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Last updated on 2024年7月31日

Here's how you can effectively communicate failure to stakeholders in product innovation.

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Innovation in product development is a journey fraught with uncertainty and the potential for failure. When a project doesn't go as planned, it's crucial to communicate this to your stakeholders effectively. The key is not just in delivering the news, but in doing so in a way that maintains trust, provides context, and sets the stage for moving forward. You'll want to approach this delicate task with transparency, empathy, and a clear plan for the future. Here's how you can navigate the tricky waters of conveying product innovation failures to those who have a vested interest in your project's success.

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1 Recognize Reality

Accepting and acknowledging the reality of a failed product innovation is the first step in communicating with stakeholders. It's essential to conduct a thorough analysis of what went wrong and why. This reflection allows you to present a clear, factual account without masking the issues or making excuses. Remember, stakeholders appreciate honesty, and demonstrating your understanding of the failure establishes a foundation of trust. It also shows that you're committed to learning from mistakes and bettering future initiatives.

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Ricardo Medina

Semiconductor | Embedded | MBA | Innovation Management
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A key element to consider in addressing stakeholders about a failed product innovation is transparency. Providing a detailed analysis of the reasons behind the failure not only demonstrates accountability but also highlights areas for improvement. It's important to involve stakeholders in this process, as their insights and feedback can be invaluable for future projects. By openly discussing the failure and the steps taken to understand it, you reinforce the message that your organization values continuous improvement and stakeholder input, which can strengthen relationships and build long-term trust.

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Alexandre Volpi

Especialista em IA para Negócios | Consultor em E-commerce e Estratégia Digital | Fundador & CEO da CYBERSPACEX | Instrutor e Criador de Conteúdo na Udemy e LinkedIn
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To communicate failure in product innovation to stakeholders effectively, be honest and transparent. Explain the situation, outline the challenges faced, and highlight the lessons learned. Emphasize future improvements and how the experience will guide better decisions moving forward.

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Therese Hagelin

Produktutvecklingschef @ Svensk e-identitet AB | Scrum, Agile Certifications
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One thing to remember is that being transparent and honest will help you build trust. It might not be the news the stakeholders wants to hear, but in the long run, the fact that they know they can trust you will be beneficial. When working with stakeholders, these three things might help you: ? Make sure to create realistic expectations. ? Be transparent, even when the news are not the best. ? Be honest, even if it means you have to bring bad news and come with uncomfortable opinions.

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2 Empathetic Approach

When delivering bad news, empathy goes a long way . Put yourself in the stakeholders' shoes and recognize the disappointment or frustration they may feel. Address their concerns directly and acknowledge the impact the failure may have on them. By showing that you understand their perspective, you foster an environment of mutual respect. This can help maintain a positive relationship with your stakeholders even in the face of setbacks.

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Therese Hagelin

Produktutvecklingschef @ Svensk e-identitet AB | Scrum, Agile Certifications
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Being successful in the product management field don’t come easy. Building strong relations is key to your success. It’s a common misunderstanding that you can only become popular among stakeholders by providing the news they want and by saying yes. Instead, what will build relations is transparency, honesty and empathy. Always listen to your stakeholders and listen carefully. Even if you can’t give them what they want, it’s crucial to let them explain. Also, when bringing bad news, you should always take the time to explain, listen and to make it obvious that you hear them and that you understand.

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3 Clear Explanation

Transparency is critical when explaining a failure. Offer a clear and concise explanation of what happened, avoiding technical jargon that could confuse or alienate stakeholders. Your goal is to inform them, not overwhelm them with details. By focusing on the key points of failure, you help stakeholders grasp the situation, which is essential for their decision-making process and for maintaining their trust in your ability to manage the project.

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4 Future Focus

After addressing the current failure, it's important to direct stakeholders' attention to the future. Outline the lessons learned and how these insights will inform future product development efforts. Discuss concrete steps you plan to take to mitigate similar risks going forward. By demonstrating a forward-thinking mindset, you reassure stakeholders that their investment is not in vain and that there is a clear path to overcoming the current obstacles.

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5 Action Plan

Crafting an action plan is a tangible way to show stakeholders that you're taking control of the situation. This plan should include specific measures to address the causes of failure and strategies to prevent recurrence. Providing this plan not only demonstrates your commitment to rectifying the situation but also gives stakeholders a sense of security and a reason to maintain their support.

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6 Maintain Dialogue

Finally, keeping the lines of communication open with stakeholders is vital. Encourage feedback and be prepared to answer questions and concerns as they arise. Regular updates on the progress of corrective actions and new developments will keep stakeholders engaged and invested in the innovation process. By maintaining an ongoing dialogue , you build a collaborative relationship that can withstand the ups and downs of product innovation.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Blair Hirst

Digital Health Expert - Venture Builder | Startup Advisor | Investor
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Failure is not always a bad thing and not all product innovations should be successful. In fact, product failure can be planned for impactful lessons to better understand true value to stakeholders. It would be an ideal benefit to all stakeholders to communicate when a product innovation should fail or reach a go/no-go point instead of always expecting wins. That way, teams are failing faster and learning valuable lessons more quickly.

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Here's how you can effectively communicate failure to stakeholders in product innovation.

1

2

3

4

5

6

7

1 Recognize Reality

2 Empathetic Approach

3 Clear Explanation

4 Future Focus

5 Action Plan

6 Maintain Dialogue

7 Here’s what else to consider

Product Innovation

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Here's how you can effectively communicate failure to stakeholders in product innovation.

1

2

3

4

5

6

7

1 Recognize Reality

2 Empathetic Approach

3 Clear Explanation

4 Future Focus

5 Action Plan

6 Maintain Dialogue

7 Here’s what else to consider

Product Innovation

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