Tag Archives: failure

Achieving Failure

Our society values success.

Our work environments value triumphing over the competition. We look to our investments to beat the market. We support our favorite teams, but adore them when they trounce their rivals. Our schools and colleges (mostly) help educate our children, but do so in a way that rewards success — good grades, good test scores and good behavior (as in, same as everyone else). We continually reward our kids for success on a task, at school, with a team.

Yet, all of us know, in our hearts and the back of our minds, that the most important lessons and trials stem from failure — not success. From failure we learn to persevere, we learn to change and adapt, we learn to overcome. From failure we learn to avoid, or tackle obstacles head on; we learn to reassess and reevaluate. We evolve from our failures.

So this begs the question: why are so many of our processes and systems geared solely to rewarding and reinforcing success?

From NPR:

Is failure a positive opportunity to learn and grow, or is it a negative experience that hinders success? How parents answer that question has a big influence on how much children think they can improve their intelligence through hard work, a study says.

“Parents are a really critical force in child development when you think about how motivation and mindsets develop,” says Kyla Haimovitz, a professor of psychology at Stanford University. She coauthored the study, published in Psychological Science with colleague Carol Dweck, who pioneered research on mindsets. “Parents have this powerful effect really early on and throughout childhood to send messages about what is failure, how to respond to it.”

Although there’s been a lot of research on how these forces play out, relatively little looks at what parents can do to motivate their kids in school, Haimovitz says. This study begins filling that gap.

“There is a fair amount of evidence showing that when children view their abilities as more malleable and something they can change over time, then they deal with obstacles in a more constructive way,” says Gail Heyman, a professor of psychology at the University of California at San Diego who was not involved in this study.

But communicating that message to children is not simple.

“Parents need to represent this to their kids in the ways they react about their kids’ failures and setbacks,” Haimovitz says. “We need to really think about what’s visible to the other person, what message I’m sending in terms of my words and my deeds.”

In other words, if a child comes home with a D on a math test, how a parent responds will influence how the child perceives their own ability to learn math. Even a well-intentioned, comforting response of “It’s OK, you’re still a great writer” may send the message that it’s time to give up on math rather than learn from the problems they got wrong, Haimovitz explains.

Read the entire story here.

PhotoMash: CEO Pay For Failure Versus CEO Pay For Success

Photomash-Mayer-vs-SorrellToday’s PhotoMash is a stark reminder that many corporate CEOs live by different rules, which they tend to conjure up themselves.

The PhotoMash comes courtesy of the Guardian on April 19, 2016.

On the one hand we see Marissa Meyer, CEO of Yahoo since 2012. She has presided over the demise of Yahoo — loss of search business to Google, loss of ad share to Facebook, failed investments in new business ventures in the billions of dollars. Yet, since taking over Yahoo Meyer has taken home around $78 million. Further, she’s on the hook to collect another $59 million should Yahoo’s takeover spark her dismissal. Admittedly, Yahoo’s stock price has rallied in recent years, but most analysts attribute this solely to Yahoo’s stake in China’s Alibaba.

One the other hand we have Sir Martin Sorrell, CEO of WPP. Over the last 30 years he’s built WPP from a small UK-based wire and plastics manufacturer, which he used as a shell company, into the world’s leading marketing and advertising services company. By current estimates WPP is valued at around $30 billion. Of late he’s been defending his latest compensation package estimated at $100 million.

Both Meyer and Sorrell tell us they’re worth every penny of remuneration to their companies and shareholders. But while it could be argued that both are earning rather too much compared with the 99.999 percent, only one is deserving. And, that shows the crux of the issue — regardless of success or failure, most CEOs will always win.

Image: Screen shot from the Guardian, April 19, 2016.

Real Magic

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Literary, social, moral and philanthropic leadership. These are all very admirable qualities. We might strive to embody just one of these in our daily lives. Author J.K. Rowling seems to demonstrate all four. In her new book, Very Good Lives: The Fringe Benefits of Failure and the Importance of Imagination, published in April 2015, she distills advice from her self-effacing but powerful Harvard University commencement speech, delivered in 2008.

