My Favorite Mistake: Business Lessons from Failures and Success

My guest for Episode #246 of the My Favorite Mistake podcast is JM Ryerson, co-founder and CEO of Let's Go Win. He's an author, leadership & performance coach, international speaker, and host of the Let’s Go Win podcast. Episode page with video, transcript, and more JM Ryerson founded and sold three businesses and is now helping leadership teams do the same. He’s the Best Selling Author of the books “Let's Go Win,” “Champion's Daily Playbook,” and his latest, “Upgrade.” JM has been building companies and leading sales teams for over 20 years. He is the co-founder and CEO of Let's Go Win whose mission is to increase leadership, enhance culture, and help teams achieve peak performance. In this episode, Ryerson recounts his initial ventures in the financial world, not as a numbers guru, but as a skilled salesman with the innate ability to motivate teams. He discusses his mindset switch from traditional roles to leading and expanding businesses, driven by a passion for nurturing growth and creating value for all involved. He delves into how he navigated setbacks, transforming them into life-changing growth opportunities, and the importance of maintaining a positive mindset amidst adversity. Highlighting his journey, Ryerson guides us through how he discovered his true calling of motivating teams, which ultimately brought unparalleled fulfillment and success. Questions and Topics: First to get to know you a little better — what were those three businesses? What’s your favorite mistake? Did you have a coach or did you coach yourself out of it? Mistake to be in financial businesses? To stay there? How to help others bounce back — remembering your WHY, connecting it back to your why Giannis Antetokounmpo: “It's not a failure. It's steps to success.” Coaching leaders — when to let the setback go… and to look forward  Talk about your leadership coaching – helping people process and work through mistakes What are the fastest changes facing the leaders you coach? 3 focus areas: Performance, leadership, and mindset — Which mindsets most often need upgrading? How to upgrade mindsets? To not get stuck in a mindset Carol Dweck – Mindset Mark was a guest on the “Let's Go Win” podcast

My guest for Episode #245 of the My Favorite Mistake podcast is Lauren Petrullo. She is an award-winning marketing expert, digital marketing and eCommerce consultant, and successful multi-founder. Lauren has overcome great adversity from a young age, as well as living by the F.A.I.L. method with her Mongoose Media “pack mates” as she calls them. Episode page with transcript, video, and more Lauren is the CEO and Founder of Award Winning Marketing Agency, Mongoose Media, Founder of boutique eCommerce store Asian Beauty Essentials, Chief Marketing Officer of eco-conscious baby swimwear Beau & Belle Littles, and co-founder of chatbot service Bot Blondes. As a former Innovation Producer at The Walt Disney Company, Lauren incorporates her background in innovation and design to infuse creativity and play into all of her marketing strategies. Today, we're talking about turning failures into stepping stones. In this episode, Lauren will dig into her “fail method,” the importance of integrating creativity into marketing strategies, and her unique approach to fostering a culture of transparency and learning at Mongoose Media. Further, she will delve into the value of diversity in honing effective marketing strategies and the proactive approach toward addressing and learning from mistakes. Also, discover how Lauren and her team are leveraging innovative remote collaboration tools and setting an example of how to emulate a robust and dynamic work culture. Questions and Topics: Why the name Mongoose Media? Why “pack mates”? Why is it important to tell your team about your mistake? Having a F.A.I.L. channel on Slack Celebrating failure? “First Attempt in Learning”?  Celebrating the Biggest failure of the week? Hiring selection vs. bringing them along in the culture? Which is more important? Using small mistakes to prevent big ones? “Why do I want to celebrate failures??” — good catches What is “The ONLY Advertising Hospital™?”? Why do you embrace the title of “destruction queen”? In your bio it says — “Dare to be vulgar, refuse to be boring.”??? Get a 20% discount code at AsianBeautyEssentials.com when you enter MISTAKES at checkout!

