3GBINDEX 02/16/2015 9:33:51 Page 249

Index

A Macintosh computer, 28–29 Adams, Scott, 57, 89 Sony and, 82–83, 133 Affinity Labs, 53–54 “Aretha Challenge,” 106–107, 108 Airbnb, 86 Arthur Andersen, 123 AltaVista, 151 Ashesi University, 218 Amazon.com, 53, 74, 78, 133, 151, Atari, 83 169, 198 Athletic performance, 44–45 American Psychological A.T. Kearney, 91, 115, 155 Association, Center for Aurik, Johan, 91–92, 115, 155 Organizational Excellence, Avon, 110, 112, 207 206 Atychiphobia, 38 American Express, 211 Awuah, Patrick, 218 Andreessen Horowitz, 49 Angry Birds, 33 B Anti-Portfolio, 179 Bancroft, Pete, 179 AOL, 55 Bank of America, 148 Apologize, 149, 152, 171 Barnes-Jewish Hospital, 208 Apollo 13,COPYRIGHTED 150 Baseline MATERIAL Ventures, 49 Apple, 9, 55, 85, 102, 133, 152 Bee Partners, 65 accidents and, 35 Bennis, Warren, 30 BlackBerry and, 198 Bergman, Stan, 173–174, 176 comeback of, 167, 168 Berolzheimer, Michael, 65 crown jewels at, 124 Bessemer Venture Partners, customer enthusiasm and, 206 178–179 growth of, 85 Bewkes, Jeffrey, xv–xvi

249 3GBINDEX 02/16/2015 9:33:51 Page 250

250 Index

Beyer, Kurt, 125 “Crossing the Chasm,” 56 Bezos, Jeff, 169 Crown jewels, 123–125, 141 Bhide, Amar, 55 Culture, 74–75, 173–180, 182 Big data, 131–133, 162–163 Culture of compliance, 91 BlackBerry, 105, 134, 198 Customer discovery, 58–60 Black Swan event, 34–35, 92, 129 Cyberattacks, 34–35 Blake, Frank, 198 Blakely, Sara, 109 D Blank, Steve, 58 Daimler, 105 Blockbuster, 198 Deep Horizon underwater oil spill, Boehringer Ingelheim, 162–163 145 The Book of Mormon,90–91 Delman, Scott, 90–91 Borders, 133, 134 Deloitte, 35, 91 Boston Consulting Group (BCG), Deming, W. Edward, 116 83, 203 De-scaling, 88 British Petroleum (BP), 145 Detroit Diesel, 154 Burbn, 49–50 Diaz, Franklin Chang, 24–25 Digital Equipment, 134 C Dilbert, 6, 19, 38, 57, 89, 181 CB Insights, 52 Dropbox, 86 Charles Schwab, 84, 118–119 Drucker, Peter, 182 Checklists, 115–117, 127 DuPont, 148 Chesbrough, Henry, 31–32, 112, 162 E Christensen, Clayton, 8, 92 Eastman, George, 103–104 Chrysler, 167 Eastman Kodak Company, Circuit City Stores, 83, 134 103–104, 105, 134, 162, Cobb, Ty, 23 196 Collins, Jim, 8, 83 eBay, 178–179 Columbia Pictures, 82 Edison, Thomas, 33, 67, 112–113 Compasses, 115–117 Effective Apology (Kador), 149 Conroy, David, 44 “Eight ‘P’s,” 147 “Copy With Pride” award, 207 Elance, 74 Cowan, David, 179 ELMS Puzzles, 72–73 Cox Communications, 117 Employee engagement, 90–92, 95, Craigslist, 198 142, 200–203, 205, Cramer, Jim, 165–166 210–211 3GBINDEX 02/16/2015 9:33:51 Page 251

Index 251

Enron, 105 sales, 22 Entrepreneurs, 6–7, 53–56 sports, 23 Execution-to-experimentation, 79 startups, 22 Exercises -backed Apply the Un-Golden Rule, startups, 22 127–128 fear of, 19–20, 37–39, 206 Assess Your Failure Leadership gravity of, 21–26 Profile, 16 identifying small, 137–138 Fear of Failure, 40 initial response, 19 What Are Your Crown Jewels?, “pivoting” and, 112 124 startup ventures and, 52–58 What Has to Be True?, 60–61 synonyms and examples of, Expansión magazine, 111 13–14 eToys.com, 62 as taboo topic, 2, 104–107, 191, Experiments, 128, 130 209 as today’s lesson for tomorrow, F 32–33, 183 , 9, 50, 100, 132, 151 unintentional versus invitational, FailCon, 111 33–34 “Fail fast, fail often,” xix, 3 vocabulary and, 112–113 Failure “Failure Bounty,” 207–208 accidents and, 34–35 Failure horizon, 129 anticipating failure, 122–123 “Failure is not an option,” 17, 26, defining, 27–36 149–150 early signs, 133–141 Failure metrics, 205–206 emotional dimension of, 156–157 “Failure-Savvy Leadership” rules, facts about 57 IT projects, 22 Failure-savvy organizations life, 23 actions for, 197–208 love, 23 creating, 195–208 mergers and acquisitions, 22 exercises for, 196 new CEOs, 22 metrics for, 204–207 new hires, 22 risks for, 197–198 new products, 22 status quo and, 198–199 New Year’s resolutions, 23 teams and, 202–204 patents, 22 trust and, 200–202 profitability, 22 Failure-to-insight cycle, 59 3GBINDEX 02/16/2015 9:33:51 Page 252