A couple of my favorite quotes:

Many prefer not to exercise their imaginations at all. They choose to remain comfortably within the bounds of their own experience, never troubling to wonder how it would feel to have been born other than they are.

Some failure in life is inevitable. It is impossible to live without failing at something, unless you live so cautiously that you might as well not lived at all.

Video: J.K. Rowling Harvard Commencement Speech, 2008. Courtesy of Harvard University.

Silicon Death Valley

boo-com

Have you ever wondered what happens to the 99 percent of Silicon Valley startups that don’t make billionaires (or even millionaires) of their founders? It’s not all milk and honey in the land of sunshine. After all, for every Google or Facebook there are hundreds of humiliating failures — think: Webvan, Boo.com, Pets.com. Beautyjungle.com, Boxman, Flooz, eToys.

The valley’s venture capitalists tend to bury their business failures rather quietly, careful not to taint their reputations as omnipotent, infallible futurists. From the ashes of these failures some employees move on to well-established corporate serfdom and others find fresh challenges at new startups. But there is a fascinating middle-ground, between success and failure — an entrepreneurial twilight zone populated by zombie businesses.

From the Guardian:

It is probably Silicon Valley’s most striking mantra: “Fail fast, fail often.” It is recited at technology conferences, pinned to company walls, bandied in conversation.

Failure is not only invoked but celebrated. Entrepreneurs give speeches detailing their misfires. Academics laud the virtue of making mistakes. FailCon, a conference about “embracing failure”, launched in San Francisco in 2009 and is now an annual event, with technology hubs in Barcelona, Tokyo, Porto Alegre and elsewhere hosting their own versions.

While the rest of the world recoils at failure, in other words, technology’s dynamic innovators enshrine it as a rite of passage en route to success.

But what about those tech entrepreneurs who lose – and keep on losing? What about those who start one company after another, refine pitches, tweak products, pivot strategies, reinvent themselves … and never succeed? What about the angst masked behind upbeat facades?

Silicon Valley is increasingly asking such questions, even as the tech boom rewards some startups with billion-dollar valuations, sprinkling stardust on founders who talk of changing the world.

“It’s frustrating if you’re trying and trying and all you read about is how much money Airbnb and Uber are making,” said Johnny Chin, 28, who endured three startup flops but is hopeful for his fourth attempt. “The way startups are portrayed, everything seems an overnight success, but that’s a disconnect from reality. There can be a psychic toll.”

It has never been easier or cheaper to launch a company in the hothouse of ambition, money and software that stretches from San Francisco to Cupertino, Mountain View, Menlo Park and San Jose.

In 2012 the number of seed investment deals in US tech reportedly more than tripled, to 1,700, from three years earlier. Investment bankers are quitting Wall Street for Silicon Valley, lured by hopes of a cooler and more creative way to get rich.

Most startups fail. However many entrepreneurs still overestimate the chances of success – and the cost of failure.

Some estimates put the failure rate at 90% – on a par with small businesses in other sectors. A similar proportion of alumni from Y Combinator, a legendary incubator which mentors bright prospects, are said to also struggle.

Companies typically die around 20 months after their last financing round and after having raised $1.3m, according to a study by the analytics firms CB Insights titled The RIP Report – startup death trends.

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Failure is difficult to quantify because it does not necessarily mean liquidation. Many startups limp on for years, ignored by the market but sustained by founders’ savings or investors.

“We call them the walking dead,” said one manager at a tech behemoth, who requested anonymity. “They don’t necessarily die. They putter along.”

Software engineers employed by such zombies face a choice. Stay in hope the company will take off, turning stock options into gold. Or quit and take one of the plentiful jobs at other startups or giants like Apple and Google.

