“These figures don’t look good, let’s find some that do.”
The phrase was uttered by an executive with an almost visceral aversion to presenting anything that couldn’t be framed as a success. His obsession went so far as to turn documents upside down, again and again, until he could find an angle that sounded positive. The problem wasn’t the project itself —which had yielded valuable lessons despite not meeting all its goals— but rather the culture: hiding any trace of failure, or “non-success,” at all costs.
This defensive reflex deprives companies of something far more valuable than the appearance of immediate success: the accumulated learning from mistakes. Far from being a stigma, failure can become a strategic asset. The difference lies in how it is managed.
The cost of hiding mistakes
What isn’t documented never happened?
Sweeping failures under the rug is like literally sweeping dust under a carpet: sooner or later, someone will lift it up and see what’s been hidden. Worse still, dirt tends to breed more dirt. When failures are buried, the damage multiplies:
- The same mistakes get repeated because they’re never documented or shared.
- Innovation slows down, as nobody dares to take risks if punishment outweighs reward.
- Internal trust erodes, because everyone knows what happened but no one dares to acknowledge it openly.
This self-congratulatory trap is often the modus operandi of a certain professional profile. Depending on their position in the hierarchy, what begins as a personal work dynamic can end up permeating the organization, turning complacency into part of the company’s culture.
Document, analyze, and learn
Situations of failure —or “non-success,” depending on their severity and persistence over time— must be managed, never ignored. They can, in fact, be turned into valuable assets, but the first step is to systematize learning:
- Document failed projects: not as death certificates, but as internal case studies. What was tried, which hypotheses were tested, and what didn’t work.
- Analyze objectively: separate execution from intent, review data without assigning blame, and look for patterns.
- Extract useful lessons: develop conclusions that can be applied to future projects, both within the same area and across others.
- Share internally: create spaces where these lessons can circulate and become collective knowledge.
A learning culture versus a culture of fear
The value of failure depends entirely on organizational culture. In environments where mistakes are punished, teams learn to hide them. By contrast, companies that legitimize errors as part of the innovation process foster trust and accelerate learning.
The key message is this: failure is not rewarded —the learning that comes from it is. And that distinction completely reshapes team behavior.
Failure as competitive advantage
While some organizations obsess over maintaining an image of infallibility, others discover that accelerating the learning curve is a competitive weapon. Documenting and analyzing errors enables companies to:
- Reduce future costs by avoiding repeated mistakes.
- Innovate with greater confidence, knowing the boundaries and risks.
- Build resilience, as teams develop tolerance for uncertainty.
- Strengthen transparency and trust, both internally and externally.
In dynamic markets, the company that learns the fastest is the one that wins. And that includes learning from failure.
Conclusion
Failure is not a liability to be hidden; it is an asset that can be monetized if managed correctly. Companies that document, analyze, and share their mistakes internally build a knowledge base that competitors simply cannot replicate.
The difference between a company that stumbles and one that collapses does not lie in the mistake itself, but in the ability to learn from it.
