Turning Failures into Fuel for Future Planning

When you think of an American success story, it’s hard to imagine one more compelling than Abraham Lincoln’s journey from a humble log cabin to the White House. But did you know that along the way Lincoln lost his job, was rejected by the Illinois state legislature, failed in business TWICE, and suffered a nervous breakdown?

By age 40, he had experienced more failures than most people see in a lifetime. Yet, Lincoln went on to lead our nation through one of its darkest periods. How did he build such resilience? He never considered his failures as stop signs; instead, he saw them as steps forward.

Granted, we’ve all heard the ‘failure is a teacher’ motivational trope. But this is about more than just learning from mistakes. It’s about creating a process that allows you and your team to turn setbacks into strategic assets – building resilience, evolving, and knowing what to do when (not if) things go wrong.

Failure can fuel better decisions, encourage stronger teamwork, and find a strategic and sustainable path forward. It starts with a structured framework that equips your team to extract real value from every setback—big or small—and emerge stronger and more agile.

You have the choice to accept failure and move on, or you can turn it into a valuable tool that expands your team’s collective wisdom and hone their ability to adapt to setbacks. Think about what Lincoln did his entire life!

From Failure to Strategic Win in Four Steps

Failures in the advisory world come in all shapes and sizes. Sometimes, they’re relatively small setbacks like a client review that doesn’t hit the mark. Others are more substantial, such as missed quarterly revenue goals or strategic partnerships that yield no referrals. Each, however, can serve as a catalyst for future growth when you and your team use the following framework:

Step 1: Reflect with Radical Honesty—To derive value from any failure, you must start by looking at it honestly. What went wrong? Was it a lack of preparation for that client meeting or a breakdown in team communication? Reflection is about assessing facts without sugarcoating them. Bring your team together and encourage a safe, open dialogue. The goal isn’t to blame; it’s clarity.

In his book What Got You Here Won’t Get You There, Marshall Goldsmith notes, “The higher you go, the more your success is built on the things you didn’t do right.” By engaging in honest reflection rather than complacency, you can identify gaps in processes and missing skills essential for continued growth.

Step 2: Identify the Core Lesson—Every failure holds a tactical and sometimes strategic lesson. For example, a missed quarterly target might point to flaws in the business model or signal that growth was overestimated. The key is pinpointing precisely what didn’t work and how it applies to the future. By framing the failure as a learning experience, you shift your team’s perspective from discouragement to curiosity.

Say you entered into a partnership with a CPA firm expecting reciprocal referrals that never materialized. Instead of focusing on the disappointment, explore the ‘why.’ Was it a misalignment of values, goals, or expectations? The lesson here could be as simple as refining criteria for partnership selection or as complex as re-evaluating how you set mutual expectations in business relationships.

Step 3: Adjust and Adapt—With insights from reflection and core lessons identified, you’re ready to adapt. This step is where transformation happens. Whether you’re improving client communication, refining event planning, or rethinking strategic partnerships, adjust course confidently by developing a plan that incorporates the lessons learned and setting clear action items to avoid similar pitfalls.

In his book The Hard Thing About Hard Things, Ben Horowitz argues that “failure should be a lesson in what not to do, not a mandate for inaction.” The most resilient teams do not avoid failure but use it to better inform their next move.

Step 4: Reframe and Celebrate – Celebrating failure may seem bizarre, but it can be a powerful motivator. When your team accepts that even setbacks are part of the journey, it encourages them to take risks, innovate, and, ultimately, become more agile. Reframe failures as accomplishments – not glorifying mistakes, but by recognizing the resilience they build. Marking small wins, like a refined client presentation or an improved partnership outcome, reinforces your team’s ability to turn setbacks into successes.

Reframing also builds a cultural mindset that sees failure as progress. Leaders who celebrate these moments send a powerful message: growth isn’t about perfection but adaptation, grit, and learning from each experience.

Create a Top 10 Failures List

As you look ahead to the next quarter, year, or even further into the future, encourage each of your team members to approach planning realistically. Identify what’s working (and what’s not) with brutal self-awareness. If certain partnerships haven’t yielded expected results or a client service approach needs refining, bring these into the planning process, using each as a lesson for future enhancements.

At ClientWise, we encourage the advisory teams we coach to list the Top 10 Failures from the past year. Here’s how:

• Capture Individual Reflections – Ask each team member to create their version of the list, focusing on moments that didn’t go as planned. These can range from problematic client meetings to missed targets or underperforming partnerships.

• Merge and Prioritize—To create a comprehensive team list, combine all the individual lists. Prioritize based on the insights and growth each failure brought to the team.

• Celebrate the Learnings—Rename this team list the year’s Top 10 Learnings and celebrate them as valuable stepping stones rather than setbacks.

• Capture the Wisdom – Finally, identify the top 10 insights from these experiences that the team can carry forward. This set of learnings becomes a foundation of wisdom for the upcoming year.

Make this exercise an annual tradition. When everyone else is focused on setting new targets and celebrating past successes, start by focusing on your failures. Remember that the journey to success is never linear. True resilience and leadership are found in embracing failure as an inevitable, invaluable part of your firm’s advisory journey. This will strengthen your advisors and foster a culture where your team learns, adapts, and, ultimately, thrives together.

COACHING QUESTIONS

1. On Reflection and Resilience: As you reflect on past setbacks, what specific processes or actions can you establish to ensure your team draws meaningful lessons and strengthens resilience? How can you apply these lessons to anticipate and navigate future challenges?
2. On Adapting and Innovating: Thinking about recent adjustments you’ve made, what proactive steps can your team take to adapt and evolve your strategies? How will you encourage each team member to embrace a mindset of continuous improvement and innovation?
3. On Building a Culture of Learning: How will you further foster a team culture that views failures as essential steps toward growth? What practices will you implement to celebrate learning moments, reinforcing a mindset that values adaptation and perseverance over perfection?

These questions aim to cultivate a forward-thinking, resilient, and learning-focused team environment.

About ClientWise LLC

ClientWise is the premier business and executive coaching firm working exclusively with financial professionals. We specialize in helping clients optimize growth and maximize revenue by engaging as a knowledgeable partner in accomplishing specific and significant business results. Our full-service coaching program empowers financial advisors, wholesalers, managers and executives to enhance performance through customized, action-oriented solutions based on each client’s specific vision and situation.

Our certified coaches are members of the International Coach Federation (ICF). They adhere to ICF’s strict code of ethics and have the experience and insight to work with you on the unique challenges and opportunities you face each day.

Drawing from an in-depth knowledge of the financial industry, ClientWise’s mission is to professionally develop industry leaders and consistently raise the bar for industry service, commitment and integrity. Simply put, our singular focus is to help you get clear, get focused, and get results.