Hidden Brain
Hidden Brain

Making the Most of Your Mistakes

August 3, 2026

AI Summary

5 min read

In 2009, British businessman Philip Davison Sebri was celebrating his wife’s 50th birthday in the Maldives when he got a phone call. A government clerk had made a typo, mistakenly reporting that Sebri’s 134-year-old company, Taylor and Sons, was being shut down. Within days, contracts dried up, orders were cancelled, and creditors demanded payment. The government corrected the error, but the debt spiral had already taken hold. Taylor and Sons actually did go out of business. Not all mistakes are so consequential, but as Harvard Business School professor Amy Edmondson explains in this episode of Hidden Brain, the way we think about failure—whether we try to stamp it out entirely or celebrate it blindly—is itself a fundamental mistake.

The Wrong Direction of Good Teams

Edmondson’s research on failure began with a puzzle. As a young scientist, she spent months tracking medication errors at two hospitals. She also measured team performance—things like the quality of relationships, leadership, and whether people felt everyone pulled their weight. Her intuition was obvious: better teams should make fewer mistakes. When she finally ran the data, the correlation was statistically significant—but the sign was in the wrong direction. Good teamwork was associated with more errors, not fewer.

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What you'll learn

  • 1 (00:03) **The Taylor & Sons Disaster** - A government typo destroys a 134-year-old company, illustrating how even a single error can spiral into catastrophe.
  • 2 (04:42) **Amy Edmondson's Hospital Study** - The Harvard researcher explains her landmark study that overturned her own hypothesis about teamwork and errors.
  • 3 (12:20) **The "Open" vs. "Authoritarian" Workplaces** - A research assistant’s observations confirm that psychological safety, not error rate, explains the data.
  • 4 (17:18) **The Failure Taxonomy: Why Not All Errors Are Equal** - Edmondson introduces the critical distinction between "intelligent failures" and the kinds of failure we must prevent.
  • 5 (21:34) **The Columbia Disaster: A "Complex Failure"** - The story of the Space Shuttle Columbia shows how multiple small factors line up to create a perfect storm.
  • 6 (26:32) **The Swiss Cheese Model of Failure** - Edmondson explains how a young patient received a dangerous morphine overdose through a series of aligned defects.
  • 7 (30:11) **Toyota's Andon Cord: Catching Errors Early** - A practical system for empowering frontline workers to stop the line and prevent complex failures.

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Guests on this episode

Show Notes

When you're learning, or trying new things, you're going to make mistakes. The trick is to try to fail in a way that gives you useful information. This week, we revisit a favorite conversation with researcher Amy Edmondson. She explains the difference between constructive failures and those we should try to avoid. Then, John Dinsmore answers listener questions about the psychology of debt, in our latest installment of Your Questions Answered.

Ever wondered how your parents' and grandparents' attitudes toward money shapes your financial decisions? Check out our latest YouTube video to learn more about the hidden financial behaviors you inherited from your family. 


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