Intro
In this episode of the Freakonomics podcast, titled “How to Succeed at Failing, Part 4: Extreme Resiliency,” the hosts explore the concept of failure and its role in success. They discuss various examples, from the world’s deadliest infectious disease to ride-share startups and the Museum of Failure. The episode highlights the importance of embracing failure, learning from it, and using it as a tool for growth and innovation.
Main Takeaways
Failure as a Tool for Innovation
- TB is the world’s deadliest infectious disease, killing around 1.5 million people each year.
- TB is a disease of poverty, with most deaths occurring in developing countries.
- There is a vaccine and antibiotics for TB, but they are not always effective and the treatment is long and complicated.
- TB does not receive as much attention or funding as other diseases, despite its high death toll.
- Babek Javid, a physician scientist who studies TB, found that increasing the error rate in the bacteria’s protein-making process can eventually kill the bacteria. This led him to discover that a moderate amount of mistranslation actually allows the bacteria to innovate.
- Adaptive mistranslation: errors in the right context and degree can strengthen an organism and lead it to innovate, coined by Babek Javid in his TB research
Embracing Failure in Decision-Making
- Wicked problems: problems without a clear right answer that have multiple stakeholders and potential conflicts, most major social problems fall under this category
- Failure should be taught formally in the classroom to help students understand that failure is a natural part of the learning process
- Pre-mortem: a technique where a team imagines that a project has already failed in order to identify potential problems and prevent them before they happen
- The pre-mortem strategy helps surface realistic possibilities and threats to improve plans and increase chances of success.
- The pre-mortem technique involves imagining a project has failed and listing all the reasons why it failed.
- The certainty that the plan has failed changes the mindset and removes pressure to not think about problems.
- The pre-mortem technique provides clarity by removing uncertainty about whether the plan will work.
- The pre-mortem technique can be used outside of the company to make important projects succeed.
- The pre-mortem technique creates a culture of candor where people can voice unpopular ideas without fear of punishment.
- The pre-mortem technique harvests the different experience and abilities of people in the room, leading to surprising ideas and more respect for colleagues.
- Anonymity could be useful in punitive environments, but face-to-face communication is better for creating a culture of candor.
- Harmonious decisions compromise the chance of coming up with innovation because everyone has a veto.
Startups and Failure
- Will Coleman left his job at McKinsey to launch a ride-share startup called Alto, which offers a differentiated service through W2 employees and company-owned vehicles.
- Alto offers a differentiated service through W2 employees and company-owned vehicles, competing directly against Uber and Lyft in every major city.
- Alto is an accessible luxury, providing consistent quality and safety for a couple of dollars more than cheaper ride-share options.
- Alto is currently in six markets across the US: Los Angeles, San Francisco, Dallas, Houston, Miami, and Washington, DC, but not yet in New York City due to the expense and competition of the market.
- Alto employs drivers directly and leases vehicles from manufacturers, hoping to set itself apart from the freelance driver model of Uber and Lyft.
- Founder Will Coleman disagrees with the suggestion of running pre-mortems and instead focuses on building incrementally and getting to the next decision point.
- ALTO lost 95% of their revenue in a day due to COVID, but became more agile and built successful products that now make up 20-30% of their revenue
The Museum of Failure
- Museum of Failure founder Samuel West created the museum after being inspired by the Museum of Broken Relationships in Croatia
- The Museum of Failure is a pop-up museum that has traveled the world since 2017, featuring over 150 failed innovations
- The focus of the museum is on learning from failure, both in products and in personal lives
- Failure is more interesting and authentic than success, and a more natural way of learning through trial and error.
- Most people believe that copying success is the best way to succeed, but it’s difficult to replicate someone else’s success.
- Failure is a natural way of learning through trial and error and should not be hidden.
- Not publishing null results means wasting the opportunity to learn from them and share knowledge with colleagues.
- A journal of failure could be a good idea to share failures and learn from them.
- Roy Schlem suggests creating a market for R&D failures, where losers of patent races can monetize their efforts and reduce the cost and time of R&D.
- R&D failures are an important part of the stock of knowledge, but there is currently no market for them
Teaching Failure as a Necessary Part of Life
- Learning from failure can be done in a classroom setting, like Failure 101
- Engineering students are high-achieving and see failure as the worst thing that can happen
- American culture views failure as a negative thing, leading to poverty and lack of social status
- Teaching failure as a necessary and natural part of life can be crucial for mental health and well-being.
- Failure is a changeable object and can have different components in different arenas.
- Embracing the idea of failure and being comfortable with uncertainty can lead to a more successful life.
- Failure is a universal struggle across all cultures
- Failure threatens our ego and universally feels bad
- A failure 101 course can change students’ perspectives on failure and make them embrace it
- The course should distinguish different kinds of failure and teach experimentation best practices
- Failure 101 course by Theresa McFail has received positive feedback from students and parents and should be taught at other schools
- Embracing failure leads to freedom and a lightness of moving through the world
- There should be a space for people to accept abject failure and learn acceptance, which leads to resilience
- Having a class where you talk about failure makes it okay to accept personal failures
- Failure is subjective and a social construct
- Everyone is failing every day at everything
Summary
Failure as a Tool for Innovation
TB, the world’s deadliest infectious disease, poses a significant global health challenge. Babek Javid’s research on TB has revealed that moderate mistranslation in the bacteria’s protein-making process can lead to innovation. This adaptive mistranslation concept challenges the traditional understanding of error and showcases how failure can be a catalyst for progress.
Embracing Failure in Decision-Making
Wicked problems, such as major social issues, often lack clear solutions and involve multiple stakeholders. Teaching failure in the classroom and implementing pre-mortem techniques can help individuals and teams navigate these complex problems. By imagining project failure and identifying potential pitfalls, teams can improve plans, foster a culture of candor, and increase the chances of success.
Startups and Failure
Startups like Alto, a ride-share company, demonstrate the importance of resilience and adaptability. Facing a significant revenue loss due to the COVID-19 pandemic, Alto managed to pivot and develop successful products. Will Coleman, the founder, emphasizes the value of incremental decision-making and building on previous successes.
The Museum of Failure
The Museum of Failure offers a unique perspective on learning from failure. By showcasing over 150 failed innovations, the museum highlights the authenticity and educational value of failure. Encouraging individuals and organizations to embrace failure as a natural part of the learning process can lead to increased innovation and a more open sharing of knowledge.
Teaching Failure as a Necessary Part of Life
Failure is often stigmatized in American culture, leading to a fear of failure and negative consequences. However, teaching failure as a necessary and natural part of life can promote mental health and well-being. Failure 101 courses, like the one developed by Theresa McFail, challenge traditional perceptions of failure and empower students to embrace failure as a tool for growth and success.
Conclusion
Failure is an inevitable part of life, and embracing it can lead to innovation, resilience, and personal growth. Whether in the context of global health challenges, decision-making processes, startups, or personal experiences, failure offers valuable lessons and opportunities. By reframing failure as a natural and necessary component of success, individuals and society can unlock their full potential and create a culture of continuous learning and improvement.