My guest for Episode #244 of the My Favorite Mistake podcast is Josh Cunningham, the CEO and Founder of rokrbox – an inside sales assistant company based in College Station, Texas. Episode page with transcript and more After starting rokrbox in 2013, Josh’s real estate company has worked over 3,000,000 internet leads for teams all across the country including Lars Hedenborg, Jeff Cohn, & Spring Bengtzen. Having hired and trained over 400 ISAs, Josh is a sought-after speaker for his invaluable knowledge on  He’s focused on developing a company culture that attracts the best millennial talent and drives success. Josh has learned how to scale and optimize business portfolios through building amazing teams with his take on company culture. His expertise was showcased through rokrbox's award winning culture, which inspired him to become the founder & CEO of Five Star Company Culture.  Host of a podcast by that name — thanks for having me as a guest and thanks for being my guest here today! Josh's mission is to help businesses maximize their potential and learn how to implement a winning culture that retains employees, increase team productivity, and allows business owners to regain their personal freedom. Stepping back, Josh explains the wakeup call they faced during an organic period of growth, as their student workforce started to shrink with the onset of school schedules. Instead of panicking, they pivoted, embracing the lesson as an opportunity to refine communication and clarify their mission. Transforming this hitch into a turning point, they instated a daily huddle, which not only served to align team focus, but also sparked a cultural shift by nurturing an environment of support, connectivity, and collective growth. Questions and Topics: When did you realize it was YOU that “failed”? What did they do to fix it?  Tell us more about the huddles – how long? Standard agenda? What was the effect in fall 2016? Appealing to millennials vs. Gen Z? Have you had to adjust? Where did you learn these mindsets and management styles from? Defining core values and types of people to work with? What do you do as a CEO that helps make it safe for others to do the same? Tell us about the “Five Star Company Culture” podcast My episode with our mutual connection, Kevin Harrington The Power of a Champion Mindset in Business Culture Embracing a Culture of Learning from Mistakes In the competitive landscape of business, a culture that fosters growth and development through learning from missteps is crucial. Rokrbox, an inside sales assistant company, has epitomized this philosophy by embedding the mindset of a champion into their core values. This doesn't imply a streak of unblemished victories; rather, it means recognizing that both wins and lessons emerge from each outcome. A true champion is defined not by a flawless record, but by resilience and the willingness to stand back up after falling down, transforming setbacks into stepping stones for growth. Overcoming Challenges: Reflecting and Implementing Change Rokrbox faced a notable challenge during a period of rapid growth. In the summer of 2015, as the company soared to new heights, a significant portion of their part-time workforce, primarily made up of students, dissipated with the start of the fall semester. This unexpected shift presented a stark realization that the meaning and importance of their work weren't being effectively communicated by leadership. It was a crucial moment that shifted the company's focus inward, igniting a reflection on the mechanisms essential for transparent communication and employee retention. The Magic of Daily Huddles: A Key to Cultural Success The transformative solution that Rokrbox discovered was the implementation of a daily huddle. A practice that now anchors their workday, these huddles serve as a time for team members to connect, recognize each other's achievements, set collective goals, and align on the mission for the day ahead. This ritual not only eradicated previous communication inefficiencies but also played a pivotal role in shaping the company's award-winning culture. It created an environment where each employee could see the bigger picture, comprehend how their contributions mattered, and envision a path for professional growth within the company. This daily routine of recognition, education, connection, and motivation ensures that all team members feel valued and part of a larger goal. Creating a Vision and Communicating It Effectively The lesson here extends far beyond the boundaries of a single company's experience. The leader's role is not only to create a vision but to effectively communicate it throughout the organization. Rokrbox exemplifies that having a clear and vivid vision isn't sufficient unless it is shared and understood by the entire team. Issues in business often stem from communication breakdowns, and a leader's capacity to articulate goals and expectations to their team members is paramount. Through the huddle process, Rokrbox was able to transform communication within the workplace, demonstrating that intentionality and structure in daily interactions could forge more profound employee engagement and drive stronger business outcomes. The Importance of Core Values in Recognition and Growth Highlighting the successes and efforts related to core values within the huddle reinforces their importance in the company culture. Rokrbox has shown that core values are not just platitudes; they are the standards by which team achievements are measured and celebrated. Acknowledging team members who live by these values each day keeps them active and exemplifies the behaviors that lead to success. Concluding Insights: The Role of Leadership in Navigating Mistakes Ultimately, the story of Rokrbox provides an insightful examination of the role of leadership when navigating through mistakes. Instead of assigning blame externally, it takes a leader to look inward and take responsibility for the team's direction. Identifying gaps in communication and rectifying them through strategic actions, like daily huddles, not only salvages a challenging situation but also propels the business forward with renewed strength and cohesiveness. This approach is a testament to the statement that victories in business are not only about winning but also about learning to rise after setbacks and emerge stronger. Cultivating Skill Development and Proactive Communication Strategies Rokrbox's adaptations to their business in response to generational shifts and student workforce dynamics underscore the importance of flexibility and foresight in personnel management. By examining resumes with greater scrutiny and asking more probing questions during interviews, they ensure that employment expectations align with both the company's