

"In order to succeed, your desire for success should be greater than your fear of failure."
Bill Cosby, Comedian


Dec 1, 2012

Referring to every well-educated person, Charles Kettering, one of America's greatest inventors and innovators of all time, said, "...it is not a disgrace to fail, and that he must analyze each failure to find its cause...must learn how to fail intelligently. Failing is one of the greatest arts in the world. One fails towards success."
Charles Kettering, Inventor
Quoted in Whoever Makes the Most Mistakes Wins


Nov 12, 2012

"Being successful is kind of dull."
Nolan Bushnell, founder of Atari
Quoted in Whoever Makes the Most Mistakes Wins
Nolan Bushnell


Nov 11, 2012

Tom Crouch writing about the Wright Brothers...
"They were as excited about failure as they were by success."
(from The Bishop's Boys: A Life of Wilbur and Orville Wright)
The Wright Brothers
Tom Crouch

Nov 10, 2012

"One must be God to be able to distinguish successes from failures and not make mistakes."
Anton Chekov

Nov 9, 2012

"Good men are still liable to make mistakes, and are sometimes warmly engaged in errors, which they take for divine truths, shining in their minds with the clearest light."
John Locke

Oct 29, 2012

"If there is a single tragic flaw that mars our biggest enterprises, it is conservatism - the failure to fail, and fail big, in an era of unprecedented volatility and ambiguity."
Tom Peters Oct 17, 2012

"Failure in Innovation - it's a price worth paying."
Tim Harford (from: Adapt: Why Success Always Starts with Failure . New York, Farrar, Straus and Giroux. 2011)

Oct 15, 2012

Man has been writing of failure since biblical times. Here we go back to the time of Aristotle, to a controversial quote that I do not believe does justice to reality:

"It is possible to fail in many ways...while to succeed is possible only in one way."
Aristotle, Nichomachean Ethics, II, 6

Oct 14, 2012

"I was never afraid of failure; for I would sooner fail than not be among the greatest."

John Keats, one of the greatest and most important poets in the history of mankind - born in 1795, he died so so young, only 26. One hesitates to think what Keats would have accomplished in a full lifetime...the following are ruminations from a letter written to one James Hessey on October 8, 1818:

"The Genius of Poetry must work out its own salvation in a man: It cannot be matured by law & precept, but by sensation ad watchfulness in itself - That which is creative must create itself - In Endymion, I leaped headlong into the Sea, and thereby have become better acquainted with the Soundings, the quicksands, & the rocks, than if I had stayed upon the green shore, and piped a silly pipe, and took tea & comfortable advice. I was never afraid of failure; for I would sooner fail than not be among the greatest."
John Keats

Oct 13, 2012

Mark Zbaracki, at the time a professor at NYU, wrote a nice little piece titled "Success, Failure and the Race of Truth" for the Journal of Management Inquiry back in September of 2006. Thought I'd pull a nice quote from there:

"...those moments when life sends us sliding along the pavement or tumbling over the handlebars are gifts, opportunities for clarity..."
Mark J. Zbaracki

Oct 12, 2012

Here's John Adams writing on failure in 1755 (!):
(I received this newest volume from the Library of America today - the man was only twenty years old when he inferred and wrote the following and much more. Incredible. The strange spelling, capitalizations etc. as in the original text)

"If we look into History we shall find some nations rising from contemptible beginnings, and spreading their influence, 'till the whole Globe is subjected to their sway. When they have reach'd the summit of Grandeur, some minute and unsuspected Cause commonly affects their Ruin, and the Empire of the world is transferr'd to some other place. Immortal Rome was at first but an insignificant Village, inhabited only be a few abandoned Ruffins, but by degrees it rose to a stupendous Height, and excell'd in Arts and Arms all the nations that praeceeded it. But the demolition of Carthage (what one should think would have establish'd it in supream dominion) by removing all danger, suffer'd to sink into debauchery, and made it att length an easy prey to Barbarians."
John Adams, Revolutionary Writings, 1755-1775

"There is the greatest practical benefit in making a few failures early in life."
T H Huxley, On Medical Education (1870)

