failing to learn and learning to fail: how great … to learn and learning to fail 7 %...
TRANSCRIPT
Failing to learn and learning to fail 1
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Failing to learn and learning to fail 2
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Failing to learn and learning to fail 3
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Failing to learn and learning to fail 4
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Failing to learn and learning to fail 5
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Failing to learn and learning to fail 6
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E%+7!44!4"1=$*"1+"E%+6+1!"1=!6(""D=/4"7+*1%/.91!4"1+"$*"+%F$*/G$1/+*$0"79019%!"/*"H=/7="!3!*"
/*1!00/F!*1"I$/09%!"/4"-/47+9%$F!-("";6E0+5!!4"$%!"K9/7&"1+"I/F9%!"+91"H=$1".!=$3/+%4"$%!"%!H$%-!-"
$*-"H=/7="$%!"*+1"$*-"$71"$77+%-/*F05(""L=!*"0!$%*/*F"I%+6"I$/09%!"6!$*4"E911/*F"+*!4!0I"$1"%/4&@"
Failing to learn and learning to fail 7
6$*5"!6E0+5!!4"-!7/-!"*+1"1+".+1=!%(""R/6/0$%05@"1=!"$./0/15"1+"I$7/0/1$1!"$*"!II!71/3!"-/47944/+*"/*"
H=/7="E$%1/!4"H/1="7+*I0/71/*F"E!%4E!71/3!4"4!$%7="1+"9*-!%41$*-"7+6E0!N"I$/09%!4"7$**+1".!"
1$&!*"I+%"F%$*1!-"/*"6+41"+%F$*/G$1/+*4@"5!1"/1"/4"7%/1/7$0"1+"0!$%*/*F"I%+6"I$/09%!(""""%
D=!"E%+E!%1/!4"+I"4+7/$0"4541!64"$%!"-!%/3!-"I%+6"E457=+0+F/7$0"$*-"+%F$*/G$1/+*$0"
I$71+%4(""R+7/$0"4541!64"7$**+1".!"E%+F%$66!-"1+"$71"/*"E%!-/71!-@"-!4/%!-"H$54d"1=!5"$%!"
/*I09!*7!-".5"7+6E0!N"/*1!%$71/+*4"+I"=96$*"!6+1/+*4"$*-"7+F*/1/+*4("#+41"4+7/$0"4541!64"
=$3!"E%+E!%1/!4"1=$1"/*=/./1"7+E/*F"!II!71/3!05@"7$0605@"$*-"%$1/+*$005"H/1="I$/09%!("""
R+7/$0"4541!64"$%!"6$-!"9E"+I"/*-/3/-9$0@"E457=+0+F/7$005"7+6E0!N@"=96$*".!/*F4("":*-@"
6+41"/*-/3/-9$04"!NE!%/!*7!"41%+*F"*!F$1/3!"I!!0/*F4"/*"%!4E+*4!"1+"1=!/%"+H*"I$/09%!4@"497="1=$1"
$7&*+H0!-F/*F"$*-"!N$6/*/*F"1=!6"7$*".!"$"3!%5"./11!%"E/00(""L!"=$3!"$*"/*41/*71/3!"1!*-!*75"1+"
-!*5@"-/41+%1@"/F*+%!@"+%"-/4$44+7/$1!"+9%4!03!4"I%+6"+9%"+H*"I$/09%!4(e""D=!"I$71"1=$1"4+6!+*!"
=$4"$7=/!3!-"$*"!N!791/3!"+%"0!$-!%4=/E"E+4/1/+*"/*"$*"+%F$*/G$1/+*"-+!4"*+1"6!$*"1=$1"1=!5"=$3!"
0!$%*!-"1+"=+*!4105"$*-"+E!*05"7+*I%+*1"E!%4+*$0"I$/09%!4"+%"0/6/1$1/+*4([B"""
X!7!*1"!3/-!*7!"+I"1=/4"7+6!4"I%+6">/*&!041!/*O4"!N1!*4/3!@"4/NT5!$%"/*3!41/F$1/+*"+I"
6$_+%"I$/09%!4"1=$1"/*709-!-"$06+41"ABB"/*1!%3/!H4"$*-"-!1$/0!-"$*$054/4"+I"6$_+%"I$/09%!4"$1"+3!%"
?B"7+6E$*/!4([["":I1!%"$*$05G/*F"1=/4".%!$-1="+I"-$1$@"=!"!NE0$/*!-Q""
`%+*/7$005"!*+9F=@"1=!"=/F=!%"E!+E0!"$%!"/*"1=!"6$*$F!6!*1"=/!%$%7=5@"1=!"6+%!"1=!5"
1!*-"1+"49EE0!6!*1"1=!/%"E!%I!71/+*/46"H/1=".0$*&!1"!N794!4@"H/1=");P4"949$005".!/*F"
1=!"H+%41"+I"$00(">+%"!N$6E0!@"/*"+*!"+%F$*/G$1/+*"H!"419-/!-@"1=!");P"4E!*1"1=!"!*1/%!"
I+%15TI/3!T6/*91!"/*1!%3/!H"!NE0$/*/*F"$00"1=!"%!$4+*4"H=5"+1=!%4"H!%!"1+".0$6!"I+%"1=!"
7$0$6/15"1=$1"=/4"7+6E$*5(""X!F90$1+%4@"7941+6!%4@"1=!"F+3!%*6!*1@"$*-"!3!*"+1=!%"
!N!791/3!4"H/1=/*"1=!"I/%6TT$00"H!%!"%!4E+*4/.0!(""f+"6!*1/+*"H$4"6$-!@"=+H!3!%@"+I"
E!%4+*$0"790E$./0/15(""]E("[c[TA^"
"
" D=94@"4+7/$0"4541!64"E%!4!*1".$%%/!%4"1+"0!$%*/*F"I%+6"I$/09%!"1=$1"=$3!"/*1%$E457=/7@"
/*1!%E!%4+*$0@"$*-"/*41%96!*1$0"!0!6!*14("""
`*1%$E457=/7$005@"=+*!41"$7&*+H0!-F!6!*1"+I"+*!O4"I$/09%!4"/4"*+1"+*05"9*E0!$4$*1"/1"$04+"
7$*"41%/&!"$".0+H"1+"+*!O4"4!0IT!41!!6@"4!0IT/6$F!@"$*-"/-!*1/15(""D=!"I9*-$6!*1$005"=96$*"-!4/%!"
Failing to learn and learning to fail 8
1+"=$3!"E+4/1/3!"4!0IT%!F$%-"7$*".!"=/*-!%!-".5"$*"=+*!41"!3$09$1/+*"+I"+*!O4"I$/09%!4(""S/&!H/4!@"
$*"+._!71/3!"$44!446!*1"+I"+9%"I$/09%!4"$*-"4=+%17+6/*F4"7$*"41%/&!"$".0+H"1+"+9%"E+4/1/3!"4!0IT
/6$F!"$*-"=/F=05"3$09!-"$4E!714"+I"+9%"+H*"/-!*1/15([A""#+%!+3!%@"$7&*+H0!-F/*F"+*!O4"I$/09%!"
$*-"0/6/1$1/+*4"6$5"9*-!%6/*!"1=!"7+*I/-!*7!"$*-"6+1/3$1/+*"1=$1"+*!"*!!-4"I+%"E!$&"
E!%I+%6$*7!(""#$*5"E457=+0+F/414"=$3!"$%F9!-"1=$1"9*%!$0/41/7$005"E+4/1/3!"4!0ITE!%7!E1/+*4"7$*"
$719$005"I$7/0/1$1!"6+1/3$1/+*@"-!1!%6/*$1/+*@"E!%4/41!*7!@"$*-"!*!%F5"0!3!0(""D=94@"/F*+%/*F"+9%"
I$/09%!4"6$5"*+1"+*05"E%+1!71"94"I%+6"1=!"9*E0!$4$*1*!44"+I"1=!"!6+1/+*@".91"6$5"$04+"=!0E"94"
$3+/-"-/47+9%$F!6!*1"$*-"6$/*1$/*"$"=/F="0!3!0"+I"6+1/3$1/+*([\
U!/*F"=!0-"/*"=/F="%!F$%-".5"+1=!%"E!+E0!@"!4E!7/$005"1=+4!"H/1="H=+6"+*!"4E!*-4"$"0+1"
+I"1/6!@"/4"$"41%+*F"I9*-$6!*1$0"=96$*"-!4/%!(""PE!*"$7&*+H0!-F!6!*1"+I"+*!O4"6/41$&!4"$*-"
I$/09%!4"/4"1=94"/*1!%E!%4+*$005"9*$EE!$0/*F("";3!*"1=+9F="+1=!%4"6$5"0!$%*"I%+6"$*-"$EE%!7/$1!"
+1=!%4O"-/470+49%!4"+I"I$/09%!"-+!4"*+1"F9$%$*1!!"1=$1"1=!5"H/00"6$/*1$/*"$"E+4/1/3!"/6E%!44/+*"+I"
1=!"/*-/3/-9$0"H=+"6$-!"1=!"6/41$&!(""W!+E0!"1=94"1!*-"1+"$3+/-"4/19$1/+*4"1=$1"6/F=1"0!$-"1+"
E9.0/7"!6.$%%$446!*1"+%"E%/3$1!"-!%/4/+*("""
`*41%96!*1$005@"+%F$*/G$1/+*$0"%!H$%-4"6$5"-!E!*-"9E+*"$EE!$%/*F"*+1"1+"6$&!"I$/09%!4("
`*-/3/-9$0"!6E0+5!!4"6$5"/*79%"1$*F/.0!"7+414"/I"1=!/%"$71/+*4"7%!$1!"9*I$3+%$.0!"/6E%!44/+*4"+*"
E!+E0!"H=+"/*I09!*7!"-!7/4/+*4"%!F$%-/*F"E%+6+1/+*4@"%$/4!4@"+%"-!4/%$.0!"E%+_!71"$44/F*6!*14(""
D=!4!"E+1!*1".$%%/!%4"$%!"$00".91"=$%-"H/%!-"/*1+"4+7/$0"4541!64(""D=!5"F%!$105"%!-97!"1=!"
$./0/15"+I"6+41"+%F$*/G$1/+*4"1+"0!$%*"I%+6"I$/09%!("""D=94@"*+1"+*05"-+"I!H"+%F$*/G$1/+*4"
4541!6$1/7$005"7$E19%!"I$/09%!O4"0!44+*4@"6+41"6$*$F!%4"0$7&"$"70!$%"9*-!%41$*-/*F"+I"H=$1"$"
E%+$71/3!"E%+7!44"+I"0!$%*/*F"I%+6"I$/09%!"0++&4"0/&!("""
L/1=+91"$"70!$%"6+-!0"+I"H=$1"/1"1$&!4"1+"0!$%*"I%+6"I$/09%!@"+%F$*/G$1/+*4"$%!"$1"$"
-/4$-3$*1$F!(""`*"I900"$7&*+H0!-F!6!*1"+I"1=!"6$F*/19-!"+I"1=!"7=$00!*F!@"H!"49FF!41"1=$1"
.%!$&/*F"1=!"E%+7!44"-+H*"/*1+"6+%!"1$*F/.0!"7+6E+*!*1"$71/3/1/!4"F%!$105"!*=$*7!4"1=!"
Failing to learn and learning to fail 9
0/&!0/=++-"+I"F0!$*/*F"I$/09%!4O"0!44+*4(""`*"1=!"*!N1"4!71/+*@"H!"/-!*1/I5"$*-"!NE0$/*"1=%!!"-/41/*71"
E%+7!44!4"1=%+9F="H=/7="!II!71/3!"+%F$*/G$1/+*4"7$*"E%+$71/3!05"0!$%*"I%+6"I$/09%!("""
"
?@*!A+)<*55*5!)-!B+'#&$4#($)&#%!>*#+&$&'!-+)9!"#$%7+*!
S!$%*/*F"I%+6"I$/09%!"/4"$"E%+7!44("")+*4/-!%/*F"1=!"7+6E+*!*1"$71/3/1/!4"1=%+9F="H=/7="
1=/4"E%+7!44"+779%4"/4"$*"/*/1/$0"41!E"/*"6$&/*F"/1"=$EE!*(""L!"+II!%"1=%!!".$4/7"+%F$*/G$1/+*$0"
$71/3/1/!4"1=%+9F="H=/7="7+00!71/3!"0!$%*/*F"I%+6"I$/09%!"+779%4Q"][^"/-!*1/I5/*F"I$/09%!@"]A^"
$*$05G/*F"I$/09%!@"$*-"]\^"-!0/.!%$1!"!NE!%/6!*1$1/+*(""D=!5"$%!"E%!4!*1!-"/*"+%-!%"+I"/*7%!$4/*F"
7=$00!*F!@".+1="+%F$*/G$1/+*$005"$*-"/*"1!%64"+I"1=!"4E!7/I/7"4&/004"%!K9/%!-(""`*"1=/4"4!71/+*@"H!"
-!47%/.!"1=!4!"$71/3/1/!4"/*"4+6!"-!1$/0"$*-"E%+3/-!"/00941%$1/+*4"+I"=+H"4+6!"+%F$*/G$1/+*4"=$3!"
4977!44I9005"+3!%7+6!"1=!"E!%3$4/3!"1!7=*/7$0"$*-"4+7/$0".$%%/!%4"$44+7/$1!-"H/1="!*$71/*F"1=!6("
;5(*&#!7#*+%!"#$2)(%"
W%+$71/3!"$*-"1/6!05"/-!*1/I/7$1/+*"+I"I$/09%!4"/4"$*"+.3/+94"$*-"!44!*1/$0"I/%41"41!E"/*"1=!"
E%+7!44"+I"0!$%*/*F"I%+6"1=!6(""P*!"+I"1=!"%!3+091/+*4"/*"6$*9I$719%/*F@"1=!"-%/3!"1+"%!-97!"
/*3!*1+%5"1+"1=!"0+H!41"E+44/.0!"0!3!04@"H$4"41/690$1!-"$4"697=".5"1=!"-!4/%!"1+"6$&!"E%+.0!64"
$*-"!%%+%4"K9/7&05"3/4/.0!"$4".5"1=!"-!4/%!"1+"$3+/-"+1=!%@"/*3!*1+%5T$44+7/$1!-"7+414(""R9%I$7/*F"
!%%+%4".!I+%!"1=!5"$%!"7+6E+9*-!-@"/*7+%E+%$1!-"/*1+"0$%F!%"4541!64@"+%"6$-!"/%%!3+7$.0!"/4"$*"
!44!*1/$0"41!E"/*"$7=/!3/*F"=/F="K9$0/15([C""
"" `*-!!-@"+*!"+I"1=!"1%$F!-/!4"/*"+%F$*/G$1/+*$0"0!$%*/*F"/4"1=$1"7$1$41%+E=/7"I$/09%!4"$%!"