252 Index

Failure Value Cycle, 97, 99–102 Ford, Henry, 33, 59–60 framework, 2–3, 99–102 Ford, 116 React stage, 3, 143–152, 188 Foursquare, 49 Rebound stage, 3, 165–173, 189 Foxconn, 84 Recognize stage, 2, 131–142, Franchises, 71 187–188 Franklin, Aretha, 104 Reflect stage, 3, 153–164, Friendster, 151 188–189 FuckUp Night movement, 111 Rehearse stage, 3, 121–130, 187 “Future quo,” 140, 142 Remember stage, 3, 173–182, 189–190 G Respect stage, 2, 103–120, Gallup, 205 186–187 State of the Global Workplace, 88 Failure Value Report Card, Galvin, Bob, 116 183–192 Gardner, John, 37 “Failure Wisdom Report,” 180, 207 Gasca, Leticia, 111 “Failure Zones,” 115, 117–118, Gates, Bill, 59 122, 207 Genentech, 211 low-defects zones, 118 General Electric (GE), 105, 116 no-failure zones, 118 General Motors (GM), 133, 136, “no-fault” failure zones, 117 167, 208 Fairchild, 151 Getting to Plan B (Komisar), 53 Family businesses, 70, 75–76 Ghosh, Shikhar, 57 Fear Giaever, Ivan, 157 as ally of failure, 40–42 Gmail, 93, 140, 153 athletic performance and, 44–45 Goldilocks zone, 76 of failure, 17, 19, 37–38, 206 Good to Great (Collins), 83 magnifier, 39 , 9, 140, 151, 199, 210 memory and, 42–45 acquisition of Nest Labs, 55 status quo and, 38 Bessemer Venture Partners and, women and, 39 178–179 Federal Emergency Management purchase of Motorola, 116 Agency (FEMA), 34 risk-taking and failure approach, FedEx, 178–179 153–154 First-ring outsiders, 158, 159–160 sharing experiments with insiders Fooled By Randomness (Taleb), 34 and outsiders, 93 Force multipliers, 37, 209–211 Stan the dinosaur and, 199 3GBINDEX 02/16/2015 9:33:51 Page 253

Index 253

Google Ventures, 40, 128, 153–154 Hewlett-Packard, 85 Gorman, China, 90, 200, 213–214 High-reliability organizations, 116, Granholm, Jennifer, 30, 205 122 Gravity, 11, 21–26, 156 High-resiliency organizations, 123 Great Catch Award, 208 Hinshaw, Michael, 30 Great Place to Work Institute Historical future, the, 182 (GPTW), 79, 90, 200, 205, Holliday, Chad, 148, 155 210, 213–214 Home Depot, 35, 102, 198, 245 Fortune’s “100 Best Companies Honeywell, 55 to Work For,” 90, 93 Hoplamazian, Mark, 93–94, 118 Great Small Business Places To Hsieh, Tony, 175 Work, 71 Human resources executives, 6 Gretzky, Wayne, 23 Hyatt Hotels, 93–94, 118 Ground-zero insiders, 158–159 Grove, Andy, 40, 130, 179 I Grown-Ups, 47, 81–95 IBM, 119, 151, 168, 204 competitors, 88–89 IDEO, 15Inc. 500, 55 key facts, 83–84 Indiegogo, 108, 210 mistakes, 92 InnoCentive, 77 Newton’s first law, 84–85 The Innovator’s Dilemma revenue and, 87–88 (Christensen), 8 risk/reward paradox, 86–87 The Innovator’s Solution (Christensen as “too big to fail,” 85–86 & Raynor), 8 In Search of Excellence (Peters and H Waterman), 83 Haas School of Business, University , 50 of Berkeley Intel, 40, 130, 152, 178–179 defining principles of, 215 The Intelligent Entrepreneur (Michel), “Other F Word” course, 219–223 108 Workshop For Startups, 216–219 Invitational failure, 33–34, 56 Haji, Priya, 218 iPhone, 49, 50, 169 Harvard Business School, 57 Harvey, Del, 136–137 J Hastings, Reed, 165 Javelin Venture Partners, 139 Hayward, Tony, 145 JCPenney, 133, 198 Henry Schein, Inc., 88, 173–175, Jobs, Steve, 59, 60, 65, 167, 169 176, 210 Johnson & Johnson, 145, 210 3GBINDEX 02/16/2015 9:33:51 Page 254

