THE BURNT COOKIE

A rethinking of the role of failure in business.

In this business book, Mandel introduces readers to the burnt cookie theory, an extended metaphor in which mistakes are expected, embraced as learning opportunities, and used to effect long-term improvements. Elements of the theory include the Baker (the person or team doing the work), the Oven (the systems, tools, and resources involved), and the Recipe (the plan, strategy, and workflow that the Baker uses). The author takes readers through the core elements of the theory, then explains how to apply each aspect of it toward diagnosing problems, allowing companies to pinpoint what’s gone wrong in an atmosphere that allows everyone to admit mistakes without fear of being singled out as scapegoats. The book provides several case studies of companies, such as Pixar and Amazon, that have embraced the theory, which has allowed them to turn parts of disastrous projects into eventual successes (Mandel also discusses unsuccessful companies like Quibi that could have benefitted from its use). Later chapters address the challenges of implementing the techniques without managerial or company-wide support and the specific ways in which the burnt cookie theory can incorporate the use of AI tools without evading responsibility for their outputs (“Long before AI, employees were hiding the tools they used to get their work done”). Mandel does an excellent job of developing the theory and explaining how it can be beneficial, providing concrete examples of conversations that managers can have with their teams (alongside conversations employees can have with skeptical bosses) and actionable guidelines for implementing the concept. Although the frequent references to Bakers, Ovens, and Recipes (along with occasional visits to Test Kitchens and Dining Rooms) can wear a bit thin, the author’s use of the terminology serves to reinforce the key elements of the system. The author makes a compelling case for expecting failures and approaching them from a place of curiosity, and his book succeeds by offering concrete ways to turn its framework into a regular practice.

A convincing argument for using failures to learn, with instructions for doing it well.