When the head of HR at Disney approached Ed Catmull, co-founder of Pixar, with a precise two-year plan with all their goals, Catmull knew this was a mistake. Though it is crucial for businesses to have objectives to strive for, a rigid plan can smother creativity and limit the potential of employees. Catmull, valuing flexibility and adaptability, declined to commit to the plan, advocating instead for a more fluid approach that would allow him and his team the freedom to innovate.

One of the greatest impediments to innovation in any field, Catmull believes, is fear of failure. As humans, we are naturally resistant to change. People believe that new technologies will be prone to more errors. Even though it is sometimes true, these mistakes are not necessarily a prerequisite to failure. That is why Catmull insisted on his employees not being afraid of making mistakes. Leaders need to reassure their employees to be confident enough to experiment without worrying about possible outcomes.

Fear of failure can have another negative effect which will hamper significant growth as taking risks may be crucial to achieving success. Businesses are often obsessed with controlling the future, so they always follow a safe route. Such a strategy can be risky and also could miss out on unexpected opportunities. After all, as Catmull writes: “Failure isn’t a necessary evil. In fact, it isn’t evil at all. It is a necessary consequence of doing something new.”

Another cornerstone of Pixar’s success is its proactive approach to problem-solving. The company acknowledges that issues will always arise, and many of them can even be difficult to foresee. Pixar works hard to uncover these problems, although it might make the staff feel uneasy. And when a challenge arises, the employees are ready to address it.

The debate continues on whether companies falter due to unchecked growth or unrealistic profitability expectations. Catmull, however, believes that a lack of foresight and awareness leads to downfall. Companies often overlook potential issues, assuming that if they are not currently experiencing them, they do not exist. This lack of awareness, Catmull argues, can be more damaging than any mistake or failure.