Establishing a “trial and error” culture

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?? Key take-aways

• “Trial and error” cultures are a theoretical concept of social and economic sciences and are closely linked to the corporate culture
• They give us the opportunity to develop and learn and more room for innovation
• Germany ranked 60th out of 61 countries in a survey of positive error cultures
• “Trial and error” cultures are based on three pillars: norms & values, competencies, instruments
• Establishment of a “trial and error” culture starts at the top and must be practiced by everyone
• It is important for the growth and success of a company

Mistakes are often associated with negative feelings. This already starts with the fact that children are graded with bad grades for wrong answers and mistakes at school. People also often associate failures with shame and embarrassment and like to cover them up. And this although mistakes are important for further growth and development. Why is this the case and why is a “trial and error” culture becoming more and more important and significant in many companies?

? What is a “trial and error” culture and how is Germany ranked?

“Trial and error” cultures are a theoretical concept of social and economic sciences, which deals with the handling of errors in an organization or a company. The error culture is closely linked to the corporate culture and should be lived by all employees.

But why is a “trial and error” culture so important for companies? It is already evident in childhood that we learn from mistakes and we only do so if we deal with them transparently and thus analyze the reason for the misconduct. This gives us the opportunity to develop and learn and gives us more room for innovation. In addition, mistakes can be corrected in a short time due to the quick communication and reaction created by trust. This ultimately enables agility and speed in the market.

However, a study by the management consultancy EY found that of 1000 respondents from sectors such as logistics, automotive, finance, mechanical engineering and insurance, about 64% of managers do not admit their own mistakes at all or hardly at all. The figure is even higher in the financial sector with 82%.

In a study conducted by Leuphana University of Lüneburg, Germany ranked 60th out of 61 countries surveyed in terms of positive error culture; only Singapore did worse. This is also due to the fact that perfectionism is strived for in Germany and it can therefore be assumed that mistakes are reluctantly shared. In addition, many German companies lack a strategic approach to establishing a “trial and error” culture. However, there are already some startups and companies that are placing greater emphasis on culture and a "trail and error" culture. Fuck-up stories are also becoming increasingly popular. "Fuck-ups" are failures from day-to-day work that are often kept a secret. At so-called Fuck up story events, employees, managers and executives report on these mistakes and what they have learned from them. This creates transparency and openness and reduces the hurdle of admitting mistakes.

? On which pillars is a “trial and error” culture based?

“Trial and error” cultures are based on three pillars.

1. Norms & values: This defines how a company deals with failures and responds to any consequences.
2. Competencies: Managers in particular should have methodological competencies to deal with mistakes. These should be social, mental, emotional and methodological skills to deal with failure properly. This includes, among other things, empathy, the ability to act in a solution-oriented manner and to motivate employees.
3. Instruments: All participants, especially managers, should know methods and techniques that enable them to react professionally to errors.

The willingness to establish this culture alone is often not enough. Knowing the competencies, methods and right ways is crucial for the success of an established “trial and error” culture.

? How can companies establish a successful “trial and error” culture?

The importance and significance of a “trial and error” culture should now be apparent to you. But how can companies integrate it into their corporate culture?

1. The first step involves questioning how failures and mistakes have been dealt with up to now. What consequences must your employees expect if they admit a mistake? Are your employees afraid to say mistakes out loud? Analyzing the status quo already lays the foundation for establishing a “trial and error” culture.
2. In the second step, rules should be introduced. Introducing a culture of error means not only defining how errors are dealt with, but also how mistakes can be avoided. For this purpose, rules and guidelines must be defined that reduce the risk of errors and rule violations.
3. However, an error has occurred and the question is now how do we deal with it? In this case, a clear error process is needed. This must be clearly defined, comprehensible and understandable. For example, a form can be introduced in which employees can define and describe the mistake in a simple and understandable way. This procedure can also be used to discuss causes and proposed solutions.
4. In the final step, the mistake is examined again and consideration is given to how it can be counteracted in the future. It is important to always consider the fault without regard to the person involved. The full attention should be on the error, its prevention and the reprocessing.

? A “trial and error” culture offers benefits for employees and companies simultaneously

Establishing a “trial and error” culture starts at the top and must be practiced by everyone in the company if it is to be implemented successfully. It is part of the corporate culture and important for the growth and success of a company. At the same time, it can offer opportunities for employees as well as the company. In addition, employee retention is also strengthened, as employees do not have to hide or be afraid when mistakes are made. A successful “trial and error” culture has a positive impact on work relations and the company environment.

You can check out our recent LinkedIn posts and our upcoming webinars (in German language). Feel free to also talk to our internal communication experts if you want to know more about internal communication or related topics.

?? Sources:

Buchheim, C. (2020).?Fehlerkultur im Startup - Mit Fehlern zum Erfolg. Business Insider.?https://www.businessinsider.de/gruenderszene/allgemein/fehlerkultur/.

EY (2023). EY-Studie zur Fehlerkultur zeigt ernüchterndes Bild: Zwei Drittel der Führungskr?fte sprechen nicht über eigen. https://www.ey.com/de_de/news/2023/03/zwei-drittel-der-fuehrungskraefte-sprechen-nicht-ueber-eigene-fehler.

HR Heute (2022). Wie Unternehmen ihre Fehlerkultur verbessern k?nnen. https://www.hr-heute.com/magazin/fehlerkultur-verbessern.

Kuhlmann-Rhinow, I. (2023).?So etablieren Sie eine positive und offene Fehlerkultur.?https://blog.hubspot.de/marketing/fehlerkultur.

Onaran, T. (2018).?Innovationen: Warum Perfektionismus den deutschen Firmen schadet.?https://www.handelsblatt.com/meinung/gastbeitraege/expertenrat/onaran/expertenrat-tijen-onaran-warum-uebertriebener-perfektionismus-den-deutschen-unternehmen-schadet/21168292.html.

Personio (2022). Fehlerkultur: So verankern Sie sie.?https://www.personio.de/hr-lexikon/so-verankern-sie-eine-positive-fehlerkultur/.

Weck, A. (2022).?Fuck-ups: ?Wer keine Fehler macht, macht einen gro?en Fehler“. T3n Magazin.?https://t3n.de/news/fuckups-fehler-fehlerkultur-fehlermanagment-1459624/.