+I1!*"E%!7!-!-".5"46$00!%"I$/09%!4"1=$1"H!%!"*+1"/-!*1/I/!-"$4"I$/09%!4"H+%1="!N$6/*$1/+*"$*-"
0!$%*/*F(""`*"I$71@"1=!4!"46$00"I$/09%!4"$%!"+I1!*"1=!"&!5"Y!$%05"H$%*/*F"4/F*4Z"1=$1"7+90-"E%+3/-!"$"
H$&!"9E"7$00"*!!-!-"1+"$3!%1"-/4$41!%"-+H*"1=!"%+$-(""R+7/$0"4541!6".$%%/!%4"$%!"+I1!*"1=!"&!5"
-%/3!%"+I"1=/4"&/*-"+I"E%+.0!6(""X$1=!%"1=$*"$7&*+H0!-F!"$*-"$--%!44"$"46$00"I$/09%!@"/*-/3/-9$04"
Failing to learn and learning to fail 10
=$3!"$"1!*-!*75"1+"-!*5"1=!"I$/09%!@"-/41+%1"1=!"%!$0/15"+I"1=!"I$/09%!@"+%"7+3!%"/1"9E@"$*-"F%+9E4"
$*-"+%F$*/G$1/+*4"=$3!"1=!"1!*-!*75"1+"49EE%!44"$H$%!*!44"+I"I$/09%!4(""
" >+%"!N$6E0!@">/*&!041!/*[?"6!*1/+*4"g/00"U$%$-"$1"#$11!0"$4"$*"/00941%$1/+*"+I"I$/0/*F"1+"
$7&*+H0!-F!"$*-"0!$%*"I%+6"6/41$&!4"/*"$"1/6!05"6$**!%(""`*"#$11!0O4"/00TI$1!-"$7K9/4/1/+*"+I"1=!"
S!$%*/*F")+6E$*5@"U$%$-"I/%41"+3!%0++&!-"1=!"E%+.0!64"1=$1"1=!"+%F$*/G$1/+*"H$4"=$3/*F"E%/+%"
1+"1=!"$7K9/4/1/+*("":*"+EE+%19*/15"1+"$7&*+H0!-F!"1=!"I$/09%!"7$6!"H=!*"1=!"1=/%-"K9$%1!%"[eee"
!$%*/*F4"19%*!-"+91"1+".!"$"0+44"+I"h[B?"6/00/+*@"%$1=!%"$"E%+I/1"+I"h?B"6/00/+*"$4"4=!"!NE!71!-(""
<+H!3!%@"%$1=!%"1=$*"$--%!44"1=!"I$/09%!@"4=!"%!6$/*!-"+E1/6/41/7"$*-"E%!-/71!-"4/F*/I/7$*1"
E%+I/14"I+%"1=!"*!N1"K9$%1!%d"/*41!$-@"1=!%!"H$4"$"0+44"+I"h[cC"6/00/+*(""P*7!"$F$/*@"%$1=!%"1=$*"
$7&*+H0!-F!"1=!"I$/09%!"$*-"0!$%*"I%+6"/1@"4=!"%!E!$1!-"1=!"4$6!"6/41$&!"I+%"1=!"*!N1"1H+"
K9$%1!%4"$4"H!00@"1=94"6$&/*F"1=!"4$6!"6/41$&!"I+%"$"1+1$0"+I"I+9%"K9$%1!%4(""""
" U5"7+*1%$41@"1=!");P"+I"$"6!7=$*/7$0"7+*1%$71+%"%!7+F*/G!-"1=!"3$09!"+I"!NE+4/*F"
I$/09%!"$*-"E9.0/7/G/*F"/*"+%-!%"1+"=!0E"!6E0+5!!4"0!$%*"I%+6"!$7="+1=!%"$*-"*+1"%!E!$1"1=!"4$6!"
6/41$&!(""D=!");PQ""
E900!-"$"hC?B"i#/41$&!i"+91"+I"1=!"7+6E$*5j4"-96E41!%@"6+9*1!-"/1"+*"$"E0$K9!@"$*-"
*$6!-"/1"1=!"i*+T*914"$H$%-iTTI+%"1=!"6/44/*F"E$%14("":"E%!4!*1$1/+*"7!%!6+*5"I+00+H!-"
$1"1=!"7+6E$*5".$%.!79!(""ik+9"7$*".!1"*+"+*!"6$&!4"&-"&"6/41$&!"$*56+%!@i"1=!");P"4$54(""iD=!"H/**!%@"H=+"H$4"/*/1/$005"!6.$%%$44!-@"*+H"1$&!4"E%/-!"/*"1=!"I$71"1=$1"=/4"
6/41$&!"=$4"4$3!-"1=/4"7+6E$*5"$"0+1"+I"6+*!5(i[a""
"
P3!%7+6/*F"1=!"E457=+0+F/7$0".$%%/!%4"1+"/-!*1/I5/*F"I$/09%!"%!K9/%!4"7+9%$F!"1+"I$7!"1=!"
9*E0!$4$*1"1%91=(""D=!"&!5"+%F$*/G$1/+*$0".$%%/!%"1+"/-!*1/I5/*F"I$/09%!"=$4"6+4105"1+"-+"H/1="
+3!%7+6/*F"1=!"/*$77!44/./0/15"+I"-$1$"1=$1"H+90-".!"*!7!44$%5"1+"/-!*1/I5"I$/09%!4("""D+"+3!%7+6!"
1=/4".$%%/!%@"+%F$*/G$1/+*$0"0!$-!%4"6941"1$&!"1=!"/*/1/$1/3!"1+"-!3!0+E"4541!64"$*-"E%+7!-9%!4"
1=$1"6$&!"$3$/0$.0!"1=!"-$1$"*!7!44$%5"1+"/-!*1/I5"$*-"0!$%*"I%+6"I$/09%!("""
:4"$*"!N$6E0!"+I"1=/4"/*"1=!"6!-/7$0"$%!*$@"'%("l/6":-7+7&"+I"l$/4!%"W!%6$*!*1!"
E%+$71/3!05"7+00!71!-"$*-"+%F$*/G!-"-$1$"1+"/-!*1/I5"I$/09%!"+I"E=54/7/$*4"H=+"%!$-"6$6+F%$64(""
Failing to learn and learning to fail 11
'9!"1+"1=!"/*=!%!*1"-/II/7901/!4"/*"%!$-/*F"6$66+F%$64"$779%$1!05@"1=!"6!-/7$0"E%+I!44/+*"=$4"
7+6!"1+"!NE!71"$"[BT[?m"!%%+%"%$1!"!3!*"$6+*F"1=!"!NE!%1"%!$-!%4("")+*4!K9!*105@"-/47+3!%/*F"
1=$1"$"%!$-!%"=$4"6/44!-"+*!"+%"!3!*"4!3!%$0"196+%4"-+!4"*+1"*!7!44$%/05"4$5"$*51=/*F"$.+91"1=$1"
%!$-!%O4"-/$F*+41/7"$./0/15"$*-"65"*+1"E%+3/-!"697="/*7!*1/3!"I+%"0!$%*/*F"I%+6"I$/09%!(""U5"
7+*1%$41@"H=!*"'%(":-7+7&".!7$6!"%$-/+0+F5"7=/!I"$1"l$/4!%"W!%6$*!*1!")+0+%$-+@"=!"91/0/G!-"
1=!"0+*F/19-/*$0"-$1$"$3$/0$.0!"/*"1=!"<#PO4"%!7+%-4"1+"E%+$71/3!05"/-!*1/I5"I$/09%!"$*-"E%+-97!"
-!1$/0!-@"4541!6$1/7"I!!-.$7&"/*709-/*F".$%"7=$%14"$*-"F%$E=4"I+%"!$7="/*-/3/-9$0"NT%$5"%!$-!%([b""
>+%"1=!"I/%41"1/6!@"!$7="%!$-!%"7+90-"0!$%*"H=!1=!%"=!"+%"4=!"H$4"I$00/*F"*!$%"+%"+914/-!"+I"1=!"
$77!E1$.0!"%$*F!"+I"!%%+%4("'%(":-7+7&"$04+"E%+3/-!-"%!$-!%4"H/1="1=!"+EE+%19*/15"1+"%!19%*"1+"
1=!"6/4%!$-"NT%$54"4+"1=!5"7+90-"/*3!41/F$1!"H=5"1=!5"6/44!-"$"E$%1/790$%"196+%"$*-"0!$%*"*+1"
6$&!"1=!"4$6!"6/41$&!"$F$/*("
P*"$"0$%F!%"47$0!@";0!71%/7/1/!"'!">%$*7!@"H=/7="+E!%$1!4"?b"*970!$%"E+H!%"E0$*14@"
E%+3/-!4"$*"!N$6E0!"+I"/-!*1/I5/*F"$*-"0!$%*/*F"I%+6"E+1!*1/$0"6/41$&!4([c""D=!"+%F$*/G$1/+*"
1%$7&4"!$7="E0$*1"I+%"$*51=/*F"!3!*"40/F=105"+91"+I"1=!"+91"+I"1=!"+%-/*$%5"$*-"=$4"$"E+0/75"+I"
K9/7&05"/*3!41/F$1/*F"$*-"E9.0/705"%!E+%1/*F"$*5"$*+6$0/!4"1=%+9F=+91"1=!"!*1/%!"4541!6"4+"1=$1"
1=!"H=+0!"4541!6"7$*"0!$%*(""""
>!!-.$7&"4!!&/*F"/4"$04+"$*"!II!71/3!"H$5"+I"/-!*1/I5/*F"6$*5"15E!4"+I"I$/09%!4(">!!-.$7&"
I%+6"7941+6!%4@"!6E0+5!!4"$*-"+1=!%"4+9%7!4"7$*"!NE+4!"I$/09%!4@"/*709-/*F"7+669*/7$1/+*"
.%!$&-+H*4"$4"H!00"$4"I$/09%!"1+"6!!1"F+$04"+%"4$1/4I5"7941+6!%"%!K9/%!6!*14(""W%+$71/3!05"
4!!&/*F"I!!-.$7&"I%+6"7941+6!%4"+914/-!"1=!"7+6E$*5"6$5".!"*!7!44$%5"/*"+%-!%"I+%"
6$*9I$719%!%4"$*-"4!%3/7!"E%+3/-!%4"1+"/-!*1/I5"$*-"$--%!44"I$/09%!4"/*"$"1/6!05"6$**!%("""
>+%"!N$6E0!@"+*05"?"1+"[B"E!%7!*1"+I"-/44$1/4I/!-"7941+6!%4"7=++4!"1+"7+6E0$/*"
I+00+H/*F"4!%3/7!"I$/09%!d"/*41!$-@"6+41"4/6E05"4H/17="E%+3/-!%4([e""D=/4"/4"+*!"+I"1=!"%!$4+*4"
4!%3/7!"7+6E$*/!4"I$/0"1+"0!$%*"I%+6"I$/09%!4"$*-"1=!%!I+%!"0+4!"7941+6!%4(""R!%3/7!"6$*$F!6!*1"
Failing to learn and learning to fail 12
%!4!$%7=!%4"D$N"$*-"U%+H*AB"7/1!"V!*!%$0";0!71%/7"$*-"2*/1!-"W$%7!0"R!%3/7!"$4"1H+"
+%F$*/G$1/+*4"1=$1"E%+$71/3!05"4!!&"-$1$"1=$1"H/00"=!0E"1=!6"/-!*1/I5"I$/09%!4(""V(;("E0$7!4"$*"cBB"
*96.!%"-/%!7105"+*"!$7="+I"/14"E%+-9714"$*-"!*7+9%$F!4"7941+6!%4"1+"/*I+%6"1=!"7+6E$*5"+I"
$*5"E%+.0!64(""V;"=$4"$*":*4H!%")!*1!%"1=$1"/4"+E!*"1H!*15TI+9%"=+9%4"$"-$5@"\a?"-$54"$"5!$%@"
%!7!/3/*F"$EE%+N/6$1!05"\"6/00/+*"7941+6!%"7$004"$"5!$%(""2WR"E%+3/-!4"$*"!N$6E0!"+I"=+H"1+"
4!!&"I!!-.$7&"I%+6"H/1=/*"1=!"7+6E$*5(""D=!"7+6E$*5"=$4".9/01"/*"$"=$0I"=+9%"E!%"H!!&"1+"1=!"
47=!-90!"+I"!$7="+I"/14"-%/3!%4"I+%"%!7!/3/*F"1=!/%"I!!-.$7&"$*-"$*4H!%/*F"K9!41/+*4(""D=!4!"
4/6E0!"1!7=*/K9!4"!N!6E0/I5"6!1=+-4"+I"/-!*1/I5/*F"I$/09%!"/*"$"1/6!05"H$5"4+"1=$1"1=!"
+%F$*/G$1/+*4"7$*"0!$%*@"%!4E+*-"K9/7&05@"$*-"%!1$/*"7941+6!%4("""
:1"1=!"4$6!"1/6!@"1=/4"/4"*+1"!$45("";6E0+5!!4@"7+*47/+9405"$*-"*+1@"+I1!*"I$/0"1+"!NE0+/1"
$*-"6$5"!3!*"$71/3!05"$3+/-"+EE+%19*/1/!4"1+"!NE+4!"$*-"0!$%*"$.+91"1=!/%"I$/09%!4("";II!71/3!"
