Harvard Business Review - 2011.04.pdf

HOW TO UNDERSTAND IT,LEARN FROM IT,AND RECOVER FROM IT48 Understanding FailureA Playbook for Learning from FailureAmy C.Edmondson86 Learning from FailureFormer P&G CEO A.G.Lafl ey:“I Think of My Failures as a Gift”100 Recovering from FailureBuilding ResilienceMartin E.P.SeligmanAPRIL 2011489HARVARD BUSINESS REVIEWAPRIL 2011|THE FAILURE ISSUE|LEARNING FROM FAILURE|FAILING BY DESIGN|BUILDING RESILIENCEFAILURETHEISSUE1038 Apr11 Cover.indd 11038 Apr11 Cover.indd 12/25/11 2:50:53 PM2/25/11 2:50:53 PM?Group Creative Director:Randy Tatum/Steve CaseyArt Director:Randy TatumDesigner:Luke OethCopywriter:Steve CaseyPhotographer/Illustrator:Bill SandersonPrint Production:Sandra ChuteSeparator:Unleashed ProductionsArt Buyer:Lisa CrawfordAccount Manager:Sarah Kingsley/Lindsey ShireyProject Manager:Sarah TillgesTypography/Digital Production:Robert WucherRaymond James“65”Mag.,Pg.4/C Bld.BL:9”X 11.5”TR:7.75”X 10.5”LV:7”X 10”Martin/Williams Job No:1RJF0024-65-P1LASER IS 100%Approval Stock:?Fortune?McCoy?Producto?Pub?News?Supplied Epson Stock:?Comm/Gracol?Pub/Swop3?News?Epson Color Profile:?Gracol?Swop?News?SuppliedLpi:?GRACOL?Client:?Martin Williams678102010 Raymond James&Associates,Inc.,member New York Stock Exchange/SIPC.|Raymond James Financial Services,Inc.,member FINRA/SIPC.Raymond James Bank,member FDIC.|Raymond James is a registered trademark of Raymond James Financial,Inc.WEALTH MANAGEMENT BANKING CAPITAL MARKETSwe understand the value of taking the long view.Our unique culture of independence gives each Raymond James financial advisor the freedom to offer objective,unbiased advice.So they can meticulously tailor a long-term plan based solely on the financial well-being of each client and their specific goals.It starts by taking the time to fully understand your personal circumstances,and then building a one-on-one relationship.And as your needs evolve,your advisor will monitor,manage and adapt your portfolio along with them.For nearly 50 years,we have quietly served clients differently.Go to to learn more.Its time to find out what a Raymond James financial advisor can do for you.LIFE WELL PLANNED.A funny thing happened on the way to the finish line.Because whatever retirement used to be,it isnt anymore.And so the way we see it,the greatest risk you face has far less to do with what the stock market does this week or whether interest rates rise next month.Instead,it comes down to whether,at the end of the workday,you will have the resources to do all the next things you want to do in life.So this is our commitment to you.We will work as diligently to help grow and protect your money as you did earning it.And help create a plan designed to provide sustainable income for your riveting next chapter.We employ a rigorous,unapologetically deliberate approach to financial planning.Grounded in conservative management and prudent growth,Retirement cakes,while delicious,are inadequate for long-term survival.YOU STOP WORKING AT 65.YOUR MONEY STOP S WORKING AT 65.THIS COULD BE A PROBLEM.YOU STOP WORKING AT 65.YOUR MONEY STOP S WORKING AT 65.THIS COULD BE A PROBLEM.1RJF0024_RaymondJames_Titillating_65_P1.indd 19/16/10 5:02 PM?April 2011hbr.org April 2011 Harvard Business Review 3HOW TO UNDERSTAND IT,LEARN FROM IT,AND RECOVER FROM IT48 Understanding FailureA Playbook for Learning from FailureAmy C.Edmondson86 Learning from FailureFormer P&G CEO A.G.Lafley:“I Think of My Failures as a Gift”100 Recovering from FailureBuilding ResilienceMartin E.P.SeligmanAPRIL 2011FAILURETHEISSUEContentsHBR.ORGThe special issue continues online with blog posts and classic articles.hbr.org/failureTHE FAILURE ISSUEFAILURE CHRONICLES 56 DOUG RAUCH of Trader Joes on micromanaging 66 LINDA ROTTENBERG of Endeavor on killing projects 75 ANTHONY TJAN of Cue Ball on casualties of irrational exuberance 84 ROGER MCNAMEE of Elevation Partners on losing a chance to change the world 98 WAYNE PACELLE of the Humane Society on downer cows 107 PETER GUBER of Mandalay Entertainment on learning from Muhammad Ali 115 WHITNEY JOHNSON of Rose Park Advisors on investing wisely in other peoples dreams UNDERSTAND LEARN RECOVER PAGE 47Cover ArtistElie HoneinFailure1038 Apr11 TOC.indd 31038 Apr11 TOC.indd 32/25/11 2:51:39 PM2/25/11 2:51:39 PM?Features April 2011HBR.ORG4 Harvard Business Review April 201158768690VIDEOAmy Edmondson on the blame game at blogs.hbr.org/videoIDEACASTMartin Seligman on resilience at blogs.hbr.org/ideacast48XXX901244168109Failing by Design A certain amount of failure,managed well,can be useful.How to set up intelligent trials and learn from inevitable errors Rita Gunther McGrath“I Think of My Failures As a Gift”P&Gs former CEO talks about the profi t-able lessons that emerged from some of his companys big mistakes.An interview with A.G.Lafl ey by Karen DillonHow to Avoid Catastrophe Near misses are harbingers of impending disasterbut too often managers are blind to these warning signs.Catherine H.Tinsley,Robin L.Dillon,and Peter M.MadsenFAILURE LEARN