Founders face a more agonising dilemma. Continue working 100-hour weeks and telling employees and investors their dream is alive, that the metrics are improving, and hope it’s true, or pull the plug.

The loss aversion principle – the human tendency to strongly prefer avoiding losses to acquiring gains – tilts many towards the former, said Bruno Bowden, a former engineering manager at Google who is now a venture investor and entrepreneur.

“People will do a lot of irrational things to avoid losing even if it’s to their detriment. You push and push and exhaust yourself.”

Silicon Valley wannabes tell origin fables of startup founders who maxed out credit cards before dazzling Wall Street, the same way Hollywood’s struggling actors find solace in the fact Brad Pitt dressed as a chicken for El Pollo Loco before his breakthrough.

“It’s painful to be one of the walking dead. You lie to yourself and mask what’s not working. You amplify little wins,” said Chin, who eventually abandoned startups which offered micro, specialised versions of Amazon and Yelp.

That startup founders were Silicon Valley’s “cool kids”, glamorous buccaneers compared to engineers and corporate drones, could make failure tricky to recognise, let alone accept, he said. “People are very encouraging. Everything is amazing, cool, awesome. But then they go home and don’t use your product.”

Chin is bullish about his new company, Bannerman, an Uber-type service for event security and bodyguards, and has no regrets about rolling the tech dice. “I love what I do. I couldn’t do anything else.”

Read the entire story here.

Image: Boo.com, 1999. Courtesy of the WayBackMachine, Internet Archive.

Life and Death: Sharing Startups

The great cycle of re-invention spawned by the Internet and mobile technologies continues apace. This time it’s the entrepreneurial businesses laying the foundation for the sharing economy — whether that be beds, room, clothes, tuition, bicycles or cars. A few succeed to become great new businesses; most fail.

From the WSJ:

A few high-profile “sharing-economy” startups are gaining quick traction with users, including those that let consumers rent apartments and homes like Airbnb Inc., or get car rides, such as Uber Technologies Inc.

Both Airbnb and Uber are valued in the billions of dollars, a sign that investors believe the segment is hot—and a big reason why more entrepreneurs are embracing the business model.

At MassChallenge, a Boston-based program to help early-stage entrepreneurs, about 9% of participants in 2013 were starting companies to connect consumers or businesses with products and services that would otherwise go unused. That compares with about 5% in 2010, for instance.

“We’re bullish on the sharing economy, and we’ll definitely make more investments in it,” said Sam Altman, president of Y Combinator, a startup accelerator in Mountain View, Calif., and one of Airbnb’s first investors.

Yet at least a few dozen sharing-economy startups have failed since 2012, including BlackJet, a Florida-based service that touted itself as the “Uber for jet travel,” and Tutorspree, a New York service dubbed the “Airbnb for tutors.” Most ran out of money, following struggles that ranged from difficulties building a critical mass of supply and demand, to higher-than-expected operating costs.

“We ended up being unable to consistently produce a level of demand on par with what we needed to scale rapidly,” said Aaron Harris, co-founder of Tutorspree, which launched in January 2011 and shuttered in August 2013.

“If you have to reacquire the customer every six months, they’ll forget you,” said Howard Morgan, co-founder of First Round Capital, which was an investor in BlackJet. “A private jet ride isn’t something you do every day. If you’re very wealthy, you have your own plane.” By comparison, he added that he recently used Uber’s ride-sharing service three times in one day.

Consider carpooling startup Ridejoy, for example. During its first year in 2011, its user base was growing by about 30% a month, with more than 25,000 riders and drivers signed up, and an estimated 10,000 rides completed, said Kalvin Wang, one of its three founders. But by the spring of 2013, Ridejoy, which had raised $1.3 million from early-stage investors like Freestyle Capital, was facing ferocious competition from free alternatives, such as carpooling forums on college websites.

