In the latest episode of We All Make Mistakes, Professor Ben Voyer speaks to Dr. Davide Sola, Professor of Strategy and Entrepreneurship at ESCP Business School. As a strategy expert, Sola discusses how mistakes are not only inevitable in strategy but also essential for learning and growth. “Strategy is about choices, and with choices come mistakes,” says Sola. For him, the key is to view mistakes as learning loops—a way to understand what went wrong and make better decisions going forward.
Do you want to know how to embrace mistakes in business strategy? Davide Sola’s reflections offer valuable insights for entrepreneurs and leaders alike.
Mistakes: the heart of strategy
When it comes to strategy, mistakes are part of the journey. Davide Sola explains that strategy is built on assumptions and thinking forward, both inherently uncertain. “Strategy is about where you want to go, how to get there, and when to adjust your course,” he says. Every stage presents opportunities for error. Whether you set an ambitious goal only to realise halfway through that it’s unattainable, or you launch a product that misses the mark, mistakes are inevitable.
However, Sola reframes such errors as “learning loops.” He uses the example of Enzo Ferrari, who famously displayed broken car parts in his workshop to remind his team that learning from failures leads to innovation. “The only mistake you can make is not learning from it,” Sola emphasises. This mindset, he believes, is crucial for anyone navigating the uncertainty inherent to strategy.
Learning from failures—fast
Sola highlights a key paradox in strategic thinking: plans are made to be undone. “You create a strategy based on assumptions, but you need to be ready to adjust when reality doesn’t match those assumptions,” he explains. The ability to quickly learn from failures—rather than the speed of failure itself—is what determines success. “Fail fast, yes, but more importantly, learn faster,” Sola advises. Understanding the reasons behind a failure, whether an initiative undershoots or overshoots expectations, is what turns a mistake into a valuable lesson.
He also points out that some of the world’s greatest innovations, like the Post-it note, were born from mistakes. “3M wasn’t trying to make a reusable adhesive; it was an accidental discovery,” he explains. These ‘lucky accidents’ only become successful innovations when companies are open to learning from unexpected outcomes.
Three common mistakes in strategy
Drawing from his expertise in scaling businesses, Sola identifies three major strategic mistakes that companies frequently make:
- Lack of customer focus: “Many entrepreneurs fall in love with an idea without asking who the customer is,” Sola says. Without a clear understanding of the customer’s problems, even the best ideas will fail to gain traction. He advises starting with a handful of customers who are so desperate for a solution they would be willing to pay upfront—an approach that can prevent costly mistakes early on.
- Overextending too soon: Another common mistake is assuming that a product will work for everyone. “Many companies confuse growth with scaling,” Sola warns. Instead of trying to adapt products for every market, businesses should focus on scaling a few products successfully. “Look at Apple versus Samsung. Apple’s focused strategy with a limited product range dominates the profits in the smartphone market,” he says.
- Growing at any cost: Sola is particularly critical of companies that prioritise growth over profitability. “Growth should not come at any cost,” he insists, pointing to companies like Uber, which scaled rapidly but took years to achieve profitability. He calls this finding the “profit market fit,” where growth is sustainable and contributes to the bottom line.
Embrace the process
When asked for advice, Sola encourages leaders and entrepreneurs to embrace both the highs and lows of the process. “Mistakes will come, and some will be avoidable, some won’t. But the key is to think ahead,” he says. Sola emphasises the importance of foresight and flexibility in navigating complex strategic decisions. He also insists on the value of patience: “You can be fast without being impatient. Being patient allows you to make better decisions, and once you’ve decided, you can go full throttle.”
