In a professional context a good example is failing to win or be down selected for an IT contract following a bid process in which a supplier has invested heavily. On one level this is a complete disaster. However, firstly there are always lessons to be learned to improve future performance. See this short Forbes article How To Reflect, Learn And Win After Losing A Contract which reminds us that you just cannot win them all, with research showing the average sales win rate is less than 50%. From my experience the rate for complex IT outsourcing contracts, especially where the incumbent supplier is bidding, can be even lower. The article suggests that in addition to a debrief “rereview your proposal through the eyes of the client ….. and objectively critique your submission while keeping in mind: "Am I selling my company’s product or service as it benefits the client?"”
Secondly there may be other advantages despite having to write off the bid expenses, not least that skilled people in short supply earmarked for this project are freed up for other work. If winning would have meant being ultra-competitive and “scrubbing costs” (the aggressive, line-by-line slashing of proposed prices and resource allocations), delivering the service and making a reasonable return could well have been a challenge. I have observed the painful reality for a client forced to deliver “an onerous contract” which it won at a price its own governance said would not result in a profit. In addition to bitter internal recriminations (which are not good for company morale), there is a sort of inevitable downward spiral where costs are duly cut, but successful delivery is then jeopardised. The customer then becomes unhappy and the supplier’s reputation in the market potentially suffers.
See this Harvard Business School article Why Failing Is Critical to Your Team’s Success which suggests that “Understanding how to fail well helps teams avoid unnecessary obstacles, encourages experimentation, and builds a culture where continuous learning is the norm. When failure is reframed as a tool for progress, leaders can move the organization forward.”
It cites the approach of Harvard professor Amy Edmondson who says it depends on how and why you fail. She is the author of the book, Right Kind of Wrong: The Science of Failing Well which “showcases how to minimize unproductive failure while maximizing what we gain”. The article concludes “Failure is often seen as a barrier, but it can be the catalyst for growth and lifelong learning. When leaders change their perception of failure, they unlock its true potential. Instead of an endpoint, failure becomes a powerful driver of innovation and progress.”
History is full of major setbacks in business, politics and science that forced a change in direction and led to massive success. Here are some great examples linked to highly successful individuals.
Steve Jobs
· Setback: In 1985, Steve Jobs was ousted from Apple, the very company he co-founded, after losing a power struggle. It was a very public and painful failure.
· Positive: Being pushed out gave him the freedom to start NeXT (a computer platform) and fund Pixar Animation Studios. When Apple bought NeXT years later, Jobs returned to lead Apple, turning it into one of the most valuable companies in history.
Soichiro Honda
· Setback: Soichiro Honda faced extreme hardship after World War II when his manufacturing plant was completely destroyed by bombing and later levelled by an earthquake. To make matters worse, Toyota had previously rejected his piston ring designs.
· Positive: Left with no factory, Honda strapped a small engine onto a bicycle to help people get around post-war Japan. This simple, improvised motorized bicycle sparked the creation of the Honda Motor Co., Ltd, which grew into a global automotive giant.
Abraham Lincoln
- Setback: Before leading the United States through the Civil War, Abraham Lincoln suffered multiple business failures, nervous breakdowns, and a long string of lost election bids for the legislature and Congress.
Thomas Edison
· Setback: In 1914, a massive explosion and fire destroyed a huge portion of Thomas Edison’s manufacturing plant and experimental labs, burning years of irreplaceable work to the ground.
· Positive: Unfazed by the massive financial loss, Edison famously viewed the disaster as a chance to wipe the slate clean. Just three weeks after the fire, his team delivered the very first portable phonograph.
So, in order to help us replicate these turnarounds in our various professional work, what are the common characteristics that enable individuals and organisations to succeed so spectacularly against the odds? Here are some ideas.
Individuals
· Growth Mindset: Seeing failure as a data point or a lesson, not as a reflection of their personal worth.
· Radical Acceptance: Not wasting time in denial or blaming external forces.
· Stoic Perseverance: Focusing entirely on the immediate response to the disaster rather than dwelling on the disaster itself.
· Cognitive Reframing: Ability to change perspective on a situation.
Organisations
· Psychological Safety: Teams feeling safe to take risks and admit mistakes without fear of punishment or public humiliation.
· Blameless Post-Mortems: Focusing entirely on what went wrong and how to fix the system, rather than who is to blame.
· Decoupled Identity: Survival is not tied to one specific product or process.
- Agility and Decentralisation: Bureaucracy slows down recovery. High-performing organisations empower lower-level teams to make quick decisions, allowing them to adapt instantly during a crisis.
Ultimately it is about attitude. As Winston Churchill, who had his fair share of challenges, once said "The pessimist sees difficulty in every opportunity. The optimist sees opportunity in every difficulty."









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