Exceptional people in flawed systems will produce subpar results. Before focusing on individual performance, leaders must ensure the underlying systems are reliable and resilient. As shown by the Southwest Airlines software meltdown, blaming employees for systemic failures masks the root cause and prevents meaningful improvement.

The belief that people fail due to lack of will leads to blame. Shifting to 'people do well if they can' reframes failure as a skill gap, not a will gap. This moves your role from enforcer to helper, focusing you on identifying and building missing skills.

A risk-averse employee isn't the root problem; they are a symptom. Their mindset has been shaped by a culture or process that punishes failure or embarrassment. To change the mindset, leaders must first fix the underlying systemic issues.

Instead of blaming an individual for a failed initiative, ask what in the process could be improved. This shift removes fear, fosters psychological safety, and encourages team members to take creative risks without fear of personal reprisal.

Intuition is not a mystical gut feeling but rapid pattern recognition based on experience. Since leaders cannot "watch game tape," they must build this mental library by systematically discussing failures and setbacks. This process of embedding learnings sharpens their ability to recognize patterns in future situations.

This quote from quality guru Edwards Deming posits that undesirable results are a feature of a perfectly designed system, not a bug or human error. To improve outcomes, product leaders must analyze and redesign the underlying processes rather than blaming their teams.

A sophisticated learning culture avoids the generic 'fail fast' mantra by distinguishing four mistake types. 'Stretch' mistakes are good and occur when pushing limits. 'High-stakes' mistakes are bad and must be avoided. 'Sloppy' mistakes reveal system flaws. 'Aha-moment' mistakes provide deep insights. This framework allows for a nuanced, situation-appropriate response to error.

Menlo's culture operates on the principle that when mistakes happen, the system is at fault, not the individual. This approach removes fear and blame, encouraging the team to analyze and improve the processes that allowed the error to occur, fostering a culture of continuous improvement.

The biggest blind spot for new managers is the temptation to fix individual problems themselves (e.g., a piece of bad code). This doesn't scale. They must elevate their thinking to solve the system that creates the problems (e.g., why bad code is being written in the first place).