Insights
April 7, 2025

Learning from Failure


ContactKerryn Martorana, Managing Director
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Failure can be a valuable learning experience if you have the right mindset. In this article, we will uncover some mental roadblocks described by researchers that prevent us from facing our failures and learning from them. Then we’ll look at different types of organisational failures and how to draw out lessons so that we don’t repeat the same mistakes.

Failure can be a powerful teacher, yet it’s often stigmatized or hidden away. It is viewed as a negative, and yes, there are costs to failing. We may lose money, time, or opportunity. We may have to resit a paper. Or we may have to admit our mistakes and apologise. Yet, if an individual has the right mindset or if an organisation has the right culture, there is much potential for gain and improvement from failure.

The inevitability of failure

Let’s face it: failure cannot be avoided. At some point, we will all fail at something. It may be a professional or entrepreneurial venture, an academic endeavour, a social or relationship aspiration, or even a home improvement project. As we progress and attempt more difficult undertakings, failure will come along at some point.

Young woman staring at the computer in regret over a mistake
The difference between those who come back stronger after failure and those who fall apart lies in how they view and respond to failure.

So it stands to reason that, if failure is going to occur, we might as well learn from it and make it work for us. That mindset is the basis of resilience and toughness. In fact, according to John Maxwell in his book, Failing Forward, the main difference between average people and high-achieving people is “their perception of and response to failure”. 

Common responses and mental traps for failure

Unfortunately, it’s not natural to learn from failure. In fact, one study even found that our brains construct a range of emotional and cognitive barriers that make learning from failure difficult. Many of us fear failure, misunderstand failure, and fall into certain mental traps that prevent us from analysing and learning from our mistakes. 

Recognise the “sour grapes effect”

Researchers conducted six experiments with 1,300 subjects and found that failure affects a person’s perception. “Initial failure made people underestimate how good it would feel to succeed in the future.” Hence, people would dismiss or downplay the value of their goals, which made them give up too early or abandon their dreams entirely. Our need for self-esteem and protection of our egos is so strong that we would rather stop trying than risk another failure.

Related Reading  Your Guide to Building Resilience.

One solution is to cultivate a growth mindset right from the beginning, before you even embark on any ambitious venture. Understand that there is always a risk of failure, but it has no bearing on you being a failure. A growth mindset is the belief that your talents and potential can be developed and improved, as opposed to remaining at a fixed level. Those with a growth mindset are more open to learning from challenges. They view failure as an opportunity to learn, rather than a threat.

Stop ruminating

Here’s another mental trap: failure can alter the perception of your abilities. We keep replaying that moment of failure in our minds, beating ourselves up about it, and falling into a spiral of shame and negative self-talk. We start to doubt our skills, capabilities, intelligence, and desirability.

picture of an angry person's hand clinching and crushing a piece of paper
Failure can make us doubt our intelligence and abilities, leading us to self-sabotage our goals and belittle ourselves. Break out of this by recognising that it’s our brain’s way of protecting us from the hurt of further failure.

One way to break free from this spiral of negativity is by reminding yourself that it’s something your brain has made up. Recognise your thoughts for what they are and take a step back from them. Next, distract your brain by completing simple tasks that will give you a sense of accomplishment (www.self.com/story/how-to-bounce-back-from-failure). It doesn’t matter that it’s small or seemingly inconsequential. What you’re trying to do is make yourself feel capable or productive, and get your mind back on track. Then you’d be able to look at your failure objectively and extract lessons from it.

Avoid the “ostrich effect” on failure

Yet another coping mechanism we tend to fall back on is to hide our heads in the sand. We avoid thinking about our failure altogether. (While we’re here, let’s call out the error in the naming of this hypothesis: ostriches do not bury their heads in the sand. That is a myth.) We tend to shift our attention away from upsetting situations so that we don’t have to process them. For example, research has found that investors are less likely to check their financial status when their investments are doing poorly.

Related Reading  Understanding Mental Toughness: Developing Resilience for Success
A man sitting on the floor with his right hand covering his face in disbelief
Instead of beating yourself up or avoiding the issue altogether, change the way you look at setbacks or failures. For example: every failure brings you closer to finding the solution.

