The Truth About Creating an Innovative Culture

Why great leaders are mistake intolerant

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“Only those who dare to fail greatly can ever achieve greatly.”

— Robert F. Kennedy

There are two kinds of innovative company cultures: those that make mistakes and those that lie.

Kenneth Lay and Jim Owens shared similar backgrounds. The former chairman of Enron and former CEO of Caterpillar grew up in humble households.

Each worked hard, took several jobs, studied at state universities, and earned a PhD in Economics. Both were successful — they became CEOs of Fortune 100 companies.

However, the careers of these two leaders finished quite differently. Their mistake tolerance played a significant role.

Owens acknowledged mistakes — he learned from failure.

Lay paid a high price for ignoring mistakes. He was formally indicted for his role in the Enron scandal. And his career ended in disgrace.

Mistakes are vital for learning, innovation, and growth.

But to learn from errors, leaders must first face them. They need to become mistake-tolerant.

Innovative companies are…