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SpaceX’s recent success in catching their Starship rocket highlights a crucial element of innovation: embracing failure. Unlike NASA, who are limited by public funding, SpaceX, being privately funded, can take bigger risks, leading to faster innovation. This “fail fast, learn fast” approach is key to their success.
Many companies claim to support risk-taking, but the reality is quite different. A recent Forbes study found that two-thirds of employees fear failure in their role and the potential impact it could have on organizational innovation.
Similarly, a McKinsey report revealed that more than half of employees do not feel psychologically safe at work, meaning they hesitate to speak up, take risks, or admit mistakes for fear of negative repercussions.
This fear is further confirmed by the American Psychological Association, which reported that 80% of workers experienced work-related stress in 2023, often stemming from a fear of speaking freely or facing repercussions for sharing ideas or admitting failures.
This disconnect between what companies proclaim about their mental health and wellness priorities and the actual experiences of employees stifles innovation and creates a stressful work environment. To truly innovate, companies need to cultivate a “failure-friendly” culture where mistakes are seen as learning opportunities.
Companies like Pixar and Google already embrace this approach. Pixar encourages mistakes, and Google’s “20% Rule” allows employees to dedicate time to personal projects. Celebrating failures, like Intuit’s “failure parties”, can further reinforce this culture.
Musk’s “We Robot” launch, despite some skepticism, is another example of this mindset. Regardless of current limitations, the launch pushes boundaries and fuels further development.
The key takeaway is to create an environment where your team feels safe to experiment and fail. This, coupled with a willingness to take your own risks, can lead to significant breakthroughs and innovation.
On the 14th of October 2024, the crews at SpaceX made aerospace history in catching their returning Starship rocket. The unpiloted 23-storey booster rocket flawlessly docked with micro-precision, bringing with it a new dawn in ‘rapid reusability’ for space travel. Elon Musk claimed the success was a significant step in achieving multi planetary life. To be fair, it did look spectacular.
Aside from the feat of engineering at play here, what is most interesting are the faces on everyone in the control room after the success. As the camera pans across the large group, if you look closely, you can see that most of them clearly didn’t actually expect it to work, their expressions ranging from sheer joy to absolute astonishment. They had designed it to work, hoped it would work, but were mainly prepared for a ‘learning experience’ during the attempted docking, often code for failure.
While we discussed the possibilities of multi planetary life, the realities of space travel, lunar energy and colonization (which happened to be her current project), naturally, SpaceX came up. She made a surprisingly insightful comment, almost as an afterthought.
And in that statement lies the key to success: fail and fail fast. Learn from the mistakes, try again, and fail again. Many people don’t like Musk, finding him arrogant, egotistical, or aloof, but no one can deny his relentless pace and progress in technical innovation and market disruption. Much of that success stems from his open-minded approach to failure. As Musk famously said, “If things are not failing, you are not innovating fast enough.”
A recent Forbes study found that two-thirds of employees fear failure in their role and the potential impact it could have on organizational innovation. Similarly, a McKinsey report revealed that more than half of employees do not feel psychologically safe at work, meaning they hesitate to speak up, take risks, or admit mistakes for fear of negative repercussions.
The American Psychological Association (APA) reported that 80% of workers experienced work-related stress in 2023, often stemming from a fear of speaking freely or facing repercussions for sharing ideas or admitting failures. Three separate studies highlight the same issue.
Pixar famously encourages mistakes as a core part of the creative process. Similarly, Google’s ‘20% Rule’ allows employees to dedicate up to 20% of their work time to personal projects of interest, creating an environment where experimentation can thrive without fear of consequence.
What’s missing from these awards ceremonies are categories like “Most Spectacular Fail” or “It Should’ve Worked but Didn’t.” Every company should consider giving out such awards. We need to openly celebrate those who “try but fail” in front of everyone. If success is the only thing acknowledged, we only reinforce the findings of the reports mentioned earlier—that failure is not something we take pride in.
For instance, Intuit, the accounting software company, hosts regular “failure parties” to celebrate what was attempted, regardless of the outcome. Similarly, Gore-Tex celebrates project failures with beer and champagne for all, just as they would for a successful endeavour.
On one side are those who view these products as a genuine glimpse into our immediate future, confident that innovation will continue to flourish. On the other side are the cynics, quick to point out that the Optimus robots were being remotely operated by humans during the demo, and that the autonomous vehicles were navigating a carefully constructed movie set, far removed from real-world conditions.
Regardless of which camp you belong to regarding your opinion on the launch, the key focus should be on the customer and society as a whole. Their expectations surrounding AI and automation took a significant leap forward with the We Robot launch. It served as another critical catalyst for consumer confidence in AI and robotics, holding cultural significance akin to Steve Jobs’ launch of the iPhone in 2007.
While autonomous vehicles still face challenges and ongoing engineering issues, each failure drives further development—pun intended. Mainstream humanoid robotics may also still be in their infancy, but the progress over the past year has been remarkable. The future will be shaped by repeated trial and error.
Houston, We Have a Problem
Five days after this historic moment, I found myself in an unexpected conversation at a bar in Miami with a NASA project engineer. It was one of those serendipitous encounters—proof that it’s always better to sit at the bar than at a table. Talking to someone who works at NASA is a rare treat, so naturally, the conversation was fascinating (although perhaps less so for her, since I made her talk shop while she was just trying to enjoy her margarita).