needs and the students' academic schedules. This targeted approach not only aids in the selection of dedicated team members but also fortifies the retention of valuable talent. Furthermore, maintaining a proactive dialogue with employees about their outside commitments allows for preemptive scheduling adjustments. This adaptability preserves the employment relationship, preventing abrupt departures and promoting employee well-being. Implementing Regular One-on-Ones for Holistic Employee Engagement One significant practice adopted by Rokrbox is the holding of regular one-on-one meetings that follow a strategic cadence of evaluation and engagement. These meetings are structured to review work-related skills and pinpoint areas needing improvement. Importantly, they conclude with inquiries into the personal lives of employees, thus embodying a holistic approach to employee engagement. Recognizing that personal circumstances can heavily impact work performance, this approach fosters an environment of support and understanding within the company. Leveraging Masterminds to Foster Collective Growth Taking inspiration from traditional masterminds made popular by thought leaders like Napoleon Hill, Rokrbox has instituted monthly mastermind sessions to cultivate collaborative problem-solving and empower their employees. These sessions, promoted with incentives like free food, encourage voluntary participation from team members eager to discuss strategies for improvement. By facilitating this shared environment, Rokrbox reinforces its commitment to collective growth and allows for the integration of diverse perspectives into the company's operational framework. Adapting to Generational Differences without Stereotyping The evolution of Rokrbox workforce from millennials to Generation Z has entailed an understanding of each generation's idiosyncrasies while avoiding overgeneralizations that hinder relationship building. Recognizing that individuals bring unique values and behaviors to the table facilitates a more nuanced approach to team building. Josh Cunningham of Rokrbox also emphasizes the necessity of adapting management techniques, such as content and competition structuring, to match evolving attention spans and engagement styles without succumbing to the pitfalls of confirmation bias. Implementing Strong Values Across Generations Ultimately, Rokrbox's approach emphasizes the timeless nature of certain management principles, regardless of generational divides. Strong company values that resonate on a fundamental human level will consistently attract employees who align with the company's mission. The implementation of practices such as huddles and masterminds transcends age brackets, connecting employees to a shared vision of success and growth within the organization. Learning from External Experiences and Insights The trajectory of Rokrbox's culture is not merely an introspective journey; it has been informed by various external sources of insight. Josh Cunningham's exposure to .com era influences and his father's career provided the early inspiration for entrepreneurship and adapting to technological paradigms. As the business world continues to evolve, learning from both internal experiences and external wisdom remains a critical component in cultivating a resilient and impactful company culture. Harnessing the Power of Teamwork in System and Process Design Reflecting on Rokrbox's adoption of standard operating procedures (SOPs), similar to those which propelled Best Buy's consistent in-store experiences, underscores the critical role of systems and processes in achieving a harmonious business environment. When each team member comprehends their responsibilities and the expected outcomes, efficiency and productivity thrive within the organization. Therefore, it is imperative to recognize the vitality of establishing and continuously refining SOPs to adapt to the inevitable changes within any dynamic market. Inculcating Ownership and Agility in Small Business Environments Working with small business owners, as Josh Cunningham did, offers the unique advantage of seeing real-time impacts of one's contributions on company performance. This immediacy catalyzes a sense of ownership and responsibility among employees, encouraging them to step up as key contributors to the organization’s success. To incorporate this level of agility into any business model, companies must imbue their culture with an openness to employee feedback, quick implementation of viable suggestions, and an empowering environment, where actions directly correlate to tangible outcomes. Learning from the Spectrum of Job Experiences Every job, from the most menial to the most prestigious, imparts valuable lessons that can transform business practices. Acknowledging even the “crappy jobs” fosters an appreciation for what not to replicate, while simultaneously refining the vision for one’s own business environment. The takeaway for any business is profound: understanding the breadth of employee experiences can inform and inspire better workplace design, improving morale and productivity in kind. The Significance of Defining Company Values Early On Defining Rokrbox's core values long before the hiring process began served as a testament to the foresightfulness of its leadership. Clear and resonant values not only attract like-minded individuals to the team but also serve as a constant beacon, guiding decisions and behaviors. As a business grows and evolves, these values remain its pillars, ensuring a consistent and supportive culture that can withstand and adapt to market fluctuations and internal challenges. Building a Strong Cultural Foundation for Sustainable Growth Drawing an analogy from construction, every great skyscraper begins with a robust foundation. Rokrbox's philosophy that culture is akin to this foundation illustrates the belief that a company's resilience is deeply anchored in its core values and collective ethos. Amidst marketplace shakeups and economic turns, a steadfast cultural base allows a business to pivot effectively and maintain its core identity, even as services and problem-solving approaches may evolve. Creating a Coachable Atmosphere and Celebrating Vulnerability Josh Cunningham’s approach to leadership takes root in serving rather than dictating, encouraging personal empowerment, and fostering a culture wherein mistakes are viewed as opportunities for growth rather than failures. By promoting a coachable atmosphere and leading by example in vulnerability, employees are permitted to navigate their responsibilities with confidence and ownership, contributing to the overall resiliency and strength of the business. The Five Star Company Culture Initiative As a leader with a vision to serve beyond his own company, Cunningham’s