Supercell's culture redefines failure. Instead of punishing unsuccessful projects, they are treated as learning experiments. The company literally celebrates killing a game with champagne, reinforcing that learning from a false hypothesis is a valuable outcome.
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Effective leadership in an innovation-driven company isn't about being 'tough' but 'demanding' of high standards. The Novonesis CEO couples this with an explicit acceptance of failure as an inherent part of R&D, stressing the need to 'fail fast' and learn from it.
Supercell avoids emotional decision-making by being radically transparent with data. A daily email with key metrics for every game is sent to the entire company. This ensures everyone understands the performance criteria and accepts the rigorous, data-driven decisions to kill projects that don't meet specific thresholds.
An innovation arm's performance isn't its "batting average." If a team pursues truly ambitious, "exotic" opportunities, a high failure rate is an expected and even positive signal. An overly high success rate suggests the team is only taking safe, incremental bets, defeating its purpose.
True innovation requires leaders to adopt a venture capital mindset, accepting that roughly nine out of ten initiatives will fail. This high tolerance for failure, mirroring professional investment odds, is a prerequisite for the psychological safety needed for breakthrough results.
Foster a culture of experimentation by reframing failure. A test where the hypothesis is disproven is just as valuable as a 'win' because it provides crucial user insights. The program's success should be measured by the quantity of quality tests run, not the percentage of successful hypotheses.
The sports disruptors test 10-15 new promotions at every single game. While most teams repeat a few proven successes, the Bananas embrace constant, small-scale failure as a deliberate strategy. This allows them to out-learn their competition and innovate entertainment experiences for fans at a much faster rate.
Instead of stigmatizing failure, LEGO embeds a formal "After Action Review" (AAR) process into its culture, with reviews happening daily at some level. This structured debrief forces teams to analyze why a project failed and apply those specific learnings across the organization to prevent repeat mistakes.
When an experimental campaign failed, Edelman's CEO Richard Edelman protected the mid-level employee responsible. He framed the mistake as a necessary cost of innovation in a new field, explicitly telling the team to "keep pushing boundaries." This response fosters a culture where calculated risks are encouraged rather than punished.
To ensure continuous experimentation, Coastline's marketing head allocates a specific "failure budget" for high-risk initiatives. The philosophy is that most experiments won't work, but the few that do will generate enough value to cover all losses and open up crucial new marketing channels.
To truly learn from go-to-market experiments, you can't be half-hearted. StackAI's philosophy is to dedicate significant, focused effort for 1-3 months on a single idea. This ensures that if it fails, you know it's the idea, not poor execution, providing a definitive learning.