While we discussed the possibilities of multi planetary life, the realities of space travel, lunar energy and colonization (which happened to be her current project), naturally, SpaceX came up. She made a surprisingly insightful comment, almost as an afterthought.
Failure as a Path to Innovation
When reflecting on SpaceX’s progress over the past five years, she said, “… of course, because they’re privately funded, they can take more risk. At NASA, everything we do is funded by tax dollars, so we can’t afford to take as many unnecessary risks. Musk doesn’t think twice about losing $160 million on a rocket that might crash, again and again. We don’t have that luxury. He doesn’t care if he fails—we are more accountable.”
And in that statement lies the key to success: fail and fail fast. Learn from the mistakes, try again, and fail again. Many people don’t like Musk, finding him arrogant, egotistical, or aloof, but no one can deny his relentless pace and progress in technical innovation and market disruption. Much of that success stems from his open-minded approach to failure. As Musk famously said, “If things are not failing, you are not innovating fast enough.”
Fail First, Success Comes Later
Whether you manage a large team or a small business, the principle is the same: success and failure are not opposites but rather two sides of the same coin. The successes of tomorrow are often built on the foundations of today’s failures. You’d think, then, that all organizations would foster environments where failure is embraced and employees feel safe to take risks. Yet, much like the “NASA effect,” many employers demand innovation but are hesitant to support the failures that come with it—especially when it feels like it’s on “their tax dollars.”
A recent Forbes study found that two-thirds of employees fear failure in their role and the potential impact it could have on organizational innovation. Similarly, a McKinsey report revealed that more than half of employees do not feel psychologically safe at work, meaning they hesitate to speak up, take risks, or admit mistakes for fear of negative repercussions.
The American Psychological Association (APA) reported that 80% of workers experienced work-related stress in 2023, often stemming from a fear of speaking freely or facing repercussions for sharing ideas or admitting failures. Three separate studies highlight the same issue.
The Corporate Disconnect
There appears to be a growing disconnect between what companies proclaim about their mental health and wellness priorities and the actual experiences of employees. While organizations assert that they encourage experimentation and embrace failure, employees often feel differently. The reality is that an unhealthy attitude toward risk and failure pervades many organizations. To foster true innovation, we need to cultivate strong cultures that promote failure tolerance.
Pixar famously encourages mistakes as a core part of the creative process. Similarly, Google’s ‘20% Rule’ allows employees to dedicate up to 20% of their work time to personal projects of interest, creating an environment where experimentation can thrive without fear of consequence.
Together We Fail?
I recently spoke at an internal annual conference for a client, themed “Together We Try, Together We Win.” This theme was designed to promote collaboration and proactivity. Typically, the event concluded with an awards dinner celebrating the successes and achievements of specific executives and team members. As an outsider attending these events, I often find myself reflecting on a recurring thought. After spending an entire day—my own presentation included—motivating attendees to take more risks, embrace failure, and cultivate curiosity in problem-solving, the event culminated in a celebration that focused solely on success.
What’s missing from these awards ceremonies are categories like “Most Spectacular Fail” or “It Should’ve Worked but Didn’t.” Every company should consider giving out such awards. We need to openly celebrate those who “try but fail” in front of everyone. If success is the only thing acknowledged, we only reinforce the findings of the reports mentioned earlier—that failure is not something we take pride in.
For instance, Intuit, the accounting software company, hosts regular “failure parties” to celebrate what was attempted, regardless of the outcome. Similarly, Gore-Tex celebrates project failures with beer and champagne for all, just as they would for a successful endeavour.
Elon Shows us the Future
Returning to Elon Musk, there was some scepticism surrounding the recent launch of “We Robot.” In classic tech launch fashion, the world watched as his new concept autonomous vehicles—Robotaxis and Robovans—pulled up to deliver passengers while humanoid Optimus robots danced and mixed drinks. Observers quickly split into two camps.
On one side are those who view these products as a genuine glimpse into our immediate future, confident that innovation will continue to flourish. On the other side are the cynics, quick to point out that the Optimus robots were being remotely operated by humans during the demo, and that the autonomous vehicles were navigating a carefully constructed movie set, far removed from real-world conditions.
This is Just the Beginning
I belong to that first camp. It doesn’t matter what the products can do today; it was a launch, and all companies control as many elements as possible during a marketing rollout. After all, the success of such launches has a direct affect on the share price. But can we be confident that these products will have a sustained drive for innovation? Yes. Will they look the same in 12 months? No. Will they be cheaper and more capable in two years? Absolutely
Regardless of which camp you belong to regarding your opinion on the launch, the key focus should be on the customer and society as a whole. Their expectations surrounding AI and automation took a significant leap forward with the We Robot launch. It served as another critical catalyst for consumer confidence in AI and robotics, holding cultural significance akin to Steve Jobs’ launch of the iPhone in 2007.
While autonomous vehicles still face challenges and ongoing engineering issues, each failure drives further development—pun intended. Mainstream humanoid robotics may also still be in their infancy, but the progress over the past year has been remarkable. The future will be shaped by repeated trial and error.
