In today's stressful and chaotic workplace, 'psychological safety' is more than a buzzword—it's an imperative. Rather than representing a soft retreat from the hard edge of business, psychological safety is a foundational element for efficient, agile, and ethical organizations.

Pioneered by William Kahn and Amy Edmondson, it is defined as: “where one is confident that no one on the team will embarrass or punish anyone else for admitting a mistake, asking a question, or offering a new idea.”  Importantly, it is not about coddling or complacency, it creates the conditions for an optimal zone for learning and performance.

Credit: Amy Edmondson

It's a zone where the courage to voice novel ideas, question norms, and admit errors is not only permitted—it's celebrated. This is not antithetical to accountability; it's a precursor to it. Far from being a luxury, psychological safety is a catalyst for meeting and exceeding performance benchmarks. Here's why:

1. Empowers Team Performance: Insights from Google's Project Aristotle revealed a profound truth: the highest-performing teams are anchored in safety. They not only perform well in the short term but also master the art of constructive conflict, driving innovation and creative solutions through diversity of thought.

2. Mitigates Risk: Psychological safety is the antidote to the opacity that shrouds ethical breaches and compliance failures. It ensures the free flow of information and encourages vigilance against misconduct, serving as a guardrail for organizational integrity.

3. Promotes Sustainability: By nurturing employee retention and well-being, psychological safety isn't just a people strategy—it's a business sustainability strategy, particularly among women and minorities. According to BCG, retention is 4x higher for women, 5x higher for BIPOC, and 6x higher for LGBTQ+ employees that are psychologically safe.

So where to teams start?

• It begins with a clear assessment: based on qualitative conversations and quantitative inquiry. This validated survey built for healthcare workers in Ireland and Holland, could be adapted for your contexct:

• Establish new norms. With data in hand, teams can establish explicit norms that address identified gaps. For instance, if a team hesitates to discuss mistakes, a new norm might be, "We prioritize transparency over perfection." Such norms, once embedded, can reshape the cultural DNA of teams, entrenching psychological safety into the very way they operate.

• Keep talking about it. As meetings wrap up, ask questions about how people feel, and if there is anything left to be said.

In sum, the narrative that pits psychological safety against performance is a false dichotomy. Far from being at odds, psychological safety and high performance are mutually reinforcing. Organizations poised to thrive in uncertainty and complexity will be those that recognize and harness the transformative power of psychological safety.