Failure is an inevitable part of working in organizations and often serves as a key driver for individual learning and growth. However, the knowledge gained from failure only benefits organizations if it is effectively retained and applied. This article delves into why the knowledge that comes from failures may be lost and what organizations can do to ensure it is preserved and utilized.
LEARNING FROM FAILURE
Researchers (Madsen & Desai, 2024) focused on serious coal mining accidents in U.S. mines. They collected data from the Mine Safety and Health Administration (MSHA) on accidents resulting in fatalities or permanent disabilities over a five-year period. Analyzing 28,304 observations from 5,869 firms, the study examined how prior accident experience impacted safety performance, specifically measured by the number of employee days lost due to injuries.
Results indicated that retention of knowledge was influenced by factors like the complexity of past failures, organizational responsibility, and connection to routine activities. Complex failures and those where the organization was at fault captured more attention, thus preserving learning. Failures closely tied to core routines also contributed to better knowledge retention. These insights build on existing theories of organizational learning, shedding light on how the nature of failure affects how well lessons are retained.
ORGANIZATIONAL TAKEAWAYS
Learning from failure tends to fade over time unless organizations take deliberate steps to retain the lessons. As such, the authors recommend the following strategies to promote long-term knowledge retention:
- Organizations should conduct in-depth analyses of failures to uncover all contributing factors. Simplifying causes limits learning, while recognizing the complexity of failure helps retain valuable insights.
- Instead of deflecting blame, organizations should accept responsibility for failures. Taking ownership fosters deeper learning and improvement, especially when the failure is tied to key processes or routines, embedding the lessons into everyday practices.
- Lastly, organizations should develop formalized training programs around failure. Much like NASA’s “lessons learned” initiative, organizations can implement structured training to capture and apply knowledge from past failures to prevent future issues.
Madsen, P. M., & Desai, V. (2024). Change at Last, but When Does Change Last? Preserving Attentional Engagement around Past Failures and Their Lessons. Academy of Management Journal, 67(4), 933–955.
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