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Bounce Back from a Blunder
Edited by Julia Hanna and Jen McFarland Flint; illustrations by Rose Wong
If mistakes are bound to happen—like death and perhaps taxes—then leaders need to let them be seen, says Victoria Montgomery Brown (MBA 2003), CEO and cofounder of the digital media company Big Think. Especially when we are in positions of leadership, acknowledging mistakes can lead to a healthier work environment and stronger leadership, she says. Here, Brown offers suggestions for bouncing back with a bit of grace.
Don’t delay.
Early on, when entrepreneur Elizabeth Holmes realized that Theranos didn’t have a viable product, she hid that fact from her board and investors, and then, as is often the case, small untruths begat larger ones. But what if she had been honest from the outset? Brown suspects the board and investors could have been more receptive than Holmes might’ve imagined. “When I’ve been transparent about shortcomings or failures, I’ve been surprised 100 percent of the time how supportive investors, partners, or employees are because I just laid it out like it is.” Avoid more painful long-term consequences by ripping off the Band-Aid swiftly, Brown says.
Remember that it’s about good business.
As she was building Big Think, Brown was wary of painting herself into a corner that she couldn’t manage her way out of. “When I’d share earnings and business updates with the board, I had an acute sense that I had to be authentic. I never wanted them to feel that they’d been misled.” While earning the trust of your investors is a challenge, she acknowledges, earning it back after a breach is nearly impossible.
Reality check.
One of the biggest blunders Brown has made is not firing toxic people soon enough, and hiring someone even when her gut suggests otherwise, she admits. This kind of mistake is about denying the reality of what’s going on, and it could have ramifications for your integrity. “Those around you—investors, partners, employees—can usually see that you’re in denial, whether or not you do,” Brown notes.
Turn a mistake to your advantage.
One of Big Think’s investors, Tom Scott of Nantucket Nectars, once told Brown that the worst thing that happened to him was the best thing that happened to him. “Big mistakes can lead to huge personal growth, but also growth within your relationships,” she says. If you are transparent with those who have invested in you, it gives them the assurance that you’ll share the hard truths quickly. “It ultimately catalyzed them to have more trust in me because they knew I’d be honest.”
Victoria Montgomery Brown is CEO and cofounder of the digital media company Big Think. Her new book is Digital Goddess: The Unfiltered Lessons of a Female Entrepreneur.
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Re: Jordan Taylor (MBA 2018); Helen Kupp (MBA 2015); Victoria Brown (MBA 2003); Mary Burton (MBA 1976); Max H. Bazerman (Jesse Isidor Straus Professor of Business Administration); Rohit Deshpande (Baker Foundation Professor Sebastian S. Kresge Professor of Marketing, Emeritus); Joseph L. Badaracco (John Shad Professor of Business Ethics)