Joe outlines three ways leaders can embed the iterative mindset into organizational culture. First, frame it from the beginning — like Nike in the ’90s with a massive push-pin sign reading “FAIL BIGGER” in their headquarters lobby. Set goals of iterations instead of outcomes; track phone calls made rather than revenue closed.
Second, actively reward failure. Celebrate the boldest failed attempt. If you understand that innovation costs money, then people trying things is how that money gets spent productively. “Everybody has their own set of experiments — so to reward that is an amazing thing to do.”
Third, don’t get angry when people mess up. When a team member made a $50,000 mistake, Joe’s response was “no problem” with zero emotional backlash. He reserves frustration only for lack of pace or repeated identical mistakes — not for someone trying something that didn’t work.
“Nobody wants to make mistakes. So if they’re making a mistake it means they’re most likely trying something — and that’s an important part of how we grow as a business.”
The same applies to parenting: let toddlers set the table even if dishes break. The framing is that “the attempt was more important than the success.”