Also, some riders could—and did—begin to sidestep the middleman. Many skipped paying its 10% transaction fee by handing their drivers cash instead of paying by credit card on Ridejoy’s website or mobile app. Others just didn’t get it, and even 25,000 users wasn’t sufficient to sustain the business. “You never really have enough inventory,” said Mr. Wang.

After it folded in the summer of 2013, Ridejoy returned about half of its funding to investors, according to Mr. Wang. Alexis Ohanian, an entrepreneur in Brooklyn, N.Y., who was an investor in Ridejoy, said it “could just be the timing or execution that was off.” He cited the success so far of Lyft Inc., the two-year-old San Francisco company that is valued at more than $700 million and offers a short-distance ride-sharing service. “It turned out the short rides are what the market really wanted,” Mr. Ohanian said.

One drawback is that because much of the revenue a sharing business generates goes directly back to the suppliers—of bedrooms, parking spots, vehicles or other “shared” assets—the underlying business may be continuously strapped for cash.

Read the entire article here.

Goals and Passion Are For Losers

Forget career advice from your boss or the business suit sitting in airline seat 7A. Forget start-up mentors and the advisory board; forget angel investors and analysts with their binders of business suggestions. Forget using your family or local business leaders as a sounding board for your existing (or next) enterprise. Forget the biography of the corporate titan or the entrepreneurial whiz with the obligatory garage.

The best career advise comes from one source, Scott Adams: it’s all about failure.

From WSJ:

If you’re already as successful as you want to be, both personally and professionally, congratulations! Here’s the not-so-good news: All you are likely to get from this article is a semientertaining tale about a guy who failed his way to success. But you might also notice some familiar patterns in my story that will give you confirmation (or confirmation bias) that your own success wasn’t entirely luck.

If you’re just starting your journey toward success—however you define it—or you’re wondering what you’ve been doing wrong until now, you might find some novel ideas here. Maybe the combination of what you know plus what I think I know will be enough to keep you out of the wood chipper.

Let me start with some tips on what not to do. Beware of advice about successful people and their methods. For starters, no two situations are alike. Your dreams of creating a dry-cleaning empire won’t be helped by knowing that Thomas Edison liked to take naps. Secondly, biographers never have access to the internal thoughts of successful people. If a biographer says Henry Ford invented the assembly line to impress women, that’s probably a guess.

But the most dangerous case of all is when successful people directly give advice. For example, you often hear them say that you should “follow your passion.” That sounds perfectly reasonable the first time you hear it. Passion will presumably give you high energy, high resistance to rejection and high determination. Passionate people are more persuasive, too. Those are all good things, right?

Here’s the counterargument: When I was a commercial loan officer for a large bank, my boss taught us that you should never make a loan to someone who is following his passion. For example, you don’t want to give money to a sports enthusiast who is starting a sports store to pursue his passion for all things sporty. That guy is a bad bet, passion and all. He’s in business for the wrong reason.

My boss, who had been a commercial lender for over 30 years, said that the best loan customer is someone who has no passion whatsoever, just a desire to work hard at something that looks good on a spreadsheet. Maybe the loan customer wants to start a dry-cleaning store or invest in a fast-food franchise—boring stuff. That’s the person you bet on. You want the grinder, not the guy who loves his job.

For most people, it’s easy to be passionate about things that are working out, and that distorts our impression of the importance of passion. I’ve been involved in several dozen business ventures over the course of my life, and each one made me excited at the start. You might even call it passion.

The ones that didn’t work out—and that would be most of them—slowly drained my passion as they failed. The few that worked became more exciting as they succeeded. For example, when I invested in a restaurant with an operating partner, my passion was sky high. And on day one, when there was a line of customers down the block, I was even more passionate. In later years, as the business got pummeled, my passion evolved into frustration and annoyance.

On the other hand, Dilbert started out as just one of many get-rich schemes I was willing to try. When it started to look as if it might be a success, my passion for cartooning increased because I realized it could be my golden ticket. In hindsight, it looks as if the projects that I was most passionate about were also the ones that worked. But objectively, my passion level moved with my success. Success caused passion more than passion caused success.