To overcome this, researchers proposed a process called self-distancing, in which you adopt a third-person perspective. Instead of saying “Why did I fail?”, ask instead “Why did Alice fail?”. This helps us to view the failure more objectively. Another strategy is to give advice to others who are in a similar situation. According to Ayelet Fishbach, a professor of behavioural science and marketing, offering advice “forces people to engage with their experience and what they have learned.”

Analyse failures with precision

When a project or initiative doesn’t go as planned, a deep dive into the causes can reveal valuable insights. Leaders must be diligent about understanding the root causes of failure. This requires more than a cursory review of what went wrong.

For organisations, it is necessary to understand what kind of failure has occurred. According to Amy C. Edmondson, a professor at Harvard Business School, failure falls into three categories: preventable, unavoidable (due to complexity), and intelligent. 

Types of failures in organisations

Preventable failures in predictable operations can be considered “bad”, according to Edmondson. These can occur when an individual deviates from a specified process, is not paying attention, or does not have the skills or training to perform a task. However, these mistakes can be corrected relatively easily, such as by increasing maintenance or providing training.

“Unavoidable” failures occur due to the complexity and uncertainty of our modern age. Some examples Edmondson lists are hospital emergency departments, nuclear power plants, or even trying to get a start-up off the ground. In such complex systems or unpredictable situations, small errors are bound to occur.

Intelligent failures are what Edmondson classifies as “good”. These usually occur at the frontier of technology or research and development, where experimentation and innovation frequently take place. This is where failures can reveal a wealth of valuable knowledge and takeaways. It will lead to better processes or products.

Related Reading  Ideas for Productive and Effective Meetings
A man staring at a pin board looking for clues on how to correct a mistake
A deep dive into what went wrong will help you refine your strategy and be better equipped to handle future challenges.

Conduct a structured post-mortem to understand what and where things went wrong. Look at internal and external variables. This include gaps in planning, missed warning signs or market signals, use of resources, and so on.

Extract and document key lessons

In every mistake, failure, or even occurrence of bad luck, there is an opportunity to learn. John Maxwell advises to “find the benefit in every bad experience”. A key to turning failure into progress is to capture and document these lessons, both at the individual and organisational levels. Focus on what you could have done differently. Consider what could have been done to mitigate the problems. Take note of what went well and what didn’t. Compile all these learning points and action plans into a report. Be sure to refer to it when a similar situation arises or when you’re ready to tackle the project again.

Thomas Edison reportedly said, “I have not failed. I have found 10,000 ways that don’t work.” The smart thing to do would be to document those 10,000 things that didn’t work so that you don’t repeat those mistakes.

A young woman journaling
Keep a record of your failures, not to drag yourself down, but as lessons to be learnt. Also, make note of new ideas and action plans that you can put to use the next go round.

For your organisation, consider developing a “Lessons Learned” database with insights from past projects and initiatives. Make it a part of your knowledge management system, enabling employees at all levels to access, learn from, and contribute to this resource.

“Try again. Fail again. Fail better.”

Failure is inevitable, but it certainly doesn’t have to be the end. When approached strategically and thoughtfully, failure can be a catalyst for transformation and improvement. So the next time you fail, acknowledge your feelings of disappointment or embarrassment. Then take a step back, perform a review, come up with a better plan, and get back into the fight. Take it from Nelson Mandela. He said, “Do not judge me by my successes; judge me by how many times I fell down and got back up again.”

As psychologists and coaches, we have helped clients to overcome failure and be more effective leaders. We can help you too. Get in touch with us

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Kerryn Martorana

(B. Psych, Hons) (ICF, PCC) MAPS, JP
Managing Director
Kerryn is an organisational coach and registered psychologist with 20 years of experience. She is engaged with many high-profile and top 100 ASX companies. She coaches their people in leadership, business & sales. Kerryn specialises in business and performance coaching, resilience & intervention, emotional intelligence, behaviour modification and mindfulness.

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