Freedom and Safety to Experiment within an Innovation Organisation
Principal Consultant
Unlocking Sustainable Growth Through Innovation
The key to sustained growth relies on an ability to innovate reliably and sustainably. At Skarbek, we are embarking on a journey to unravel the mystery behind what makes the best excel at this. Leveraging our experts’ vast experience and highlighting attributes from our Innovation Fitness Index, we aim to provide unique insights into some of the core factors impacting innovation success. A recent broad industry survey, utilising our Innovation Fitness Index Survey, identified a number of critical insights for organisations to be aware of. One in particular stands out, the Freedom & Safety to Experiment, which had an average organisational effectiveness score of only 58 out of 100 for FMCG businesses sampled.
Psychological Safety: The Foundation of Innovation
In today’s rapidly evolving business landscape, innovation has become a crucial driver of success. However, fostering a culture of innovation requires more than just creative ideas – it demands an environment where employees feel psychologically safe to take risks, challenge the status quo, and share their unique perspectives. Psychological safety, defined as the shared belief that the team is safe for interpersonal risk-taking, is the foundation upon which high-performing, innovative teams are built. The term was first coined by Amy Edmonson in the late 90s when she noted improved results for teams where there was psychological safety [1]. When employees feel secure in expressing their thoughts and opinions without fear of judgment or retribution, they are more likely to engage in constructive debates, experimentation, and learning that fuel innovation.
It has to be said that Psychological Safety needs to be managed carefully in industries where the risks are very high such as pharmaceuticals and oil and gas. In high-risk industries like these, the boundaries have to be carefully managed in the context of the business.
Research has consistently shown that psychological safety is the number one variable in team performance and the key ingredient for creating inclusive environments and high-performing, innovative teams.
When team members feel psychologically safe, they are more willing to explore new approaches and contribute their unique ideas – all of which are essential for driving innovation. Psychological safety also has a direct impact on employee engagement and creativity. When individuals feel safe to voice their opinions and know that their input is valued, they become more invested in the organisation’s success. This sense of ownership and empowerment drives their motivation to contribute to innovative solutions.
Moreover, psychological safety encourages risk-taking, a crucial element of the innovation process. When team members feel supported and safe to take calculated risks, they are more likely to step out of their comfort zones and pursue innovative opportunities. This mindset promotes resilience, adaptability, and a willingness to explore new avenues for growth. To cultivate psychological safety within an innovation-driven organisation, leaders must lead by example, encourage active listening, empower employees, provide constructive feedback, and reward innovative thinking. By creating an environment where individuals feel included, safe to learn, contribute, and challenge the status quo, organisations can unlock the full potential of their teams and drive sustainable innovation. It is worth noting that whilst the creation of a Psychologically Safe environment helps to encourage creativity and innovation, it must be aligned with business outcomes and directions and ensure that individuals and teams alike are fully accountable for their results.
Key Insights from Research
Some examples of companies that have successfully implemented psychological safety:
Leading companies like Google, Accenture, and Microsoft, have successfully implemented psychological safety by prioritising it as a key driver of innovation and performance, creating open communication, demonstrating transparent leadership behaviours, and empowering employees to take risks and share ideas freely [2][3][4].
Four Stages of Psychological Safety
Skarbek endorses the tips as outlined by Dr. Timothy Clark, on how to develop a safe and effective environment considering the two dimensions and the four stages of psychological safety. We believe the model from Clark simplifies the key areas that leadership can tackle to approach Psychological Safety balancing the dimensions of Respect and Permission with the four stages of development outlined at a high level below:
Inclusion Safety:
This is the first stage, where people feel they can be their authentic selves and belong to the team without fear of rejection or judgment. It satisfies the basic human need to connect and feel included. Leaders need to listen, be curious and encourage the sharing of ideas and perspectives it’s not about sharing the leader’s stories! [5][7]
Learner Safety:
Through this stage, people feel safe to engage in the learning process, ask questions, experiment, and even make mistakes without fear of punishment. Mistakes are seen as part of the learning process. As a leader how do you demonstrate that you are listening and are able to see what was learned versus the potential for highlighting mistakes? [5][7]
Contributor Safety:
At this stage, employees feel safe to fully contribute their ideas and talents, knowing their input will be valued. They are empowered to work autonomously and deliver results. As a leader how do you make sure you seek contributions from all team members and ask more questions than give answers?[5][7]
Challenger Safety:
The highest level of psychological safety, where employees feel safe to challenge the status quo and offer ideas to improve things, even if it means pointing out flaws or being proven wrong. There needs to be a high level of trust and humility as a group achieves this maturity. As the leader how do you ask for the bad news together with the good news and look to create a safe environment where dissent is welcomed and not judged? [7][8]
As teams progress through these stages, they will be able to create more inclusive, learning-oriented, innovative, and high-performing cultures. [5][7]
Additional Tips:
Leadership plays a crucial role in fostering a culture of experimentation within organisations. Here are key ways leaders can drive this culture:
By consistently championing these practices, leaders can cultivate an experimentation culture that drives innovation and adaptability in today’s rapidly changing business environment.
Conclusion
In conclusion, psychological safety is not just a buzzword – it is the foundation upon which innovative cultures are built. By fostering a psychologically safe environment, organisations can unlock the creativity, collaboration, and risk-taking that are essential for driving breakthrough ideas and staying ahead of the competition. This in turn will result in great business success and growth.
Freedom & Safety to Experiment is just one element of Skarbek’s Innovation Fitness Index, a holistic diagnostic tool, helping clients to assess how well their organisation is poised to drive innovation today. This powerful tool goes beyond conventional assessments, offering a comprehensive analysis of your organisation’s readiness to deliver innovation. It allows clients to unlock valuable insights that can shape strategy, enhance processes and elevate their innovation game. Get in touch with one of our experts to begin your innovation fitness assessment today – enquiries@skarbek.com