So forget about passion. And while you’re at it, forget about goals, too.

Just after college, I took my first airplane trip, destination California, in search of a job. I was seated next to a businessman who was probably in his early 60s. I suppose I looked like an odd duck with my serious demeanor, bad haircut and cheap suit, clearly out of my element. I asked what he did for a living, and he told me he was the CEO of a company that made screws. He offered me some career advice. He said that every time he got a new job, he immediately started looking for a better one. For him, job seeking was not something one did when necessary. It was a continuing process.

This makes perfect sense if you do the math. Chances are that the best job for you won’t become available at precisely the time you declare yourself ready. Your best bet, he explained, was to always be looking for a better deal. The better deal has its own schedule. I believe the way he explained it is that your job is not your job; your job is to find a better job.

This was my first exposure to the idea that one should have a system instead of a goal. The system was to continually look for better options.

Throughout my career I’ve had my antennae up, looking for examples of people who use systems as opposed to goals. In most cases, as far as I can tell, the people who use systems do better. The systems-driven people have found a way to look at the familiar in new and more useful ways.

To put it bluntly, goals are for losers. That’s literally true most of the time. For example, if your goal is to lose 10 pounds, you will spend every moment until you reach the goal—if you reach it at all—feeling as if you were short of your goal. In other words, goal-oriented people exist in a state of nearly continuous failure that they hope will be temporary.

If you achieve your goal, you celebrate and feel terrific, but only until you realize that you just lost the thing that gave you purpose and direction. Your options are to feel empty and useless, perhaps enjoying the spoils of your success until they bore you, or to set new goals and re-enter the cycle of permanent presuccess failure.

I have a friend who is a gifted salesman. He could have sold anything, from houses to toasters. The field he chose (which I won’t reveal because he wouldn’t appreciate the sudden flood of competition) allows him to sell a service that almost always auto-renews. In other words, he can sell his service once and enjoy ongoing commissions until the customer dies or goes out of business. His biggest problem in life is that he keeps trading his boat for a larger one, and that’s a lot of work.

Observers call him lucky. What I see is a man who accurately identified his skill set and chose a system that vastly increased his odds of getting “lucky.” In fact, his system is so solid that it could withstand quite a bit of bad luck without buckling. How much passion does this fellow have for his chosen field? Answer: zero. What he has is a spectacular system, and that beats passion every time.

As for my own system, when I graduated from college, I outlined my entrepreneurial plan. The idea was to create something that had value and—this next part is the key—I wanted the product to be something that was easy to reproduce in unlimited quantities. I didn’t want to sell my time, at least not directly, because that model has an upward limit. And I didn’t want to build my own automobile factory, for example, because cars are not easy to reproduce. I wanted to create, invent, write, or otherwise concoct something widely desired that would be easy to reproduce.

My system of creating something the public wants and reproducing it in large quantities nearly guaranteed a string of failures. By design, all of my efforts were long shots. Had I been goal-oriented instead of system-oriented, I imagine I would have given up after the first several failures. It would have felt like banging my head against a brick wall.

But being systems-oriented, I felt myself growing more capable every day, no matter the fate of the project that I happened to be working on. And every day during those years I woke up with the same thought, literally, as I rubbed the sleep from my eyes and slapped the alarm clock off.

Today’s the day.

If you drill down on any success story, you always discover that luck was a huge part of it. You can’t control luck, but you can move from a game with bad odds to one with better odds. You can make it easier for luck to find you. The most useful thing you can do is stay in the game. If your current get-rich project fails, take what you learned and try something else. Keep repeating until something lucky happens. The universe has plenty of luck to go around; you just need to keep your hand raised until it’s your turn. It helps to see failure as a road and not a wall.

I’m an optimist by nature, or perhaps by upbringing—it’s hard to know where one leaves off and the other begins—but whatever the cause, I’ve long seen failure as a tool, not an outcome. I believe that viewing the world in that way can be useful for you too.

