How Failure Made Me A Better CEO

Steve Murphy is the CEO of Epicor, a global leader providing flexible, industry-specific software designed around its customers’ needs.

Do you want to build a successful career in business? Then, don’t shy away from failure—it’s an essential part of the journey.

I say this from personal experience. Early in my career, I dreaded admitting mistakes, worried it might make me look incapable. Like many, I saw failure as something to avoid at all costs. It took years of trial and error to realize that successful leaders aren’t defined by perfection but by their ability to learn, adapt and grow from setbacks.

Experience, as they say, is the best teacher. My own path—from early missteps to becoming an effective leader—underscores that with the right mindset, failure becomes one of the most powerful catalysts for professional growth. It’s those tough, uncomfortable moments that sharpen your skills, build your resilience and ultimately shape the leader you’re meant to become.

School Of Hard Knocks

When I was a young manager at Procter & Gamble, I was put in charge of designing an electrical system for a large industrial vacuum system across the company’s massive 10-acre detergent plant. I initially believed my engineering calculations would be enough and ignored the sage advice of a senior engineer who warned me that the system needed additional power to avoid failure.

Not only did my design ultimately fail, but it cost the company both time and money and caused operational setbacks. This failure was a defining moment in my career that changed my outlook on decision making and teamwork.

Realizing the error of dismissing practical expertise, I took responsibility. Next, I reached out to the same engineer I had earlier ignored, asking for advice on how to rectify the situation. After implementing his suggested upgrades, the system worked as intended. For the rest of my career at P&G, I always listened to him and sought out his counsel. This lesson on valuing field knowledge became a cornerstone of my leadership approach, emphasizing the importance of collaboration and humility.

The lessons didn’t end there. Years later, as a CEO, I made the mistake of underestimating the time and resources needed to integrate new technology after an acquisition. The result? Delays and many dissatisfied customers. It was a stark reminder of the high costs that come with misjudged timelines and inadequate planning.

This oversight taught me an invaluable lesson about the importance of setting realistic expectations and thoroughly understanding integration processes. It highlighted the need for clear communication, meticulous planning and a practical approach to deadlines—principles that would go on to shape my approach to future acquisitions and project management.

I also came to see that sharing my mistakes openly was not only an essential step in my own growth but also a valuable tool for team cohesion and learning. By acknowledging errors, I was able to foster a culture of transparency and continuous improvement within my teams.

Build A Culture That Embraces Mistakes

“Bad news early is good news,” I now tell my team. I encourage them to bring issues to light sooner rather than later. Admitting challenges quickly allows the team to pivot and address problems before they become critical. I’m also mindful that my reactions to bad news set the tone for the organization. By responding constructively to setbacks, I can demonstrate to the team that failure is an accepted part of learning—a perspective that’s vital for innovation and growth.

As a leader, I strive to create a culture where employees feel safe to make and discuss mistakes. I often remind my team that failure isn’t fatal, but covering it up or refusing to learn from it can be. If my transparency about my own early career missteps serves as a model, great. I want to encourage others to take ownership of their own mistakes without fear of retribution. Bad decisions become valuable learning experiences only if leaders demonstrate that they are open to feedback and willing to adjust their strategies.

Formal Education Vs. Real-World Experience

My leadership philosophy is rooted in encouraging team members to voice concerns early and seek input from colleagues with on-the-ground expertise. Someone with 20 years of field experience likely knows things that data alone can’t reveal. CEOs must tap into this wellspring of practical knowledge, integrating it into decision making to enhance outcomes and build trust.

While I deeply value my formal education, including an MBA from Harvard, real-world experience has been my greatest teacher. Harvard’s leadership courses touched on handling failure, but nothing compares to the personal growth that comes from navigating mistakes firsthand. Many view failure as an abstract concept they’ll read about in textbooks, but true understanding comes when you face the consequences of a misstep and must work through it.

This belief has shaped my hands-on approach to leadership. I regularly engage with my team in fieldwork and decision-making, emphasizing collaboration and shared learning. I encourage aspiring leaders to take on challenging roles that push their boundaries, reminding them it’s better to make mistakes early and grow from the experience than to play it safe and miss opportunities for meaningful development.

Practical Advice For Leaders

For leaders aiming to build resilience and foster growth through failure, my advice is to “start small.” Begin by openly acknowledging minor mistakes.

This helps create a habit of transparency and lays the foundation for a culture that embraces learning from missteps. A word of caution: Resist the urge to project an idealized image of leadership. Social media, in particular, often pressures leaders to appear flawless, but this can backfire. A facade of perfection makes it harder for team members to admit their own errors, stifling growth and collaboration.

By staying authentic and candid about your challenges, you can cultivate a more trusting and open workplace. In a world defined by rapid change and constant uncertainty, resilience and adaptability are critical—and both are born from learning through failure.

For those hesitant to acknowledge their own missteps, my advice is simple: “Give it a try. Share what went wrong, listen to feedback and grow. You’ll be amazed at the trust and progress that can result.”

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