“When there is no penalty for failure, failures proliferate.”

To Henry Howard, who had resolved never to attempt public speaking again after breaking down in attempting to speak in a church meeting. Reported in Dictionary of Australian Biography http://gutenberg.net.au/dictbiog/0-dict-biogHi-Hu.html#howard2|accessdate=2009-09-27.

Wooden: A Lifetime of Observations and Reflections on and Off the Court (1997)

Source: Money: Whence It Came, Where It Went (1975), Chapter XX, Where It Went, p. 293

#440
Vectors: Aphorisms and Ten Second Essays (2001)

Conference paper https://www.researchgate.net/publication/264346445_The_Microsat_Way_in_Canada%5D Stibrany, P. and Carroll, K.A., "The Microsat Way in Canada," in Proc. ASTRO 2000 - 11th CASI Conference on Astronautics, Ottawa, Canada, 6-9 Nov. 2000.
The quote is a play on the title of Gene Kranz's autobiography, "Failure Is Not An Option". (See the Discussion page for further contextual information.)
The quote gained immediate currency within the MOST https://en.wikipedia.org/wiki/MOST_(satellite) development team. It started to spread when one of the MOST team members, Henry Spencer (one of the fathers of the open-source movement, a well-known long-time contributor to the sci.space newsgroups, and also MOST's Software Architect) began using this quote as his Usenet newsgroups .sig ( this being one example https://groups.google.com/forum/#!topic/sci.space.history/Sl54b83g0jk%5B1-25%5D). The quote has gained wider currency since then, for example in this 2005 blog post by Rand Simberg. http://www.transterrestrial.com/archives/005132.html More recently, the quote has been stated numerous times by Chris Lewicki, the CEO of the asteroid mining company Planetary Resources https://en.wikipedia.org/wiki/Planetary_Resources (e.g., here https://singularityhub.com/2017/08/17/space-startups-see-a-future-when-millions-of-people-live-and-work-in-space/?utm_content=buffer52ee3&utm_medium=social&utm_source=twitter-su&utm_campaign=buffer), as well as by that company's Chairman, Peter Diamandis https://en.wikipedia.org/wiki/Peter_diamandis (e.g., here http://www.diamandis.com/blog/entrepreneurs-not-government-drive-innovation-heres-why), with others subsequently requoting them, such as here http://www.diamandis.com/blog/entrepreneurs-not-government-drive-innovation-heres-why and here http://vladdit.com/exponential-wisdom-episode-15-notes-driving-innovation/.

Song lyrics, Bringing It All Back Home (1965), Love Minus Zero/No Limit

Majority Report, July 22, 2005 broadcast
Majority Report
Context: You know George W. Bush is a war-time president, he says - proudly. Guess what. War is failure! When you are at war, you have failed! When you have gone to a war of choice and lied about it, you're a double-triple, triple-quadruple failure! Or a warlord. It's called a warlord in other countries. A war time president here. One man's ceiling I guess is another man's floor. George Bush is a warlord. He's a failure!

Lyrics, How to Dismantle an Atomic Bomb (2004)