/-!*1/I/7$1/+*"+I"I$/09%!"!*1$/04"!NE+4/*F"I$/09%!4"$4"!$%05"$4"E+44/.0!@"1+"$00+H"0!$%*/*F"/*"$*"
!II/7/!*1"$*-"7+41"!II!71/3!"H$5(""D=/4"+I1!*"%!K9/%!4"$"E%+$71/3!"!II+%1"+*"1=!"E$%1"+I"6$*$F!%4"
1+"49%I$7!"$3$/0$.0!"-$1$"+*"I$/09%!4"$*-"94!"/1"/*"$"H$5"1=$1"E%+6+1!4"0!$%*/*F(""""
:"%!7!*1"1%$F/7"!N$6E0!"+I"1=!"7+*4!K9!*7!4"+I"-!0$5!-"$*-"6/*/6/G!-"/-!*1/I/7$1/+*"+I"
I$/09%!"/4"I+9*-"/*"1=!"3'$214#""-/4$41!%(""":4"-/47944!-"/*"1=!":77/-!*1"`*3!41/F$1/+*"U+$%-O4"
%!E+%1@"f:R:"6$*$F!%4"4E!*1"[b"-$54"-+H*E0$5/*F"1=!"E+44/./0/15"1=$1"I+$6"41%/&!4"+*"1=!"0!I1"
4/-!"+I"1=!"4=9110!"%!E%!4!*1!-"$"4!%/+94"E%+.0!6"J"$"1%9!"I$/09%!"J"$*-"4+"-/-"*+1"3/!H"1=!"!3!*14"
$4"$"1%/FF!%"I+%"7+*-971/*F"-!1$/0!-"$*$054!4"+I"1=!"4/19$1/+*(A[""`*41!$-"1=!"41%/&!4"H!%!"-!!6!-"
+%-/*$%5"!3!*14@"H/1=/*"1=!".+9*-$%/!4"+I"E$41"!NE!%/!*7!@"$*"/*1!%E%!1$1/+*"1=$1"H+90-"0$1!%"
4!!6"$.49%-"F/3!*"1=!"0$%F!"6$F*/19-!"+I"1=!"-!.%/4(""D=!"4=$%!-".!0/!I"1=$1"1=!%!"H$4"0/110!"1=!5"
7+90-"=$3!"-+*!"7+*1%/.91!-"1+"$"0$7&"+I"E%+$71/3/15"/*"$*$054/4"$*-"!NE0+%$1/+*"+I"E+44/.0!"
%!6!-/!4(""R$-05@"E+41T!3!*1"$*$054!4"=$3!"49FF!41!-"1=!"E+44/./0/15"1=$1"I%9/1I90"$71/+*4"7+90-"
Failing to learn and learning to fail 13
=$3!".!!*"1$&!*"=$-"1=!"I$/09%!".!!*"/-!*1/I/!-"$*-"!NE0+%!-"!$%05"/*"1=/4"H/*-+H"+I"
+EE+%19*/15("
U!7$94!"E457=+0+F/7$0"$*-"+%F$*/G$1/+*$0"I$71+%4"7+*4E/%!"1+"%!-97!"I$/09%!"/-!*1/I/7$1/+*@"
$"I9*-$6!*1$0"%!+%/!*1$1/+*"/*"H=/7="/*-/3/-9$04"$*-"F%+9E4"$%!"6+1/3$1!-"1+"!*F$F!"/*"1=!"
!6+1/+*$005"7=$00!*F/*F"1$4&"+I"4!!&/*F"+91"I$/09%!4"/4"*!!-!-(""P.3/+9405@"+%F$*/G$1/+*4"1=$1"
=$3!"$"=$./1"+I"Y4=++1/*F"1=!"6!44!*F!%Z"1=$1"/-!*1/I/!4"$*-"%!3!$04"$"I$/09%!"H/00"-/47+9%$F!"1=/4"
E%+7!44("""
)%!$1/*F"$*"!*3/%+*6!*1"/*"H=/7="E!+E0!"=$3!"$*"/*7!*1/3!@"+%"$1"0!$41"-+"*+1"=$3!"$"
-/4/*7!*1/3!@"1+"/-!*1/I5"$*-"%!3!$0"I$/09%!4"/4"1=!"_+."+I"0!$-!%4=/E(AA"">+%"!N$6E0!@"1=!")=/!I"
PE!%$1/*F"PII/7!%"$1")=/0-%!*O4"<+4E/1$0"/*"#/**!$E+0/4@"g90/!"#+%$1=@"-!3!0+E!-"$"Y.0$6!0!44"
%!E+%1/*FZ"4541!6"1+"!*7+9%$F!"!6E0+5!!4"*+1"+*05"1+"%!3!$0"6!-/7$0"!%%+%4"%/F=1"$H$5@".91"$04+"
1+"4=$%!"$--/1/+*$0"/*I+%6$1/+*"1=$1"7+90-".!"94!-"/*"$*$05G/*F"7$94!4"+I"1=!"!%%+%(A\""R/6/0$%05@"
D=!"2R":/%">+%7!"4E!7/I/7$005"6+1/3$1!4"4E!$&/*F"9E"!$%05".5"E!*$0/G/*F"E/0+14"I+%"*+1"%!E+%1/*F"
!%%+%4"H/1=/*"AC"=+9%4("";%%+%4"%!E+%1!-"/66!-/$1!05"$%!"*+1"E!*$0/G!-d"1=+4!"*+1"%!E+%1!-".91"
-/47+3!%!-"0$1!%"$*5H$5"$%!"1%!$1!-"4!3!%!05("">/*$005@"/*"7+*1%$41"1+"1=!"E+1!*1"E457=+0+F/7$0"$*-"
+%F$*/G$1/+*$0".$%%/!%4"1=$1"-/47+9%$F!"/-!*1/I5/*F"I$/09%!@"1=!"1!7=*/7$0".$%%/!%4"1+"/-!*1/I5/*F"
I$/09%!"$%!"I$/%05"6/*+%("""
<*"$70#*+%!"#$2)(%"
`1"=$%-05"*!!-4"1+".!"4$/-"1=$1"+%F$*/G$1/+*4"7$**+1"0!$%*"I%+6"I$/09%!4"/I"E!+E0!"-+"*+1"
-/47944"$*-"$*$05G!"1=!6=%"k!1@"1=/4"%!6$/*4"$*"/6E+%1$*1"/*4/F=1(""D=!"E+1!*1/$0"0!$%*/*F"7$**+1"
.!"%!$0/G!-"9*0!44"1=+9F=1I90"$*$054/4"$*-"-/47944/+*"+I"I$/09%!"+779%4("">+%"!N$6E0!@"I+%"1=!"nT
%$5"%!$-!%4"6!*1/+*!-"$.+3!@"/1"H$4"*+1"!*+9F="_941"1+"&*+H"1=$1"+*!"/4"6$&/*F"6+%!"1=$*"1=!"
$77!E1$.0!"*96.!%"+%"!%%+%4(""X!$-!%4"*!!-"1+"$*$05G!"1=!"NT%$54"1=$1"H!%!"6/41$&!*05"%!$-"1+"
0++&"I+%"E$11!%*4"/*"1=!/%"%!$-/*F"!%%+%4"+%"4E+1"E$%1/790$%"H!$&*!44!4"1=$1"7+90-".!"7+%%!71!-(""
Failing to learn and learning to fail 14
P*"$"0$%F!%"47$0!@"1=!"2R":%65"/4"&*+H*"I+%"7+*-971/*F":I1!%":71/+*"X!3/!H4"1=$1"!*$.0!"
E$%1/7/E$*14"1+"$*$05G!@"-/47944"$*-"0!$%*"I%+6".+1="1=!"4977!44!4"$*-"I$/09%!4"+I"$"3$%/!15"+I"
6/0/1$%5"/*/1/$1/3!4("R/6/0$%05@"=+4E/1$04"94!"Y#+%./-/15"$*-"#+%1$0/15Z"]#o#^"7+*I!%!*7!4"]/*"
H=/7="E=54/7/$*4"7+*3!*!"1+"-/47944"4/F*/I/7$*1"6/41$&!4"+%"9*!NE!71!-"E$1/!*1"-!$1=4^"$4"$"
I+%96"I+%"/-!*1/I5/*F@"-/47944/*F"$*-"0!$%*/*F"I%+6"I$/09%!4(""#$*5"+I"1=!4!"3!=/70!4"I+%"$*$054/4"
+*05"$--%!44"49.41$*1/$0"I$/09%!4@"=+H!3!%@"%$1=!%"1=$*"/-!*1/I5/*F"$*-"0!$%*/*F"I%+6"46$00!%"
+*!4("
:*"!N$6E0!"+I"!II!71/3!"$*$054/4"+I"I$/09%!"/4"I+9*-"/*"1=!"6!1/790+94"$*-"E$/*41$&/*F"
$*$054/4"1=$1"F+!4"/*1+"9*-!%41$*-/*F"1=!"7%$4="+I"$*"$/%0/*!%(""<9*-%!-4"+I"=+9%4"6$5"F+"/*1+"
F$1=!%/*F"$*-"$*$05G/*F"-$1$"1+"4+%1"+91"!N$7105"H=$1"=$EE!*!-"$*-"H=$1"7$*".!"0!$%*!-(""
)+6E$%!"1=/4"&/*-"+I"$*$054/4"1+"H=$1"1$&!4"E0$7!"/*"6+41"+%F$*/G$1/+*4"$I1!%"$"I$/09%!("""
:4"*+1!-"$.+3!@"4+7/$0"4541!64"1!*-"1+"-/47+9%$F!"1=/4"&/*-"+I"$*$054/4("">/%41@"/*-/3/-9$04"
!NE!%/!*7!"*!F$1/3!"!6+1/+*4"H=!*"!N$6/*/*F"1=!/%"+H*"I$/09%!4"$*-"1=/4"7$*"7=/E"$H$5"$1"4!0IT
7+*I/-!*7!"$*-"4!0IT!41!!6(""#+41"E!+E0!"E%!I!%"1+"E91"E$41"6/41$&!4".!=/*-"1=!6"%$1=!%"1=$*"1+"
%!3/4/1"$*-"9*E$7&"1=!6"I+%"F%!$1!%"9*-!%41$*-/*F(""R!7+*-@"7+*-971/*F"$*"$*$054/4"+I"$"I$/09%!"
%!K9/%!4"$"4E/%/1"+I"/*K9/%5"$*-"+E!**!44@"E$1/!*7!@"$*-"$"1+0!%$*7!"I+%"$6./F9/15(""<+H!3!%@"
6+41"E!+E0!"$-6/%!"$*-"$%!"%!H$%-!-"I+%"-!7/4/3!*!44@"!II/7/!*75"$*-"$71/+*"%$1=!%"1=$*"I+%"-!!E"
%!I0!71/+*"$*-"E$/*41$&/*F"$*$054/4("""
D=/%-@"E457=+0+F/414"=$3!"4E!*1"-!7$-!4"-+796!*1/*F"=!9%/41/74"$*-"E457=+0+F/7$0"./$4!4"
$*-"!%%+%4"1=$1"%!-97!"1=!"$779%$75"+I"=96$*"E!%7!E1/+*@"4!*4!"6$&/*F@"!41/6$1/+*@"$*-"
$11%/.91/+*(AC""D=!4!"7$*"$04+"=/*-!%"1=!"=96$*"$./0/15"1+"$*$05G!"I$/09%!"!II!71/3!05(""W!+E0!"1!*-"
1+".!"6+%!"7+6I+%1$.0!"$11!*-/*F"1+"!3/-!*7!"1=$1"!*$.0!4"1=!6"1+".!0/!3!"H=$1"1=!5"H$*1"1+"
.!0/!3!@"-!*5/*F"%!4E+*4/./0/15"I+%"I$/09%!4@"$11%/.91/*F"1=!"E%+.0!6"1+"+1=!%4"+%"1=!"4541!6@"$*-"
0/&!"1+"6+3!"+*"1+"4+6!1=/*F"6+%!"E0!$4$*1(""X/F+%+94"$*$054/4"+I"I$/09%!"%!K9/%!4"1=$1"E!+E0!"$1"
Failing to learn and learning to fail 15
0!$41"1!6E+%$%/05"E91"$4/-!"1=!4!"1!*-!*7/!4"1+"!NE0+%!"9*E0!$4$*1"1%91=4"$*-"1$&!"E!%4+*$0"
%!4E+*4/./0/15("""
D+"/00941%$1!@"H!"=$3!"+.4!%3!-"$"*96.!%"+I"I$/0!-"7+*4901/*F"%!0$1/+*4=/E4"/*"+9%"I/!0-"
%!4!$%7="/*"H=/7="1=!"7+*4901$*14"4/6E05".0$6!-"1=!"I$/09%!"1+"1=!"70/!*1@"7+*709-/*F"1=$1"1=!"
70/!*1"H$4"*+1"%!$005"7+66/11!-"1+"7=$*F!@"+%"1=$1"1=!"70/!*1"H$4"-!I!*4/3!"+%"-/II/7901(A?""U5"
7+*1%$41@"$"I!H@"=/F=05"0!$%*/*F"+%/!*1!-"7+*4901$*14"H!%!"$.0!"1+"!*F$F!"/*"-/47944/+*"$*-"
$*$054/4"1=$1"/*3+03!-"%$/4/*F"K9!41/+*4"$.+91"=+H"1=!5"1=!64!03!4"7+*1%/.91!-"1+"1=!"E%+.0!6(""
`*"1=!4!"$*$051/7"4!44/+*4@"1=!"7+*4901$*14"%$/4!-"K9!41/+*4"497="$4"i:%!"1=!%!"1=/*F4"`"4$/-"+%"-/-"
1=$1"7+*1%/.91!-"1+"1=!"-!I!*4/3!*!44"+I"1=!"70/!*1pi"+%"iL$4"65"E%!4!*1$1/+*"+I"/-!$4"$*-"
$%F96!*14"70!$%"$*-"E!%49$4/3!pi""'/-"65"$*$054/4"I$00"4=+%1"/*"4+6!"H$5"1=$1"0!-"1=!"70/!*1"1+"
=$3!"0!F/1/6$1!"-+9.14pi""X$/4/*F"1=!4!"K9!41/+*4"%!K9/%!4".+1="E%+I+9*-"E!%4+*$0"79%/+4/15"1+"
0!$%*"H=$1"1=!"$*4H!%4"6/F=1".!"$*-"/*7%!$4!4"1=!"7=$*7!4"1=$1"1=!"7+*4901$*14"H/00"0!$%*"
4+6!1=/*F"94!I90"I%+6"1=!"I$/0!-"%!0$1/+*4=/E(""<+H!3!%@".0$6/*F"1=!"70/!*1"/4"697="6+%!"
