Matt, a general manager in the Berlin unit of a global software development company, shared his ambition: "I want our unit to be Number 1 across all other units. Yes, I have ambitious goals, and my expectations for my team are high. I know psychological safety and well-being are important, but we just don’t have the luxury of letting our standards drop."
I hear this sentiment quite often. Many ambitious leaders who work tirelessly and set a high standard for performance, engagement and productivity expect the same from their teams. For them, psychological safety and team well-being can seem like distractions, as though focusing on these aspects might lead to a lowering of standards. But in reality, it’s quite the opposite. Let’s break down why.
I hear this sentiment quite often. Many ambitious leaders who work tirelessly and set a high standard for performance, engagement and productivity expect the same from their teams. For them, psychological safety and team well-being can seem like distractions, as though focusing on these aspects might lead to a lowering of standards. But in reality, it’s quite the opposite. Let’s break down why.
Harvard Business School professor Amy Edmondson introduced the concept of psychological safety in 1999. Since then, it’s been recognized as a crucial factor in building high-performing teams. According to a McKinsey survey, a staggering 89% of employees "believe that psychological safety in the workplace is essential." But what about leaders? How can psychological safety support them in achieving their ambitious goals?
Psychological Safety And Burnout Prevention
High-performing teams, especially in fast-paced environments like tech, often walk a tightrope between success and burnout. Psychological safety acts as a buffer by creating a space where team members feel secure enough to openly discuss workload, stress and mental health challenges without fear of repercussion. And this is where psychological safety becomes a tool for leaders like Matt who want to maintain sustainable performance. When people feel safe, they are more likely to admit when they’re overwhelmed, which gives leaders the opportunity to address issues before they escalate into full-blown burnout.
Teams that experience psychological safety are better equipped to handle stress because they can communicate openly about their challenges and ask for help when needed. This doesn’t lower standards; rather, it ensures that your team is both high-performing and resilient. It’s a long-term investment in maintaining performance without burning out your best people.
Psychological Safety And Team Performance
Psychological safety directly impacts team performance by fostering a culture of learning, open communication and risk-taking. When people feel safe to voice their ideas, even if they’re unconventional or risky, it leads to innovation and improved problem-solving. Teams with high psychological safety are often more collaborative, and they perform better because they’re not afraid to share ideas or make mistakes. The absence of fear frees up cognitive resources for more strategic thinking and creativity, two key drivers of high performance.
The Business Case For Psychological Safety
Addressing psychological safety is not just a "nice-to-have" for employees—it brings tangible business benefits:
• Reduced Turnover: Burnout and stress are major drivers of employee turnover. By creating a psychologically safe environment, leaders can reduce the likelihood of key talent leaving.
• Improved Strategic Thinking: Excessive stress impairs the ability to think strategically. A safe environment allows employees to focus on long-term goals, not just immediate deadlines.
• Enhanced Creativity: A culture where people feel safe to share ideas without fear of judgment fosters innovation and creativity. This is a huge competitive advantage, especially in industries like software development.
• Cost Savings: Burnout costs organizations billions annually in lost productivity, absenteeism and turnover. Preventing burnout through psychological safety isn’t just good for morale—it’s good for the bottom line.
How Leaders Can Cultivate Psychological Safety
So how can someone like Matt create a psychologically safe environment without compromising on high standards or performance?
1. Be the last to speak. Encourage open dialogue by allowing your team to express their thoughts before you weigh in. This shows that you value their input and are not simply dictating decisions.
2. Ensure everyone is heard. Not everyone feels comfortable speaking up in group settings. Make it a point to have one-on-one conversations to ensure that quieter team members have a chance to share their perspectives.
3. Foster collaboration. Create small working groups, pair up newcomers with mentors and encourage mutual learning opportunities. These actions build trust and reinforce psychological safety.
4. Set clear goals with defined expectations. Clarity is key. When team members understand exactly what’s expected of them and how their work contributes to the bigger picture, they can focus on performance without unnecessary anxiety.
5. Agree on team norms. Establish team norms and processes that support collaboration and open communication. This provides structure while also allowing for flexibility and innovation.
Conclusion
At some point, you might think that focusing on psychological safety is a distraction from hitting ambitious goals, but the truth is, it’s the key to keeping a team performing at their best over the long run. Psychological safety enables people to feel comfortable speaking up, sharing ideas and admitting when they’re struggling without fear of negative consequences. This openness fosters a healthier, more productive environment where collaboration and innovation thrive.
When team members feel psychologically safe, they’re more likely to engage, take risks and learn from their mistakes. This doesn’t mean lowering standards—it means creating a space where individuals can push boundaries and experiment without the fear of failure. In fact, psychological safety keeps teams energized and focused, preventing burnout while maintaining high performance.
So while it might seem like focusing on psychological safety is a "luxury" that high-performance teams can’t afford, the reality is that it’s a necessity for achieving sustainable, long-term success.