Learning From Failure

3-minute read

Written by Shawn Bakker, Psychologist

While it is common to hear about failing forward, many organizations often treat failure like a landmine: something to avoid at all costs. But the truth is, failure can be one of the most powerful learning tools – if people are equipped to process it effectively.  

Yet, as research by Ryan W. Carlson and Ayelet Fishbach at the University of Chicago Booth School of Business shows, learning from failure is much harder than it sounds. They highlight two psychological issues that hamper learning and progress following failures:  

1. Emotional barriers  
2. Cognitive barriers 

Emotional Barriers: The Sting That Silences

Failure is uncomfortable. It challenges our self-worth and can feel like a threat to our reputation and competence. In the workplace, this sting is amplified – no one wants to look incompetent in front of their manager or peers. 

As a result, employees may avoid taking risks, stay quiet during meetings, or abandon difficult projects prematurely. Worse, when failure does occur, people often disengage rather than reflect, cutting off the possibility of growth. 

Cognitive Barriers: The Myth That Failure Teaches Nothing

Beyond emotions, there’s a belief that failure isn’t useful. People often assume that success shows the “right” path and that mistakes are just dead ends. But failure actually contains unique, actionable insights – especially in environments where success is common and mistakes are rare. 

Still, extracting lessons from failure requires more effort than repeating what worked. It involves analysis, questioning assumptions, and identifying what to change. That kind of reflective learning is far less intuitive – and often neglected. 

How Can Organizations Intervene?

Here’s the good news: organizations can adopt practical strategies to help employees turn failures into learning opportunities. 

1. Reframe failure as progress, not a personal flaw. Encourage employees to view failure as an indicator of where they are in the process, not who they are. This mindset shift supports perseverance and deeper learning. 
2. Promote psychological safety. When employees know they can speak up, admit mistakes, and ask for help without fear of retribution, they’re more likely to explore what lead to failure rather than hide from it. 
3. Encourage self-distancing. Techniques like third-person self-talk (“What could Alex do differently next time?”) help individuals process setbacks more rationally, minimizing emotional overload. 
4. Use vicarious learning. Highlighting case studies or peer experiences (e.g., project post-mortems) lets employees learn from the mistakes of others. 
5. Let employees give advice. Surprisingly, when people reflect on failure by advising others, they internalize lessons more deeply – and boost their own motivation and confidence. 
6. Foster a growth mindset. Leaders who frame challenges as opportunities and value effort over perfection model a culture where learning trumps flawless execution. 

Final Thoughts

In organizations, failure isn’t an enemy, but a resource. By addressing the emotional and cognitive hurdles that block learning, leaders can help their teams uncover the valuable insights and lessons that failure provides. 

Carlson, R. W., & Fishbach, A. (2024). Learning from failure. Motivation Science, 10(3), 160–170. https://doi.org/10.1037/mot0000338