Leadership Development Blog | Importance Of Team Development

Flow, Failure, and Fun: Why Experimentation Unlocks Better Team Performance

Written by David Paice | Jan 15, 2026

In most organisations, failure is treated as something to avoid — a risk, a cost, a potential embarrassment. Yet our most recent White Paper argues that teams reach their highest levels of enjoyment and performance precisely when they are free to experiment, learn visibly, and fail safely together This is the territory of 'second-order' fun — the satisfying, energising experience of collective problem-solving.

From a psychological perspective, experimentation activates intrinsic motivation: autonomy, challenge, and mastery. Research by Csikszentmihalyi (1990) shows that flow emerges when people are stretched just enough to grow, but not so far as to shut down. In teams, this becomes a shared state — the “leaning-in together” moment described in the spaghetti-tower vignette.

Peter Skillman’s marshmallow challenge offers a powerful demonstration of how different audiences approach this game. The business students’ hesitation — driven by low psychological safety — impeded progress. By contrast, the kindergarteners “failed fast,” iterated constantly, and turned mistakes into information. Their fun wasn’t childish; it was the natural by-product of a supportive, feedback-rich environment. This aligns with research showing that rapid prototyping accelerates both learning and innovation (Edmondson, 1999; Sawyer, 2012). 

The Adaptable Team Framework reinforces these principles through its focus on mindset (purpose, identity, trust), action (team habits), and outcome (learning, enjoyment, performance). When teams normalise visible learning, experimentation stops feeling risky and starts feeling rewarding. 

For leaders, the practical question is: How do we create this environment? Several habits stand out: 

  • Encourage cheap, fast experiments rather than long debates. 
  • Minimise egos, agendas and silly politics so ideas can flow freely. 
  • Celebrate adjustments, not just outcomes. 
  • Use structured debriefs to turn activity into learning. 

These behaviours cultivate a rhythm where failure becomes information, effort becomes shared, and enjoyment becomes collective. Under these conditions, second-order fun naturally emerges — not as a distraction, but as evidence that the team is operating near its learning edge. 

When organisations embrace experimentation, they unlock not only innovation but also the deeper, more meaningful form of fun that fuels engagement and performance. 

References: 
Csikszentmihalyi, M. (1990). Flow: The Psychology of Optimal Experience. 
Edmondson, A. (1999). Psychological safety and learning behavior in work teams. 
Sawyer, K. (2012). Explaining Creativity. 

 


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