David Allmark: What do you tell a team that has failed? | 30 Second MBA

I have always believed you don't celebrate the victories and punish the failures.  It leads to everyone focusing on the outcomes, instead of taking calculated risks and innovating.  When failure is punished, teams tend to lean towards conservative programs that are sure fire, but minimal growth.  This leads to a stagnate team that doesn't drive large incremental value.
Source: http://www.fastcompany.com/mba/2473/david-...