Officer were relieved from their positions not fired in the sense of being removed from the military. It was not a career ending event. In fact the video points

Officer were relieved from their positions not fired in the sense of being removed from the military. It was not a career ending event. In fact the video points out some of them would still have successful careers. You relieve someone from a position for not winning (and not just not failing). The theory proposed by the video is that relieve culture INCREASES (even if counterintuitively so) the willingness to take risks. If there is no reward for winning then people will minimize risks. If you make winning necessary for keeping the position, they will be more likely to take risks. (In military context, officers these days, according to the video, care more about minimizing losses and not messing up than actually winning the wars.) Translating it into civilians contexts might be a bit difficult but one thing that I believe can work well is allowing people to move to different positions to find one that they can be most effective in inside the company. Like sometimes people get promoted to managers and then it turns out they are actually ill fitted for that position. Firing them might be a waste but just keeping them around will be to the detriment of the people they need to manage. So the solution is that they need to removed. Maybe even take a lower position until a better position can be found. I think this is main take away: Just like you should not keep around badly performing general as that will cost literally lives you should also not keep around bad managers in a company to the detriment of the people they manage. It is better to pull the plug early, for both sides.