Your experiments are failing—good! But are you failing the right way?


The Agile Compass

Matthias Orgler

Hi Reader,

As the year winds down, it’s natural to reflect on progress and set goals for the next chapter. But here’s a thought: Are we celebrating the right kind of success?

This week, I want to challenge a common misconception about innovation and experimentation. Too often, we applaud only the experiments that “work”—the ones that validate our ideas—while quietly sweeping failures under the rug. But real innovation? It thrives on failure.

In this week’s article, we’ll dive into why failed experiments are the true heroes of progress and how embracing them can unlock bold, breakthrough thinking.

Because as we close out the year, it’s not about avoiding failure—it’s about learning to fail better. 🚀

Let’s embrace the suck, together. 💡

Your Experiments Are Failing—Good! But Are You Failing the Right Way?

“We embrace failure!” It’s the mantra of every company trying to build an innovative culture. Sounds great, right? But here’s the problem: many organizations that preach failure tolerance are doing the exact opposite.

They applaud “successful” experiments (i.e., those that validate a hypothesis) and subtly push teams to avoid failure altogether. This mindset doesn’t create innovation. It creates risk aversion.

Here’s the hard truth: if your experiments aren’t failing often, boldly, and spectacularly, you’re not innovating—you’re just confirming your own biases. Worse, you’re sending the message that failure isn’t actually okay, no matter what the posters in the break room say.

If we want a truly innovative culture, we have to stop applauding only the experiments that “work” and start celebrating the ones that flop just as loudly. Why? Because experiments are successful when they fail.

Let’s dive into why failure is essential—and why you might be sabotaging innovation without realizing it.


What Is the Purpose of Experiments?

At their core, experiments are not about proving you were right. They are about testing assumptions and, more importantly, about learning something new.

  • Some experiments are designed to validate a hypothesis.
  • Others are designed to invalidate ideas—an equally critical process in innovation.

Watch out: If every experiment in your organization succeeds, something is wrong. You’re either avoiding the hard questions or you’re playing it safe. Neither of these leads to real innovation.


The Problem With “Failure Tolerance”

Many organizations today claim they’re building a failure-tolerant culture, but in practice, they only reward “successful” experiments. Here’s what happens in this scenario:

  1. Teams start avoiding risky experiments—they don’t want to be seen as “failures.”
  2. Only “safe bets” get tested.
  3. Innovation slows to a crawl.

This creates a culture of risk aversion, not innovation. Teams become focused on pleasing managers, confirming biases, and avoiding embarrassment. That’s not how great ideas are born.

True innovation demands risk—and with risk comes failure. If your culture punishes failure, you’ll never see the big, bold leaps forward.


Why Failure Matters

Failure isn’t just okay—it’s necessary.

  • When an experiment fails, it eliminates bad ideas before they waste resources.
  • It pushes teams to dig deeper, ask better questions, and challenge assumptions.
  • It opens the door to insights you never expected.

The best companies know this. They don’t just tolerate failure; they celebrate it. Every failed experiment brings a team one step closer to success.

Imagine a team running an experiment, invalidating a popular idea, and discovering a new path forward. That’s real progress, and it only happens when failure is seen as a learning opportunity, not a career-ending mistake.


How to Build a Culture That Embraces Failure

To create a truly innovative culture, you need to do more than preach “failure is okay.” You need to live it.

Here are some actionable steps:

1. Celebrate Learning, Not Outcomes

When a team runs an experiment and learns something—regardless of the result—celebrate it.

  • Host “failure parties” to share learnings.
  • Recognize teams for their effort, insights, and contribution to the broader vision.

2. Redefine Success

Success isn’t just proving an idea right. Success is:

  • Identifying a bad idea early.
  • Gaining new insights that inform future experiments.
  • Challenging assumptions and breaking biases.

3. Encourage Risk-Taking

Reward teams for asking bold questions and taking calculated risks. If the only experiments getting approved are the “safe” ones, something’s wrong.


4. Lead by Example

Managers and leaders: Talk about your own failures. Share how they led to growth. When leadership embraces failure, the rest of the organization will follow.


5. Detach Ego from Results

Remind teams that failure isn’t personal. It’s part of the process. Innovation requires humility and curiosity, not ego.


A Word of Warning: Don’t Fake It

Saying “failure is okay” but punishing people for it is worse than not saying it at all. It creates distrust and discourages experimentation entirely. To build a culture of innovation, your actions must align with your words.


The Risk of Not Embracing Failure

If your organization only rewards “successful” experiments, you’re in dangerous territory.

  • You’ll confirm your own biases instead of challenging them.
  • You’ll miss opportunities to discover breakthrough ideas.
  • You’ll stagnate while competitors willing to take risks pass you by.

Innovation isn’t safe. It’s messy, unpredictable, and often uncomfortable. But it’s worth it.


Embrace the Suck: The Path to True Innovation

The phrase “embrace the suck” might sound harsh, but it’s the mantra of truly innovative teams. Failure isn’t a setback—it’s a step forward.

When managers and colleagues applaud each other for experimenting and failing, something magical happens:

  • Teams take risks.
  • Big ideas emerge.
  • Learning accelerates.

So, let’s stop pretending that failure is something to avoid. Instead, let’s celebrate every failed experiment as a victory for innovation.

Because in the end, a failed experiment isn’t a failure at all. It’s a success in disguise. 🚀


Here are more stories about failure, experimentation and innovation:

What’s the biggest failure you’ve learned from recently? Reply to this email—I’d love to hear your story!

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The Agile Compass

How to create high-performing teams, innovative products and lead thriving businesses? The Agile Compass shares hands-on knowledge from 20+ years of experience in industries worldwide. Matthias is a Silicon Valley veteran and has been awarded the Agile Thought Leader award in 2022. His unique approach focuses on the human side of creating thriving organizations.

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