254 Index

Jordan, Michael, 23 Lockheed Martin, 92 JPMorgan Chase, 102 Logan, Duncan, 49, 52–53 Long-cycle rebounds, 167–168 K Lululemon Athletica, 143–144, 145 Kador, John, 149 Lyons, Rich, 38, 215, 219 Kaggle, 77, 162–163 Kahneman, Daniel, 42–43, 151 M Kan, Justin, 53, 86 Macintosh computer, 28–29 Kasdin, Kef, 30 “Make failure public” movement, Katz, Jed, 139 111 Kawasaki, Guy, 28–29, 99 Makhija, Anil, 76 Keep-Ups, 67–80 Malmstrom Air Force Base, 107 challenges of, 72–75 Marquard, Bill, 180 customers and, 78–79 Mayo Clinic, 210 family businesses, 70, 75–76 MCorp, 30 franchises, 71 McCoy, Sheri, 110, 112, 207 Goldilocks zone, 76 McDonald’s, 84 key facts, 69–70 McIntyre, Pat, 68 opportunities for, 77–78 McKee, Robert, 176–177 “Six C” gauntlet, 73–75 McKinsey & Company, 70, 75 Kelley, David, 15 Memory, 42–45 King, Bob, 30, 112 Metrics, 180–181, 204–207 Caufield & Byers, 40 Michel, Chris, 53–54, 108, 210 Komisar, Randy, 40, 53 , 88–89, 152 Kraft, Chris, 150 Model T, 33, 59 Kranz, Gene, 150 Morgan Stanley, 147 Kraus, Joe, 40, 128, 153–154 Moore, Geoffrey, 56 Krieger, Mike, 49–50 Morita, Akio, 59 Kübler-Ross grief process, 157–158 Motorola, 116 Kucirek, Scott, 110 N L 99 designs, 74 Laret, Mark, 110, 122 National Aeronautics and Space Lean Startup, 54, 58–59 Administration (NASA), The Lean Startup (Ries), 58 150–151 Lesser, Rich, 83, 203–204 National Center for the Middle LG, 82 Market, 76 3GBINDEX 02/16/2015 9:33:51 Page 255

Index 255

Nest Labs, 55 Q Netflix, 34, 102, 165–166, 196 Qwikster, 34, 102, 165–166 Net Promoter Score, 206 “Never-been-done-before” R innovation challenge, 117 “Raise your hand” culture, Newton’s first law, 84–85 109–112 Nike, 45 RCA, 133 “Noble failure,” 119 React stage, 3, 143–152 Northern Telecom, 134 acknowledge and apologize, 149 Northland Fishing Tackle, 67–68 failure triage, 146 Noyce, Bob, 179 Failure Value Report Card, 188 overview of, 143–145 O rehearsals and, 147–148 Odeo, 126 “right now” questions, 148–149 Only the Paranoid Survive (Grove), Rebound stage, 3, 165–173 130 clearing decks and, 170 ONTRAPORT, 71, 154, 210 Failure Value Report Card, Open innovation, 31, 112, 162, 163 189 Orellana, Carlos, 218 fundamental choices in, 168–169 planning, 169 P short-cycle versus long-cycle Pan Am, 198 rebounds, 167–168 PayPal, 178–179 success in, 165–167 Penske, Roger, 154 Recognize stage, 2, 131–142 Peterson, John, 67–68 actions for monitoring, 134–141 Petroski, Henry, 182 big data and, 131–133 Pets.com, 62–63 early signs of failure, 133–141 Pfizer, 151 Failure Value Report Card, Phillipps, Cass, 111 187–188 Pinterest, 131 teams and, 138–141 “Pivoting,” 112 Reflect stage, 3, 153–164 Plan-Do-Check-Act cycle, 116 big data and, 162–163 Polaroid, 134, 162, 198 elements to focus on, 161–162 Pottruck, David, 84–85, 118–119 emotional dimension of failure Powell, Colin, 37 and, 156–157 Premature scaling, 56–57 Failure Value Report Card, Proterro, 30 188–189 3GBINDEX 02/16/2015 9:33:51 Page 256

