Here are four criteria to help you find that balance individually and as team or organization:
1. Mistakes are OK if we learn from them. Remember that one of the best opportunities to learn is when we do something wrong – when we make a mistake. If you reduce the opportunities for mistakes you seriously limit your learning opportunities.
2. Mistakes are OK if they aren't repeated. So you make a mistake once, learn from it. If it is a repeated mistake, it is less valuable as a learning experience (unless you're trying to learn the mistake). In fact anything you did learn from the first mistake, likely will be lost with the repeat performance.
3. Mistakes are OK if they are done in pursuit of your goals and objectives. To achieve any worthy goal or objective different things must be tried.
4. Mistakes are OK if they don't conflict with your values. If your values safety and the mistake put you at a physical risk, then that mistake isn't advisable. But if no laws are broken and no values are violated, a mistake shouldn't carry major repercussions.
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