Oct 10, 2012

"83 percent of Chief Executive Officers fail."
Lucy Kellaway, writing for the Financial Times Oct 9, 2012

"Failure is good. It's fertilizer. Everything I've learned about coaching I've learned from making mistakes."
Rick Pitino, NBA Coach

Oct 8, 2012 - Today I've decided to start up a compendium of my favorite quotes on failure - I'll be making a valiant attempt to post one-a-day (A quote a day keeps the failure away?? :-)

Here's the first one for you all - from the creator of Peter Pan no less:

"We are all failures - at least, all the best of us are."
J. M. Barrie

Just came across this on Gotham so here's another one for today:

“Ever tried.
Ever failed.
No matter.
Try again.
Fail again.
Fail better."

Samuel Beckett

Saturday, October 12, 2013

6 Ways to Avoid the Product Failure Bin



Great article from Fast Company - "Six ways to avoid landing in the product failure bin"

  • Be honest about your product
  • Consider side effects (alternative uses, environmental impact etc.)
  • Innovate (duh...)
  • Cannibalize - aka compete with yourself "ala Intel" - as Grove said so well, "Only the paranoid survive"
  • Act quickly - the world has become incredibly fast...
  • Ignore traditional market research (it went the way of the Edsel) - "focus groups" ARE OUT!


Saturday, December 15, 2012

Microsoft Flops and Failures

Microsoft is one of the most successful companies ever - few people worldwide (likely not including third world...) complete a day of work without touching or using something that is somehow based on Microsoft technology - except maybe a handful of die-hard Apple groupies.

But along the way, as we all know and realize all too well, Microsoft has managed to fail miserably, again and again - and to fail in market spaces it should have understood better than anyone else on the planet...

Here are some "nostalgic" :-) examples of Microsoft flops and failures:

1) 1982-1990 - Windows 1.0, all versions up and leading to Windows 3.0 (for a brief history of the Windows O/S - click here)
2) 1995 - Microsoft Bob...According to Fast Company: "Childish, convoluted, ridiculous, despised." Yup. Part of an entire strategy called "Microsoft Home" that flopped badly at the time; IMHO it was also before its time, and before the hardware to support Redmond's vision existed - or was commercially viable...
3) 1997 - Clippy aka "Office Assistant" - probably the most ridiculed tech product in history.
4) 1998 - the infamous "Blue screen of death" - now, is that any way to treat a customer??
5) 2002 - Mira Smart Display - personally, had never even heard of this one...
6) 2003 - Windows Mobile - I was invited to and attended the Silicon Valley launch in San Jose. Looked exciting, the launch certainly was... But it was deathly, deathly slow... Quickly crushed by a slew of more advanced and better designed operating systems from RIM and Apple (and later also Android from Google). Killed in 2010.
7) 2006 - Zune. Brought out their own MP3 player only about eight years after the RIO MP300 (a device I had bought at Fry's, used for a couple of weeks and foolishly returned. With only about 60 minutes worth of music it wasn't practical - but I wouldn't mind owning it for history's sake...). For a history of MP3 devices check out Wikipedia - actually harks back to 1981!!
8) 2007 -Windows Vista....yikes....

Of course there was also Win95, Win NT...and if we dig deep we'll be sure to find a handful of additional flops.

Microsoft will soon be celebrating four decades of tech leadership, believe it or not.

Just goes to show you that to create a legacy of success - you have to try and try and try, and inevitably you will fail. Many times over, if you try hard enough. The important thing is to know to pick up the pieces, learn your lessons, and keep ploughing forward.

Comments? Hit the comment button below, or, better yet - join the conversation on the Linkedin Anatomy of Failure group.

http://bit.ly/Anatomy_of_Failure

Wednesday, December 12, 2012

A Collection of Quotes on Failure and Success

"A Quote-a-day keeps failure away..." :-)
Erik A. Steiner, Innovator and Entrepreneur

Oct 23, 2013

"Failure isn't fatal, but failure to change might be."
John Wooden, American Basketball player and coach

Oct 22, 2013

"Success is never permanent, and failure is never final."
Mike Ditka, former American football NFL player, television commentator, and coach

Oct 21, 2013

"Make failure your teacher, not your undertaker."
Zig Ziglar, Motivational Speaker

Oct 20, 2013

"Failure is a detour not a dead end street."
Zig Ziglar, Motivational Speaker

Oct 19, 2013

"I am always doing that which I cannot do, in order that I may learn how to do it."
Pablo Picasso, Artist

Oct 16, 2013

"Failure is the price of excellence."
Leonard Pitts, Jr., Pulitzer prize winning commentator

Oct 12, 2013

"We learn from failure, not from success!"
Bram Stoker, Author (Dracula!)

