Yue Zhao emphasizes the importance of embracing failure as a means to foster growth and resilience in teams. She recounts her early career, where her accomplishments led to a fear of failure, causing her to avoid high-risk opportunities. This fear, she argues, is common and often results from societal pressures and expectations. Drawing on Dr. Carol Dweck’s research, Zhao explains how labeling children as “smart” can hinder their willingness to tackle challenges, highlighting that a focus on hard work fosters a healthier attitude toward risk. In today’s rapidly changing business environment, fueled by AI and shifting geopolitical landscapes, taking calculated risks is essential for success. Zhao shares her journey at Instagram, where she initially played it safe but later encouraged her team to pursue bolder ideas. This shift not only improved team dynamics but also led to significant innovations, like the redesign of Instagram’s profile to include shopping features. By normalizing failure within her teams, she found that it encouraged creativity and allowed for quicker identification of issues, ultimately benefiting overall performance. Zhao provides practical strategies for overcoming the fear of failure, such as starting with small tasks to build confidence, separating one’s identity from outcomes, and creating external accountability through support networks. She urges leaders to model vulnerability and openly discuss their failures to create a culture where risk-taking is supported. By doing so, teams can become more innovative and effective, transforming mistakes into learning opportunities rather than stigmas.