Management scholar Sitkin's philosophy of "smart failure" encourages us to look at failure rationally, learn from it, and make progress. In this article, we'll look at the five criteria for "smart failure" and the four attitudes organizations should have toward failure.
In the field of management, failure is often seen as a negative outcome, however, the concept of "smart failure" proposed by management scholar Sitkin provides us with a new perspective.
Smart failures are small projects that are well-planned, moderately sized, uncertain, able to respond quickly, and tried in a field they are familiar with. This failure is not meaningless, and it can help us learn valuable lessons from it.
1. Well-planned:
A smart failure is a deliberate action, and it requires a detailed plan that considers the possible risks and develops corresponding countermeasures.
2. Moderate scale:
These failures are usually smaller-scale projects or tasks designed to test the viability of a new idea or technology. Their size is such that even if they fail, the losses are limited.
3. Uncertainty:
Smart failure involves a certain amount of uncertainty, i.e., the outcome is uncertain at the beginning of the planning. This uncertainty pushes us to constantly learn and adapt.
4. Quick feedback:
Smart failures often give quick feedback on what works and what needs improvement. This speed of feedback helps us adjust our strategy in a timely manner.
5. Familiar areas:
Smart failures often occur in familiar areas, so that valuable information can be extracted from failures rather than getting lost in complex situations.
1. Timely detection:
Leaders need on-the-go management so that they can identify possible failures in projects in a timely manner so they can take steps to prevent or mitigate losses.
2. Encourage reporting:
Organizations should encourage members to report failures and even promote this behavior through reward mechanisms. This allows the organization to learn from its mistakes, rather than hiding them.
3. In-depth analysis:
When failure happens, you shouldn't just ask "Who did it?".Instead, you should drill down into the reasons for the failure and the contextual factors behind it. In this way, failure can be truly understood and lessons can be learned.
4. Active experiments:
Organizations should encourage members to take the initiative to try new ideas and approaches, even if it means failure. This spirit of experimentation is the key to innovation and progress.
Smart failure means that we not only accept the possibility of failure, but also see it as an opportunity to learn and grow.
Small-scale projects or tasks are common examples of "smart failures" because they allow for quick feedback and control risk.
When leaders adopt walk-around management, they can identify potential problems in the project in a timely manner and take appropriate actions to prevent or mitigate the impact of failure.
Sitkin's idea of "smart failure" reminds us that failure is not always negative. As long as we approach it the right way, failure can be a catalyst for progress. By following the criteria of "smart failure" and adopting the right attitude, both organizations and individuals can gain tremendous learning value from failure, thereby driving their own growth and progress.
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