Five Star Company Culture initiative extends his philosophy to a wider audience, seeking to assist other business owners and C-suite executives in crafting environments where values are lived out loud. By sharing insights and practical strategies, this platform aims to assist businesses in laying down robust foundations for their culture, ensuring their operations are primed for success and sustainability in a relentless and ever-changing market landscape. Embracing Vulnerability and Authenticity in Leadership The candid sharing of personal stories and mistakes by influential figures such as Kevin Harrington sets the stage for a new paradigm in leadership. When leaders like Harrington demonstrate vulnerability, they signal to their teams that it's acceptable to make and admit to mistakes. This behavior, in turn, fosters a culture of authenticity and trust within the workplace. When employees see their higher-ups own up to their errors, they are more likely to feel secure in expressing their own challenges and learning from them. The Impact of Authentic Stories in Building Trust Fosters Relatability: Sharing personal mistakes makes leaders appear more relatable and human, bridging the gap between management and staff. Encourages Openness: When leaders are open about their failures, it cultivates an environment where employees are also comfortable sharing their experiences and ideas. Builds Resilience: Recognizing and learning from errors paves the way for a resilient mindset, where challenges are seen as opportunities for growth. The Role of Cross-Promotion in Amplifying Influence Josh Cunningham's Five Star Company Culture initiative heavily relies on the sharing of experiences and resources to enrich other businesses. By engaging in cross-promotion through podcasts and other media outlets, leaders can extend their reach, sharing valuable lessons and knowledge. Engaging with host Mark Graban illustrates how forming strategic connections can enhance visibility and impact across different platforms, benefiting an ever-wider audience. Strategies for Effective Cross-Promotion Leverage Platforms: Utilize various channels, including podcasts and social media, to share insights and expand your influence. Collaborative Ventures: Forge partnerships with industry peers to share resources and co-create content that provides mutual value. Community Engagement: Actively participate in community discussions and events to bolster your presence and credibility within your field. The Significance of Accessible Brand Identity Josh Cunningham's mention of Rokrbox's distinctive spelling highlights the importance of a memorable and searchable brand identity. In a digital age where web presence is crucial, creating a unique brand that stands out in search engine results is vital to attracting and retaining customers. A brand’s accessibility online directly influences its market performance and the ease with which potential clients can find and engage with a company's services. Key Elements of Crafting an Accessible Brand Identity Consistency: Establish a consistent look and feel across all platforms to make your brand easily recognizable. SEO Strategies: Focus on search engine optimization to ensure your brand ranks well in relevant search results. Distinct Brand Elements: Develop unique aspects of your brand, such as a logo or tagline, that set you apart and make you easily identifiable. Nurturing Leadership and Cultivating Success Leaders like Cunningham, who are ready to share their wisdom and experiences openly, play a pivotal role in shaping the future of business culture. By embodying the principles of vulnerability, authenticity, and accessible branding, they pave the way for a new generation of businesses defined by connection, learning, and genuine engagement with both employees and customers. This holistic approach to leadership, culture, and branding stands as a formidable blueprint for success in the ever-evolving business landscape.

My guest for Episode #243 of the My Favorite Mistake podcast is Jenn Drummond. Episode page with video, transcript, and more She is a Mom of seven, a successful business owner, and a World Record holder.  As the first woman to climb the second highest summits on each of the seven continents, she now spends her time inspiring others to create a thriving business and lasting legacy of their own.  She shares her story and strategies for success through her upcoming book, Break Proof: 7 Strategies to Build Resilience and Achieve Your Life Goals, and her “Seek Your Summit” podcast, programs, and signature talks. Great successes are often built on the foundations of past mistakes and lessons learned from them. Jenn Drummond walks us through her transformative journey, a beautiful tapestry of perseverance and the wisdom gained from failed attempts. Drummond's story is one of relentless pursuit and thoughtful adaptation, as she has made waves as a mountaineering record-holder, a mother to seven, and a successful businesswoman. What's her favorite mistake? In the early steps of her business journey, Drummond confesses to falling into the typical trap of prioritizing aesthetics over function—a common mistake in the entrepreneurial world. She sheds light on how this misstep shaped her understanding of business essentials and offers a case study on the importance of prioritizing core business aspects over superficial elements. Expounding on the essence of flexibility in business, Drummond narrates how recognizing her initial plan's inefficiency and implementing drastic changes became a turning point for her financial services company. Her story is a testament to the power of adaptability in the face of challenges, and an inspiration to hopeful entrepreneurs. Questions and Topics: When you go independent — allowed to bring your clients? How did that business work out? A pattern of being willing to listen to advice or new ideas Later, putting life on hold until kids got into college… 2018, a horrific car crash  Setting a world record… climbing — tell us more about what inspired that… Is Antarctica the hardest to get to? Climbing mistakes? Bigger risk of physical mistakes or mental mistakes? Keep going or turn back? Balancing advice vs. your own gut?? How was the process compared to what you expected? Did you have a “book sherpa”?? Tell us about your podcast, “Seek Your Summit.” How do you elevate entrepreneurs to go beyond a life of success to a life of significance?  

Delve into Amazon's marketplace birth and challenges with John Rossman. Contrasting Amazon and Toyota leadership principles for decision-making. Navigating technology impact and embracing experimentation in business innovation. Explore risky decision-making in a Super Bowl game and process importance over results.