256 Index

Reflect stage (Continued ) “No-fault” Failure Zones, learning from failure and, 117–119 153–155 “Raise your hand” culture, recovery and, 157–158 109–112 Rehearse stage, 3, 121–130 Six Sigma to Zero Stigma, anticipating failure, 122–123 114–115 challenges of hospitals, 121–122 “zero-failure” culture, 107 experiments and, 129 Ries, Eric, 58 Failure Value Report Card, 187 Ringelmann, Danae, 108–109, 210 high resiliency and, 126–127 Risk/reward paradox, 86–87 protecting crown jewels, Rituals, 175, 177–178 123–125 Roberts, Bryan, 30, 64 Un-Golden Rule, 127–128 Roche, 119, 156 REI, 211 Rock, Arthur, 179 Relics, 175, 178–180 Rocket Chemical Company, 32 Remember stage, 3, 173–182 RocketSpace, 49, 52 culture and, 173–180 Rovio, 33 Failure Value Report Card, Royal Dutch Shell, 148 189–190 relics and, 175, 178–180 S reports and, 175–176, 180 Sala Uno, 218 rituals and, 175, 177–178 Samsung, 82 stories and, 175, 176–177 Sanghvi, Siddharth, 218 Requist, Lena, 71–72, 154 Sarandos, Ted, 166 Rescorla, Rick, 147 Scapegoats, 17, 20, 148 Respect stage, 2, 103–120 Schneier, Bruce, 141 “Aretha Challenge,” 106–107 Schultz, Howard, 167 checklists and compasses, Schumpeter, Joseph, 134 115–117 Schwan, Severin, 119, 156–157 Eastman Kodak Company, Sears, 133 103–104, 105 Second-ring outsiders, 158, 160 failure and, 108–109 Sharper Image, The, 198 Failure Value Report Card, Short-cycle rebounds, 167–168 186–187 Shula, Don, 158 failure vocabulary and, 112–113 Silicon Graphics, 199 finding value-add, 119 Simpson, Homer, 33, 81 low-defects zones, 118 Sippey, Michael, 30, 126–127 3GBINDEX 02/16/2015 9:33:51 Page 257

Index 257

“Six C” gauntlet, 73–75 TED Talks, 78 Six Sigma,114–115, 116, 163, The Real Real, 62–63 197 Timbre Technologies, 218 “Skunk Works,” 92 Time Warner, xv–xvi Small or medium-sized enterprises Tindall, Bill, 150 (SMEs), 7, 67–80 Today-to-tomorrow (T2T) metrics, SNAFU, 34 204–207 Sony, 59, 81–83, 87, 133, 169 “Too big to fail,” 85 Southwest Airlines, 89, 93 Torres, Roselinde, 203–204 Spanx, 109 Toyota, 105 Square, 74 Transocean Limited, 145 Stacking the Deck (Pottruck), 84 Trust, 89–92, 161–162, 200–202, Stan the dinosaur, 199 205–206 , 167–168 TubeMogul, 218 Startup Genome Project, 51, 52, Tumblr, 131 56 TWA, 198 Start-Ups, 9, 22, 47, 49–65 Twain, Mark, 38 faces and characteristics of, Twitch, 53 52–54 , 30, 126, 136, 210 failure and, 49–52 Tylenol, 145, 210 improving odds of success for, 58–65 U key facts, 50–52 Uber, 198 relationship with failure, 54–58 UCSF Medical Center, 110, Stories, 175, 176–177, 182 121–122 Storytellers, 181–182 Un-Golden Rule, 128 Stuart, Fred, 72 United Auto Workers (UAW), 30, Systrom, Kevin, 49–50 112, 154 Unintentional failure, 33–34 T “Unk unk” defense, 35–36 3M, 116, 140 USAA, 210 “24-hour rule,” 158 U.S. Navy SEALs, 138 Taleb, Nassim Nicholas, 34 Target, 34, 101, 133, 155 V Task Rabbit, 74 “Value-killer losses,” 35 Teams, 19, 56, 61, 63–64, 138–141, Venrock, 30 202–204 Venture capitalists, 9, 51 3GBINDEX 02/16/2015 9:33:51 Page 258

258 Index

W Workshop for Startups, 57–58, Wainwright, Julie, 62–63 216–218 Walmart, 74, 84, 105, 180 Wozniak, Steve, 59 “Correction of Errors,” 180 Wang Laboratories, 83, 134 X Watchful insiders, 158, 160–161 Xerox, 151 Watson, Tom, 119, 204 WD-40, 32–33, 178 Y Webvan, 62, 151 Yahoo!, 55 “Webvan Curse,” 57 Yankowski, Carl, 82–83 Wegmans groceries, 90 Y Combinator (YC), 53, 86 We Heart It, 131–132, 162 Yi So-yeon, 25 Welch, Jack, 116 West, Peter L., 15, 117 Z “WIIFM,” 2 Zappos, 137, 175 Williams, Dave, 131–132 “Zero-failure” culture, 107 Wilson, Chip, 143–144 “Zero Stigma,” 114–115, 163, Winters, Jonathan, 138 197 Wise.io, 132 ZipRealty, 110 “Workaround Reward,” 207 Zuckerberg, Mark, 100