Weekly FinTech Tip: Where You Stand on the Failure Tolerance Index Says A Lot About Your Organization
Hello, everyone. I’m coming to you from the United Club in Houston, and I wanted to talk a little big about failure. Piggybacking on last week’s FinTech tip about conflating failure with incompetence, I would like you to take a quick quiz with me. This quiz is a Failure Tolerance Index, which will assess the failure tolerance of your organization.
When was the last time you tried something that failed?
B) Last month
C) In the last year
D) More than a year ago
Remember, we are talking about something that failed, not because of incompetence, but because you tried something new and it just didn’t work.
Would you be comfortable going to your boss and admitting a failure?
C) Sort of
Would your employees be comfortable coming to you and talking about a failure and discussing the aspects of a project or a program that didn’t work?
C) Sort of
Does your organization have a formal process to review failures? A post-mortem, if you will, to go over what happened, what worked and what didn’t work, and possible pivot points?
C) Sort of
Here is how you do your scoring:
For Question 1, if you picked (A), give yourself 2 points. If you picked (B), give yourself 1.5 points. If you picked (C), give yourself 1 point. If you picked (D), give yourself zero points.
For all of the other questions, use the following grading scale:
A = 2 points
B = 0 points
C = 1.5 points
Now, add up all of your points to determine your Failure Tolerance Index. A perfect 10 represents an organization that’s extremely failure tolerant and likely to be very innovative. A score of 5 or less represents an organization that’s not very tolerant to failure and even less likely to embrace innovation.
I hope this helps you out. Remember, failure is very important to your digital journey, and it’s very important to understand how your organization deals with failure. It’s a cultural shift.
For more information on culture shift, check out my book, Breaking Digital Gridlock, available on Amazon and anywhere books are sold.
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Premiered on Feb 21, 2019