My guest for Episode #241 of the My Favorite Mistake podcast is Jazzy Collins, CSA, a Casting Director who holds the honor of being the first Black two-time Emmy® nominee in the Outstanding Reality Casting category.  Episode page with video, transcript, and more She has worked for hit reality shows including Lizzo's Watch Out For The Big Grrls (Amazon), The Circle (Netflix), The Traitors (Peacock), The Bachelor and The Bachelorette (ABC), Family or Fiancé (OWN) and Love Island (CBS).  She has been at the forefront of the movement calling for diversity and inclusion in the entertainment industry, published in Deadline, E! News, ET Canada, Women’s Health, and beyond. Amid her success, she has been a tireless advocate for diversity and inclusion in the industry, a topic her work frequently brings to the fore. As time went on, however, Jazzy began questioning her career trajectory. Deciding to branch out, she transitioned into digital talent management, believing it akin to her casting work. Jazzy quickly recognized it wasn't her calling. After a challenging stint in talent management, she decided it was time to return to her first love: casting. In this episode, we discuss her career mistake, how she bounced back, and what she learned. We also discuss mistakes made by the producers of "The Bachelor" and "The Bachelorette" when it comes to DEI and representation. Read about her open letter that called out the popular franchise. Questions and Topics: When did you realize that talent management wasn’t your space?? Fewer gatekeepers - more diversity shining through in digital platforms? How does one end up working in casting?  The Bachelor — Jazzy's open letter about Matt James as the first Black bachelor, after Rachel Lindsay as the first Black Bachelorette How casting can go wrong — Lee and Rachel’s season Problems caused by lack of diversity behind the scenes (or in a Board) Tell us about the thought process for deciding to send the open letter… posted it to Instagram and FB — reporters picked it up Did you ever worry or wonder if the letter was a mistake? Did you hesitate to send it?  How did you gauge the reaction to it? Before the letter, how did you first try speaking out internally? It sounds like you were punished for it… What reaction did you get? Had other people come forward… Ignoring the trolls?? Good move or cynical move to cast Matt James in the summer after the George Floyd murder? What are you working on next that’s new and fresh? How does somebody get cast on a reality show?  

Episode page with video, transcript, and more My guest for Episode #240 of the My Favorite Mistake podcast is George A. Milton, America’s Failure Coach. George is the CEO of Failure Is Not The Problem, LLC, a consulting company that specializes in leadership development and training, life coaching, and motivational speaking. He is a United States Army Retired Colonel with over 30 years of experience as an internationally known Coach, and Speaker. George failed kindergarten, failed the first grade, barely graduated from high school dropped out/failed out of six universities. George had some academic failures early in life, yet, he went on to earn multiple degrees, and was inducted into the U.S. Army Officer Candidate School Hall of Fame. His podcast is “Failure is Not the Problem,” and he’s the author of the books Failure Is Not The Problem: It's the Beginning Of Your Success and Failure Is Not the Problem: It's Your Leadership. In the military, failure is seen as the starting point for learning rather than a devastating setback. This mindset, which was ingrained in Milton during his three decades of military service, emphasizes resilience and adaptability forged through failure. By providing supportive mentorship rather than punitive consequences, he showcases how the military fosters a culture of learning from mistakes. We discuss that, his favorite mistake story, and more in today's episode. Questions and Topics: How did you learn – was it in the Army – about responding to failure differently? “It’s not the failure… it’s the response” — ARMY mentor Was that widespread thinking? YES Equation: Failure + Right Response = Success How is punishment counterproductive? Punitive approach didn’t work as well in units where that was the culture Failure is not the issue, the issue is how you respond? How does an organization make it “OK to fail”? Team of Teams — Gen. McChrystal In your experience… what was the Army’s views on learning from failure? Gen. Welton Chase episode How do we teach leaders how to “fail graciously”? How can failing be “fun”? Does that help us learn? The act of failing does not mean you are a failure

Episode page with video, transcript, and more My guests for Episode #239 of the My Favorite Mistake podcast are Felice B. Ekelman, an employment lawyer, and Julie P. Kantor, a business psychologist and executive coach — they are authors of the new book, THRIVE WITH A HYBRID WORKPLACE: Step-by-Step Guidance from the Experts. Felice is a principal of Jackson Lewis PC, where she practices employment law. She has been quoted in Bloomberg News, The Wall Street Journal, Lexology, and Law 360. She lives in New York City. Julie is a business psychologist, executive coach, advisor, and founder of JP Kantor Consulting. She is a regular contributor to Forbes on leadership and employee engagement. She also lives in New York City. In today's episode, you'll hear their “favorite mistake” stories related to leaving a corporate job to start a firm and not appreciating the need to focus on one's personal brand. We also discuss how, in recent times, our global work culture has seen a paradigm shift with the incipient emergence of the hybrid workplace model. While this model promises exciting opportunities, there's no denying that it also presents unique challenges. The crucial role of leadership in these unprecedented times remains a significant focus of our conversation. More than ever, leaders must now find the balance between preserving company culture and enabling flexibility. Simultaneously, understanding the legal concerns, promoting a strong personal brand, and creating an employee-oriented workspace are imperative in the smooth transitioning to a hybrid model. However, there's no one-size-fits-all solution to these complexities, causing leaders to gravitate towards innovative, adaptable strategies. Dive in to gain a better understanding of creating harmonious, productive hybrid workplaces. Questions and Topics: Does a personal brand have to align with the firm’s brand? How did the book come to be? And the collaboration? Brand is what OTHERS say about you? What differentiates you? Some mistakes require counseling and some get you sued? Policies on back to work — make an exception for one person — necessary or setting precedent for others??  How do you make exceptions? What are some “old biases” to look out for when designing or managing hybrid work? Where is hybrid work headed? — moving in a direction or a pendulum??  

