The Real Cost of Learning Your Lessons

“Errare humanum est.” To make mistakes is human. A very well-known statement that has been used in all sorts of instances to express that errors do happen. The reason errors occur can relate to many things, depending on each specific case. A world without errors would be a world ruled by a lack of initiative, as only when we venture into new things do we discover what not to do and, ultimately, what works!

To learn from errors requires understanding their origin, and the tendency is to focus on whether the error is linked to our actions or not. In a study published in 2023, the University of Iowa concluded that

“If human error is the reason for the outcome, the brain remains active for an additional two to three seconds, the researchers found. That means the brain realizes a mistake was made and essentially wants to learn from it.”

In essence, we learn from a mistake in the hope of avoiding it in the future. This may sound obvious to many, but actually...

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Our brain, it seems, has a very expedited manner of dealing with and learning from mistakes. I don't know about you, but to me, that process seems to take far longer. When an “error” occurs (the difference between an error and a different outcome will not be detailed here for now), we need to learn why it happened and what the consequences are. When this is not understood, the blame game starts, and finding fault in others is often preferred to accepting one’s own. In essence, when an error is detected, the instinct to identify the cause is essential. However, if the focus ends there, we are not learning all there is to learn from it.

But wait! The value of learning your lessons is clear. Now, what about the cost of errors?

The real cost is obviously variable depending on the instance. However, there are some common points that can be considered to estimate the real cost of the error.

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Financial Cost:?This is the most logical to measure. Sometimes, learning a lesson involves a direct financial impact. A poor investment decision, missing deadlines, a change in taxation, implementing the wrong strategy, or an increase in the cost of components (to name but a few) can all have serious financial implications.

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• Time Cost:?Learning a lesson often involves a significant investment of time to understand, correct, and hopefully prevent future errors.
• Emotional Cost:?The emotional cost of learning a lesson can be substantial. It may involve stress, frustration, disappointment, tension, and possibly a loss of confidence.
• Opportunity Cost:?Are potential opportunities being missed because of the error? For instance, selling reserves to cover an error means depleting the resources available for opportunistic investments.
• Reputation Cost:?Learning a lesson might come with the cost of a damaged reputation. Mistakes or failures can affect how others perceive what we achieve. This can have long-term consequences that are often overlooked.?
• Resource Cost:?Resources such as headcount, management, or materials might be expended in the process of making and correcting mistakes. This can be particularly relevant in business or project management contexts.

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Not learning from one’s mistakes has a heavy immediate and mid-term cost. Not learning from one’s mistakes is also an immense loss of value.

Hence the second part of the quote "Errare humanum est" that is often neglected: "Perseverare autem diabolicum" (to persevere in the error is diabolical). This second part is far more relevant to today’s world than the first part.