7+6I+%1$.0!"$*-"!II/7/!*1(%%"
X!7!*1"%!4!$%7="/*"1=!"=+4E/1$0"4!11/*F"4=+H4"1=$1"=!$01="7$%!"+%F$*/G$1/+*4"15E/7$005"I$/0"
1+"$*$05G!"+%"6$&!"7=$*F!4"!3!*"H=!*"E!+E0!"$%!"H!00"$H$%!"+I"I$/09%!4(Aa""L=!1=!%"6!-/7$0"
!%%+%4"+%"4/6E05"E%+.0!64"/*"1=!"H+%&"E%+7!44@"I!H"=+4E/1$04"+%F$*/G$1/+*4"-/F"-!!E05"!*+9F="1+"
9*-!%41$*-"$*-"7$E19%!"1=!"E+1!*1/$0"0!$%*/*F"I%+6"I$/09%!4(%W%+7!44!4@"%!4+9%7!4@"$*-"/*7!*1/3!4"
1+".%/*F"6901/E0!"E!%4E!71/3!4"$*-"6901/E0!"6/*-4"1+F!1=!%"1+"7$%!I9005"$*$05G!"H=$1"H!*1"H%+*F"
$*-"=+H"1+"E%!3!*1"1=!"+779%%!*7!"+I"4/6/0$%"I$/09%!4"/*"1=!"I919%!"$%!"0$7&/*F"/*"6+41"
+%F$*/G$1/+*4(""
D=94@"I+%6$0"E%+7!44!4"+%"I+%964"I+%"-/47944/*F@"$*$05G/*F"$*-"$EE05/*F"1=!"0!44+*4"+I"
I$/09%!"!04!H=!%!"/*"1=!"+%F$*/G$1/+*"$%!"*!!-!-"1+"!*49%!"1=$1"!II!71/3!"$*$054/4"$*-"0!$%*/*F"
I%+6"I$/09%!"+779%4(""R97="F%+9E4"$%!"6+41"!II!71/3!"H=!*"E!+E0!"=$3!"1!7=*/7$0"4&/004"$*-"
Failing to learn and learning to fail 16
!NE!%1/4!"I+%"$*$054/4"$*-"-/3!%4!"3/!H4"$*-"E!%4E!71/3!4"$00+H/*F"1=!6"1+".%$/*41+%6"$*-"
!NE0+%!"-/II!%!*1"/*1!%E%!1$1/+*4"+I"$"I$/09%!O4"7$94!4"$*-"7+*4!K9!*7!4(""U!7$94!"1=/4"949$005"
/*3+03!4"1=!"E+1!*1/$0"I+%"7+*I0/71"$*-"I+%"-/II!%!*7!4"1+"F!1"+91"+I"=$*-"$*-".!7+6!"E!%4+*$0@"
E!+E0!"4&/00!-"/*"/*1!%E!%4+*$0"+%"F%+9E"E%+7!44@"+%"1=!"94!"+I"!NE!%1"I$7/0/1$1+%4@"7$*"=!0E"1+"
&!!E"1=!"E%+7!44"E%+-971/3!("
f!N1@"4&/004"I+%"6$*$F/*F"$"F%+9E"E%+7!44"+I"$*$05G/*F"$"I$/09%!"H/1="$"4E/%/1"+I"/*K9/%5"
$*-"H/1="49II/7/!*1"9*-!%41$*-/*F"+I"1=!"47/!*1/I/7"6!1=+-"/4"$*"!44!*1/$0"/*E91"1+"0!$%*/*F"I%+6"
I$/09%!"$4"$*"+%F$*/G$1/+*(Ab""L/1=+91"%/F+%+94"$*$054/4"$*-"-!!E"E%+./*F"/*-/3/-9$04"1!*-"1+"
E%!6$19%!05"0!$E/*F"1+"9*I+9*-!-"7+*7094/+*4"$*-"6/49*-!%41$*-"7+6E0/7$1!-"E%+.0!64(""R+6!"
9*-!%41$*-/*F"+I"4541!6"-5*$6/74@"1=!"$./0/15"1+"4!!"E$11!%*4@"41$1/41/7$0"E%+7!44"7+*1%+04@"$*-"
F%+9E"-5*$6/74"7$*".!"3!%5"=!0EI90"=!%!("""
" D+"/00941%$1!"=+H"1=/4"H+%&4@")=/0-%!*O4"<+4E/1$0O4"#+%$1="/6E0!6!*1!-"49EE+%14"I+%"
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&*+H0!-F!"+I"=+H"1+"E%+.!"6+%!"-!!E05"/*1+"1=!"7$94!4"+I"I$/09%!"/*"=+4E/1$04".5"$11!*-/*F"1=!"
;N!791/3!"R!44/+*4"+*"#!-/7$0";%%+%4"$*-"W$1/!*1"R$I!15"$*-"<$%3$%-"2*/3!%4/15"$*-"1=%+9F="$"
3$%/!15"+I"+1=!%"!-97$1/+*$0"+EE+%19*/1/!4"$*-"!NE!%/!*7!4(""R=!"0!$%*!-"1=$1"%$1=!%"1=$*".!/*F"
1=!"I$901"+I"$"4/*F0!"/*-/3/-9$0@"6!-/7$0"!%%+%4"1!*-"1+".!"!6.!--!-"/*"7+6E0!N"/*1!%-!E!*-!*1"
4541!64"$*-"=$3!"6901/E0!"%++14(""`*"$--/1/+*"1+"41%!*F1=!*/*F"=!%"1!7=*/7$0"&*+H0!-F!@"4=!"
+3!%7$6!"+%F$*/G$1/+*$0".$%%/!%4".5"6$&/*F"41%9719%$0"7=$*F!4"H/1=/*"1=!"+%F$*/G$1/+*"1+"7%!$1!"
$"7+*1!N1"/*"H=/7="I$/09%!"7+90-".!"/-!*1/I/!-@"$*$05G!-"$*-"0!$%*!-"I%+6(""D+"7%!$1!"$"I+%96"I+%"
0!$%*/*F"I%+6"I$/09%!"$1")=/0-%!*O4"<+4E/1$0@"4=!"-!3!0+E!-"$"W$1/!*1"R$I!15"R1!!%/*F")+66/11!!"
]WRR)^(""f+1"+*05"H$4"1=!"WRR)"E%+$71/3!"/*"4!!&/*F"1+"/-!*1/I5"I$/09%!4@"/1"!*49%!-"1=$1"$00"
I$/09%!4"H!%!"49._!71"1+"$*$054/4"4+"1=$1"0!$%*/*F"7+90-"1$&!"E0$7!("">+%"!N$6E0!@"1=!"WRR)"
-!1!%6/*!-"1=$1"Y>+794!-";3!*1"R19-/!4Z"H+90-".!"7+*-971!-"*+1"+*05"$I1!%"4!%/+94"6!-/7$0"
Failing to learn and learning to fail 17
$77/-!*14@".91"!3!*"$I1!%"697="46$00!%"47$0!"!%%+%4"+%"Y*!$%"6/44!4(Z"""D=!4!"Y>+794!-";3!*1"
R19-/!4Z"H!%!"I+%964"-!4/F*!-"!NE0/7/105"I+%"1=!"E9%E+4!"+I"0!$%*/*F"I%+6"1=!"6/41$&!4".5"
E%+./*F"-!!E05"/*1+"1=!/%"7$94!4("""
`*"$--/1/+*@"7%+44TI9*71/+*$0"1!$64@"&*+H*"$4"Y4$I!15"$71/+*"1!$64Z"4E+*1$*!+9405"
I+%6!-"/*"7!%1$/*"70/*/7$0"$%!$4"1+".!11!%"9*-!%41$*-"=+H"I$/09%!4"+779%%!-@"1+"E%+$71/3!05""
/6E%+3!"6!-/7$0"4$I!15(""P*!"70/*/7$0"F%+9E"-!3!0+E!-"4+6!1=/*F"1=!5"7$00!-"$"YV++-")$17="
S+FZ"1+"%!7+%-"/*I+%6$1/+*"1=$1"6/F=1".!"94!I90"/*".!11!%"9*-!%41$*-/*F"$*-"%!-97/*F"6!-/7$0"
!%%+%4(""P1=!%"1!$64"/*"1=!"=+4E/1$0"K9/7&05"I+00+H!-"1=!/%"!N$6E0!@"I/*-/*F"1=!"/-!$"7+6E!00/*F"
$*-"E%$71/7$0("
" D+"49EE0!6!*1"+%"=!0E".9/0-"$*"+%F$*/G$1/+*O4"$./0/15"1+"$*$05G!"/14"+H*"I$/09%!4@"+914/-!"
4+9%7!4"+I"1!7=*/7$0"$44/41$*7!"/*"$*$05G/*F"I$/09%!"7$*".!"!*F$F!-(">+%"!N$6E0!@">%!-!%/7&"
X!/7==!0-@"$"U$/*"$*-")+6E$*5"E$%1*!%"H=+"=$4"419-/!-"I$/09%!4"/*"1=!"I+%6"+I"7941+6!%"$*-"
!6E0+5!!"-!I!71/+*4Ae"-!6+*41%$1!4"$"-!!E@"E%+./*F"$*$054/4"+I"I$/09%!("<!"/00941%$1!-@"*+1/*F"1=$1"
1=!"I$71"1=$1"6+41"+I"1=!"7941+6!%4"H=+"-!I!71!-"I%+6"$"E$%1/790$%".$*&"F$3!"Y/*1!%!41"%$1!4Z"$4"
1=!"%!$4+*"I+%"4H/17=/*F".$*&4"H+90-"4!!6"1+"49FF!41"1=$1"1=!/%"+%/F/*$0".$*&O4"/*1!%!41"%$1!4"
H!%!"*+1"7+6E!1/1/3!("":--/1/+*$0"/*3!41/F$1/+*"1=!."-!6+*41%$1!-"1=$1"1=!%!"H!%!"*+"4/F*/I/7$*1"
-/II!%!*7!4"/*"/*1!%!41"%$1!4"$7%+44"1=!".$*&4("")$%!I90"E%+./*F"1=%+9F="/*1!%3/!H4"/*-/7$1!-"1=$1"
6$*5"7941+6!%4"-!I!71!-".!7$94!"1=!5"H!%!"/%%/1$1!-".5"1=!"I$71"1=$1"1=!5"=$-".!!*"$FF%!44/3!05"
4+0/7/1!-"I+%"$".$*&TE%+3/-!-"7%!-/1"7$%-"$*-"1=!*"49.4!K9!*105"19%*!-"1=!6"-+H*"I+%"1=!"7$%-(""
:"49E!%I/7/$0"$*$054/4"+I"7941+6!%"-!I!71/+*"H+90-"=$3!"0!-"1+"1=!"7+*7094/+*"1=$1"1=!".$*&O4"
/*1!%!41"%$1!4"H!%!"*+1"7+6E!1/1/3!("":"-!!E!%"$*$054/4"0!-"1+"$*"$01!%*$1/3!"7+*7094/+*@"1=$1"1=!"
.$*&O4"6$%&!1/*F"-!E$%16!*1"*!!-!-"1+"-+"$".!11!%"_+."+I"47%!!*/*F"/*"$-3$*7!"1=!"7941+6!%4"1+"
H=+6"/1"E%+6+1!-".$*&TE%+3/-!-"7%!-/1"7$%-4(""""
Failing to learn and learning to fail 18
:*+1=!%"!N$6E0!"+I"1=!"/6E+%1$*7!"+I"$*$054/4"%!0$1!4"1+"!6E0+5!!"19%*+3!%(\B"":"
7+6E$*5O4"6$*$F!%4".!7$6!"7+*7!%*!-"H=!*"1=!5"+.4!%3!-"=/F="19%*+3!%"$6+*F"4$0!4"E!+E0!"
$*-"7+*-971!-"$*"/*3!41/F$1/+*(""#$*5"+I"1=!"!6E0+5!!4"F$3!"YH+%&/*F"1++"6$*5"=+9%4Z"$4"1=!"
%!$4+*"I+%"1=!/%"-!I!71/+*(""`*/1/$005@"/1"0++&!-"0/&!"1=!"19%*+3!%"6$5"*+1"=$3!".!!*"497="$".$-"
1=/*FM$I1!%"$00"H=+"*!!-4"!6E0+5!!4"H=+"$%!"*+1"7+66/11!-"1+"H+%&/*F"=$%-p""<+H!3!%@"$I1!%"
$--/1/+*$0"-$1$"F$1=!%/*F"6$*$F!6!*1"0!$%*!-"1=$1"6$*5"+I"1=!"!6E0+5!!4"H=+"K9/1"H!%!"$6+*F"
1=!/%"6+41"4977!44I90"4$0!4E!+E0!("">9%1=!%"-$1$"7+00!71/+*"-!6+*41%$1!-"1=$1"1=!"4977!44I90"
4$0!4E!+E0!"H=+"K9/1"=$-"I+9*-"_+.4"1=$1"%!K9/%!-@"+*"$3!%$F!@"AB"E!%7!*1"I!H!%"=+9%4(""P*7!"
$F$/*@"F$/*/*F"$"1%9!"9*-!%41$*-/*F"+I"1=!"4/19$1/+*"%!K9/%!-"-!!E!%"E%+./*F"$*-"$*$054/4("""
`*"$--/1/+*"1+"4541!6$1/7"$*$054/4@"-/47944/*F"I$/09%!4"/4"/6E+%1$*1"I+%"4!3!%$0"%!$4+*4(""
>/%41@"-/47944/+*"E%+3/-!4"$*"+EE+%19*/15"I+%"+1=!%4"H=+"6$5"*+1"=$3!".!!*"-/%!7105"/*3+03!-"/*"
1=!"I$/09%!"1+"0!$%*"I%+6"/1(""R!7+*-@"+1=!%4"6$5".%/*F"*!H"E!%4E!71/3!4"$*-"/*4/F=14"1=$1"-!!E!*"
1=!"$*$054/4"$*-"=!0E"1+"7+9*1!%$71"4!0IT4!%3/*F"./$4!4"1=$1"6$5"7+0+%"1=!"E!%7!E1/+*4"+I"1=+4!"
6+41"-/%!7105"/*3+03!-"/*"1=!"I$/09%!("":I1!%"!NE!%/!*7/*F"I$/09%!@"E!+E0!"15E/7$005"$11%/.91!"1++"
697=".0$6!"1+"+1=!%"E!+E0!"$*-"I+%7!4".!5+*-"+9%"7+*1%+0(""`I"1=/4"1!*-!*75"F+!4"9*7=!7&!-@"/1"
%!-97!4"$*"+%F$*/G$1/+*O4"$./0/15"1+"-/F"+91"1=!"&!5"0!$%*/*F"1=$1"7+90-"7+6!"I%+6"1=!"!NE!%/!*7!("""
`*3+03/*F"/*-/3/-9$04"H=+"H!%!"*+1"-/%!7105"1/!-"1+"$"I$/09%!"/*"1=!"$*$054/4"7$*"/6E%+3!"
