Risky business.
I was having lunch today with my friend and colleague, Graham Ericksen, and we discussed what it takes for a company to become truly great.
We concluded that greatness can only happen where failure is an option. We’re not suggesting that companies should encourage failure, or aim for it. However, if a company is unwilling to permit failure as a possible outcome, that company will never take the kinds of risks that lead to greatness.
Graham and I have worked together and separately for companies that fall into both camps: those that risk failure, and those that do not. One thing is clear: where failure is permitted, boundaries get pushed and reputations are made. Where failure is punishable by death, everyone may be safe, but greatness is never an option.
Of course, in reality, companies need to keep the lights on and payroll flowing, but somehow great companies budget for failure, accept it as a cost of doing business, and reap the rewards when the great risks turn out to be great successes.
