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Executive Director
I was tempted to leave the word “failure” out of the title for this week’s eNews out of fear that a title touting failure might be disconcerting to some readers. But facing the fear of failure seems to be a hot topic these days. Earlier this month the Harvard Business Review released an entire issue devoted to various facets of failure (see “The Failure Issue,” April 2011).
In her article, “Strategies For Learning From Failure,” Harvard Business School professor Amy C. Edmondson writes about a “spectrum of reasons for failure.” She notes the tendency to use a superficial approach to understand the reasons for failure and an overly simplistic process to understand how to learn from failure. On the topic of “why” we fail, Edmondson describes a spectrum of reasons—including some that warrant blame. Examples of “blameworthy” failures include when an individual “chooses to violate a prescribed process or practice” or when lack of attention causes a deviation from a required protocol. At the other end of the spectrum are failures that result from responsible risk-taking, which Edmondson labels “praiseworthy.” Examples at this end of her spectrum include failures that result from reasonable actions in the face of uncertainty, and failures under experimentation designed to expand knowledge.
With respect to learning from failure, Edmondson writes that leaders “…believe that learning from it is pretty straightforward: Ask people to reflect on what they did wrong and exhort them to avoid similar mistakes in the future—or, better yet, assign a team to review and write a report on what happened and then distribute it throughout the organization.” According to Edmondson, a thoughtful approach to learning from failure may require changing organizational culture to make it truly “safe to speak up” about mistakes and failures.
In his contribution to The Failure Issue, Mandalay Entertainment chairman and CEO Peter Guber writes about learning the importance of getting back up after being “knocked down” from heavyweight boxer Muhammad Ali. During a conversation with the prizefighter, Ali explained to Guber that when a fighter doesn’t get back up after being knocked down he forfeits any possible chance of winning the fight. Guber’s article closes with advice that is timely and relevant for any nonprofit leader who has felt the bruising sting of failure: “Failure is an inevitable cul-de-sac on the road to success. Keep taking risks-and always get back up.”
Risk-taking and the occasional failure go hand in glove. Those who aspire to be effective in the ever-changing and always challenging nonprofit sector must learn to get back up, resist the temptation to “blame and shame,” and commit to look beyond the outer layer of a failure for the deeper and more complex root causes.
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. She welcomes your ideas about any risk management topic, feedback on this article and questions about the Center’s resources at Melanie@nonprofitrisk.org or 703.777.3504. The Center provides risk management tools and resources at www.https://nonprofitrisk.org/ and offers consulting assistance to organizations unwilling to leave their missions to chance.
“First let me congratulate you on a conference well done. I had a great time at the Nonprofit Employee Benefits Conference and walked away with some valuable tools and questions that we’ll need to be addressing in both the short and long term. Thanks to you and your staff for all you do to provide us with quality resources in support of our missions.”
“BBYO’s engagement of the Center to conduct a risk assessment was one of the most valuable processes undertaken over the past five years. Numerous programmatic and procedural changes were recommended and have since been implemented. Additionally, dozens (literally) of insurance coverage gaps were identified that would never have been without the work of the Center. This assessment led to a broker bidding process that resulted in BBYO’s selection of a new broker that we have been extremely satisfied with. I unconditionally recommend the Center for their consultative services.
“Melanie Herman has provided expert, insightful, timely and well resourced information to our Executive Team and Board of Directors. Our corporation recently experienced massive growth through merger and the Board has been working to better integrate their expanded set of roles and responsibilities. Melanie presented at our Annual Board of Director’s Retreat and captured the interest of our Board members. As a result of her excellent presentation the Board has engaged in focused review which is having immediate effects on governance.”
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“The board and staff of the Prince George’s Child Resource Center are extremely pleased with the results of the risk assessment conducted by the Nonprofit Risk Management Center. A thorough scan revealed that while we are a well run organization, we had risks that we never imagined. We are grateful to know that we have now minimized our organizational risks and we recommend the Center to other nonprofits.”
Great American Insurance Group’s Specialty Human Services is committed to protecting those who improve your communities. The Center team has committed to delivering dynamic risk management solutions tailored to nonprofit organizations. These organizations have many and varied risk issues, hence the need for specialized coverage and expert knowledge for their protection. We’ve had Melanie speak on several occasions to employees and our agents. She is always on point and delivers such great value. Thank you for the terrific partnership and allowing our nonprofits to focus on their mission!