중판발행 2021.09.29

초판발행 2021.08.10

It is hard to define success and failure easily. This is not only because each person has different criteria for judging success and failure, but also because there are two paradoxes: The first paradox is that failure can beget a success in the future. The second paradox is that success can lead us to a failure. We encounter and respond to these two paradoxes in our daily lives. If we cannot perfectly avoid living in this paradox and irony of success and failure, how can we respond more actively to these paradoxes?
As an attempt to answer the above question more systematically, this study has been conducted since 2010. The authors used the grounded theory approach to analyze many cases and prior studies, and thereby we wanted to find common concepts and systematic patterns of dimensions in the data. As a result of the analysis, we created and proposed two concepts: Failure Management (FM) and Success Management (SM). In short, failure management is ‘the method of systematically recognizing and using the benefits of failure, and success management can be defined as 'the method of systematically recognizing and preventing the harmfulness of success.’
Through the above work, the authors published three articles over the years through Organizational Dynamics, an English academic journal (SSCI) that focuses on the readers such as management leaders, practitioners and MBA students. This book is a compilation of the three published papers and an additional chapter for readers who have little chance to access academic journals.
The contents presented in this book are common sense that has already been widely discussed by many scholars and front-line managers and experienced by ordinary people. Rather, the biggest advantage of the framework presented in this book would be the words ‘failure management’ and ‘success management.’ Even if you don’t know or remember the specific principles or examples of the framework introduced in this book, it would be beneficial just to remember and live with the two new terms, ‘failure management’ and ‘success management.’ Because these terms provide a new lens or frame for us to look at the world.
This study was conducted mainly on cases in the field of enterprise management, but we believe that the framework of failure management and success management will be applicable in various fields of individuals and society. We hope this book will be a small reference for those who pursue ‘dynamic sustainability through paradoxes.’

Junesoo Lee is an Associate Professor at the KDI School of Public Policy and Management, in charge of the Dynamic Sustainability Laboratory (DS Lab). He received his PhD in Public Administration and Policy from the State University of New York at Albany.His research focuses on failure management and success management in the paradoxical contexts where systems can be sustained by beneficial failure and also challenged by harmful success.

Paul Miesing is the State University of New York at Albany Emeritus Professor and the Founding Director of its Center for Advancement and Understanding of Social Enterprises (CAUSE). He received his PhD in Strategic Management from the University of Colorado at Boulder. His current research interests are in social entrepreneurship, environmental sustainability, and corporate governance. He has published dozens of articles and papers in both academic and practitioner journals, most recently co-editing K. Briar-Lawson, P. Miesing, & B.M. Ramos (eds.), Social Entrepreneurship and Enterprises in Economic and Social Development (Oxford University Press, 2020). Prof. Miesing was a Fulbright lecturer at Fudan University in Shanghai, has won numerous awards and recognitions, and served on several peer review boards.

Seung-Joo Lee is a Professor at the KDI School of Public Policy and Management and Associate Dean of the Center for International Cooperation and Capacity Building. He received his DBA from Harvard University and worked at McKinsey & Co. as a management consultant. He conducts research on global megatrends and teaches in the areas of strategic management, entrepreneurship, and leadership.

Kwon Jung is a Professor at the KDI School of Public Policy and Management and Associate Dean of the Office of Academic and Students Affairs. He received his Ph.D. in Marketing at the University of Illinois at Urbana-Champaign. His research interest lies in understanding consumer behaviors in both private and public sectors and sustainable business strategy.

