Failure Consequence Plan
Turn fear of failure into a plan for handling its consequences
- Difficulty
- Easy
- Time to result
- ~days to results
- Steps
- 6
- Confidence
- 96%
Peters reframes “fear of failure” as fear of being unable to deal with failure's consequences. Failure may remain possible, so trying to eliminate that possibility leaves the person stuck. Consequences, by contrast, can be named, tested for plausibility, and given response plans. List what you believe would happen, distinguish likely effects from catastrophic assumptions, and decide how you would respond to each material outcome. Include practical resources and people who could help. The resulting plan does not guarantee success or remove uncertainty; it aims to establish a credible belief that the outcome can be handled. Peters says this subtle language change makes the fear workable because attention shifts from controlling an uncertain result to preparing for what comes after it.
Origin
Extracted from The Diary of a CEO
Core principles
- 01Failure itself cannot always be prevented
- 02Fear often attaches to anticipated consequences
- 03Specific consequences can be examined and prepared for
- 04A credible response plan increases perceived ability to cope
- 05Uncertainty remains even after planning
How to run it
- 1
Name the attempt
State the action you are avoiding and the result you currently label as failure.
- 2
Translate the fear
Complete the sentence: “If this fails, I fear I will not be able to deal with…” List each consequence separately.
Pro tip Keep financial, social, emotional, and practical effects distinct.
- 3
Test each consequence
Ask how likely, severe, and reversible each effect is. Separate evidence-based downside from a catastrophic story.
Watch out Do not minimize a consequence merely to make action feel easier.
- 4
Plan the response
Write the first actions, support, and resources you would use if each material consequence occurred.
Pro tip Use concrete actions rather than “I will cope.”
- 5
Check coping credibility
Review whether the plan gives you an honest basis for believing you could deal with the outcome. Strengthen weak areas before proceeding.
Watch out A response plan is not evidence that every risk is acceptable.
- 6
Accept and act
Acknowledge that the result remains uncertain, then choose the next proportionate action using both the possible gain and prepared downside.
Pro tip Start with a reversible test when one is available.
In the wild
An aspiring founder says they fear failure. They specify the feared consequences: losing a capped amount of money, embarrassment, and needing to return to prior work. They set a loss limit, prepare an explanation for stakeholders, and preserve a return option before running a small test.
→ The decision becomes a bounded experiment rather than an undefined threat.
Peters says athletes may describe fearing failure. Reframed, the concern is what defeat would mean and whether they could handle it. Examining those consequences creates a plan while preserving the reality that another competitor may still be better on the day.
→ Preparation targets coping with the result rather than pretending the result is controllable.
Common mistakes
Trying to guarantee success
The framework does not remove the possibility of failure. It prepares for consequences so uncertainty becomes more manageable.
Writing a vague coping promise
“I can deal with it” needs a credible basis. Specify actions, support, resources, and limits for each meaningful consequence.
Planning away unacceptable risk
Some downside remains too severe or irreversible even with a response plan. Use the analysis to decline those risks when appropriate.
Is it for you?
Best for
It is best for decisions delayed by uncertainty about how the person would cope if the attempt did not succeed.
Not ideal for
It is not a reason to dismiss severe, irreversible, or poorly bounded downside that needs expert assessment.
From the transcript
“it's fear of not being able to deal with the consequences of failure”
“we can look at the consequences and address them”
“I'm aware, I've got a plan”
From the episode
How To Take Full Control Of Your Mind: Prof. Steve Peters, The Chimp Paradox