A Radical Approach to Handle Your Mistakes

Plus how Boeing went from innovator to lazy in less than 20 years and a technique you can use today to explore uncertain futures.

1. The Magic of Volunteering Mistakes

The harrowing story of the Alaska Airlines flight that suddenly lost an entire door at 16,000 feet is the stuff of nightmares. The plane in question was the Boeing 737 MAX 9, putting the company yet again in the limelight for all the wrong reasons. A previous version of the 737 MAX was involved in two fatal crashes in 2018 and 2019 respectively.

My second idea is about Boeing itself but I wanted to highlight something else about this story. 

How safe flying has become.

In the U.S. the biggest commercial airlines have not had a single airline passenger death in nearly 15 years. There’s plenty of incidents involving ground crews and smaller planes but flying commercial is one of the safest bets today.

What happened in the last 15 years? 

The answer is quite obvious in retrospect. The industry created incentives so pilots, flight attendants and dispatchers would volunteer their mistakes and safety issues.

To do so, the industry had to figure out how to remove punishments and retribution for mistakes. It needed to assure individuals that they wouldn’t lose their jobs or be forced into endless training sessions. The process took years and we are now seeing the impact of those decisions.

There’s several ways any organization can embrace this kind of thinking:

• Have executives talk about their mistakes publicly

• Reward effort and disclosures

• Offer a direct line of communication to the CEO and mean it

• Set up a third party arbitrator to process submissions

No one needs an MBA to know that having employees volunteer their mistakes is a better way to deal with failure than trying to uncover the truth in a lengthy and contentious investigation. 

Few industries deal with the same weight of responsibility as flying but all industries can benefit from more honesty.

2. How Boeing Went from Innovator to Lazy

The incredible safety of flying comes under question when we see the Alaska flight I mentioned previously, missing an entire door while in mid-air.

Boeing issues stem from a poor strategy, one focused on costs and not safety and innovation.

I would contend that Boeing’s problems started back in the late 90s when it merged with McDonnell Douglas, a former rival. The latter company was known for its focus on cost-cutting while Boeing was historically focused on innovation. 

As competitive pressure ramped up—especially from Airbus—and the increased demand for lower tickets from consumers, Boeing started looking for ways to cut costs.

That’s why it decided to revamp an existing 737 design into what we now call the 737 MAX. This approach would allow them to minimize the approvals needed by regulators, as most systems were grandfathered in the previous design.

The cost-cutting continued as engineers were rushed through the safety inspections and even regulators themselves were pressured to approve the new planes. 

It is true that commercial flying today is a tough industry to crack. The low margins and temperamental customers make it particularly difficult for organizations. However, tough economic conditions means organizations need to think through their strategy with even more fervor.

As you think of your strategy, think of the consequences of decisions not only 12 months from now but 10 years from today. Is the road you want to take?

3. Using Refractorial Thinking to Explore Uncertain Futures

Here’s what a diamond looks up close. Many of you have likely seen the same thing but in smaller dimensions.

When light hits a diamond, it doesn’t go straight through. Instead, it refracts in a myriad of ways. Perhaps it goes straight in and then takes a right and then takes another right, leaving the diamond. The path taken by the light depends on the quality of the diamond and the angle of the original light source.

I’m using the metaphor of the diamond and light to explain “refractorial thinking” to clients. 

Strategy is about exploring different futures and then choosing the best course of action for today. The exploration should be similar to how light behaves inside the diamond. 

Let’s take the example of AI, a hot issue for many industries. This issue can play out in a plethora of ways. Perhaps it becomes a dominant factor in your industry, maybe it plays a minor role or possibly it plays no role whatsoever.

What does your organization need to do today to be ready in each of these scenarios?

Refractorial thinking allows you to follow an issue to the very end, going along the sharp turns and exploring the future impact. 

The diamond is a reminder that the future can be unexpected but there’s a limited number of possibilities. It is worthwhile to explore all of them.

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That’s all I have for this week. As always, I look forward to speaking next Tuesday.

Cheers,

Ruben