1=!"K9$0/15"+I"1=!"-/47944/+*(""R97="/*-/3/-9$04"$%!"0!44"!6+1/+*$005"1/!-"1+"$"E$%1/790$%"4!*4!T
6$&/*F"%!F$%-/*F"1=!"!3!*1@"+I1!*"=$3!"$"-/II!%!*1"E!%4E!71/3!"1+".%/*F"1+"1=!"$*$054/4@"$*-"7$*"
$4&"E%+./*F"K9!41/+*4(""""
S$4105@"1=!"0!$%*/*F"3$09!"1=$1"6/F=1"%!4901"I%+6"$*$05G/*F"$*-"-/47944/*F"4/6E0!"6/41$&!4"
/4"+I1!*"+3!%0++&!-(""`*"I$71@"6$*5"47/!*1/I/7"-/47+3!%/!4"=$3!"%!4901!-"I%+6"1=+4!"H=+"H!%!"
$11!*1/3!"1+"4/6E0!"6/41$&!4"/*"1=!"0$.("">+%"!N$6E0!@"W!1!%"'%97&!%"*+1!4\["1=$1"%!4!$%7=!%4"/*"
+*!"+I"1=!"!$%05"V!%6$*"E+056!%"0$.4"+77$4/+*$005"6$-!"1=!"6/41$&!"+I"0!$3/*F"$"U9*4!*".9%*!%"
Failing to learn and learning to fail 19
0/1"+3!%"1=!"H!!&!*-(""2E+*"-/47+3!%/*F"1=/4"6/41$&!"+*"#+*-$5"6+%*/*F4@"1=!"7=!6/414"4/6E05"
-/47$%-!-"1=!"+3!%7++&!-"%!49014"$*-"H!*1"+*"H/1="1=!/%"-$5(""D!*"5!$%4"0$1!%@"$"7=!6/41"/*"$"
E+056!%"0$."$1"'9W+*1"6$-!"1=!"4$6!"6/41$&!(""<+H!3!%@"%$1=!%"1=$*"4/6E05"-/47$%-/*F"1=!"
6/41$&!@"1=!"'9E+*1"7=!6/41"F$3!"4+6!"$*$054/4"1+"1=!"%!4901@"-/47+3!%!-"1=$1"1=!"I/.!%4"=$-"
7+*F!$0!-@"$*-"1=/4"H$4"-/47+3!%5"E%+3/-!-"1=!"I/%41"41!E"1+H$%-"1=!"/*3!*1/+*"+I"*50+*(""L/1="
4/6/0$%"$11!*1/+*"1+"1=!"6/*+%"I$/09%!"/*"1=!"V!%6$*"0$.@"1=!"V!%6$*4"6/F=1"=$3!"=$-"$"-!7$-!"
=!$-"41$%1"/*"*50+*"$*-"7+90-"=$3!"-+6/*$1!-"1=!"6$%&!1("""
>?:()#1(*&"&#'*%%
D=!"1=/%-"E%+7!44"I+%"0!$%*/*F"I%+6"I$/09%!"/4"E!%=$E4".+1="1=!"0!$41"+.3/+94"$*-"1=!"
6+41"E%+3+7$1/3!("":"=$*-I90"+I"!N7!E1/+*$0"+%F$*/G$1/+*4"*+1"+*05"4!!&"1+"/-!*1/I5"$*-"$*$05G!"
I$/09%!4@"1=!5"4!!&"1+"F!*!%$1!"1=!6"J"I+%"1=!"!NE%!44"E9%E+4!"+I"0!$%*/*F"$*-"/**+3$1/*F(""D=/4"
6!$*4"1=!5"-!3+1!"4+6!"E+%1/+*"+I"1=!/%"7+00!71/3!"!*!%F5"1+"-!0/.!%$1!"!NE!%/6!*1$1/+*"J"1%5/*F"
*!H"1=/*F4"+91"1+"I/*-"+91"H=$1"H+%&4"$*-"H=$1"-+!4*j1("D=%+9F="-!0/.!%$1!"!NE!%/6!*1$1/+*@"
+%F$*/G$1/+*4"7$*"F!*!%$1!"*+3!0"4+091/+*4"1+"E%+.0!64"$*-"*!H"/-!$4"I+%"E%+-9714@"4!%3/7!4"$*-"
/**+3$1/+*4(""`*"1=/4"H$5@"1=!5"E91"*!H"/-!$"1+"1=!"1!41"J"/*"$"7+*1%+00!-"7+*1!N1("
;NE!%/6!*14"$%!"9*-!%41++-"1+"=$3!"9*7!%1$/*"+917+6!4"$*-"1+".!"-!4/F*!-"I+%"
0!$%*/*F("'!4E/1!"1=!"/*7%!$4!-"%$1!"+I"I$/09%!"1=$1"$77+6E$*/!4"-!0/.!%$1!"!NE!%/6!*1$1/+*@"
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$*-"4977!44I90"1=$*"1=+4!"1=$1"-+"*+1"1$&!"497="%/4&4(\A""R/6/0$%05@"+1=!%"%!4!$%7="=$4"4=+H*"1=!"
%!4!$%7="$*-"-!3!0+E6!*1"1!$64"1=$1"!NE!%/6!*1!-"I%!K9!*105"E!%I+%6!-".!11!%"1=$*"+1=!%"
1!$64(\\""""
" R+7/$0"4541!64"7$*"6$&!"-!0/.!%$1!"!NE!%/6!*1$1/+*"-/II/7901@".!7$94!"6+41"+%F$*/G$1/+*4"
%!H$%-"4977!44@"*+1"I$/09%!(""l*+H/*F05"4!11/*F"+91"1+"F!*!%$1!"4+6!"I$/09%!4"$0+*F4/-!"4+6!"
4977!44!4@"$01=+9F="%!$4+*$.0!@"/4"-/II/7901"H=!*"I$/09%!4"$%!"41/F6$1/G!-("")+*-971/*F"
Failing to learn and learning to fail 20
!NE!%/6!*14"$04+"%!K9/%!4"$7&*+H0!-F/*F"1=$1"1=!"41$194"K9+"/4"/6E!%I!71@"%!K9/%/*F"1=!"
E+44/./0/15"+I"7=$*F!("":"E457=+0+F/7$0"./$4"&*+H*"$4"1=!"7+*I/%6$1/+*"1%$E@"6!$*/*F"1=$1"E!+E0!"
1!*-"1+"4!!&"1+"7+*I/%6"1=!/%"3/!H4"%$1=!%"1=$*"1+"0!$%*"H=5"1=!5"6/F=1".!"H%+*F@"6$&!4"1=/4"
E$%1/790$%05"-/II/7901(\C"""'!0/.!%$1!"!NE!%/6!*1$1/+*"%!K9/%!4"1=$1"E!+E0!"*+1"_941"$4496!"1=!/%"
3/!H4"$%!"7+%%!71@".91"$719$005"E91"1=!/%"/-!$4"1+"1=!"1!41"$*-"-!4/F*"]!3!*"3!%5"/*I+%6$0@"46$00^"
!NE!%/6!*14"/*"H=/7="1=!/%"3/!H4"7$*".!"-/47+*I/%6!-(""""
:"F++-"!N$6E0!"+I"1=!"$./0/15"1+"+3!%7+6!"1=!4!"E457=+0+F/7$0".$%%/!%4"/4"E%+3/-!-".5"
1=!"/*I09!*1/$0@"$H$%-TH/**/*F"-!4/F*"I/%6@"`';P(""D=!5"7+669*/7$1!"1=/4"E!%4E!71/3!"H/1="
40+F$*4"497="$4Q"Y>$/0"+I1!*"/*"+%-!%"1+"4977!!-"4++*!%(Z":*-"Y;*0/F=1!*!-"1%/$0T$*-T!%%+%"
4977!!-4"+3!%"1=!"E0$**/*F"+I"1=!"0+*!"F!*/94(Z\?"D=!4!"4$5/*F4"$%!"$77+6E$*/!-".5"I%!K9!*1"
46$00"!NE!%/6!*14@"$*-"697="F++-"=96+%"$.+91"1=!"$44+7/$1!-"I$/09%!4(\a
" R/6/0$%05@"WRRqL+%0-"#!-/7$0"!*7+9%$F!4"!NE!%/6!*1$1/+*"/*"$"3$%/!15"+I"H$54"$*-"
4+6!1/6!4"!3!*"F+!4"4+"I$%"$4"1+"!*7+9%$F!"!6E0+5!!4"1+"!NE!%/6!*1"H/1="7$%!!%"6+3!4(""
WRRqL+%0-"#!-/7$0"=$4"$"Y4+I1"0$*-/*FZ"E+0/75"6!$*4"1=$1"/I"$*"!6E0+5!!"1%/!4"+91"$"*!H"
E+4/1/+*@".91"-+!4"*+1"4977!!-"$I1!%"$"F++-"I$/1="!II+%1@"1=!"!6E0+5!!"7$*"=$3!"=/4"+%"=!%"I+%6!%"
_+.".$7&(""D=/4"Y4+I1"0$*-/*FZ"E+0/75"/4"$*"/6E0/7/1"%!7+F*/1/+*"1=$1"!NE!%/6!*14"=$3!"9*7!%1$/*"
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/*1!%!414(\b"""
D!7=*/7$0"4&/004"$%!"7%/1/7$0"/*"/6E0!6!*1/*F"$"-!0/.!%$1!"!NE!%/6!*1$1/+*"E%+7!44(">/%41@"
4/*7!"$*$05G/*F"I$/09%!4"/4"E$%1"+I"1=/4"E%+7!44@"&!5"/*-/3/-9$04"*!!-"4&/004"I+%"$*$05G/*F"1=!"%!49014"
+I"!NE!%/6!*14("":--/1/+*$005@"%/F+%"/4"*!!-!-"1+"-!4/F*"!NE!%/6!*14"1=$1"H/00"!II!71/3!05"7+*I/%6"
+%"-/47+*I/%6"=5E+1=!4!4"1+"F!*!%$1!"94!I90"0!$%*/*F(""2*-!%"4+6!"7+*-/1/+*4@"1=/4"7$*".!"
!N1%!6!05"7=$00!*F/*F("">+%"!N$6E0!@"7941+6!%"4$1/4I$71/+*"$1"$"0$%F!"%!4+%1"/4"$II!71!-".5"6$*5"
/*1!%-!E!*-!*1"$4E!714"+I"1=!"7941+6!%O4"!NE!%/!*7!("":4"1=!"%!4+%1"!NE!%/6!*14"H/1="-/II!%!*1"
Failing to learn and learning to fail 21
E+44/.0!"/**+3$1/+*4"1+"!*=$*7!"7941+6!%"4$1/4I$71/+*@"=+H"-+"1=!5"-!1!%6/*!"H=$1"1=!"/6E$71"
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'!4/F*/*F"!NE!%/6!*14"/*"7+6E0!N@"/*1!%-!E!*-!*1"4541!64"/4"7=$00!*F/*F"!3!*"I+%"
%!4!$%7="!NE!%14(""`*"$--/1/+*"1+"&*+H0!-F!"+I"!NE!%/6!*1$0"-!4/F*"$*-"$*$054/4@"E!+E0!"*!!-"
%!4+9%7!4"1+"%9*"!NE!%/6!*14"/*"-/II!%!*1"E$%14"+I"1=!"+%F$*/G$1/+*"$*-"1+"7$E19%!"1=!"0!$%*/*F("""
D=!"\#"7+%E+%$1!"=$4".!!*"9*949$005"4977!44I90"/*"E%+3/-/*F"/*7!*1/3!4"$*-"E+0/7/!4"1=$1"
!*7+9%$F!"-!0/.!%$1!"!NE!%/6!*1$1/+*("""D=!"7+6E$*5"=$4"!$%*!-"$"%!E91$1/+*"I+%"4977!44I90"
E%+-971"/**+3$1/+*".5"!*7+9%$F/*F"-!0/.!%$1!"!NE!%/6!*1$1/+*"$*-".5"7901/3$1/*F"$"79019%!"1=$1"/4"
1+0!%$*1"$*-"!3!*"%!H$%-/*F"+I"I$/09%!4d"I$/09%!4"$%!"4!!*"$4"$"*!7!44$%5"41!E"/*"$"0$%F!%"E%+7!44"+I"
-!3!0+E/*F"4977!44I90@"/**+3$1/3!"E%+-9714("":E+7%5E=$0"41+%/!4"497="$4":%1=9%">%5"$*-"1=!"
I$/0!-"49E!%T$-=!4/3!"1=$1"4E$H*!-"1=!"W+41T/1"/*-941%5"$%!"4E%!$-"I$%"$*-"H/-!@".+1="H/1=/*"$*-"
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7+6!"I%+6"E%+-9714"/*1%+-97!-"H/1=/*"1=!"0$41"I/3!"5!$%4"6!$*4"1=$1"-/3/4/+*4"6941".!"$71/3!05"
!NE!%/6!*1/*F"1+"-!3!0+E"*!H"E%+-9714(""
" U$*&"+I":6!%/7$"E%+3/-!4"$*"/*1!%!41/*F"!N$6E0!"+I"=+H"$*"+%F$*/G$1/+*"%!$0/G!-"1+"
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!NE!%/6!*1$1/+*"J"/*"1=/4"7$4!@"3/4/.0!"1+"1=!"7941+6!%(""`*"ABBB@"U$*&"+I":6!%/7$"-!7/-!-"1+"
.!7+6!"$*"/*-941%5"0!$-!%"/*"/**+3$1/+*"$*-"!41$.0/4=!-"$"E%+F%$6"1+"-!3!0+E"$"E%+7!44"$*-"
79019%!"+I"/**+3$1/+*"/*"1H+T-+G!*"%!$0T0/I!"i0$.+%$1+%/!4(i\c"S$.+%$1+%/!4@"/*"1=/4"7$4!@"%!I!%%!-"
1+"I9005"+E!%$1/*F".$*&/*F".%$*7=!4"/*"H=/7="*!H"E%+-971"$*-"4!%3/7!"7+*7!E14@"497="$4"3/%19$0"
1!00!%4@"H!%!".!/*F"1!41!-".5"!6E0+5!!4("
R!*/+%"!N!791/3!4"$--%!44!-"+%F$*/G$1/+*$0".$%%/!%4".5"I9*-/*F"$*-"-!3!0+E/*F"$*"
`**+3$1/+*"o"'!3!0+E6!*1"1!$6"1+"6$*$F!"1=/4"E%+7!44("":"4977!44I90"E%+F%$6"!*1$/0!-"=/%/*F"
Failing to learn and learning to fail 22
/*-/3/-9$04"H/1="1=!"1!7=*/7$0"%!4!$%7="4&/004"1+"$--%!44"$"*96.!%"+I"7+6E0/7$1!-"K9!41/+*4"497="
$4Q"
=+H"1+"F$9F!"4977!44"+I"$"7+*7!E1@"=+H"1+"E%/+%/1/G!"H=/7="7+*7!E14"H+90-".!"1!41!-@"
=+H"1+"%9*"4!3!%$0"!NE!%/6!*14"$4"+*7!@"$*-"=+H"1+"$3+/-"1=!"*+3!015"I$71+%"/14!0I"I+%6"
$01!%/*F"1=!"!NE!%/6!*1$0"+917+6!\e""
"
" R977!44I90"!NE!%/6!*14T-!1!%6/*!-"+*"1=!".$4/4"+I"7+*496!%"4$1/4I$71/+*"+%"%!3!*9!"