Episode page with video, transcript, and more My guest for Episode #238 of the My Favorite Mistake podcast is Tom Applegarth, Vice President Human Resources for Preferred CFO, a company that provides Finance, Accounting, HR & Payroll support for small companies. Learn more at PreferredCFO.com. Tom has over 30 years of experience, including serving at high-profile companies such as Goodyear Tires, Payless ShoeSource, and Amoco, with HR experience across the United States as well as Europe, Asia, and Latin America. Tom's experience has brought significant, measurable improvements in employee engagement, attrition reduction, recruitment of the best and the brightest employees, and establishment of high-impact HR processes and improvements. Learning from Career Blunders In the episode, Tom opens up about a costly slip-up early in his career during a sensitive employee termination process involving a plant manager. Why does Tom think he should have elevated the internal conflict about firing (or not firing) that person to the CEO? What led to the company getting sued, which cost them far more than a fair severance would have cost? What were Tom's lessons learned? Questions and Topics: Would it have been risky to go over their heads to the CEO? Do others learn from that story? Yes What happened with the new plant manager? Is HR’s role more about protecting the company from lawsuits than helping the employees? A mistake to not have an HR expert – even for very small companies? Firing fast with a paper trail? If employees need to report a problem — mistakes? What's your advice? “Nobody wants to work anymore” — a mistake to say that? Episode Summary Navigating The Tricky Terrain of HR Management in Small Businesses In the complex world of Human Resources (HR), making an error in judgment can have lasting repercussions for companies. For smaller companies, navigating these challenges will require both experience and a nuanced understanding of the HR landscape. Tom Applegarth, a Vice President of Human Resources at Preferred CFO, shares insights from his more than 30 years in HR with some of the most well-known global brands. His journey demonstrates the importance of managing human resources effectively, especially in smaller organizations. Understanding the HR Role The role of HR can sometimes be misunderstood within an organization. While HR ultimately serves the interests of the company, it is also instrumental in creating a healthy and fair working environment for employees. Previous roles in organizations such as Goodyear Tires, Payless Shoe Source, and Amico allowed Tom to develop HR processes that foster higher employee engagement, reduced attrition, and effective recruitment strategies. Throughout his experience, one crucial lesson was the value of taking a balanced approach to decision making. HR should consider the interests of not just the company and customers, but also employees. Balancing the needs of all three constituencies is what differentiates successful companies. Learning from Past Mistakes Tom shares critical lessons from an incident early in his career where he was handling a sensitive termination process. The experience taught him the importance of adhering to corporate policy, reserving a fair chance for employees to improve, and offering decent severance packages, regardless of the pressure from managers focused on immediate PNL impact. This mistake ended up costing the company a million dollars in lawsuit and served as a cautionary tale that has shaped Tom’s HR approach throughout his career. Smarter HR Management for Small Companies Unfortunately, many small companies make mistakes in not giving adequate importance to HR management until issues arise. It is often thought that hiring a full-time HR person is too expensive. Alternatively, companies may assign HR tasks to employees that lack the knowledge and experience to effectively navigate the complexities of HR. Preferred CFO provides an effective solution for such companies. They offer necessary HR support, allowing small companies to ensure compliance, manage employee grievances, and build a community within the organization without hiring a full-time HR professional. Avoiding HR-related mistakes and potential lawsuits can save a significant amount of money in the long run. Importance of Whistleblowing Channels Ensuring that employees have the ability to raise ethical or procedural issues in a safe and confidential manner is vital for any organization. A robust protocol should be in place for employees to report issues to supervisors or HR. However, if employees do not feel comfortable reporting directly within the organization, having an external reporting avenue accessible will provide an additional layer of security. A key element in successful human resource management is the continuous improvement of processes, systems, and people. A balanced approach that considers all stakeholders – employees, customers, and investors ¬¬– lays the foundation for successful business operations. Whether it's dealing with a sensitive firing situation or establishing effective whistleblower channels, the role HR plays in small businesses cannot be underestimated. Equipping your small business with the right HR support can prevent costly missteps and promote a healthy corporate culture. Encouraging Anonymity in Employee Grievances Recognizing that not all employees feel comfortable directly reporting ethical or procedural issues to superiors within their organizations, secondary reporting avenues become vital. One method is an anonymous 1800 number, acting as a lifeline for employees enabling them to air their grievances without fear of retribution. This external channel can afford employees some level of anonymity and assurance, especially in situations involving bad managers or problematic HR personnel. Anonymous Reporting Channels: The Intermediary Role The utility of an anonymous reporting channel goes beyond offering mere anonymity. Its role can span as an intermediary between the employee and the organization's leadership. It involves relaying detailed accounts of issues raised by the employees to the leadership without revealing the identity of the employee. This level of confidentiality can encourage more employees to be forthcoming with their concerns, which can help preempt potential problems. Spreading the Word: Promoting the Anonymous Channel Simply providing an anonymous reporting line is not enough; the organization needs to execute a robust