InsightsWhy Psychological Safety Is the Hidden Engine Behind Innovation and TransformationMichelle BonterreJuly 29, 2025pogonici/ShutterstockIn brief:Psychological safetyis crucial for team success, allowing members to take interpersonal risks without fear of embarrassment or retribution. This environment fosters honest problem-solving and innovation.Leadership behaviorsthat promote psychological safety include framing work as learning opportunities, inviting participation, and responding productively to feedback.Balancing psychological safety and high standardsis essential for high performance. A culture that encourages speaking up while maintaining excellence leads to better outcomes.Last month, I had the privilege of attending Harvard Business Impacts annual Partners Meeting, where Amy C. Edmondson, Novartis Professor of Leadership and Management at Harvard Business School, delivered an energizing keynote on psychological safety. Her session, Psychological Safety: The Essential Underpinning of Successful Transformation, left a lasting impression and a renewed sense of urgency about the environments we create for our teams.At its core, psychological safety is the belief that a team is safe for interpersonal risk-taking, that you can ask a question, admit a mistake, or challenge an idea without fear of embarrassment or retribution. And while the concept isnt new, Amy reminded us that in todays VUCA world, its more essential than ever.Professor Amy C. Edmondson delivering a keynote at Harvard Business Impacts 2025 Partners Meeting.Interpersonal Risk Translates Into Business RiskAmy told a story about a company poised to lose billions that stuck with me. No one wanted to admit what wasnt working. It wasnt until one leader dared to speak up that the floodgates of honest problem-solving opened.It underscored her key point: Interpersonal risk translates into business risk. When employees are afraid to speak up, we miss out on insights, preventable mistakes go unchecked, and opportunities for innovation are lost.High-Quality Conversations Are a Leadership SkillSo how do we create the conditions for psychological safety?Amy broke it down into three simple leadership behaviors:Frame the Work: Reframe challenges as learning opportunities, not tests of competence. For example, Weve never done this before, and well need everyones input to get it right.Invite Participation: Ask good questionslike Who has a different perspective?to signal that dissent is not only welcomed but needed.Respond Productively: React with appreciation and forward-thinking, even when the news is hard. Instead of How did this happen?, say, Thanks for that insight. How can we help?Psychological Safety and High Standards Are Not OppositesOne of the most powerful insights from the session was that psychological safety and high standards arent in tension; they are both required for high performance. Without safety, teams may appear agreeable but remain silent. Without standards, teams may feel comfortable but lack rigor. The sweet spot? A culture where its safe to speak up and where everyone is committed to excellence.Reflection: What Kind of Environment Are You Creating for Your Employees?Amy asked us to reflect on our own behavior:Do people around you feel permission to be candid?Do your meetings make people smarter or quieter?Are you actively listening for the idea that was never shared?These arent soft skills. Theyre leadership imperatives in a world that demands constant learning, experimentation, and course correction.Final ThoughtPsychological safety isnt a policy; its a climate. And as Amy reminded us, its not the goal itself but the necessary foundation for everything that matters: innovation, quality, resilience, and transformation.If we want our organizations to thrive in uncertainty, it starts with creating space for people to speak up, think differently, and learn boldly together.Organizational CultureShare this resourceShare on LinkedInShare on FacebookShare on XShare on WhatsAppEmail this PageConnect with usChange isnt easy, but we can help. 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