Failing Forward
Scott Gardiner
Organization & Human Capital Transformation | M&A Advisory | Industry Thought Leader & Author | CPO | Cultural & Talent Strategy | People Analytics | Executive Advisor
"I have not failed. I have found 10,000 ways that don't work." ― Thomas Edison
Failure. It’s something we all experience. As a child, you fail constantly; it’s a fairly universal belief that humans actually learn from setbacks. But, as adults, we have put a very negative connotation on failure across every dimension of our lives. If you think back to your childhood and apply the adult filter of never failing or admitting to it, what does that get you? Well, for starters you wouldn’t be able to ride a bike, walk, talk or feed yourself. That seems like a very tough existence, especially with the lack of transportation…
Certainly, in the business world, failure is not universally accepted. Duly noted. However, a good leader or a learning-oriented organization knows that is simply part of the process. We’d never have put a man on the moon if we didn’t allow the NASA scientist to fail along the way. Failure exposes weaknesses in our approach, process or thinking. Failure informs us on what to do next.
I have certainly failed in my personal, professional and most obviously in my fledging sports career that ended abruptly before I was ready to admit it. When I look back on some of my tougher “learning lessons,” I wouldn’t be where I am today without those experiences. I have grown personally and professionally from that process. It’s only later, upon reflection, that I recognized this. It’s obviously tough when you are going through it, but to the extent that you can remind yourself that its part of the process, it will allow you to sleep better at night.
“If you are going through hell, keep going.” ― Winston Churchill
The deal landscape is certainly a smorgasbord of failure opportunities. The process is fraught with pitfalls, landmines and set-backs. In fact, deal failure doesn’t even have to be measurable failure. Perception is reality and if someone’s expectations don’t align with yours they might very well perceive a failure on your part. This can be especially true when the business, who is already maxed out trying to continue business-as-usual AND integrate a new organization, catches wind of a piece of feedback that seems to indicate someone within the deal team isn’t doing their job.
I can’t tell you how many times I have had to talk an executive off the ledge because a handful of people, at the target, are upset that they are losing their “pet insurance.” This is not a “failure,” but more accurately it is noise. An organization cannot magically produce pet insurance for a subset of people if it doesn’t currently offer it in the company. But, typically the message that bubbles up to the business executive leadership is “People aren’t happy with our benefits. People are upset. People are confused…”
The truth is deals are a process of failure and learning. Obviously, as a deal professional, you want to avoid the career-limiting mistakes but even those will likely make you a better professional going forward. In the multitudes of deals I have done, I can find a “failure” in almost every one. Experience gives you perspective and a blue print for how to approach things next time. It’s ok to fail, but try not to make the same mistake twice. Serial acquirers know this very well.
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If you spoke to someone at a serial acquirer they will certainly have war stories about things that went awry. It’s only with experience that an organization can fine-tune their approach in an effort to reduce the risk of failure.
“You may encounter many defeats, but you must not be defeated." ―?Maya Angelou
So, if you are in an organization without significant institutional knowledge around M&A, you are bound to learn some tough lessons along the way. And, for some organizations that is ok. In others, well, not so much. In those instances, it’s also advantageous to surround yourself with some experienced professionals. And, one of the first topics an expert is likely to address with you is to expect the unexpected. You are dealing with humans which can be emotional and challenging.
Failure moves us forward. Failure informs us and sharpens our focus. Failure is universal. Failure is human.
"Failure is success in progress." ― Albert Einstein
At times, deals can feel like a series of defeats. So, take a breadth, surround yourself with advocates and experts, stay nimble and manage the business’ expectations. Forge ahead without fear…
Until next week - Stay strong, stay focused, stay sane and stay the course…__________________________________________________________________________