communication strategy ensuring that all employees are aware of this avenue. Regular and constant reminders of its existence could range from including details during team meetings to displaying posters around the workplace. The more visible and accessible it is, the greater its utilization and impact on the organization's health and transparency. Trustworthiness of Anonymous Channels Despite the promise of privacy, there's often a level of skepticism among employees regarding the anonymity of their reports, particularly in low trust environments. This doubt can significantly impact the effectiveness of such systems. To counter this, companies could consider having these services administered by external independent entities. This can add a layer of credibility since the external firm has no explicit interest in protecting the company at the expense of the employee. Adapting to Evolving Job Market The current job market has changed significantly from years past, with technology offering transparency regarding job opportunities and pay scales. Today's employees have access to a wealth of information about potential employers, making it far easier to seek competitive salaries and appealing work cultures. Consequently, companies must be competitive – not only concerning remuneration but also in fostering positive workplace cultures and exceptional management. Ensuring Competitive Compensation and Career Satisfaction To attract and retain top talent, businesses must understand current market pay rates and offer ‘in-the-ballpark' compensation packages. Regularly participating in and purchasing salary surveys can allow businesses to stay competitive. But competitive salaries are part of the equation; retention also hugely depends on the work culture and management quality. Regularly evaluating what each employee wants from their career and making an effort to fulfill those needs, particularly for top performers, can significantly enhance employee satisfaction and retention. Ultimately, companies today need to adapt to the evolving job market, nurturing trust, ensuring adequate compensation, and promoting a healthy work culture. As Tom Applegarth from Preferred CFO suggested, avoiding these measures can leave businesses ignorant of potential issues, vulnerable to public exposure, and ill-prepared to retain their best people.  

Episode page with video, transcript, and more My guest for Episode #234 of the My Favorite Mistake podcast is Amy C. Edmondson, the Novartis Professor of Leadership and Management at the Harvard Business School, renowned for her research on psychological safety over twenty years.  Named by Thinkers50 in 2021 (And again here in 2023) as the #1 Management Thinker in the world, Edmondson’s Ted Talk “How to Turn a Group of Strangers into a Team” has been viewed over three million times.  She received her PhD, AM, and AB from Harvard University. She lives in Cambridge, Massachusetts, and is the author of books including The Fearless Organization, Teaming, and her latest, Right Kind of Wrong: The Science of Failing Well is available now. Edmondson talks about the duality of mistakes – some that lead to massive successes and some that warrant a more mindful approach to growth and learning. Listen in as she recounts an endearing mistake from her personal life in the spectrum of Growth Mindset, discusses different types of failures and insights into how they can be reframed as opportunities for growth, exploration, and innovation. Edmondson emphasizes the importance of Psychological Safety and the transformation from a ‘speak up' culture into a ‘listen up' culture within organizations. Tune in today for an enlightening discussion on the fine line between reflecting and ruminating, along with Edmondson’s personal anecdotes from her writing journey. Questions and Topics: How do you see the connection between mistakes and failures?  Sometimes failure is caused by outside factors? As much as I try to be positive about mistakes and failure, I don’t love the phrase “fail early, fail often” — where do you think that phrase or concept misses the mark? Psychological safety comes up A LOT in this podcast series when we talk about a culture of learning from mistakes… how do you define it? Different types of failures — they’re not all created equally? “Blameworthy” vs. “Praiseworthy” failures? Why do organizations collectively blame people more than individuals blame others? When leaders are super negative about mistakes… how is demanding perfection or say they must punish (or saying failure is NOT an option) counterproductive?  Learning from failure is not as easy as it sounds? Reflecting without ruminating? Mistakes in the book writing process? Proofreading mistakes that slipped through? Renowned Leadership Expert Amy E. Edmondson and Her Views on Psychological Safety and Failure The Duality of Mistakes Edmondson separates mistakes into three categories, drawing from her extensive research into the topic of failures and mistakes. These categories include examples from both her research and her personal life. Her favorite mistake to discuss lies within her research fields, and it features in her book “Right Kind of Wrong”. This mistake recounts the story of a 26-year-old chef from Guangdong, China, named Lee Kum Sheung, who accidentally left his oysters to overcook. The result was a sticky, unexpectedly delicious sauce, which eventually resulted in the creation of the globally renowned oyster sauce. This accidental creation, stemming from a simple mistake, led his family to accumulate a fortune of over 17 billion. This example serves to underline how seemingly negative mistakes can pave the way for groundbreaking innovations and successes. Edmondson argues this is contingent the individual’s curiosity and openness to turning these mishaps into new possibilities. Growth Mindset in Mistake Processing Edmondson is a firm advocate of Carol Dweck's work on the concept of a growth mindset which she integrates into her own personal parenting approach. She shares a personal mistake in applying the growth mindset that prompted her to be more mindful in her interactions and praise. Based on the recommendation in Dweck's work, one should focus on the process of learning and effort rather than praising the outcome. Edmondson experienced this first-hand when her son sought constructive feedback, revealing his understanding and demand for a growth mindset. This interaction highlighted unchecked mistakes and further enhanced Edmondson's