People learn best from failure. It drives lessons home like nothing else.
The paradox is that in business, failure can be extremely costly. A new book from Laurence Weinzimmer and Jim McConoughey, "The Wisdom Of Failure" shows that it's possible to learn the lessons of the greatest business failures without having to go them yourself.
The authors look through some of the great failures of the past, surveyed hundreds of executives, and talked to industry leaders. We've broken out some of the key tips.
Thanks to the publisher for allowing us to feature the book
Don't let your ego keep you from knowing when to quit.
After significant financial, emotional, or psychological investment in something, leaders can have an incredibly difficult time writing it off. News Corp. spent $580 million on MySpace in 2006 and poured investment into it for years and years as it bled market share to Facebook. It was eventually sold for $34 million.
The idea of being first and the idea of the turnaround are extremely seductive, but the greatest leaders have learned when to quit from the times that they failed.
Source: "The Wisdom Of Failure"
Remember that nobody wants the "most efficient cigarette in the world."
R.J. Reynolds spent more than a billion dollars developing the "Premier," a cigarette that used a complicated system that made it cleaner burning and less toxic to smokers. Smokers hated it. It tasted strange, was hard to light, and made them have to inhale harder. They created the world's most efficient cigarette that nobody wanted.
The best leaders don't make assumptions about customers, they serve them.
Source: "The Wisdom Of Failure"
Learn to say no to a quick buck.
The CEO of LA Gear grew his company from $11 to $820 million in sales in just four years by focusing on unique, fashionable shoes that were expertly marketed. But chasing three high dollar opportunities killed the company. They sold excess product at deep discounts which diminished the brand, invested heavily outside of its core competency in basketball shoes, and offered low-end shoes at Wal-Mart. The CEO couldn't say no to chasing more money, and paid the price for it.
The ability to say "no" to what looks like a lucrative opportunity is one of the most important traits a leader can possess.
Source: "The Wisdom Of Failure"
See the rest of the story at Business Insider