David McCann, CFO.com | US
February 8, 2010

Failure is a truth for Americans and others

I disagree with the analysis of David Axelson that: "The concept of failure is alien to Americans." At best it's an idiotic generalization, at worst a pedantic view of American business. The entreprenurial spirit and drive is ever present in the history of American business but so is the overshadowing truth of failure. Whether the many economic collapses of the 19th Century that saw the torrential turnover of speculators and business owners time and time again. Through the roaring twenties that gave way to the devastating thirties. The creed that many Americans as well as business people from around the world embrace is the notion that failure isn't an option. That is because for any organization it is the eventual truth.

Many observers take this to mean that Americans don't believe that failure can happen to themselves and like any given issue you can find a tiny minority that truly believes this to their core. The issue isn't that American have blinders on when it comes to failure. Rather it is that Americans like so many others have seen the economic booms and busts cycles all around us. For many the legends of the pulled up from their own boot straps stories resonates with them. Thus anything is possible... of course the cynic would ask how many boot straps broke for everyone that held?

This could be best summed up as the American dream for both newly arrived as well as those that already had a foothold. Of course this dream is found all around the world easily replacing American with any other nationality. Where confidence in success is a known quantity, but driving that confidence is the truth that failure is the bleak reality.

Also after pointing out that Americans don't see failure as an option the point is further illustrated with an example of two Japanese corporations. I know that many American examples can be had by the bushel for the showing. But my point is that the lack of credible risk planning isn't an American only issue. Instead it is the drive towards success that dooms many to failure, the go big or go home analogy of risking it all.

I agree with the article in that many companies tie product or service lines too close to the hubris of their organization and themselves as individuals. The competitive drive that helped them to become successes eventually drives them to failure when the vision of victory overcomes common business sense.

As I said before, failure isn't an option... it is the eventuality for any business. The mixture of risk assessment, planning, and the ability to walk away will help define which companies will drive forward. But risk aversion is its own long descent to ruin and failure as well. Whether watching from the cheap seats or working the controls of the company there is one truth... do it right or make way for someone who will.

Posted by Larry Edwards | Feb 9, 2010 12:48 PM ET