“Innovation distinguishes between a leader and a follower.” — Steve Jobs

Innovation is the heartbeat of progress. It drives industries forward, transforms ideas into reality, and ultimately changes the world. But the road to innovation is often paved with failures. The true challenge lies not in avoiding those failures but in learning from them and using them as building blocks for future success. This is where failure-tolerant leadership comes into play.

In their influential chapter “The Failure-Tolerant Leader” from Managing Innovation and Change, Richard Farson and Ralph Keyes explore failure’s vital role in the innovation process. They argue that:

“a business can’t develop a breakthrough product or process if it’s not willing to encourage risk-taking and learn from subsequent mistakes.”

This is a philosophy the most successful leaders of our time have embraced, understanding that failure is not just a possibility but a necessity on the path to greatness.

💡 Failure as a Building Block

Imagine if Steve Jobs had viewed the original Apple computer as a dead-end idea after early setbacks. Instead, Jobs understood that failure was an integral part of innovation. He famously said:

“I’m convinced that about half of what separates successful entrepreneurs from the non-successful ones is pure perseverance.”

Jobs’ relentless pursuit of his vision, despite numerous failures along the way, led to the creation of products that revolutionised the tech industry and changed the way we live.

Similarly, Thomas Edison, often regarded as one of the greatest inventors of all time, famously remarked:

“I have not failed. I’ve just found 10,000 ways that won’t work.”

Edison’s words encapsulate the essence of failure-tolerant leadership. He didn’t view his failed experiments as setbacks but as critical learning experiences that brought him one step closer to success. That mindset allowed him to invent the light bulb, a breakthrough that illuminated the world.

As Farson and Keyes note:

“Some managers may find that idea difficult to embrace. Treat success and failure the same? Shouldn’t I reward success? And even if I don’t reprimand an employee who fails, shouldn’t I at least call attention to the mistake?”

The answer, as they suggest, lies in a different approach. One that doesn’t focus solely on the outcome but rather on the process and the lessons learned along the way.

🔥 The Real Enemy: Laziness and Fear

In the world of leadership, there’s a harsh reality that often goes unspoken: not everyone has the drive or courage to innovate. Some leaders, whether in small businesses or large organisations, fail to push boundaries. Not because they lack the resources or ideas, but because they are simply too lazy or afraid to take the necessary risks. They prefer the comfort of the status quo, avoiding difficult conversations and the extra work that true innovation demands. This reluctance to embrace change is not just a minor flaw; it’s a fundamental failure in leadership.

In my recent dealings with a large organisation, this very scenario is playing out. Despite having the potential to drive significant innovation, the leadership within this organisation has publicly announced their reluctance to pursue new ideas. They’ve essentially broadcasted their fear of stepping into the unknown, opting instead to maintain a safe, unchallenging course. This isn’t just a missed opportunity; it’s a public admission of defeat before the battle even begins.

This behaviour is strikingly similar to a scenario you might find in a small business: imagine a leader telling an employee that they’ve failed, that they’re not good enough at their job, and then proceeding to tell the entire team about it. This isn’t leadership. It’s destructive and demoralising, and it breeds a culture of fear and complacency. Instead of motivating the employee to improve, or finding ways to support their growth, this approach stifles innovation and kills any possibility of progress.

As Richard Farson and Ralph Keyes put it:

“They [failure-tolerant leaders] openly admit their own mistakes rather than covering them up or shifting the blame. And they try to root out the destructive competitiveness built into most organisations.”

Great leaders are willing to confront tough issues, have uncomfortable conversations, and push themselves and their teams beyond what’s easy. This is what sets them apart.

Think of leaders like Elon Musk, known for taking enormous risks with SpaceX and Tesla, or Oprah Winfrey, who built an empire by speaking her truth and challenging societal norms. These leaders don’t shy away from the hard work or the possibility of failure. They don’t just follow the path; they blaze new trails, setting examples for others to follow.

Elon Musk, for instance, has famously said:

“When something is important enough, you do it even if the odds are not in your favour.”

His ventures into electric cars, space exploration, and even neuro-technology are all testament to his belief in taking risks and pushing the boundaries of innovation. Despite the numerous failures and setbacks he has encountered, Musk continues to lead with a vision that others might consider impossible.

Oprah Winfrey, on the other hand, has always been outspoken about the power of perseverance and authenticity. She once said:

“You get in life what you have the courage to ask for.”

Winfrey’s career is a prime example of how taking risks and embracing oneself can lead to extraordinary success. Her ability to navigate and overcome the challenges of being a black woman in a predominantly white, male-dominated industry is a testament to her courage and leadership.

🚀 Leadership Means Driving Innovation, Not Avoiding It

In both small businesses and large organisations, the role of a leader is to drive innovation, not to shy away from it. Great leaders are the ones who take big risks, put themselves out there, and aren’t afraid to be outspoken when necessary. They understand that part of their job is to push their teams beyond their comfort zones, to challenge them to think differently, and to create an environment where innovation can thrive.