Oct 11, 2013

"When I was young, I observed that nine out of 10 things I did were failures, so I did 10 times more work."
George Bernard Shaw, Playwright

Oct 10, 2013

"Our greatest fear should not be of failure, but of succeeding at something that doesn't really matter.”
Dwight L Moody, Evangelist

Oct 9, 2013

"I thrive on failure. I thrive on things that are not perfect. It sends me back into the ring to get it right.”
Tom Ford, Designer

September 8th 2013

"Persistence can change #failure into extraordinary achievement."
Matt Biondi, Olympic Athlete, Swimmer

Dec 19, 2012

"Many people dream of success. To me succes can only be achieved through repeated failure and introspection. In fact, success represents the one percent of your work that results from the ninety-nine percent that is called failure."
Soichiro Honda, Engineer, Founder of Honda Motor Company (aka "Honda")

As quoted in The Power of Failure: 27 Ways to Turn Life's Setbacks into Success

Dec 15, 2012

"Failure is the foundation of success, and the means by which it is achieved."
Lao Tzu, Philosopher

As quoted in The Power of Failure: 27 Ways to Turn Life's Setbacks into Success

Dec 14, 2012

"The Achilles heel of failure: hindsight is 20/20."
Erik A. Steiner, Innovator and Entrepreneur

Dec 13, 2012

This time, a poem... IF by Rudyard Kipling

IF

If you can keep your head when all about you
Are losing theirs and blaming it on you;
If you can trust yourself when all men doubt you,
But make allowance for their doubting too:
If you can wait and not be tired by waiting,
Or, being lied about, don't deal in lies,
Or being hated don't give way to hating,
And yet don't look too good, nor talk too wise;

If you can dream---and not make dreams your master;
If you can think---and not make thoughts your aim,
If you can meet with Triumph and Disaster
And treat those two impostors just the same:.

If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build'em up with worn-out tools;

If you can make one heap of all your winnings
And risk it on one turn of pitch-and-toss,
And lose, and start again at your beginnings,
And never breathe a word about your loss:
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: "Hold on!"


If you can talk with crowds and keep your virtue,
Or walk with Kings---nor lose the common touch,
If neither foes nor loving friends can hurt you,
If all men count with you, but none too much:
If you can fill the unforgiving minute
With sixty seconds' worth of distance run,
Yours is the Earth and everything that's in it,
And---which is more---you'll be a Man, my son!

Rudyard Kipling, short-story writer, poet, novelist



Dec 12, 2012

"Only he who does nothing makes no mistakes."
French Proverb

As quoted in The Power of Failure: 27 Ways to Turn Life's Setbacks into Success

Dec 9, 2012

"He that is overcautious will accomplish little."
Friedrich von Schiller, Poet, Philosopher, Historian and Playwright

As quoted in The Ten Commandments for Business Failure

Dec 8, 2012

"For this is the tragedy of man-circumstances change, but he doesn't."
Machiavelli, Historian, Politician, Diplomat, Philosopher, Humanist and Writer

As quoted in The Ten Commandments for Business Failure

Dec 2, 2012

"In order to succeed, your desire for success should be greater than your fear of failure."
Bill Cosby, Comedian


Dec 1, 2012

Referring to every well-educated person, Charles Kettering, one of America's greatest inventors and innovators of all time, said, "...it is not a disgrace to fail, and that he must analyze each failure to find its cause...must learn how to fail intelligently. Failing is one of the greatest arts in the world. One fails towards success."
Charles Kettering, Inventor
Quoted in Whoever Makes the Most Mistakes Wins


Nov 12, 2012

"Being successful is kind of dull."
Nolan Bushnell, founder of Atari
Quoted in Whoever Makes the Most Mistakes Wins
Nolan Bushnell


