Failure Management & Success Management

CHAPTER 01

How entrepreneurs can benefit from failure management ∙∙∙ Junesoo Lee, Paul Miesing

BENEFITING FROM BUSINESS FAILURES 1
Why We Learn from Failure _2
How We Learn from Failure _3
What We Learn from Failure—A Retrospective View _4
How We Use Failure—A Prospective View _5
TOWARD FAILURE MANAGEMENT 6
A FRAMEWORK FOR FAILURE MANAGEMENT 8
Definitions and Concepts _8
Propositions _10
FAILURE MANAGEMENT VS. OTHER MANAGEMENT TOOLS 22
CONCLUSION 24
SELECTED BIBLIOGRAPHY _26
Appendix A. Failure management propositions _29
Appendix B. Risk, crisis, and failure/success _30

CHAPTER 02

Making hindsight foresight: Strategies and preparedness of
failure management ∙∙∙ Junesoo Lee

INTRODUCTION OF FAILURE MANAGEMENT 33
ABOVE AND BEYOND FAILURE MANAGEMENT 34
Q1. WHAT STRATEGIES CAN WE CREATE TO USE FAILURE
RETROSPECTIVELY AND PROSPECTIVELY? 36
Factor One: How Do We Respond to Failure? _36
Factor Two: What Opportunities Do We Get from Failure? _37
Spectrum of Retrospective and Prospective Strategies of Failure Management _40
Four Strategic Options for Dealing with Failure _41
Q2. HOW CAN WE ASSESS HOW WELL WE ARE PREPARED TO
USE FAILURE? 46
Five Common Stages for Learning through Failure _47
Factor One: Do We Anticipate Failure in Advance? _48
Factor Two: Are We Aware of the Benefit of Failure in Advance? _49
Three Types of Preparedness of Failure Management _49
Contexts in Which the Three Types of Preparedness are Used _54
FAILURE MANAGEMENT: WORKING WITH A BLESSING IN DISGUISE 56
SELECTED BIBLIOGRAPHY _58

CHAPTER 03

Success management: Dynamic sustainability beyond harms of success ∙∙∙ Junesoo Lee, Seung-Joo Lee

SUCCESS, AN IMPEDIMENT TO SUSTAINABLE MANAGEMENT 61
HARMS OF SUCCESS I: INTERNAL DECISION-MAKING BIAS 62
Cognition _63
Aiming _65
Reasoning, Attribution _66
Internal Network _68
Investment _70
HARMS OF SUCCESS II: EXTERNAL BACKFIRE 73
Customers _73
Intermediaries (suppliers, partners) _74
The General Public _75
Adversaries (regulators, competitors) _76
TOWARD REMEDYING THE HARMS OF SUCCESS 77
Organization-based Objectives of SM _78
NOUNS of Organization-based Management : Strategy and Validation (S&V) _79
ADJECTIVES of Organization-based Management : Characteristics/Directions of S&V _80
SUCCESS MANAGEMENT THROUGH FAILURE MANAGEMENT 90
SELECTED BIBLIOGRAPHY _93

CHAPTER 04

Balanced SWOT: Revisiting SWOT analysis through failure management and success management ∙∙∙ Junesoo Lee, Seung-Joo Lee, Kwon Jung

REVISITING SWOT ANALYSIS 95
FAILURE MANAGEMENT & SUCCESS MANAGEMENT 97
Failure Management (FM) _98
Success Management (SM) _101
MAKING SWOT ANALYSIS BALANCED THROUGH FM & SM 104
FAILURE MANAGEMENT & BALANCED SWOT ANALYSIS 105
Dealing with the Positive Impacts of Failure _105
Case 1: iPhone 4S _107
Case 2: Post-it Notes _108
Case 3: Space Race _109
Case 4: Judo Management _111
SUCCESS MANAGEMENT & BALANCED SWOT ANALYSIS 113
Dealing with the Negative Impacts of Success _113
Case 1: CVS _114
Case 2: Tesla _115
Case 3: Costco _117
Case 4: Winston Churchill _118
BALANCED SWOT ANALYSIS FOR WINDOW OF OPPORTUNITY 120
SELECTED BIBLIOGRAPHY _122

CHAPTER 05

Paradox Management: Challenges and alternatives of
organizations’ failure-success management
∙∙∙ Junesoo Lee

INTRODUCTION 123
MANAGING ORGANIZATIONAL PARADOXES: FAILURE-SUCCESS MANAGEMENT 124
Failure Management (FM) _124
Success Management (SM) _125
CHALLENGES OF ORGANIZATIONS’ FAILURE MANAGEMENT 127
Failure Is Not an Option _128
Failure Is a Virtuous Evil _129
We Have Diverse Definitions of Sustainability _130
We Have Diverse Definitions of Justice _130
CHALLENGES OF ORGANIZATIONS’ SUCCESS MANAGEMENT 131
We Lack Organizational Learning _132
We Overdo Organizational Learning _133
Your Success Management Is None of My Business _134
My Success Management Is None of Your Business _136
ALTERNATIVES FOR ORGANIZATIONS’ CHALLENGES OF
FAILURE-SUCCESS MANAGEMENT 137
Alternatives for the FSM Challenges: 5W1H Approach _137
FSM Platform for Knowledge (Holistic) Creation _141
FSM Platform for Knowledge (Passive) Sharing _143
FSM Platform for Knowledge (Active) Transfer _144
FSM Platform for Knowledge (Systematic) Application _146
CONCLUSION: DYNAMIC SUSTAINABILITY THROUGH PARADOXES 148
SELECTED BIBLIOGRAPHY _150

Epilogue _153
Index _155