Happy New Year! When it comes to leadership, there’s one word that seems to send shivers down many spines: failure. But here’s the paradox – failure is not the opposite of success. In fact, it’s often the catalyst and route for it. Let’s explore why embracing failure might be the best thing you can do as a leader in 2025.
A Case Study: From Bankruptcy to Billionaire
Take the story of Howard Schultz, the visionary behind Starbucks. Before building the global coffee empire we know today, Schultz faced a string of challenges. His initial attempt to expand Starbucks floundered due to financial struggles, he had to face the humiliation of being turned down by more than 200 investors when pitching his idea to grow the company.
Rather than letting failure define him, Schultz leaned into the lessons it offered. He re-evaluated his strategy, redefined the Starbucks brand, and fostered a culture that prioritised customer experience and employee well-being. Today, Starbucks is synonymous with innovation and resilience. Schultz’s setbacks weren’t roadblocks; they were stepping stones.
Why Failure can be a Leader’s Greatest Teacher
Failure is a universal experience, but how you respond to it determines your trajectory. Here is the thing failure can happen through no fault of your own you cannot control all the variables. If you adopt the right posture by being a leader who embraces failure as a learning opportunity you will create a culture of growth and resilience in your teams. Here’s a five-step process to harness the power of failure:
Step 1: Reframe Failure as Feedback
Failure isn’t a dead-end; it’s data, valuable information. What didn’t work? Why didn’t it work? Was everything wrong? When you view failure as valuable feedback you can analyse missteps and pinpoint areas for improvement.
Actionable Insight: After a project fails, hold a debrief session with your team. Ask questions like, What did we learn from this? What do we want to avoid and what do we want to repeat?
Step 2: Cultivate a Growth Mindset
Your attitude toward failure determines whether you stagnate or soar. A growth mindset embraces challenges, persists through obstacles, and sees effort as the path to mastery.
Actionable Insight: Model vulnerability as a leader. Share your own failures and how you’ve grown from them. This creates psychological safety for your team to take risks without fear of judgment.
Step 3: Separate the Event from Your Identity
Failure is something that happens; it’s not who you are. Too often, leaders internalise setbacks as personal inadequacies, which stifles innovation and confidence. Feel free to grieve for the loss but keep it short.
Actionable Insight: Practice self-compassion. Remind yourself (and your team) that failure is a moment in time, not a permanent state.
Step 4: Identify the Silver Linings
Every failure carries the seed of an equal or greater opportunity. Look for the unexpected insights or advantages that emerge.
Actionable Insight: Keep a “Lessons Log” where you document the insights gained from each failure. Over time, you’ll build a treasure trove of wisdom.
Step 5: Take Action… Again
The most important step after failure? Trying again. Resilience is the hallmark of effective leadership. Evaluate what needs to change and move forward with renewed clarity.
- Actionable Insight: Set small, achievable goals to rebuild momentum. Success, however small, reignites confidence and courage.
Leading Through Failure: A Final Thought
The road to success is rarely a straight line; it’s a series of zigs, zags, and yes, failures. Leaders who fear failure limit their potential. But those who embrace it as part of the process create a culture of innovation, trust, and resilience.
As Howard Schultz’s story demonstrates, failure isn’t the end – it’s often just the beginning. So, the next time you encounter the “F” word, don’t run from it. Lean in, learn, and lead forward. After all real failure is a failure to learn.
