Presented by Mark Graban for the Lean Leadership Week event hosted by Lean Frontiers. We all make mistakes, even the most successful people we know. Are people successful because they avoid mistakes or because they make sure to learn from them? Mark Graban thinks it’s the latter based on podcast conversations he’s had with corporate CEOs, athletes, entrepreneurs, and entertainers – and former Toyota employees. Are we willing to admit mistakes to ourselves, yet alone our colleagues, employees, or leaders? Do our organizations create a culture where it’s safe to talk about mistakes, as a first step toward preventing future mistakes? Can we shift from blaming and shaming to building a culture of continuous improvement? In this talk, you will learn and hear stories about: • Why it’s important to admit mistakes • How to reflect on mistakes without being too hard on ourselves (or others) • How to prevent repeating mistakes • What key leader behaviors create a culture where it’s safe for people to admit mistakes Mark Graban is an independent consultant, professional speaker, and entrepreneur. He is also a senior advisor for the technology company KaiNexus and advises healthcare clients through the firm Value Capture. He is the author of Measures of Success: React Less, Lead Better, Improve More. Mark’s previous books include the Shingo-Award winning Lean Hospitals and Healthcare Kaizen. He was creator and editor of the anthology Practicing Lean. Mark hosts many podcasts including “Lean Blog Interviews,” “Habitual Excellence, Presented by Value Capture” and “My Favorite Mistake.” Mark has a B.S. in Industrial Engineering from Northwestern University, along with an M.S. in Mechanical Engineering and an M.B.A. from the Massachusetts Institute of Technology.

1. Mark Graban
Mark@MarkGraban.com
Our Favorite Mistakes:
Creating a Culture of Learning from Mistakes
Slides & More: MarkGraban.com/LLW2022

3. 2 years

4. 2 years
200 people

5. One
Question

6. What’s your
favorite mistake?

7. Kevin Harrington
“Shark Tank” / Inventor of the
infomercial

8. What is a
“favorite mistake”?

9. A “Favorite Mistake” Is
• Not necessarily your
“biggest mistake”
• Something important enough
to stick with you

10. A “Favorite Mistake”:
• Learning that helped your career
(or organization)
• You’ve learned to avoid repeating
• An unexpected positive outcome

11. What’s your
favorite mistake?

12. Rep. Will Hurd (R-TX)
U.S. House of Representatives

13. What’s YOUR
favorite mistake?

14. Yes, I mean you…

15. What’s your
most recent
mistake?

16. Lesson:
Successful people
learn from mistakes

18. Do organizations
realize this?

19. Lesson:
Reflect, but don’t
agonize over it

20. “If you keep
dwelling on it,
then that’s
counterproductive.”
Katie Anderson
Learning to Lead, Leading to Learn

21. Lesson:
Reflect, but
at the right time

22. “We were taught to have a
short-term memory.
It taught me a lot about
bouncing back [from]
failures:
Stepping stones
towards winning.”
Lenny Walls
Entrepreneur, former NFL cornerback

23. Lesson:
It’s a matter
of culture

24. Toyota people
make mistakes

25. Isao Yoshino
Retired after 40 years at Toyota
• “I've made so
many mistakes in
my entire life...
big and small!”

27. • “Nobody ever blamed me…
they came to find the real
cause of the problem.
• They could have easily
blamed me, but they didn’t.
• They focused on lessons
learned from the mistakes.”
Isao Yoshino
Retired after 40 years at Toyota

28. • “It is our mistake, because
we did not give you the
detailed instruction.
• Don’t worry… we have to
figure out how to stop the
same thing from happening
again.”
Isao Yoshino
Retired after 40 years at Toyota

29. • “The only secret to
Toyota is its attitude
towards learning... its
people-centered culture
and culture of learning.”
• “And that's about learning
from mistakes and
looking at the process, not
just the outcome.”
Isao Yoshino &
Katie Anderson

30. KaiNexians
make mistakes

31. Our CEO makes
mistakes

32. Lesson:
Leaders lead
by example

33. “I don’t have a problem
talking about my mistakes.
I’m glad you gave me a
month to think about all
the different mistakes
people could learn from.”
Greg Jacobson, MD
CEO, KaiNexus & Emergency Physician

34. I make
mistakes

39. Lesson:
Show grace when
mistakes are made

40. Lesson:
Ask “how are you
feeling?” before
jumping into “5 whys”

41. “I’m happy you and the team
were able to pinpoint the issue.
Poor [KaiNexian], I’m sure he
feels horrible. Please let him
know I’m not upset and we can
classify what happened
yesterday as an opportunity for
learning and improving.”

42. Lesson:
Small mistakes can
prevent big mistakes

43. Lesson:
Small mistakes can
prevent big mistakes
IF YOU TAKE ACTION

46. Lesson:
Creating the culture
takes effort,
but is worth it

47. “We use
standards
to shape
the culture.”
Billy Taylor
Former Goodyear executive
Author, The Winning Link

48. • “Toyota operates a no
fault, no blame culture.”
• “It took me a couple of
years to clear my brain
of the impulse to blame
the worker.”
David Meier
Former Toyota leader

49. Lesson:
People need to feel
safe to admit
mistakes

50. Donnis Todd
Master Distiller, Garrison Brothers
Dan Garrison
Founder / CEO, Garrison Brothers
“Dan has always been
willing to give me the time
to learn from my mistakes.”

51. “We have a
process of
unlearning, and
we teach that
mistakes are
positive.” Keith Ingels
The Raymond Corporation

52. Lesson:
You can’t just tell
people they should
feel safe

53. • “You have to
promote and invest
in the behaviors that
lead to psychological
safety.”
• “It’s not a one-and-
done” initiative. Dr. Nicole Lipkin
Psychologist & Executive Coach

54. We all make
mistakes

55. What’s YOUR
favorite mistake?

56. “Well, if you
don't think you
make mistakes
then, oh gosh,
bless your heart.”
Krista Hughes
Nurse & Patient Advocate

57. I make
mistakes

59. Thank You!
• Slides & More:
http://www.markgraban.com/LLW2022
• Future Book:
http://www.mistakesbook.com
• Email: Mark@MarkGraban.com
• Podcast: MyFavoriteMistake.com