Why Failing the Right Way Can Help You Succeed

Failure is inevitable, but it doesn’t have to be the end. What if you could fail in a way that drives innovation and success? In Right Kind of Wrong, Amy Edmondson reveals how embracing the right kind of failure can transform your business and leadership.

Allison Dunn

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Failure is inevitable, but not all failures are created equal. In Right Kind of Wrong: Why Learning to Fail Can Teach Us to Thrive, Harvard Business School professor Amy Edmondson challenges you to rethink your relationship with failure. Rather than avoiding mistakes at all costs, she argues that the way you fail matters—and that intelligent failures are the key to innovation and long-term success.

Not All Failures Are Equal: Understanding the Three Types

Edmondson identifies three types of failures, and understanding these distinctions can help you manage them effectively:

Basic Failures

These are simple, preventable mistakes made in familiar situations. For example, forgetting to proofread a report or skipping a critical safety check. Basic failures often result from carelessness or lack of attention to detail.

Actionable Tip: Build processes and checklists to prevent these mistakes. Automation can also reduce human error in repetitive tasks.

Complex Failures

These occur in systems with multiple moving parts, where unforeseen interactions lead to problems. Think of a supply chain disruption or a software bug caused by a combination of factors.

Actionable Tip: Foster collaboration and communication across teams to identify potential weak spots in your systems.

Intelligent Failures

These are failures that happen when you’re trying something new, whether it’s a bold strategy, an experiment, or an innovative idea. Intelligent failures are unavoidable when you’re exploring uncharted territory—and they’re crucial for progress.

Actionable Tip: Encourage controlled risk-taking. Set clear boundaries for experiments and create systems to analyze outcomes.

Why You Need Psychological Safety

One of Edmondson’s most compelling arguments is that psychological safety is essential for innovation and growth. If your team fears blame or punishment, they’ll avoid risks, stifling creativity and progress.

What You Can Do:

  • Foster Open Dialogue: Encourage your team to share ideas, concerns, and mistakes without fear of criticism.
  • Normalize Failure: Share your own experiences with failure to show that it’s part of the learning process.
  • Reward Transparency: Celebrate the lessons learned from intelligent failures, not just the wins.

When your team feels safe to speak up, you create a culture where failure becomes a stepping stone rather than a dead end.

Embracing Intelligent Failures for Growth

The book emphasizes that intelligent failures aren’t just acceptable—they’re necessary for meaningful innovation. Here’s how you can leverage them:

  1. Start Small: Test new ideas on a small scale before rolling them out. For example, pilot a new product in one market before expanding.
  2. Learn Quickly: Analyze what worked and what didn’t. Document your findings so they can guide future efforts.
  3. Iterate and Improve: Use the lessons from your failures to refine your approach. Each iteration brings you closer to success.

Edmondson highlights that failure without learning is wasted. Your job is to make sure every setback contributes to future wins.

The Role of Leadership in Managing Failure

As a leader, your attitude toward failure sets the tone for your organization. If you treat mistakes as opportunities to learn, your team will follow suit. If you punish failure indiscriminately, you’ll create a culture of fear and stagnation.

Actionable Steps:

  • Be Clear About Expectations: Define what types of failures are acceptable (e.g., intelligent failures) and which are not (e.g., basic failures).
  • Encourage Risk-Taking: Create safe spaces for experimentation where failure is seen as part of the process.
  • Focus on Systems, Not Individuals: When mistakes happen, look for systemic causes rather than assigning blame.

Why It Matters for You

Right Kind of Wrong reminds us that success often comes from the courage to fail. By embracing intelligent failures, fostering psychological safety, and learning from every mistake, you can drive innovation and resilience in your business.

Your challenge? Stop fearing failure and start managing it. The next time something doesn’t go as planned, ask yourself: What can I learn from this? Then use those lessons to build something even better.

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What are intelligent failures?

Intelligent failures occur when you try something new or innovative and it doesn’t work out as planned. They’re expected in uncharted territory and are valuable because they lead to learning and growth when analyzed correctly.

Start by encouraging open dialogue and normalizing failure as part of the process. Share your own experiences with failure to set an example and reward transparency when team members acknowledge mistakes and share lessons learned.

Basic failures are preventable mistakes caused by carelessness or lack of attention. They waste time and resources but can often be avoided by implementing better processes, training, or automation.

Look at your team culture. Do people feel safe admitting mistakes or taking risks? If there’s fear of blame or punishment, you’ll need to build psychological safety first by focusing on open communication and systemic improvements rather than individual blame.

Make sure to document and analyze failures to extract key lessons. Use those insights to refine your approach, and then apply them in future projects. Treat each failure as a stepping stone toward improvement and innovation.

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Allison Dunn

Allison Dunn spent 25 years as an owner and executive of several businesses, including an engineering firm, manufacturing company, and architectural firm. In 2013, Allison founded Idaho’s top-ranked business coaching company, Deliberate Directions.

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