Nov 11, 2012

Tom Crouch writing about the Wright Brothers...
"They were as excited about failure as they were by success."
(from The Bishop's Boys: A Life of Wilbur and Orville Wright)
The Wright Brothers
Tom Crouch

Nov 10, 2012

"One must be God to be able to distinguish successes from failures and not make mistakes."
Anton Chekov

Nov 9, 2012

"Good men are still liable to make mistakes, and are sometimes warmly engaged in errors, which they take for divine truths, shining in their minds with the clearest light."
John Locke

Oct 29, 2012

"If there is a single tragic flaw that mars our biggest enterprises, it is conservatism - the failure to fail, and fail big, in an era of unprecedented volatility and ambiguity."
Tom Peters Oct 17, 2012

"Failure in Innovation - it's a price worth paying."
Tim Harford (from: Adapt: Why Success Always Starts with Failure . New York, Farrar, Straus and Giroux. 2011)

Oct 15, 2012

Man has been writing of failure since biblical times. Here we go back to the time of Aristotle, to a controversial quote that I do not believe does justice to reality:

"It is possible to fail in many ways...while to succeed is possible only in one way."
Aristotle, Nichomachean Ethics, II, 6

Oct 14, 2012

"I was never afraid of failure; for I would sooner fail than not be among the greatest."

John Keats, one of the greatest and most important poets in the history of mankind - born in 1795, he died so so young, only 26. One hesitates to think what Keats would have accomplished in a full lifetime...the following are ruminations from a letter written to one James Hessey on October 8, 1818:

"The Genius of Poetry must work out its own salvation in a man: It cannot be matured by law & precept, but by sensation ad watchfulness in itself - That which is creative must create itself - In Endymion, I leaped headlong into the Sea, and thereby have become better acquainted with the Soundings, the quicksands, & the rocks, than if I had stayed upon the green shore, and piped a silly pipe, and took tea & comfortable advice. I was never afraid of failure; for I would sooner fail than not be among the greatest."
John Keats

Oct 13, 2012

Mark Zbaracki, at the time a professor at NYU, wrote a nice little piece titled "Success, Failure and the Race of Truth" for the Journal of Management Inquiry back in September of 2006. Thought I'd pull a nice quote from there:

"...those moments when life sends us sliding along the pavement or tumbling over the handlebars are gifts, opportunities for clarity..."
Mark J. Zbaracki

Oct 12, 2012

Here's John Adams writing on failure in 1755 (!):
(I received this newest volume from the Library of America today - the man was only twenty years old when he inferred and wrote the following and much more. Incredible. The strange spelling, capitalizations etc. as in the original text)

"If we look into History we shall find some nations rising from contemptible beginnings, and spreading their influence, 'till the whole Globe is subjected to their sway. When they have reach'd the summit of Grandeur, some minute and unsuspected Cause commonly affects their Ruin, and the Empire of the world is transferr'd to some other place. Immortal Rome was at first but an insignificant Village, inhabited only be a few abandoned Ruffins, but by degrees it rose to a stupendous Height, and excell'd in Arts and Arms all the nations that praeceeded it. But the demolition of Carthage (what one should think would have establish'd it in supream dominion) by removing all danger, suffer'd to sink into debauchery, and made it att length an easy prey to Barbarians."
John Adams, Revolutionary Writings, 1755-1775

"There is the greatest practical benefit in making a few failures early in life."
T H Huxley, On Medical Education (1870)

Oct 10, 2012

"83 percent of Chief Executive Officers fail."
Lucy Kellaway, writing for the Financial Times Oct 9, 2012

"Failure is good. It's fertilizer. Everything I've learned about coaching I've learned from making mistakes."
Rick Pitino, NBA Coach

Oct 8, 2012 - Today I've decided to start up a compendium of my favorite quotes on failure - I'll be making a valiant attempt to post one-a-day (A quote a day keeps the failure away?? :-)

Here's the first one for you all - from the creator of Peter Pan no less:

"We are all failures - at least, all the best of us are."
J. M. Barrie

Just came across this on Gotham so here's another one for today:

“Ever tried.
Ever failed.
No matter.
Try again.
Fail again.
Fail better."