CHAPTER 01

How entrepreneurs can benefit from failure management ∙∙∙  Junesoo Lee, Paul Miesing

BENEFITING FROM BUSINESS FAILURES 1
Why We Learn from Failure  _2
How We Learn from Failure  _3
What We Learn from Failure—A Retrospective View  _4
How We Use Failure—A Prospective View  _5
TOWARD FAILURE MANAGEMENT 6
A FRAMEWORK FOR FAILURE MANAGEMENT 8
Definitions and Concepts  _8
Propositions  _10
FAILURE MANAGEMENT VS. OTHER MANAGEMENT TOOLS 22
CONCLUSION 23
SELECTED BIBLIOGRAPHY  _25
Appendix A. Failure management propositions  28
Appendix B. Risk, crisis, and failure/success  _29

CHAPTER 02

Making hindsight foresight: Strategies and preparedness of
failure management ∙∙∙ Junesoo Lee

INTRODUCTION OF FAILURE MANAGEMENT 31
ABOVE AND BEYOND FAILURE MANAGEMENT 32
Q1.  WHAT STRATEGIES CAN WE CREATE TO USE FAILURE
     RETROSPECTIVELY AND PROSPECTIVELY? 34
Factor One: How Do We Respond to Failure?  _34
Factor Two: What Opportunities Do We Get from Failure?  _35
Spectrum of Retrospective and Prospective Strategies of Failure Management  _38
Four Strategic Options for Dealing with Failure  _39
Q2.  HOW CAN WE ASSESS HOW WELL WE ARE PREPARED TO
     USE FAILURE? 44
Five Common Stages for Learning through Failure  _45
Factor One: Do We Anticipate Failure in Advance?  _46
Factor Two: Are We Aware of the Benefit of Failure in Advance?  _47
Three Types of Preparedness of Failure Management  _47
Contexts in Which the Three Types of Preparedness are Used  _52
FAILURE MANAGEMENT: WORKING WITH A BLESSING IN DISGUISE 54
SELECTED BIBLIOGRAPHY  _56

CHAPTER 03

Success management: Dynamic sustainability beyond harms of success ∙∙∙ Junesoo Lee, Seung-Joo Lee
 
SUCCESS, AN IMPEDIMENT TO SUSTAINABLE MANAGEMENT 59
HARMS OF SUCCESS I: INTERNAL DECISION-MAKING BIAS 60
Cognition  _61
Aiming  _63
Reasoning, Attribution  _64
Internal Network  _66
Investment  _68
HARMS OF SUCCESS II: EXTERNAL BACKFIRE 71
Customers  _71
Intermediaries (suppliers, partners)  _72
The General Public  _73
Adversaries (regulators, competitors)  _74
TOWARD REMEDYING THE HARMS OF SUCCESS 75
Organization-based Objectives of SM  _76
NOUNS of Organization-based Management : Strategy and Validation (S&V)  _77
ADJECTIVES of Organization-based Management : Characteristics/Directions of S&V  _78
SUCCESS MANAGEMENT THROUGH FAILURE MANAGEMENT 88
SELECTED BIBLIOGRAPHY  _91

CHAPTER 04

Balanced SWOT: Revisiting SWOT analysis through failure management and success management ∙∙∙ Junesoo Lee, Seung-Joo Lee, Kwon Jung

REVISITING SWOT ANALYSIS 93
FAILURE MANAGEMENT & SUCCESS MANAGEMENT 95
Failure Management (FM)  _96
Success Management (SM)  _99
MAKING SWOT ANALYSIS BALANCED THROUGH FM & SM 102
FAILURE MANAGEMENT & BALANCED SWOT ANALYSIS 103
Dealing with the Positive Impacts of Failure  _103
Case 1: iPhone 4S  _105
Case 2: Post-it Notes  _106
Case 3: Space Race  _107
Case 4: Judo Management  _109
SUCCESS MANAGEMENT & BALANCED SWOT ANALYSIS 111
Dealing with the Negative Impacts of Success  _111
Case 1: CVS  _112
Case 2: Tesla  _113
Case 3: Costco  _115
Case 4: Winston Churchill  _116
BALANCED SWOT ANALYSIS FOR WINDOW OF OPPORTUNITY 118
SELECTED BIBLIOGRAPHY  120

Epilogue in the era of COVID-19  _121
Index  _125