You Learn More From Success Than Failure

I have often heard the old adage you learn more from failure than success. I couldn’t disagree more when it comes to technology careers.

Knowing What to Do vs. What Not to Do

All that matters to a high-tech startup is your ability to help move the company forward. What you learn from failure doesn’t make you more successful. It makes you less unsuccessful.

Tech startups face two big issues -- identifying product/market fit and scaling. They want people who can help them solve those problems. Startups are at a tremendous disadvantage to large companies. They have far fewer resources, so they need to make the most of what they have.

At my technology company, I don’t want to hire people who know what not to do; I want people who know what to do. People who work at successful companies learn lessons that are not available to the rest of us. By successful, I mean a fast-growth, $50-million-plus revenue company.

People who work for successful companies are forced by necessity to learn how to apply the 80/20 rule to just about everything they do. They learn how to hire people rapidly. They often get exposed to new technologies before anyone else. They learn shortcuts to most everything (because they have to), but they know how to balance the need to grow with their passion for serving clients well.

In contrast, people who never worked at a successful company don’t learn how to recruit a lot of people while also getting their day job done. They haven’t faced the challenge of scaling their product or service faster than humanly possible so they’re typically lost when they are asked to do so at a new company. Because they were never at a successful company, they didn’t learn these proprietary lessons from the people around them.

Knowing What Works is a Real Advantage

Having seen what works gives successful people an advantage for the next job. I want people with that highly specialized knowledge, so I can leverage it to help our company grow. At Wealthfront, where I am the CEO, we were fortunate enough to hire three amazing senior executives (Adam Nash, Elliot Shmukler and Avery Moon). Our growth rate has accelerated since their arrivals because all three brought tremendous transferable lessons from working at several successful consumer Internet companies.

Along with transferable knowledge, working at a successful company gives you the chance to work with other great people. I teach classes at the Stanford Graduate School of Business. I never cease to be amazed by the difference in presence and judgment I see in two formerly comparable ex-students whose employers achieved different levels of success. Very successful companies attract among the most accomplished employees. At a successful company, you will be able to work with great colleagues. You’ll have the opportunity work with other great companies, too. If you are working at Facebook, you could work with Apple, or vice versa. There’s no way you’ll otherwise have the opportunity to engage at such a high level.

Hire Players Who Win

It is analogous to a great athlete having the opportunity to compete against the best in her sport. The opportunity raises the athlete’s game to another level.

A hiring manager who looks for someone who has had success is analogous to coaches who look for athletes that have won. “Winners” are perceived as being much more likely to win in the future. If given the choice, I’ll always choose the candidate who has more successful company experience.

I know some people will construe what I’ve written to mean I believe you shouldn’t take a risk with your career. You should take risks. You’re going to have to at some time if you want to join a startup. It’s OK to fail. It’s just that if you want to have a shot at working at the highest quality startup or starting the best company yourself then you need to have the experience of success. If you fail then try to follow it up with a success. (You can use the advice I outlined in How To Dig Out From A Career Failure.)

Failure Builds Character, Success Builds Careers

Don’t get me wrong. On a personal level, that old adage I mentioned up top is true. You do learn more valuable lessons from failure than success for your life. Failure teaches you how to face adversity, how to persevere, and what’s important to you. If you are smart enough to learn personally from failure, you might be able to change.

Failure can build great character, but great character doesn’t move the bar at a fast-growing company. What gets you hired at one of those are the lessons you learn from success.

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