Training

How to turn a mistake into business growth

Managing errors with a clear protocol and corporate culture helps minimise losses and foster innovation

by Luca Brambilla*

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4' min read

Translated by AI
Versione italiana

4' min read

Translated by AI
Versione italiana

In a professional world obsessed with perfection, error is not an exception but a daily, unavoidable constant. During a typical day, a professional makes thousands of decisions and, statistically, is bound to fail some of them. Several studies have tried to quantify the 'economic value' of error, painting a clear picture: mistakes cost a lot of money. Fortune Global 500 companies alone lose around $322 billion a year through human error.

The key is not to dodge error at all costs, nor even to demonise it, but to turn it into a learning lever. On the other hand, if it is true that 'only those who do make mistakes', the real failure is not the mistake itself, but not trying at all. And if eliminating mistakes is impossible, managing them through a rigorous protocol is the strategy to make them evolve into cultural growth.

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The six roots of error

Understanding the origin of errors is the first step to limiting them. In most cases they arise from the intertwining of several factors that can be divided into six categories.

1. Emotionality and attention. Stress, anxiety or distraction impair lucidity and memory. Overconfidence can also lower the threshold of control.

2. Poor processes. Unclear organisational procedures or poor time management increase the incidence of errors. In this respect, the introduction of matrices and checklists is as simple as it is effective. A 2019 study showed how the adoption during surgery of a checklist created by the World Health Organisation led to a 40% reduction in deaths in Scotland.

3. Limits of knowledge. When competence is not sufficient, error becomes inevitable. Especially at the beginning of a delegation process, one must negotiate with oneself and accept the high probability of mistakes or inaccuracies. It is natural, and it is preparatory to growth.

4. Cognitive biases. To limit cognitive load, the human brain resorts to mental shortcuts called heuristics. In taking these 'shortcuts', however, it is possible to make errors of judgement: cognitive bias. One example is confirmation bias, which leads one to focus only on information that endorses one's beliefs.

5. External pressure or manipulation. Authority, social context or ambiguous communications can guide wrong choices.

6. Unforeseen events. External and uncontrollable factors remain an unavoidable part of the risk.

The 'deadly sins': pride and silence

There are two types of error that are particularly serious from a professional point of view, 'red lines' that can damage the well-being of the team. The first is the error of arrogance: it occurs when, despite a clear briefing and adequate training, an employee underestimates the instructions received. It is a breach of trust: someone who says yes but acts differently out of presumption creates damage to the organisation.

Then there is the hidden error, the most dangerous one. Whoever makes a mistake and does not report it commits an act of carelessness that will inevitably explode when the misdeed comes to light. The leader's task is to spread a culture of acceptance of failure, in which people feel free to admit their shortcomings without feeling judged or reprimanded.

The debrief: analysing performance

Instead of blaming the mistake, it is good to exploit its potential, turning it into an 'area for improvement'. Every performance must be followed by a debrief, i.e. a moment of reflection and evaluation. This is independent of the result: insights for growth can be found even after an Olympic victory or the signing of a maxi contract. The key is not to focus on the shortcoming, but rather on the potential for development. Saying 'you did wrong' creates rigidity; saying 'this part of the performance can be improved' opens up creativity.

"True criticism is creativity," said a teacher of mine: it is not enough to identify the problem, one must offer operational suggestions for the future. Another rule tells us that it is acceptable to make mistakes in ten different ways, but it is unacceptable to repeat the same mistake. In this, it is helpful to follow the steps of the O.D.I.® Method (Observe, Question, Intervene): when faced with a doubt, before intervening, it is necessary to verify it by means of a follow-up question, certain that in a team support will not be lacking.

The sharing of mistakes is even more meaningful if it is collective: an individual's failure can become a common heritage so that no one repeats the same pattern. And learning from others' mistakes is an easier exercise, as it allows one to learn without one's ego being bruised by the pain of failure.

Disentangling the act from human value

A cornerstone of a positive corporate culture is the clear distinction between professional performance and the value of the individual. A performance that damages relationships or turnover can be rated 'zero' without affecting the dignity of the individual. Just as a father does not judge the absolute value of a daughter by her first uncertain steps, so must a manager be able to judge a job negatively without devaluing the human being.

Being 'permeable' in recognising one's mistakes is the sign of a mature professional who aims at continuous improvement and not at defending one's ego. Leaders who have reached the pinnacle of success know this well. As John Sculley, former Chairman of Pepsi Cola and CEO of Apple, said: 'I have found that I always learn more from my mistakes than from my successes. If you're not making mistakes, you're not seizing enough opportunities."

*Director Strategic Communication Academy

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