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Source: https://www.tuwien.at/en/ace/topics/management-technology/news/news/leadership-begins-where-mistakes-happen-why-a-strong-failure-culture-is-crucial Parent: https://www.tuwien.at/en/ace/topics/management-technology/news

1. March 2026

Leadership begins where mistakes happen: Why a strong failure culture is crucial

In many organizations, innovation is told as a success story—new products, growth, breakthroughs. Yet one central element of innovative company cultures often remains in the background: constructive handling of mistakes. This is exactly where Dejan Stojanovic’s approach to what is called the Failure Culture comes in.

© Dejan Stojanovic

For Stojanovic, one thing is clear: a healthy innovation culture is not created by avoiding mistakes — but by how organizations deal with them. Especially in technology-driven companies, wrong decisions, failed projects, or unexpected setbacks are part of everyday life. What matters, however, is whether these experiences are openly reflected upon or kept hidden.

Why Leaders Play a Key Role

At the heart of his work is the role of leaders. A genuine failure culture is not created through mission statements or corporate values, but through concrete behavior at the critical moment—namely when something goes wrong.

How leaders talk about mistakes, whether they take responsibility, and how transparently they handle problems fundamentally shape a team’s culture. Open communication about failures can build trust, accelerate learning processes, and foster long-term innovation.

Learning from Real Failures

A key aspect of Stojanovic’s perspective is the analysis of real business cases. Prominent examples repeatedly show how complex projects can fail—due to lack of communication, false assumptions, or structural problems within large organizations.

For instance, the billion-dollar IT project of the retail giant Lidl, which was discontinued after investments of around 500 million euros, is often cited as an example of failed transformation projects. Such cases demonstrate that even large companies with significant resources face fundamental challenges when strategic decisions are made under uncertainty.

Failure as Part of Innovation

For Stojanovic, failure is not the opposite of success but an integral part of innovation processes. Organizations that openly analyze mistakes and learn from them can better assess risks and make more informed decisions in the future.

A strong failure culture does not mean glorifying mistakes. Rather, it means taking responsibility, communicating transparently, and systematically learning from setbacks.

Ultimately, leadership often reveals itself precisely in the moments when projects don’t go as planned—and in how leaders and teams deal with these situations together.