Psychological safety has emerged as a critical factor for team success. Coined by Harvard Business School professor Amy Edmondson, psychological safety refers to the shared belief that a team environment is safe for interpersonal risk-taking. This means that team members feel comfortable speaking up, sharing ideas, admitting mistakes, and asking questions without fear of embarrassment, rejection, or retaliation.
Teams that foster psychological safety thrive. They innovate more, communicate better, and achieve higher levels of performance. On the other hand, teams lacking psychological safety often struggle with mistrust, poor collaboration, and stagnation.
Let’s explore what psychological safety looks like in practice, how it impacts teams, leaders, and organisations, and what happens when it’s absent.
What Does a Psychologically Safe Team Look Like?
A psychologically safe team is not free of conflict or mistakes, but rather, it’s a space where these challenges are addressed constructively. Here are the hallmarks of such teams:
- Open Communication: Team members freely share ideas and feedback without fear of negative consequences.
- Mutual Respect: Diverse perspectives are valued and considered, fostering inclusivity and collaboration.
- Supportive Environment: Risk-taking is encouraged, and mistakes are viewed as learning opportunities.
- Constructive Conflict Resolution: Disagreements are addressed openly and respectfully, leading to innovative solutions.
In psychologically safe teams, everyone feels they have a voice, and this shared confidence enables collective success.
The Impact of Psychological Safety
The effects of psychological safety—or the lack thereof—are far-reaching. Let’s break it down across three key levels: team, leadership, and business.
At the Team Level
Positive Impact:
- Enhanced Collaboration: Team members who feel safe to share ideas and feedback contribute to a more dynamic and innovative team.
- Higher Engagement: A supportive environment encourages active participation and fosters commitment to team goals.
- Improved Problem-Solving: Open dialogue leads to creative and effective solutions.
Negative Impact:
- Lack of Trust: Fear of judgment or rejection can stifle communication and collaboration.
- Reduced Innovation: Teams that avoid risks miss opportunities to innovate and adapt.
- Lower Morale: When psychological safety is absent, team members may feel undervalued and disengaged.
At the Leadership Level
Positive Impact:
- Stronger Decision-Making: Leaders who foster psychological safety receive honest feedback and diverse perspectives, enabling better decisions.
- Improved Team Dynamics: Leaders build trust and create stronger connections with their teams, leading to higher performance.
- Encouraged Accountability: Team members feel empowered to take ownership of their roles without fear of blame.
Negative Impact:
- Limited Feedback: Leaders may remain unaware of critical issues if team members are too afraid to speak up.
- Erosion of Trust: A lack of openness can weaken relationships between leaders and their teams.
- Missed Opportunities: Without diverse input, leaders risk making one-dimensional decisions that fail to address team needs.
At the Business Level
Positive Impact:
- Higher Retention Rates: A psychologically safe environment leads to greater employee satisfaction and lower turnover.
- Enhanced Productivity: Teams that collaborate effectively contribute to higher overall output.
- Stronger Financial Performance: Organisations with inclusive and innovative cultures often outperform their competitors.
Negative Impact:
- High Turnover Costs: Toxic environments drive talent away, leading to significant recruitment and training expenses.
- Stagnation: Without innovation, businesses struggle to adapt to market changes and lose their competitive edge.
- Reputational Damage: Companies known for poor workplace cultures may struggle to attract top talent.
Data to Back It Up
A growing body of research highlights the importance of psychological safety:
- Google’s Project Aristotle: Google found that psychological safety was the single most important factor in determining a team’s success. Teams with high psychological safety were more innovative, engaged, and effective.
- Gallup Research: Employees in psychologically safe environments are 12% more productive and 27% less likely to leave their organisation.
- Harvard Business Review (2023): Companies that prioritise psychological safety see significant increases in innovation and team performance.
Building Psychological Safety in Teams
For coaches and leaders, fostering psychological safety is a critical skill. Here are some actionable steps to cultivate it within teams:
- Model Vulnerability: Leaders who admit their own mistakes and seek feedback demonstrate that it’s safe to be open and honest.
- Encourage Diverse Perspectives: Actively seek out and value input from all team members, particularly those who may be less vocal.
- Create Structured Spaces for Dialogue: Use tools like ORSC’s Designed Team Alliances to set ground rules for how teams communicate, handle conflict, and support one another.
- Recognise and Celebrate Contributions: Publicly acknowledge the efforts and ideas of team members to reinforce their value.
- Provide Constructive Feedback: Deliver feedback in a way that focuses on growth and improvement rather than blame.
The Power of Psychological Safety
Psychological safety is a cornerstone of team success, enabling collaboration, innovation, and resilience. By fostering environments where individuals feel valued and respected, leaders and coaches can unlock the full potential of their teams.
For those looking to deepen their skills in creating psychologically safe spaces, ORSC training offers transformative tools and techniques. Join us to learn how to build teams that not only perform but thrive in today’s fast-paced and complex business environment.
Ready to start your journey? Enrol in our next ORSC Fundamentals course and take the first step toward mastering team coaching and creating impactful change.
