Turning setbacks into lessons
Amazon devices executive Panos Panay says founders should be prepared to face failure, understand what led to it and use those lessons to improve their products. In his view, pushing boundaries carries risks, but setbacks can reveal where a team needs to adapt.
Panay drew on his time at Microsoft, where he spent more than 19 years. He pointed to the launch of Surface RT, the company's first tablet, as a major setback that led to a nearly $1 billion write-down.
Rather than treating the launch as a single misstep, he said teams should examine the choices made along the way. In Surface RT's case, he cited factors including software readiness, inventory and retail planning. Recognizing those contributing decisions, he argued, is essential to learning without making excuses.
Panay also advised founders not to abandon a promising vision simply because an early attempt falls short. Instead, they can use what they learn to adjust direction--often through measured changes rather than a complete reversal--and move forward with greater understanding.
For future product teams, this approach may help turn experimentation into more thoughtful innovation, pairing ambitious ideas with faster learning and better-informed decisions.
