Cognitive biases in leadership can lead to poor decision-making, and one such bias is the tendency to overvalue consensus and undervalue failure. The mechanism behind this is the fear of being wrong, which can stifle innovation and creativity. When leaders prioritize consensus over experimentation, they may inadvertently create a culture that avoids risk and settles for mediocrity. This can result in a lack of meaningful progress and a failure to adapt to changing circumstances.

The concept of faster fails, better outcomes, is rooted in the idea that experimentation and failure are essential components of the learning process. A vivid example of this is the story of Thomas Edison, who is famously quoted as saying "I have not failed. I've just found 10,000 ways that won't work." Edison's approach to innovation was centered around rapid experimentation and learning from failure, which ultimately led to the development of the light bulb. This approach can be applied to leadership, where embracing failure as a necessary step towards success can lead to more innovative and effective decision-making.

However, there is a limitation to this approach, as it requires a culture that is tolerant of failure and willing to learn from mistakes. If leaders are not willing to take risks and experiment, they may struggle to create an environment that fosters innovation and creativity. Furthermore, the pressure to deliver results quickly can sometimes lead to a focus on short-term gains rather than long-term success, which can undermine the effectiveness of this approach. Ultimately, the key to successful decision-making is finding a balance between experimentation and pragmatism, and being willing to adapt and learn from failure.