Think of any truly successful leader, some I have already mentioned. Steve Jobs, Elon Musk, Oprah Winfrey, Richard Branson. Each one is known not just for their successes but for their willingness to take risks, challenge the status quo, and lead their teams into uncharted territory. These leaders didn’t achieve greatness by playing it safe or avoiding difficult decisions. They did it by embracing the challenges others would shy away from.

As stated earlier, Farson and Keyes highlight: “Some managers may find that idea difficult to embrace. Treat success and failure the same. Shouldn’t I reward success? And even if I don’t reprimand an employee who fails, shouldn’t I at least call attention to the mistake?”

The answer is simple: a true leader recognises that innovation and success often come hand in hand with failure. They know that their job is to lead. By encouraging risk-taking, by being the first to step into the unknown, and by showing their team that it’s okay to fail as long as they learn and grow from the experience.

Whether you’re leading a small business or a large organisation, the principle remains the same: leadership is not about avoiding failure; it’s about driving innovation. It’s about having the courage to push forward, to face challenges head-on, and to inspire your team to do the same. If you’re unwilling to lead this way, you’re not just failing yourself, you’re failing your entire organisation.

🌱 The Importance of Rewarding Failure

In my experience working on various projects, including a portable swimming pool initiative and my involvement with various football clubs and businesses, I’ve learned that innovation requires a culture where failure is not just tolerated but actively encouraged. Failure-tolerant leadership means creating an environment where employees feel safe to take risks, knowing their efforts will be valued, even if the outcome isn’t successful.

Consider the example of Robert Shapiro, who, during his time leading Monsanto, observed how terrified his employees were of failing. Farson and Keyes recount that Shapiro “tried hard to change that perception, knowing that it hindered the kind of creative thinking that fuelled his business.” Shapiro explained to his employees that every project was an experiment, and that it was not only acceptable but desirable for well-thought-out efforts to fail. This approach allowed Monsanto to foster a culture of innovation where employees felt empowered to explore new ideas without the fear of reprimand.

The key, as Farson and Keyes emphasise, is to reward the motivation, the hard work, and the learning that comes from failure, not the failure itself. They state:

“They [failure-tolerant leaders] openly admit their own mistakes rather than covering them up or shifting the blame. And they try to root out the destructive competitiveness built into most organisations.”

🤝 Earning Empathy and Encouraging Collaboration

Empathy is another cornerstone of failure-tolerant leadership. It cannot be handed out; it must be earned through genuine engagement and support. Farson and Keyes explain:

“Leaders who don’t cover up their errors reveal themselves as human. They become people whom others can admire and identify with.”

This level of transparency and vulnerability is crucial in building trust and encouraging a collaborative environment where innovation can thrive.

In one of my key projects, I’ve witnessed first-hand the importance of collaboration. When a mistake is made, the immediate response should not be to assign blame but to bring the team together to understand what went wrong and how to prevent it in the future. This approach not only improves the project at hand but also strengthens the team and builds a culture of mutual respect.

A vivid example of the power of collaboration can be seen in the work of 3M. As Farson and Keyes recount, the former CEO L.D. DeSimone never hesitated to recount how he repeatedly tried to stop the development of Thinsulate, one of 3M’s most successful products. By being so candid about his near blunder, DeSimone powerfully conveyed that it’s okay to be wrong and to admit it when you are. This transparency fostered a culture where innovation could flourish, leading to breakthroughs that might never have been realised otherwise.

Another inspirational story comes from the history of Ulysses S. Grant. Farson and Keyes highlight how Grant’s well-known battles with alcoholism made him more sympathetic to others’ weaknesses and helped him deal with lapses in discipline among his subordinates. Grant’s failures in civilian life, which many would have seen as disqualifying, actually made him a better leader in the military, as he took more risks and learned from each experience. This example underscores the importance of learning from failures and using those lessons to drive future success.

🚦 Giving the Green Light

The final piece of the puzzle is knowing when to give the green light. When to encourage your team to move past their failures and try again. Matthew McConaughey, in his book Greenlights, discusses the concept of seeing red lights, or setbacks, as moments to regroup, learn, and then hit the gas when the light turns green.

“We all have scars, we gonna have more. Rather than struggle against time and waste it, let’s dance with time and redeem it.”

Farson and Keyes echo this sentiment, emphasising that “failure-tolerant leaders send clear messages to their organisations that constructive mistakes are not only acceptable but worthwhile.”

As leaders, it’s our responsibility to recognise when our teams are ready to move forward, armed with the lessons learned from their failures. By doing so, we not only foster a culture of innovation but also empower our teams to achieve greatness.

🧭 Conclusion: Embracing the Journey

Failure-tolerant leadership is about creating a culture where innovation can flourish, where teams feel empowered to take risks, and where every failure is seen as a step toward something greater. It’s about moving beyond the simplistic notions of success and failure and recognising the value of the journey.

Farson and Keyes wisely conclude:

“Failure-tolerant leaders encourage collaboration, understanding that it is the real key to innovation.”

By embracing this mindset, we can lead our teams to new heights, fostering an environment where innovation thrives and where the impossible becomes possible.

In the words of Steve Jobs:

“Innovation distinguishes between a leader and a follower.”

As leaders, it’s our job to embrace the failures that come with innovation, to learn from them, and to use them as stepping stones to create something truly extraordinary.