Making mistakes is inextricably intertwined with the learning process

Making mistakes is inextricably intertwined with the learning process. But aside from mistakes that lead to acquiring new skills or knowledge, there are also mistakes that do not result in learning. In organizations, both types of mistakes are accompanied by costs, even though costs of mistakes leading to learning may be regarded as investments, while costs of mistakes not resulting in new skills or knowledge should be seen as sunk costs. 

With increased market transparency and technological transfers happening in shorter time frame than ever before, the margin for making mistakes in organizations is shrinking. Therefore, organizations need to become very wary when it comes to mistakes. While focused and small scope experimentations, sometimes ending in mistakes and learning, must flourish in organizations striving to become market leaders, too many mistakes ending in sunk costs may seriously jeopardize their viability. 

"We made too many wrong mistakes", goes one of the most famous quotes by Yogi Berra. To avoid it from happening, organizations must learn to make clear distinctions between the right and the wrong mistakes. We could definitely use more of the right mistakes and less of the wrong ones in our organizations.