F%+H1=TH!%!"1=!*"%!7+66!*-!-"I+%"$"*$1/+*$0"%+00+91("
R!*/+%"6$*$F!6!*1"41%+*F05"49EE+%1!-"/**+3$1/+*"$1"1=!4!".%$*7=!4@"$*-"I9%1=!%"
%!7+F*/G!-"1=$1"1%5/*F"+91"/**+3$1/3!"/-!$4"*!7!44$%/05"E%+-97!-"I$/09%!4"$0+*F"1=!"H$5"]/*"I$71@"$"
E%+_!71!-"I$/09%!"%$1!"+I"\Bm"H$4"1$%F!1!-"$4"+*!"1=$1"H+90-"/*-/7$1!"49II/7/!*1"$11!6E14"$1"1%905"
*+3!0"/-!$4^("<+H!3!%@"!6E0+5!!"%!H$%-4"H!%!"E%/6$%/05".$4!-"+*"/*-/7!4"6!$49%/*F"%+91/*!"
E!%I+%6$*7!"]497="$4"+E!*/*F"*!H"7941+6!%"$77+9*14^(";6E0+5!!4j"E!%4+*$0"7+6E!*4$1/+*"
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I$/0!-(":4"$"%!4901@"!6E0+5!!4"H!%!"%!0971$*1"1+"1%5"+91"%$-/7$0"!NE!%/6!*14"9*1/0"6$*$F!6!*1"
6$-!"7=$*F!4"1+"$449%!"1=$1"%!H$%-"4541!64"H!%!"$0/F*!-"H/1="1=!"+%F$*/G$1/+*j4"!4E+94!-"3$09!"
+I"/**+3$1/+*("""
R/6/0$%05@"!NE!%/6!*1$0"%!4!$%7="/*"4+7/$0"E457=+0+F5"=$4"-!6+*41%$1!-"1=$1"!4E+94!-"
F+$04"+I"/*7%!$4/*F"/**+3$1/+*"1=%+9F="!NE!%/6!*1$1/+*"$%!"*+1"$4"!II!71/3!"H=!*"%!H$%-4"
E!*$0/G!"I$/09%!4@"$4"H=!*"%!H$%-"$*-"3$09!4"$%!"$0/F*!-"H/1="1=!"F+$0"+I"E%+6+1/*F"
!NE!%/6!*1$1/+*(CB"":4".+1="I/!0-"$*-"0$.+%$1+%5"!N$6E0!4"4=+H@"$01=+9F="!NE!%/6!*1$1/+*"/4"$*"
!44!*1/$0"$71/3/15"9*-!%05/*F"/**+3$1/+*@"/1"/4".+1="1!7=*/7$005"$*-"4+7/$005"7=$00!*F/*F"1+"6$&!"/1"
=$EE!*"/*1!00/F!*105(""P*!"+I"1=!"$-3$*1$F!4"+I"6+41"I+%64"+I"!NE!%/6!*1$1/+*"/4"1=$1"I$/09%!4"
7$*"1$&!"E0$7!"+II"0/*!"J"/*"-%5"%9*4@"4/690$1/+*4@"$*-"+1=!%"&/*-4"+I"E%$71/7!"4/19$1/+*4"/*"H=/7="
1=!"I$/09%!4"$%!"*+1"7+4105(C[""<+H!3!%@"!3!*"/*"1=!4!"4/19$1/+*4@"/*1!%E!%4+*$0"I!$%4"7$*"0!$-"1+"
%!0971$*7!"1+"1$&!"%/4&4@"0/6/1/*F"1=!"!II!71/3!*!44"+I"1=!"!NE!%/6!*14(CA""#+%!+3!%@"4+6!"
Failing to learn and learning to fail 23
!NE!%/6!*14"6941"1$&!"E0$7!"'*%$#*(@"+%"/*"%!$0"4!11/*F4"/*"H=/7="7941+6!%4"/*1!%$71"-/%!7105"H/1="
1=!"I$/09%!4("""
D=!"*!N1"4!71/+*".%/*F4"1=!"$.+3!"+.4!%3$1/+*4"1+F!1=!%"/*1+"$"I%$6!H+%&"I+%"!*$.0/*F"
+%F$*/G$1/+*$0"0!$%*/*F"I%+6"I$/09%!(""P9%".$4/7"E%!6/4!"/4"1=$1@"$01=+9F="1=!".$%%/!%4"1+"$"
4541!6$1/7"E%+7!44"+I"0!$%*/*F"I%+6"I$/09%!"/*"+%F$*/G$1/+*4"$%!"-!!E"%++1!-"$*-"*96!%+94@".5"
.%!$&/*F"1=/4"E%+7!44"-+H*"/*1+"7+6E+*!*1"$71/3/1/!4@"H/1="$44+7/$1!-"%!7+66!*-$1/+*4"$*-"
E%$71/7!4@"+%F$*/G$1/+*4"7$*"40+H05".91"49%!05"/6E%+3!"1=!/%"1%$7&"%!7+%-"+I"0!$%*/*F"I%+6"1=!/%"
+H*"I$/09%!4(""">9%1=!%@"H!"49FF!41"1=$1".5"I+794/*F"I/%41"+*"46$00"I$/09%!4"%$1=!%"1=$*"
7$1$41%+E=/7"+*!4@"+%F$*/G$1/+*4"$*-"1=!/%"6$*$F!%4"7$*"6/*/6/G!"1=!"/*=!%!*105"1=%!$1!*/*F"
*$19%!"+I"I$/09%!"1+"F$/*"!NE!%/!*7!"$*-"6+6!*196"/*"1=/4"0!$%*/*F"E%+7!44(""
"
C):$&'!")+3#+,1!A7(($&'!"#$%7+*!()!D)+8!()!;&&):#(*!#&,!;96+):*!!
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:4"*+1!-"$.+3!@"6+41"+%F$*/G$1/+*4"$%!"*+1"H!00"E%!E$%!-"1+"0!$%*"I%+6"46$00"I$/09%!4(""
P*05"$I1!%"$"%!$0"7%/4/4@"+I1!*"$I1!%"/F*+%/*F"Y!$%05"H$%*/*F"4/F*4@Z"/4"$71/3!"0!$%*/*F"I%+6"I$/09%!"
7+66+*@"$1"H=/7="E+/*1"1=!"0!$%*/*F"/4"1++"0$1!"1+"E%!3!*1"1=!"4!%/+94"=$%6(""D=!"I/%41"E$%1"+I"
1=/4"$%1/70!"+II!%!-"%!$4+*4"H=5"$"6+%!"4541!6$1/7"E%+7!44"+I"+%F$*/G$1/+*$0"0!$%*/*F"I%+6"I$/09%!"
/4"9*7+66+*d"H!"1=!*"-!47%/.!-"1=!"4E!7/I/7"$71/3/1/!4"1=%+9F="H=/7="1=/4"E%+7!44"7$*"1$&!"
E0$7!@"1+".%!$&"-+H*"1=!"!*7+6E$44/*F"$*-"$.41%$71"*+1/+*"+I"+%F$*/G$1/+*$0"0!$%*/*F"I%+6"
I$/09%!"/*1+"4E!7/I/7@"$71/+*$.0!"$71/3/1/!4("":H$%!*!44"+I"1=!4!"4E!7/I/7"$71/3/1/!4@"=+H!3!%@"/4"
/*49II/7/!*1"I+%"!*49%/*F"1=$1"1=!5"+779%"/*"6$*5"+%F$*/G$1/+*4("""
D=/4"4!71/+*".9/0-4"+*"1=!"E%!3/+94"$%F96!*14"1+"!NE0+%!"H=$1"+%F$*/G$1/+*4"7$*"-+"1+"
+3!%7+6!"1=!".$%%/!%4"J".+1="1!7=*/7$0"$*-"4+7/$0"J"1+"4977!44I9005"!*$71"4E!7/I/7"$71/3/1/!4"+I"
0!$%*/*F"I%+6"I$/09%!(""D$.0!"["4966$%/G!4"1=/4"$-3/7!@"H=/7="%!0$1!4"1=!"1H+"15E!4"+I".$%%/!%4"1+"
1=!"1=%!!"7%/1/7$0"$71/3/1/!4"I+%"0!$%*/*F"I%+6"I$/09%!"1+"49FF!41"4/N"$71/+*$.0!"%!7+66!*-$1/+*4(""
Failing to learn and learning to fail 24
`*4!%1"D$.0!"["$.+91"=!%!"
"
D=!".+11+6"%+H"+I"D$.0!"["E%!4!*14"%!7+66!*-$1/+*4"I+%".9/0-/*F"E457=+0+F/7$0"$*-"
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%+H"/4"-/%!71!-"$1"+3!%7+6/*F"1!7=*/7$0".$%%/!%4"1+"1=!4!"$71/3/1/!4"$*-"!6E=$4/G!4"1%$/*/*F@"
!-97$1/+*@"$*-"1=!"_9-/7/+94"94!"+I"1!7=*/7$0"!NE!%1/4!("""
>+%"+3!%7+6/*F"1!7=*/7$0".$%%/!%4@"H!"I/%41"%!7+66!*-"=!0E/*F"!6E0+5!!4"1+"4!!"1=$1"
/-!*1/I5/*F"I$/09%!"%!K9/%!4"$"E%+$71/3!"$*-"4&/00I90"4!$%7=@"1=$1"=96$*"/*19/1/+*"/4"+I1!*"
/*49II/7/!*1"1+"!N1%$71"1=!"&!5"0!$%*/*F"I%+6"I$/09%!@"$*-"1=$1"/*1!00/F!*1"!NE!%/6!*1$0"-!4/F*"/4"$"
7%/1/7$0"1++0"I+%"/**+3$1/+*"$*-"0!$%*/*F(""L/1="1=/4".$4/7"$H$%!*!44@"!6E0+5!!4"$%!".!11!%"$.0!"1+"
%!7+F*/G!"H=!*"1=!5"!/1=!%"*!!-"6+%!"4E!7/$0/G!-"1%$/*/*F"1=!64!03!4"+%"*!!-"1+"!*F$F!"1=!"
$44/41$*7!"+I"4+6!+*!"!04!"H=+"=$4"497="1%$/*/*F(""
@(,'11(*5"&#'*%AB%/C(),'1#*+%&(,-*#,"$%4"))#().%&'%#5(*&#!7#*+%!"#$2)(%%" P%F$*/G$1/+*4"$%!"7+6E0!N"4541!64@"H=/7="7$*"6$&!"46$00"]$*-"4+6!1/6!4"0$%F!^"I$/09%!4"
-/II/7901"1+"-!1!71(">$/09%!4@"$4"*+1!-"$.+3!@"$%!"-!3/$1/+*4"I%+6"1=!"!NE!71!-"$*-"-!4/%!-d"/I"$"
4541!6"=$4"6$*5"7+6E0!N"E$%14"$*-"/*1!%$71/+*4@"497="-!3/$1/+*4"7$*".!"$6./F9+94("D=!"
3'$214#""4=9110!O4"/*/1/$0"I$/09%!"!N!6E0/I/!4"1=/4"E=!*+6!*+*d"/1"H$4"*+1"70!$%"1+"1=+4!"/*3+03!-"
9*1/0"697="0$1!%"1=$1"1=!"I+$6"41%/&!"4=+90-"/*-!!-".!"/-!*1/I/!-"$4"$"I$/09%!("">9%1=!%@"E!+E0!"
1!*-"1+"=$3!"$*"!%%+*!+94"0!3!0"+I"7+*I/-!*7!"1=$1"1=!/%"/*/1/$0"/*1!%E%!1$1/+*4"1=$1"*+1=/*F"/4"
%!$005"H%+*F"$%!"7+%%!71@"$04+"$4"4!!*"/*"1=!"3'$214#""!N$6E0!("""
" D=94@"!*=$*7/*F"1=!"$./0/15"+I"/*-/3/-9$04"1+"/-!*1/I5"]!4E!7/$005"46$00^"I$/09%!4"+I1!*"
%!K9/%!4"1%$/*/*F("">+%"!N$6E0!@"1%$/*/*F"/*"41$1/41/7$0"E%+7!44"7+*1%+04"/4"94!I90"I+%"/-!*1/I5/*F"
I$/09%!"+*"$*"$44!6.05"0/*!(""L/1=+91"1=/4"1%$/*/*F@"E!+E0!"$%!"$1"$"-/4$-3$*1$F!"/*"-/47+3!%/*F"
H=!1=!%"3$%/$1/+*"/*-/7$1!4"1=$1"4+6!1=/*F"/4"%!$005"H%+*F"+%"H=!1=!%"/1"/4"_941"*$19%$0"*+/4!"/*"$"
Failing to learn and learning to fail 25
E%+7!44"1=$1"/4"$719$005"/*"7+*1%+0"""P%@"!6E0+5!!4"/*"+%F$*/G$1/+*4"1=$1"$%!"7+6E0/7$1!-"$*-"
/*1!%-!E!*-!*1"H/00".!*!I/1"I%+6"1%$/*/*F"/*"4541!64"1=/*&/*F"$*-"47/!*1/I/7"$*$054/4(""D=/4"
!*=$*7!4"1=!/%"$./0/15"1+"/-!*1/I5"I$/09%!"$*-"E/*E+/*1"/14"4+9%7!"J"$*-"!4E!7/$005"1+"%!$0/G!"1=!"
