Why Fast Failure Is the Secret to Your Success

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Feb. 11 (Bloomberg) -- Bloomberg View columnist Megan McArdle and Liz Ann Sonders, senior Vice President at Charles Schwab & Co., examine how companies learn from failure to achieve success on Bloomberg Television’s “Bloomberg Surveillance.”

Success, as megan mcardle has said.

This is an incredibly important book.

"the upside of down." she is a bloomberg columnist.

Congratulations.

I fail at least 14 times per day.

Why is it a good thing to fail?

We all know this.

If we look back on the moments in our life where we learned of the most, they are usually not the moments where we have succeeded.

It is hard to tell what we have succeeded.

When you fail, you're pretty sure what went wrong.

This is nature's way of telling you what does not work.

When you talk to companies all over the world, what they say is that there is a line from a guy who used to be the head of users for palm who said, if you want to succeed, you need to fail fast.

Go out, try something, see if it works him and kill it if it does not.

We grew up in a time where it was something you were proud.

How did we get here to where we need to read your book?

There are our a lot of factors.

Grade inflation started during vietnam.

Your life will be over.

That is the end of it.

And look back to when i was in school, my first semester of my senior year i got into trouble with one of my teachers.

My parents said one of your jobs is to do with authority.

You cannot imagine a parent doing this now.

We have set up these incredibly high-stakes, especially for kids.

The end result is that they cannot take any risks that all because anything could derail you from this one door to get into the future.

You cite a couple of examples in your book.

What is a common theme among these companies in which they used failure to their advantage?

Kfc is my favorite example.

Harlan sanders was a serial failure.

Finally in his 40's he establishes a successful cafe.

It does pretty well.

When he is 65, the state of kentucky build a highway that bypasses his restaurant.

A lot of people would have said, i'm 65, i will move in with my kids and wait to die.

He did not.

He get the pressure cooker, a bunch of chickens, and goes to conventions.

Liz ann, jump in here.

She is a strategist, which means she fails every other day.

You focus a lot on companies and companies that grow through failure and come back from that.

Do you find the companies that are led by human beings who have gone through that personally as well end up doing better as well?

Is that the leader to the company connection?

One of the stories i tell him the book is bradstreet credibility.

He and a bunch of investors bought it.

He has a wall in his company called the failure wall.

You are supposed to go in there and write your failures on the wall.

It was his way of turning around a company that had a long history.

It was hard to change the corporate culture and prime it for new success.

He succeeded when he heard someone yelling at someone else.

Why are you writing up their so i can learn from you?

The ceo of corning glass told me if you are not reinventing their best product, somebody else will.

Reinvention is another thing.

Who is good at the reinvention part?

Taking the failure and twisting it?

My favorite story is netflix.

Look at netflix.

They are in danger.

They had a great core business.

They saw that streaming was coming, so they went in and capitalized.

They have had struggles, but every time they have an issue, the go back and try something almost immediately.

They do not let it fester.

How do we turn this around?

That is fail fast.

Anybody who watches and listens to mcardle --"bloomberg surveillance" no so much i a leadership.

This is a great example.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change