Nietzsche famously said, “What doesn’t kill us makes us stronger.” It sounds clever, but it’s a loser philosophy. I don’t want my failures to simply make me stronger, which I interpret as making me better able to survive future challenges. (To be fair to Nietzsche, he probably meant the word “stronger” to include anything that makes you more capable. I’d ask him to clarify, but ironically he ran out of things that didn’t kill him.)

Becoming stronger is obviously a good thing, but it’s only barely optimistic. I do want my failures to make me stronger, of course, but I also want to become smarter, more talented, better networked, healthier and more energized. If I find a cow turd on my front steps, I’m not satisfied knowing that I’ll be mentally prepared to find some future cow turd. I want to shovel that turd onto my garden and hope the cow returns every week so I never have to buy fertilizer again. Failure is a resource that can be managed.

Before launching Dilbert, and after, I failed at a long series of day jobs and entrepreneurial adventures. Here are just a few of the worst ones. I include them because successful people generally gloss over their most aromatic failures, and it leaves the impression that they have some magic you don’t.

When you’re done reading this list, you won’t have that delusion about me, and that’s the point. Success is entirely accessible, even if you happen to be a huge screw-up 95% of the time.

Read the entire article here.

Image courtesy of Google Search.

Creativity and Failure at School

[div class=attrib]From the Wall Street Journal:[end-div]

Most of our high schools and colleges are not preparing students to become innovators. To succeed in the 21st-century economy, students must learn to analyze and solve problems, collaborate, persevere, take calculated risks and learn from failure. To find out how to encourage these skills, I interviewed scores of innovators and their parents, teachers and employers. What I learned is that young Americans learn how to innovate most often despite their schooling—not because of it.

Though few young people will become brilliant innovators like Steve Jobs, most can be taught the skills needed to become more innovative in whatever they do. A handful of high schools, colleges and graduate schools are teaching young people these skills—places like High Tech High in San Diego, the New Tech high schools (a network of 86 schools in 16 states), Olin College in Massachusetts, the Institute of Design (d.school) at Stanford and the MIT Media Lab. The culture of learning in these programs is radically at odds with the culture of schooling in most classrooms.

In most high-school and college classes, failure is penalized. But without trial and error, there is no innovation. Amanda Alonzo, a 32-year-old teacher at Lynbrook High School in San Jose, Calif., who has mentored two Intel Science Prize finalists and 10 semifinalists in the last two years—more than any other public school science teacher in the U.S.—told me, “One of the most important things I have to teach my students is that when you fail, you are learning.” Students gain lasting self-confidence not by being protected from failure but by learning that they can survive it.

The university system today demands and rewards specialization. Professors earn tenure based on research in narrow academic fields, and students are required to declare a major in a subject area. Though expertise is important, Google’s director of talent, Judy Gilbert, told me that the most important thing educators can do to prepare students for work in companies like hers is to teach them that problems can never be understood or solved in the context of a single academic discipline. At Stanford’s d.school and MIT’s Media Lab, all courses are interdisciplinary and based on the exploration of a problem or new opportunity. At Olin College, half the students create interdisciplinary majors like “Design for Sustainable Development” or “Mathematical Biology.”

Learning in most conventional education settings is a passive experience: The students listen. But at the most innovative schools, classes are “hands-on,” and students are creators, not mere consumers. They acquire skills and knowledge while solving a problem, creating a product or generating a new understanding. At High Tech High, ninth graders must develop a new business concept—imagining a new product or service, writing a business and marketing plan, and developing a budget. The teams present their plans to a panel of business leaders who assess their work. At Olin College, seniors take part in a yearlong project in which students work in teams on a real engineering problem supplied by one of the college’s corporate partners.

[div class=attrib]Read the entire article after the jump.[end-div]

[div class=attrib]Image courtesy of NY Daily News.[end-div]