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The fact that more and more companies are coming to accept and embrace the f-word -- failure -- is arguably a good thing. After all, for many organizations, fear of failure has been an impediment to progress and innovation.

But the fact that an epic fail here and there can lead to success shouldn't delude business owners and executives into believing that all failure is created equal. To get the most out of fail, a company must fail properly.

Here are seven tips for failing the right way.

1. Fail fast, but not too fast

The mantra "fail fast, fail often" is one that many startups have embraced. As a guiding principle, this mantra makes a lot of sense, particularly for companies that don't have a lot of baggage. But when it comes to failing fast, there is such a thing as too fast.

The understanding that failure is often a prerequisite for success doesn't negate the fact that success also typically requires other things that aren't accomplished overnight. As such, it's important to find a level of balance. No, you don't want to spend five years researching, planning and building only to see an initiative fail quickly once brought to market, but at the same time, you don't want to do a half-baked job at any of those tasks because that in and of itself is likely to guarantee failure. This is where concepts like minimum viable product can be so valuable.

2. Mitigate risk

Acceptance of failure shouldn't be confused with acceptance of unlimited risk. Even if an initiative is launched with the understanding that it might not produce a positive ROI, it should never be launched without fully understanding the risks.

In many cases, risks go beyond dollars and cents. If your company launches an online community, for instance, and eventually shuts it down after it fails to gain critical mass, there may be reputation-related risks because lack of critical mass won't necessarily mean lack of usage. These risks should absolutely be considered when deciding what to pursue.

3. Fail for the right reasons

Failure is okay, but when your company fails, it's important to know what it was trying to achieve. In other words, failure should be the product of an effort that was on-mission, not an initiative that was launched simply because a huge potential reward was perceived to exist. There's a word for that: gambling.

4. Win even when you lose

Even if an initiative doesn't add to the bottom line, it shouldn't provide nothing in the way of gains. At a minimum, every failed initiative, properly designed and implements, should provide an opportunity to gain insight about a market your company serves or is considering serving.

5. Fail different

If your company is learning new things with each failure, it's important that each failure is the result of some new shortcoming as this increases the likelihood that you're moving in the right direction. If, however, you're making the same mistakes over and over, chances are you aren't winning when you lose.

6. Don't prepare to fail

Embracing failure and making it acceptable has the potential to significantly benefit an organization. But there's one kind of failure that isn't acceptable: the type that comes when a successful initiative fails because the organization wasn't prepared to deal with success.

At the end of the day, the willingness to fail must not breed a culture of laziness in which employees cut corners and don't plan because they assume that failure is a more likely outcome than success. Be warned: when such a culture develops, acceptance of failure can be the ultimate detriment.

7. Expect to fail again and again

It's easy for a company's leadership to say that failure is acceptable but it's often very difficult to endure failure. Unfortunately for many companies, open acceptance of failure comes with the unrealistic expectation that there won't be too much of it. In other words, it's assumed that the company will fail a few times, and then succeed, making failure an inconvenient but soon-forgotten occurrence.

But what happens when success doesn't come as quickly as hoped? The reality is that to fail right, there has to be a commitment to failing over and over again -- so long as the company is failing the right way.

Patricio Robles

Published 10 October, 2012 by Patricio Robles

Patricio Robles is a tech reporter at Econsultancy. Follow him on Twitter.

2341 more posts from this author

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Anton Koekmoer

Hi Patrcio,

Great post – Written in style if I may say so myself. And great topic – Great views and advice you’ve shared; as no one who does fail like to do so.

over 3 years ago

Timothy James Compton

Timothy James Compton, Digital Community Coach at Affinity Water Ltd

I agree - great post! Thanks for sharing :)

over 3 years ago

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Beth Ingason, RYA Publications Administrator at RYA

Yes, all very true. I would also go onto to say that there should be some element of feedback which the company can learn from.

This failure with its incremental learning curve should then help lead to future success.

over 3 years ago

Heledd Jones

Heledd Jones, Head of Search Marketing at Confused.com

This is a well-timed post as yesterday I went to the LoveHoney presentation at eConsultancy's JUMP conference, where Matt Curry also discussed what they'd learnt through failure.
All very interesting - as Woody Allen once said 'if you're not failing every now and again,it's a sign you're not doing anything very innovative'

over 3 years ago

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@tom_w_evans

Also worth noting from a 'lean' User Experience and Agile perspective that MVP doesn't actually have to be a 'product' in the traditional sense, but anything that allows you to adequately test your assumptions with representative users early in the process. For example, the Nordstrom innovation lab aim to FAIL 80% of the 'products' or experiments that they create (http://nordstrominnovationlab.com/), the obvious benefit being that the ones that don't fail will be more robust and worthy of iteration/investment. This is quite a mind-shift from the approach many businesses take where the aim is to make ideas or products succeed, rather than actively trying to fail them (albeit early)

over 3 years ago

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Mary Keane-Dawson

Without the experience of failure it is almost impossible to recognise its signs and how the behaviours of leaders and talent impact massively on failure as an outcome. In business, as in all of life, complexity and ambiguity lead to actions that frequently deliver an unsatisfactory outcome. However, learn from these- don't try and hide them away!

over 3 years ago

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Anderson

Yes, all very real. I would also go onto to say that there should be some factor of reviews which the organization can understand from. Its an informative article
Thanks Mr.Patricio Robles

over 3 years ago

Jonathan Mallia

Jonathan Mallia, Lead Management & Marketing Automation Consultant at GFI Software

Well written - Everyone makes mistakes and we're humans at the end of the day.. the problem is when we make them and then we don't own them.. ignoring failure is worst than failing in the first place. Point 7 wraps up your post cleverly.. experience, success and accomplishments not just in your career but even in your personal life comes from accepting failure.

over 3 years ago

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