Celebrate Mistakes

“We celebrated mistakes at a management gathering with 1,000 people in the room. A manager would get up and say why the environmentally sensitive light bulb or whatever it was…had failed…Then we’d give them $1,000 or a TV or something, depending on the scale of the thing. The point was to share the learning and get smarter as an organization.” — Jack Welch

Consciously Enforce Cooperative Social Norms

Larry Prusak, a former IBM executive who is now scholar in residence at Babson College, notes that some firms are consciously enforcing cooperative social norms. “Firms that encouraged opportunistic behavior and that thought performative ties were just ‘soft stuff’ have not done well,” he says, adding that companies can encourage cooperative behavior in two ways. “First, signals and symbols are important. If a firm promotes … [ Read more ]