Amazon executive Panos Panay has conveyed an essential message to startup founders: experiencing failure is an unavoidable and necessary aspect of developing a successful product. Panay, who serves as Amazon’s Senior Vice President of Devices, Alexa, and Leo, shared this insight during his appearance at TechCrunch Disrupt in San Francisco, drawing from his extensive experience at Microsoft, where he spent over 19 years and faced a notably costly failure.
“You must be prepared to fail, and in fact, not just prepared, but you must actively seek out failure,” Panay stated. “If you have not encountered failure, it is likely that you have not pushed the limits. It is fundamentally about extracting the lessons learned from your failures. You must confront it, and as you do, learn from it.”
Panay asserted that recovery from various types of failures, including severe ones, is achievable, citing his own experience at Microsoft. He recounted the launch of the Surface RT, the company’s inaugural tablet, as a notable failure during his time there, which ultimately resulted in a write-down of nearly $1 billion. “I recall being featured on the front page of a newspaper with the headline ‘failure,’” Panay remarked. “However, the crucial aspect was acknowledging the failure. The real challenge lies in whether you have extracted the lessons and comprehended what transpired. What did you learn? The failure was not merely that moment; it stemmed from decisions made two years prior, whether it was incomplete software, incorrect inventory, or retail balancing. There were numerous steps along the way.”
He emphasized that founders must be willing to analyze what went wrong, refrain from making excuses, and ultimately accept their failures. “Here’s the flip side,” he continued. “You aspire to succeed, correct? You take that failure, but you must not abandon your vision. That’s the key. The Surface has performed quite well. You must hold onto your vision. Do not let it break.”
Panay highlighted the significance of remaining dedicated to a vision, learning from experiences, and acting swiftly. He believes that by embracing failure and learning from setbacks, founders can adapt and progress more rapidly, even when faced with new challenges. “It all comes down to the same fundamental question: have you learned?” he stated. “Were you learning throughout the process? If you were learning, then you simply adjust your direction. Typically, it’s not a complete turnaround; it’s often just a slight shift of 30 degrees. Take the lessons you’ve learned, make minor adjustments, adapt your vision as necessary, and move forward. I believe there are individuals who cling too tightly to their original path, but this often occurs because they have not fully accepted the moment of failure.”