7%/1/7$0"%+0!"+I"46$00"I$/09%!4"/*"7%!$1/*F"0$%F!"7+*4!K9!*7!4"/*"7+6E0!N"4541!64(""
>+%19*$1!05@"+3!%7+6/*F"1!7=*/7$0".$%%/!%4"-+!4"*+1"%!K9/%!"1=$1"$00"!6E0+5!!4"=$3!"1=!"
%!K9/%!-"1!7=*/7$0"4&/00"1=!64!03!4(""D=!"_9-/7/+94"94!"+I"$"I!H"H!00TE0$7!-"1!7=*/7$0"!NE!%14"$*-"
4541!64"1=/*&!%4"6$5".!"!*+9F="1+"1%/FF!%"6+%!"%!0/$.0!"/-!*1/I/7$1/+*"+I"I$/09%!(""">+%"!N$6E0!@"
$1")=/0-%!*O4"<+4E/1$0"/*"#/**!$E+0/4@"4$I!15"!NE!%14"H!%!".%+9F=1"/*"1+"=!0E"1=!"=+4E/1$0"/-!*1/I5"
0$1!*1"I$/09%!4("":*+1=!%"!N$6E0!"+779%%!-"I+00+H/*F"1=!")+096./$"0$9*7="H=!*"$"F%+9E"+I"
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R=9110!"E%+F%$64"$1"f:R:"1%/!-"1+"$EE05"1=!/%"!NE!%1/4!"1+"I/F9%!"+91"=+H"0$%F!"$"E%+.0!6"1=!"
I+$6"41%/&!"%!E%!4!*1!-(""2*I+%19*$1!05@"+%F$*/G$1/+*$0"I$71+%4"0/6/1!-"1=!"K9$0/15"+I"1=!"-/$0+F9!"
$*-"6$-!"1=!4!"!II+%14"0!44"!II!71/3!"1=$*"1=!5"6/F=1"=$3!".!!*(""L!"-!$0"H/1="1=/4"15E!"+I"
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@(,'11(*5"&#'*%DB%/C(),'1#*+%&(,-*#,"$%4"))#().%&'%"*"$70#*+%!"#$2)(%"
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1=$1"1=!/%"$*$054/4"/4"*+1"%/F+%+94@"$*-"1=94"0!$E"K9/7&05"1+"K9!41/+*$.0!"7+*7094/+*4@"H=/0!"
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41%$/F=1I+%H$%-(""">/F9%/*F"+91"H=/7="$4E!714"+I"$"7+6E0!N"4/19$1/+*"H!%!"7+*1%/.91/*F"I$71+%4"1+"
4+6!1=/*F"1=$1"-/-"*+1"F+"$4"!NE!71!-"/4"7$*".!"$"7+6E0!N"9*-!%1$&/*F("">+%"1=/4"%!$4+*@"H!"
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I+%"4541!6$1/7"$*$054/4"+I"7+6E0!N"+%F$*/G$1/+*$0"-$1$("":1")=/0-%!*O4"<+4E/1$0@"1=!"E$1/!*1"4$I!15"
!II+%1"/*709-!-"7+*4/-!%$.0!"!II+%1"1+"!*49%!"$EE%+E%/$1!"1!7=*/7$0"4&/004"H!%!"/*"E0$7!"1+"F$/*"1=!"
6+41"$*-"6+41"$EE%+E%/$1!"0!44+*4"I%+6"!$7="6/4=$E"J"H=!1=!%"0$%F!"+%"46$00(""W!%=$E4"+*!"+I"
Failing to learn and learning to fail 26
1=!"6+41"-/II/7901"$4E!714"+I"$*$05G/*F"I$/09%!"E!%1$/*4"1+"/*1!%E!%4+*$0"-5*$6/74@"1=!"I+794"+I"
%!7+66!*-$1/+*"?("""""""
@(,'11(*5"&#'*%EB%/C(),'1#*+%&(,-*#,"$%4"))#().%&'%(!!(,&#C(%(?:()#1(*&"&#'*%
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0$.+%$1+%5"%!4!$%7=!%4"H/1="5!$%4"+I"!NE!%/!*7!"7$*"41%9FF0!"1+"F!1"$*"!NE!%/6!*1$0"-!4/F*"_941"
%/F=1("":*-@"6+41"+%F$*/G$1/+*$0"4!11/*F4"=$3!"0/6/1!-"$./0/15"1+"/4+0$1!"3$%/$.0!4"$*-"%!-97!"*+/4!@"
6$&!4"-!4/F*/*F"!NE!%/6!*14"I+%"+%F$*/G$1/+*$0"0!$%*/*F"7=$00!*F/*F(""k!1@"$1"/14"6+41".$4/7@"
-!4/F*/*F"!NE!%/6!*14"I+%"0!$%*/*F"%!K9/%!4"7$%!I90"1=+9F=1"1+"H=$1"&/*-4"+I"-$1$"H/00".!"
7+00!71!-"$*-"=+H"%!49014"+I"1=!"!NE!%/6!*1"H/00".!"$44!44!-("">+%"!N$6E0!@"1=!"U$*&"+I":6!%/7$"
!N$6/*!-"I/*$*7/$0"$*-"7941+6!%"4$1/4I$71/+*"6!1%/74"+I"/14"!NE!%/6!*1$0".$*&".%$*7=!4(""D=!"
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`1"/4"*+1"*!7!44$%5"1+"6$&!"$00"!6E0+5!!4"!NE!%14"/*"!NE!%/6!*1$0"6!1=+-+0+F5d"/1"/4"6+%!"
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4&/004(""U$*&"+I":6!%/7$"=$*-0!-"1=/4"46$%105".5"-!3!0+E/*F"1=!"`**+3$1/+*"$*-"'!3!0+E6!*1"
1!$6"$*-"41$II/*F"/1"H/1="!NE!%14"H=+"9*-!%41++-"1=!"390*!%$./0/1/!4"$44+7/$1!-"H/1="7+*-971/*F"
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-/II/7901"1+"$--%!44(";3!*"H/1=+91"!NE0/7/1"/*7!*1/3!4"$F$/*41"I$/09%!@"6$*5"+%F$*/G$1/+*4"=$3!"
*+%64"$*-"E%$71/7!4"1=$1"$%!"9*I%/!*-05"1+"!NE!%/6!*1$1/+*"$4"H!00"$4"1+"/-!*1/I5/*F@"$*$05G/*F@"
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@(,'11(*5"&#'*%FB%/C(),'1#*+%.',#"$%.7.&(1%4"))#().%&'%#5(*&#!7#*+%!"#$2)(%
" D+"E%+6+1!"1/6!05"/-!*1/I/7$1/+*"+I"I$/09%!@"+%F$*/G$1/+*4"6941"$3+/-"Y4=++1/*F"1=!"
6!44!*F!%Z"$*-"/*41!$-"E91"7+*41%971/3!"/*7!*1/3!4"I+%"4E!$&/*F"9E"/*"E0$7!(""D=$1"/4@"E!+E0!"
Failing to learn and learning to fail 27
6941"I!!0"$.0!"1+"4E!$&"9E"$.+91"1=!"I$/09%!4@".+1="70!$%"$*-"$6./F9+94@"+I"H=/7="1=!5"$%!"$H$%!(""
D+"-+"1=/4@"0!$-!%4"*!!-"1+"7901/3$1!"$*"$16+4E=!%!"+I"E457=+0+F/7$0"4$I!15"1+"6/1/F$1!"%/4&4"1+"
4!0IT!41!!6"$*-"+1=!%4"/6E%!44/+*(""'!3!0+E/*F"E457=+0+F/7$0"4$I!15".!F/*4"H/1="1=!"0!$-!%"
6+-!0/*F"1=!"-!4/%!-".!=$3/+%4(C\""#+-!0/*F"6!$*4"1=$1"0!$-!%4"3/4/.05"!*F$F!"/*"1=!".!=$3/+%4"
1=$1"1=!5"H/4="1+"!*7+9%$F!"49.+%-/*$1!4"$*-"E!!%4"1+"!*$71(""
S!$-!%"6+-!0/*F"4!%3!4"1H+"4/F*/I/7$*1"E9%E+4!4("">/%41@"1+"7+669*/7$1!"!NE!71!-"$*-"
$EE%+E%/$1!".!=$3/+%@"/1"/4"/6E+%1$*1"I+%"0!$-!%4"1+"YH$0&"1=!"1$0&(Z""R!7+*-@"0!$-!%"6+-!0/*F"7$*"
=!0E"49.+%-/*$1!4"0!$%*"=+H"1+"!*$71"1=!4!"E%+7!44!4(""U!7$94!"1=!4!".!=$3/+%4"6$5".!"
9*I$6/0/$%"/*"6$*5"+%F$*/G$1/+*4@"=$3/*F"$"6+-!0"1+"+.4!%3!"7$*".!"3!%5"=!0EI90"/*"I$7/0/1$1/*F"
49.+%-/*$1!"0!$%*/*F(""S!$-!%4"7$*"6+-!0"!II!71/3!05".5Q"F!*!%$1/*F"*!H"/-!$4@"-/470+4/*F"$*-"
$*$05G/*F"I$/09%!@"/*3/1/*F"7+*41%971/3!"7%/1/7/46"$*-"$01!%*$1/3!"!NE0$*$1/+*4@"$*-"7$E19%/*F"$*-"
91/0/G/*F"0!$%*/*F("""
>/*$005@"E457=+0+F/7$0"4$I!15"7$**+1".!"/6E0!6!*1!-".5"1+E"-+H*"7+66$*-d"/1"/4"7%!$1!-"
/*41!$-@"H+%&"F%+9E".5"H+%&"F%+9E@"1=%+9F="$11/19-!4"$*-"$71/3/1/!4"+I"0+7$0"6$*$F!%4@"
49E!%3/4+%4"$*-"E!!%4d"1=!"-!3!0+E6!*1"+I"6$*$F!%/$0"7+$7=/*F"4&/004"/4"+*!"H$5"1+"=!0E".9/0-"
1=/4"15E!"+I"0!$%*/*F"!*3/%+*6!*1(CC""
@(,'11(*5"&#'*%GB%/C(),'1#*+%.',#"$%.7.&(1%4"))#().%&'%"*"$70#*+%!"#$2)(%
" '!3!0+E/*F"$*"!*3/%+*6!*1"/*"H=/7="E!+E0!"I!!0"4$I!"!*+9F="1+"/-!*1/I5"$*-"4E!$&"9E"/4"
*!7!44$%5".91"/*49II/7/!*1"1+"E%+-97!"0!$%*/*F"I%+6"I$/09%!("";II!71/3!"$*$054/4"+I"I$/09%!"%!K9/%!4"
.+1="1/6!"$*-"4E$7!"I+%"$*$054/4"$*-"4&/00"/*"6$*$F/*F"1=!"7+*I0/71/*F"E!%4E!71/3!4"1=$1"6$5"
!6!%F!(""`*"1!%64"+I"1/6!"$*-"4E$7!@"4+6!"+%F$*/G$1/+*4@"0/&!"1=!"6/0/1$%5@"4!1"$4/-!"1/6!"I+%"
:I1!%":71/+*"X!3/!H4@"H=/0!"=+4E/1$04"94!"#o#"7+*I!%!*7!4"1+"$*$05G!"I$/09%!4("""
`*"$--/1/+*"1+"E911/*F"497="41%9719%!4"/*"E0$7!@"0!$-!%4"*!!-"1+"/*3+03!"E!+E0!"H/1="
-/3!%4!"E!%4E!71/3!4"$*-"4&/004"/*"+%-!%"1+"F!*!%$1!"-!!E!%"0!$%*/*F(""D=/4"E%+-97!4"1=!"1!*4/+*"
Failing to learn and learning to fail 28
$*-"7+*I0/71"1=$1".+1="!44!*1/$0"I+%"0!$%*/*F"$*-"5!1"7$*"/*1!%I!%!"H/1="1=!"$./0/15"1+"&!!E"$"
-/$0+F9!"0!$%*/*FT+%/!*1!-(""'!7$-!4"+I"%!4!$%7=".5"+%F$*/G$1/+*$0"0!$%*/*F"E/+*!!%")=%/4":%F5%/4"
=$4"-!6+*41%$1!-"1=$1"E!+E0!"/*"-/4$F%!!6!*1"%$%!05"$4&"!$7="+1=!%"1=!"&/*-"+I"4/*7!%!"K9!41/+*4"
1=$1"$%!"*!7!44$%5"I+%"1=!6"1+"0!$%*"I%+6"!$7="+1=!%(C?""W!+E0!"$04+"1%5"1+"I+%7!"1=!/%"3/!H4"+*"
1=!"+1=!%"E$%15"%$1=!%"1=$*"!-97$1/*F"1=!"+1=!%"E$%15".5"E%+3/-/*F"1=!"9*-!%05/*F"%!$4+*/*F"
.!=/*-"1=!4!"3/!H4("""
>+%"!N$6E0!@"-9%/*F"1=!"1!0!7+*I!%!*7!"1=!"*/F=1".!I+%!"1=!"4E$7!"4=9110!"3-"$$(*+()"H$4"
0$9*7=!-@".+1="!*F/*!!%4"$*-"$-6/*/41%$1+%4"E%+3!-"9*$.0!"=$3!"$"-/47944/+*"/*"H=/7="1=!5"H!%!"
$.0!"1+"9*-!%41$*-"!$7="+1=!%O4"7+*7!%*4(""X$1=!%"1=$*"1%5"1+"!NE0$/*"H=$1"1=!5"4$H"/*"1=!/%"
]/*7+6E0!1!^"-$1$"1+"!-97$1!"1=!"$-6/*/41%$1+%4"$*-"I/00"/*"1=!"F$E4"/*"1=!/%"9*-!%41$*-/*F@"1=!"
