Knowledge of failure helps lead to success

— -- Don Keough, the former Coca-Cola president who sits on Warren Buffett's Berkshire Hathaway board, is often invited to speak about business success. But he elected to call his book The Ten Commandments for Business Failure. Keough, 82, spoke with USA TODAY corporate management reporter Del Jones about his backdoor approach to accomplishment. Following are excerpts, edited for clarity and space.

Q: Why did you write about how to fail?

A: I've always been afraid of the word success. People, companies and countries can get into trouble when they start to think they're successful. They get arrogant. I was invited to give a keynote address about "How to be a winner" 20 years ago. I said I wasn't comfortable talking about that, but that I'd be happy to talk about how not to be a loser. Ten years ago, Warren Buffett and Herbert Allen said I ought to put it into a book.

Q: You say that one way to fail is to quit taking risks. Given what's happened with the financial markets, fear sometimes seems a healthy response.

A: It's awfully easy to get to 40 and say, "I'm tired of sticking my neck out. I'm going to play it cool." If you look at the history of a lot of companies, you'll see that they often turn down opportunity. Coca-Cola once resisted going international, which now represents 70% of its earnings. Xerox once decided computers were too risky. Of course, if you take outrageous risk, you get outrageous failure. There's always something to be afraid of. It was overpopulation. Then the killer bees were coming to get you. There's always some bad news out there. There is great concern that China and India are emerging as economic powers. Over the long term, that will help all industrialized countries. It's very easy to be afraid of the future. Don't do it. I'm no economist, but two years from now, the financial crisis will be just a piece of history.

Q: You tell leaders that they must not assume infallibility. Can't that erode the confidence necessary for effective leadership?