The Mindset and the Process of Facing Failures
Designing Well #4
No matter how careful we are, failures happen. It is common to discuss failures in books and TED Talks these days, and we feel that we are becoming more open about talking about it. However, it still seems that “failure stories as a process towards success by successful individuals” dominate the conversation. It might be good to talk about various types of failures.
I, too, recently experienced a failure. I was running a startup called Nesto, but the business did not show the growth we had hoped for, and I accepted that the startup had failed.
We do our best to avoid failure. We should try various means to reduce the chances of failure. But unfortunately, failure is inevitable. If my experience and process of accepting failure can be even a little helpful to you, I will share them. It is also a memo to my future self, who will surely experience failure again.
Three Steps to Confront Failure
Step 1: Accepting Failure
Acknowledging failure as failure. This may seem simple but is actually very difficult. We tend to want to cover it up or make excuses. If you have something you want to justify, it may mean that there is something unfinished. I recommend completing what you have to do if you have any regrets. When you believe that you have done your best, it becomes easier to accept the situation.
Failure means not meeting your own expectations or the expectations of those around you. Expectations can be concrete, such as numerical goals, or abstract. In our case, we had both specific growth targets as well as expectations from investors for social impact.
For me, the three questions that were necessary to confront failure were:
- What were the expectations?
- Are there other means to meet those expectations?
- Can I feel excited about continuing?
We asked ourselves these questions in team discussions, but utilizing coaching or counseling can also be effective.
Step 2: Finding Ways to Utilize Failure
After accepting failure and letting go, you can start a new challenge, learn from the experience to ensure it doesn’t happen again, or transform the failure into a different idea. The actions that follow failure are diverse. It may sound cliché, but failure can be a great opportunity for new insights and growth.
Our service was unable to expand the business to the scale we had aimed for. As a startup with expansion as the premise, it is a failure. At this point, we can either close the business and apply the learnings elsewhere, pivot the service, or choose to continue the service in a non-startup form. We are currently considering various possibilities in progress. There are countless means, and there is no right or wrong answer.
Whether to continue and how to continue is up to our own will. When you are unsure whether to continue the business, the method mentioned in Paul Jarvis’ book “Company of One” may be helpful. After knowing everything you currently know, ask yourself if you are willing to start the business from scratch again. If the answer is yes, you should continue.
Step 3: Taking Care of Yourself and Those Around You
After accepting failure, it is important to take care of yourself and those around you. Failure means not meeting the expectations of users, staff, shareholders, and investors who believed that “you could do it.”
When you fail, your attitude is being questioned. You should accept the fact that you couldn’t meet the expectations and communicate sincerely and honestly with those who supported you. Otherwise, you will surely lose valuable trust. While failure is tough, facing the people around you and honestly discussing your failures may be the most difficult part. That’s why it is helpful to properly address the details of the failure and your emotions in the previous step.
Furthermore, I want you to not be ashamed of betraying your own expectations and being hurt in the process of failure. I repeat, accepting failure is a challenging process. In such difficult times, it is important to take time for yourself. Of course, it is also important to maintain a sincere attitude towards the people around you, without running away from everything. With that in mind, I believe that striving and taking care of yourself should go hand in hand.
Step 0: Before Failure
At Nesto, we have continuously disclosed our business situation to stakeholders, including shareholders, employees, and users. I truly believe that bad news should be communicated as early as possible. Sometimes, we may find ourselves thinking, “The next strategy might work. Let’s wait until the next strategy is implemented before sharing the news,” and it becomes difficult to initiate the report. It is important to develop a habit of providing detailed updates, even for bad news.
Life is an Infinite Game
There is a concept proposed by philosopher James Carse called Finite and Infinite Games. Finite games have rules and a winner, such as chess or soccer. On the other hand, infinite games are games where the rules are constantly changing in order to keep playing indefinitely. Business and relationships are examples of infinite games. If played well, they can continue indefinitely, and we engage in them to keep the game going.
In one finite game, even if we fail, life is an infinite game. In that sense, there is no ultimate failure in life, and we need to continue playing while adapting the rules.
While we cannot eliminate failure entirely, we should be able to learn how to deal with it. I had the opportunity to speak about the process of failure at an event called “A Taste of Design Matters,” and the reaction was very positive. I hope that we can continue to have more discussions about mindset and the process of facing failure. Hearing stories of other people’s failures can be inspiring and give us courage. Please also share your stories of failure.
Photo credit: Sota Motonaga
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