practice of the growth mindset. Mistake and Failure: Understanding Their Connections Regardless of their causes, many failures can be traced back to some form of mistake. However, not all failures are incidental to mistakes. In many cases, failures are the unfortunate and unexpected results of well-thought-out hypotheses or conscientiously set actions, particularly in new or unfamiliar territories. Shaping Our Attitudes towards Failure The view and treatment of failure in organizations often differ greatly from personal reactions. While individually, people recognize failure as a potent teacher, organizations frequently fail to translate this realization into practice. This gap is arguably a remanence of industrial-era mindsets, where expectations for results were rigidly predefined assuming minimal deviations. Today, this mindset is not compatible with the realities and demands of modern work environments. The culture within organizations regarding failure should be more accepting, even encouraging, as it often leads to crucial learning experiences and innovations. Edmondson proposes three distinct classifications for different types of failure which are basic failure, complex failure, and intelligent failure. While basic and complex failures epitomize blunders that can be potentially avoided, intelligent failures represent the unavoidable consequences of ventures into uncharted territories. To approach failure constructively, Edmondson suggests assessing causes individually and categorizing them across a spectrum of blameworthiness to praiseworthiness. This objective evaluation reframes failures as potential opportunities for growth and discovery rather than undisputable mistakes. The Importance of Psychological Safety Psychological safety has been a consistent topic in many discussions around failure. Seen as a belief that one's environment is safe for taking interpersonal risks such as admitting mistakes or sharing constructive feedback, psychological safety plays a vital role in creating a culture that is conducive to lesson-learning from mistakes. It is important to note that promoting a psychologically safe environment does not necessarily make dealing with these situations easier, but instead makes it more expected and acceptable. Edmondson advocates for psychological safety in organizations, arguing that it is largely influenced by the leadership at various levels in the organization. She asserts that managers should promote open communication about failures and provide necessary reassurances to stimulate learning and improvements from these experiences. The Emergence of a ‘Listen Up' Culture Edmondson makes a compelling argument for transforming a ‘speak up' culture into a ‘listen up' culture. The concept reframes the responsibility carelessly placed on the employees and champions the idea of creating a learning culture instead. In Edmondson's view, such a culture encourages members of an organization to approach every interaction and experience as an opportunity to learn something new, not just from each other, but also from clients and the world at large. By fostering a ‘listen up' culture, organizations inspire their staff to engage more proactively, ultimately nourishing an environment where speaking up is not an obligation but a hallmark of positive engagement. Balancing Between Reflecting and Ruminating Edmondson sheds light on the fine line between productive reflecting and destructive rumination, particularly after a misstep. Reflecting facilitates learning and growth, whereas rumination can deepen feelings of shame and loneliness. This might lead individuals into a vicious cycle of unproductive and recurring thoughts. She suggests adopting an objective cognitive process which starts with a simple inquiry, “What happened?”. This question encourages the individual to assess the situation without assigning blame. It allows them to consider the events dispassionately and extract valuable lessons, thereby directing focus to future improvement rather than past missteps. Reflecting is hence seen as a necessary mechanism for learning, allowing not just understanding but also creating meaningful change after a failure. The Art and Errors of Writing As a prolific author, Edmondson provides insights into the inevitable mistakes involved in the book writing process. She acknowledges how minor errors can slip through even after careful editing and proofreading. These small errors allow for reminders that even skilled authors and editors can make mistakes due to several factors such as fatigue and other biases. She emphasizes the importance of continuous iteration when writing, pointing out that improvement is always possible. Each day spent on a manuscript can uncover not just grammatical errors, but instances of unclear or convoluted sentences that can be rewritten or simplified. The potential to continually refine is what makes writing both a challenging and rewarding process. The Unavoidable Nature of Mistakes Undoubtedly, slip-ups, both small and large, are a commonplace inevitable aspect of our personal and professional lives. They are subject to a multitude of variables, irrespective of the meticulous preventative measures we employ. A mistake can creep in due to oversight, assumptions, fatigue, or simply because of our inherent fallibility as humans. Nurturing an Iterative Culture In line with her teachings on the importance of learning, Edmondson highlights the benefits of fostering an iterative culture. Within this model, organizations are encouraged to continuously learn and adapt their practices based on insights from mistakes and successes alike. The Decisiveness of Title Selection Book titles hold an integral role in attracting potential readers, and, as revealed by Edmondson, the process of naming a book can also be prone to errors. She discloses the careful consideration behind her book title, “Right Kind of Wrong” and the decision to exclude the article ‘the' for stylistic reasons. Despite noticing occasional erroneous inclusions, she garners a positive outlook from it, simply indicating that her work is being discussed and appreciated. Embracing this spirit of learning and adaptation even for individuals in positions of authority can serve as a powerful example for others and help cultivate a culture that wider society can emulate. Essentially, mistakes aren't necessarily a pitfall; they transform into stepping stones when approached with a psychologically safe, learning, and iterative mindset.