!*F/*!!%4"6$-!"$.41%$71"41$1!6!*14"497="$4"Y`1"/4"$H$5"I%+6"F++-*!44"1+"6$&!"$*5"+1=!%"
%!7+66!*-$1/+*Z"$*-"Y`1O4"70!$%@"/1O4"$.4+091!05"70!$%(Z"""`*"19%*@"1=!"$-6/*/41%$1+%4"-/-"*+1"
1=+9F=1I9005"7+669*/7$1!"1=!/%"+H*"7+*7!%*4"$*-"K9!41/+*4@".91"%$1=!%"7+*1%/.91!-"1+"$*"
/*7%!$4/*F05"E+0$%/G!-"-/47944/+*@"/*"H=/7="1=!"!*F/*!!%4O"7+6E!1!*7/!4"H!%!"/6E9F*!-("
;3!*19$005"/*-/3/-9$04"H/1="1=!"6+41"E+H!%"6$-!"1=!"-!7/4/+*(Ca""
" D=94@"H!"%!7+66!*-"!/1=!%"-!3!0+E/*F"+%"=/%/*F"4&/00!-"I$7/0/1$1+%4"H=+"7$*"!*49%!"1=$1"
0!$%*/*FT+%/!*1!-"-/47944/+*4"1$&!"E0$7!"H=!*"$*$05G/*F"+%F$*/G$1/+*$0"I$/09%!4(""#$*$F!%4"7$*"F+"
1=%+9F="1%$/*/*F"1+"0!$%*"1+"1!41"$4496E1/+*4@"/*K9/%!"/*1+"+1=!%4O"3/!H4@"$*-"E%!4!*1"1=!/%"+H*"
3/!H4"]*+"6$11!%"=+H"4!!6/*F05"7+%%!71"+%"1=+%+9F=^"$4"/*7+6E0!1!"J"+%"E$%1/$0"J"$77+9*14"+I"
%!$0/15(""D=!4!"/*1!%E!%4+*$0"4&/004"7$*".!"0!$%*!-@"$0.!/1"40+H05"$*-"H/1="7+*4/-!%$.0!"!II+%1@"$4"
$71/+*"%!4!$%7="=$4"-!6+*41%$1!-(Cb"L=!*"6$*$F!%4"=$3!"1=!4!"4&/004@"1=!5"$%!"$.0!"1+"6+-!0"1=/4"
.!=$3/+%"$*-"1+"E%+3/-!"$71/3!"7+$7=/*F"1+"+1=!%4"1+"=!0E"1=!6".!"6+%!"!II!71/3!"/*"F!*!%$1/*F"
0!$%*/*F"I%+6"1=!"=!$1!-"-/47944/+*4"1=$1"$%!"+I1!*"E%+-97!-"H=!*"$*$05G/*F"I$/09%!("""
Failing to learn and learning to fail 29
@(,'11(*5"&#'*%HB%/C(),'1#*+%.',#"$%.7.&(1%4"))#().%&'%(?:()#1(*&"&#'*%!
:4"0+*F"$4"/*7!*1/3!4"$%!"/*7+*4/41!*1"H/1="!4E+94!-"3$09!4"$-3+7$1/*F"0!$%*/*F"I%+6"
I$/09%!@"1%9!"!NE!%/6!*1$1/+*"H/00".!"%$%!(Cc""#$*$F!%4"1=94"*!!-"1+"$0/F*"/*7!*1/3!4"$*-"1+"+II!%"
%!4+9%7!4"1+"E%+6+1!"$*-"I$7/0/1$1!"!II!71/3!"!NE!%/6!*1$1/+*(""D=+4!"H=+"!NE!%/6!*1"
/*1!00/F!*105"1=!64!03!4"$*-"E9.0/7/G!".+1="I$/09%!4"$*-"4977!44!4"-!6+*41%$1!".+1="3$09!"+I"
1=!4!"$71/3/1/!4"$*-"=!0E"+1=!%4"4!!"1=$1"1=!"/-!$0"+I"0!$%*/*F"I%+6"I$/09%!"/*"1=/4"+%F$*/G$1/+*"/4"
6+%!"1=$*"1$0&(""`*"$--/1/+*@"7+$7=/*F"$*-"70!$%"-/%!71/+*"6$5".!"94!I90"/*"=!0E/*F"49.+%-/*$1!4"
1+"9*-!%41$*-"H=$1"15E!4"+I"!NE!%/6!*14"4=+90-".!"-!4/F*!-(""">/*$005@"1+"-!3!0+E"1=!"$./0/15"1+"
6$*$F!"$00"1=!4!"E%+7!44!4@"6$*$F!%4"6$5"*!!-"1+"H+%&"+*"1=!/%"+H*"E457=+0+F/7$0"$*-"
!6+1/+*$0"7$E$./0/1/!4"1+"!*$.0!"1=!6"1+"4=/I1"=+H"1=!5"1=/*&"$.+91"I$/09%!("""
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1=/4"4=/I1("""
`*4!%1"D$.0!"A"$.+91"=!%!"
!>/%41@"I$/09%!"6941".!"3/!H!-"*+1"$4"$"E%+.0!6$1/7"$.!%%$1/+*"1=$1"4=+90-"*!3!%"+779%".91"
%$1=!%"1=$*"$4"$*"/*!3/1$.0!"$4E!71"+I"+E!%$1/*F"/*"$"7+6E0!N"$*-"7=$*F/*F"H+%0-("""D=/4"/4"+I"
7+9%4!"*+1"1+"4$5"0!$-!%4"4=+90-"!*7+9%$F!"E!+E0!"1+"6$&!"6/41$&!4".91"%$1=!%"1+"$7&*+H0!-F!"
1=$1"I$/09%!4"$%!"/*!3/1$.0!"$*-"=!*7!"1=!".!41"1=/*F"1+"-+"/4"1+"0!$%*"$4"697="$4"E+44/.0!"J"
!4E!7/$005"I%+6"46$00"+*!4@"4+"$4"1+"6$&!"0$%F!%"+*!4"0!44"0/&!05d".!0/!I4"$.+91"!II!71/3!"
E!%I+%6$*7!"4=+90-"%!I0!71"1=/4(""D=/4"/6E0/!4"=+0-/*F"E!+E0!"$77+9*1$.0!"*+1"I+%"$3+/-/*F"
I$/09%!".91"I+%"I$/0/*F"/*1!00/F!*105"$*-"I+%"=+H"697="1=!5"0!$%*"I%+6"1=!/%"I$/09%!4(""
Failing to learn and learning to fail 30
P%F$*/G$1/+*$0"47=+0$%"R/6"R/1&/*"/-!*1/I/!4"I/3!"7=$%$71!%/41/74"+I"/*1!00/F!*1"I$/09%!4Q""
Y][^"1=!5"%!4901"I%+6"1=+9F=1I9005"E0$**!-"$71/+*4"1=$1"]A^"=$3!"9*7!%1$/*"+917+6!4"$*-"]\^"$%!"
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1=$1"$%!"I$6/0/$%"!*+9F="1+"E!%6/1"!II!71/3!"0!$%*/*F(ZCe
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79%/+4/15"$*-"$"-!4/%!"1+"0!$%*"I%+6"I$/09%!("
E)&<%75$)&1!A7(($&'!"#$%7+*!()!D)+8!-)+!B+'#&$4#($)&#%!>*#+&$&'!!
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1 See Diane Vaughan, The Challenger Launch Decision: Risky Technology, Culture, and Deviance at NASA. Chicago, IL: University of Chicago Press, 1996. 2 See S. Sitkin Learning through failure: The strategy of small losses. Research in Organizational Behavior 14:231-266. 3 See especially A Tucker, A.L., and Edmondson, A.C. (2003). “Why hospitals don't learn from failures: Organizational and psychological dynamics that inhibit system change.” California Management Review, 45,2: 55-72. 4 See Cannon, M. and Edmondson, A. (2001). “Confronting failure: Antecedents and consequences of shared beliefs about failure in organizational work groups.” Journal of Organizational Behavior, 22, 161-177. 5 For example, see both Leonard-Barton, D. (1995). Wellsprings of knowledge: Building and sustaining the sources of innovation. Boston, Harvard Business School Press and Sitkin, S. B. (1992). “Learning through failure: the strategy of small losses.” Research in Organizational Behavior. L. L. Cummings and B. Staw. Greenwich, CT, JAI Press. 14: 231-266. 6 See especially A. C. Edmondson (2002). “The local and variegated nature of learning in organizations.” Organization Science 13, 2: 128-146. Also see Rice, A. K. (1958). Productivity and social organization: The Ahmedabad experiment. London: Tavistock. 7 See Trist, E.A., and Bamforth, K.W. (1951). Some social and psychological consequences of the Longwall method of coal-getting," in D. S. Pugh (Ed.), Organization theory. London: Penguin, (pp. 393-419). 8 See F. Lee, Edmondson, A., Thomke, S, and Worline, M. forthcoming. The mixed effects of inconsistency on experimentation in organizations Organization Science. 9 M.D. Cannon, Motivation and learning: A paradox for performance, paper presented at the 53rd annual Academy of Management Meeting, Atlanta, GA, (1993). 10 See C. Argyris. Overcoming organizational defenses (1990). 11 S. Finkelstein, Why Smart Executives Fail and What You Can Learn from Their Mistakes, New York, Portfolio (2003). 12 See R.F. Baumeister, Self-Esteem: The puzzle of low self-regard. Plenum, New York (1993). 13 See S.E. Taylor, and J. Brown, Illusions and well being: A social psychological perspective on mental health. Psychological Bulletin, 103, (1988). 193-210. Also see M.D. Cannon, The impact of positive illusions on performance, paper presented at the 59th annual Academy of Management Meeting. Chicago, IL, (1999). 14 R. H. Hayes, S. C. Wheelwright, K. B. Clark (1988). Dynamic Manufacturing: Creating the Learning Organization. New York, Free Press. 15 See S. Finkelstein, (2003). At Ref. Above. P. 282-3. 16 See Make no mistake, Inc. Magazine, June (1989), p. 105. 17 M. Moss (2002, June 27), Spotting breast cancer, doctors are weak link, The New York Times [late ed.], pp. A1. See also, M. Moss (2002, June 28), Mammogram team learns from its errors, The New York Times [late ed.], pp. A1. 18 A. J. DiBella, J. M. Gould, and E. C. Nevis, Understanding Organizations as Learning Systems (n.d.), Society for Organizational Learning, retrieved July 8, 2002, from http://www.sol-ne.org/res/wp/learning-sys.html 19 See S. W. Brown and S. S. Tax, Recovering and Learning from Service Failures, Sloan Management Review 40:1, 75-89 (1998). 20 See S. W. Brown and S. S. Tax (1998). At Ref. above. 21 See National Aeronautics and Space Administration report on the Space Shuttle Columbia at http://www.nasa.gov/home/hqnews/2003/oct/HQ_N03109_new_CAIB_volumes.html. 22 A. Edmondson, Organizing to learn. Harvard Business School Note, 9-604-031. (2003). 23 A. Edmondson, M.A. Roberto, and A. Tucker, Children’s Hospital and Clinics, Harvard Business School Case, 9-302-050. (2002). 24 See M.H. Bazerman. Judgment in Managerial Decision Making, fifth edition, John Wiley & Sons, New York, (2002). Also see S.T. Fiske and S.E. Taylor, Social Cognition, Random House, New York, 1984.
Failing to learn and learning to fail 35
25 Cannon and Edmondson, At. Ref Above. And A. Edmondson and B. Moingeon (1996). “When to learn how and when to learn why.” In B. Moingeon and A. Edmondson (Eds). Organizational learning and competitive advantage. London: Sage. 26 Tucker, A.L., and Edmondson, A.C. (2003). “Why hospitals don't learn from failures: Organizational and psychological dynamics that inhibit system change.” California Management Review, 45,2: 55-72. 27 For research on the lack of inquiry in group discussions, see Argyris, C. (1990). Overcoming organizational defenses. Needham, MA; Garvin, D. A., and M. A. Roberto, (2001) "What You Don't Know About Making Decisions," Harvard Business Review 79, 8: 108-116; for research on premature convergence on a solution or decision, see Janis, I.L. & Mann, L. (1977) Decision-Making. New York: The Free Press, and Langer, E. (1989). Mindfulness. Reading, MA, Addison-Wesley, and others. 28 See A. Edmondson, M.A. Roberto, and A. Tucker, (2002). At Ref. Above. 29 F. F. Reichheld with T. Teal, The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value, Harvard Business School Press, Boston (1996). Pages 194-195. 30 F. F. Reichheld with T. Teal, (1996). At Ref. Above, Pages 207-208. 31 P.F. Drucker, Innovation and Entrepreneurship: Practice and Principles, Harper & Row, New York, (1985). p. 43. 32 S. Thomke, Experimentation matters. Harvard Business School Publishing (2003). 33 Maidique, M. A. and Zirger, B. A Study of Success and Failure in Product Innovation: The Case of the U.S. Electronics Industry, IEEE Transactions on Engineering Management, 31 (4), 192-204 (1984). 34 P.C. Wason, On the failure to eliminate hypotheses in a conceptual task. Quarterly Journal of Experimental Psychology 20, 273-283. (1960). 35 T. Kelley with J. Littman, The Art of Innovation: Lessons in Creativity from IDEO, America’s Leading Design Firm, Currency Books, New York, (2001). P. 232. 36See A. C, Edmondson and L. Feldman. “Understand and Innovate” at IDEO Boston. Harvard Business School Publishing, Case # 9-604-005. (2004). 37 J. Pfeffer and R.I. Sutton, The Knowing Doing Gap: How Smart Companies Turn Knowledge into Action, Harvard Business School Press, Boston, (2000). P. 129. 38 S. Thomke and A. Nimgade Bank of America. Harvard Business School Case, 9-603-022. (2002). 39 S. Thomke and A. Nimgade (2002). At Ref. Above, p. 7. 40 See F. Lee, A. Edmondson, S. Thomke, and M. Worline. The mixed effects of inconsistency on experimentation in organizations. Organization Science. Forthcoming. 41 See P. Senge, The firth discipline: The art and practice of the learning organization. New York: Doubleday (1990) and A. Edmondson, R. Bohmer and G. Pisano, Disrupted routines: Team leaning and new technology implementation in hospitals. Administrative Science Quarterly, 46: 685-716. (2001). 42 See A. C. Edmondson, et al. (2001) At Ref. Above. 43 See A. C. Edmondson, Speaking up in the operating room: How team leaders promote learning in interdisciplinary action teams, Journal of Management Studies 40:6, 1419-1452 (2003). 44 A. C. Edmondson. (2002). At Ref. Above. 45 See C. Argyris Strategy, change, and defensive routines. (1985). New York: Harper Business. 46 See A. C. Edmondson, Group process in the Challenger launch decision (B), Harvard Business School Case, N9-603-070. (2003). 47 See Action Design website www.actiondesign.com48 See F. Lee et al, forthcoming. 49 See S. Sitkin At Ref. above p. 243.