Samuel Beckett

Monday, December 3, 2012

Sunday, December 2, 2012

In an excellent NYT article from January 2011 Jay Goltz lays out his top 10 reasons for small business failure.

The short list (for the even shorter list just follow through the underlined phrases...):

  • Business is mathematically challenged - i.e. insufficient demand, too much competition.
  • Owners do not step down when time comes.
  • Sometimes less is more.
  • Poor accounting.
  • Cash flow (btw #1 reason businesses fail overall...).
  • Operational mediocrity.
  • Operational inefficiency.
  • Dysfunctional management.
  • Lack of succession plan.
  • Declining market.

    For a deeper analysis, head over to Goltz's excellent article + bonus insightful comments from his readers.
  • Saturday, November 24, 2012

    Business Failure and Why its Crucial to Success

    "The beauty of epic failures...
    They're painful.
    They're humiliating.
    And sometimes they're exactly what you need."

    ...thus starts a March 2012 article in Inc. magazine.
    Worth a read.
    The beauty of epic failures.

    Monday, October 22, 2012

    Putting Failure in its Place - HBR Post

    Whitney Johnson has published a short and engaging piece on managing failure on the HBR blog. Put Failure in its Place - by Whitney Johnson

    Thursday, October 11, 2012

    More on VC Failure - The Kauffman Foundation Report

    A reader recently shared the Kauffman Foundation report, and it's quite an incredible piece of testimony against the VC industry...

    The Kauffman Foundation is a $2 billion foundation and one of the 30 largest philanthropic foundations in the United States. Kauffman focuses on two goals: advancing entrepreneurship and improving the education of children and youth.

    Over the past 20 years the foundation had invested in approximately 100 different VC funds, and therefore has a unique set of statistics on the performance of the VC industry. The results of Kauffman's analysis are staggering in their implications:
  • Since 1997, investors poured more cash into VCs than VCs had distributed to investors (!)
  • Only 20% of venture funds managed to beat the market by more than 3% annually
  • 62% of funds failed to exceed average market returns (!!)
  • The average VC fund FAILS to return investor capital (!!!)

    There is a lot more of interest in this report to anyone that has anything at all to do with start-ups, entrepreneurship, innovation and investment.

    To access the full report, click here.

    To view a video explaining the foundation's findings, click here and then click on the video link.

    As could be expected this report received widespread coverage, here are some of the more prominent analyses and discussions:
  • Geekwire
  • cnet
  • CNN
  • Monday, October 1, 2012

    Top Ten Reasons "Green" Entrepreneurs Fail

    Startup Pro, an award winning blog run by Martin Zwilling, has published an interesting list of the top ten reasons first time entrepreneurs fail. I don't necessarily agree with everything Zwilling writes, but it's definitely a lot of food for thought!

    Saturday, September 29, 2012

    Why big companies fail to innovate...

    This goes straight to an old argument my father and I always get into. He comes from a VERY BIG company backgroud (Emerson Electric, Norden, Rafael), and I'm an entrpreneur who has worked mostly with small, nimble, innovative companies. The argument - in case you're wondering - is about why large companies almost never come up with the really big innovations.

    A nice new blog series from HBR, Why Big Companies Can't Innovate, provides some good rationale in my support.

    How frequent is bank failure?

    Marketwatch reported on September 28th 2012 that First United Bank is the 43rd bank to fail in the US this year!!!

    First United Bank is 43rd 2012 U.S. bank failure

    However, if that sounds like a lot, turns out that on average 70 banks fail in the US annually... Problem Bank List does us all a favor and track all bank failure news.

    One can pull practically any and all bank failure data from the FDIC database, as an example see this table displaying all US bank failures from 1990 to date.

    The FDIC maintains and regularly updates a failed bank list

    The St. Louis Fed issued an interesting report on bank failures, analyzing bank failures between 2007 and 2010 but providing extensive graphical analysis of bank failures more or less from the beginning of the 20th century to date. The report is titled The Geographic Distribution and Characteristics of US Bank Failure (download).

    BigThink ran a nice piece on Why Banks Fail—And Why They Fail on Friday back in 2010.