Psychological Safety And The Critical Role Of Leadership . - McKinsey

Positive team climate is the mostimportant driver of psychological safety,and most likely to occur when leadersdemonstrate supportive, consultativebehaviors, then begin to challengetheir teams.With consultative leadership, which has a directand indirect effect on psychological safety, leadersconsult their team members, solicit input, andconsider the team’s views on issues that affectthem.10 Supportive leadership has an indirect butstill significant effect on psychological safety byhelping to create a positive team climate; it involvesleaders demonstrating concern and support forteam members not only as employees but also asindividuals.11 These behaviors also can encourageteam members to support one another.Another set of leadership behaviors can sometimesstrengthen psychological safety—but onlywhen a positive team climate is in place. Thisset of behaviors, known as challenging leadership,encourages employees to do more than theyinitially think they can. A challenging leader10asks team members to reexamine assumptionsabout their work and how it can be performedin order to exceed expectations and fulfilltheir potential. Challenging leadership haspreviously been linked with employees expressingcreativity, feeling empowered to make workrelated changes, and seeking to learn andimprove.12 However, the survey findings showthat the highest likelihood of psychologicalsafety occurs when a team leader first createsa positive team climate, through frequentsupportive and consultative actions, and thenchallenges the team (Exhibit 2). Without afoundation of a positive climate, challengingbehaviors have no significant effect. (For moreon how leaders’ behaviors can shape employeemindsets, see sidebar, “The employee experience,based on leaders’ behaviors.”)The standardized regression coefficient between consultative leadership and psychological safety was 0.54. The survey measuredconsultative-leadership behaviors by asking respondents how frequently their team leaders demonstrate the following behaviors: ask theopinions of others before making important decisions, give team members the autonomy to make their own decisions, and try to achieve teamconsensus on decisions.11The survey measured supportive leadership behaviors by asking respondents how frequently their team leaders demonstrate the followingbehaviors: create a sense of teamwork and mutual support within the team, and demonstrate concern for the welfare of team members.12Giles Hirst, Helen Shipton, and Qin Zhou, “Context matters: Combined influence of participation and intellectual stimulation on the promotionfocus–employee creative relationship,” Journal of Organizational Behavior, October 2012, Volume 33, Number 7, pp. 894–909, onlinelibrary.wiley.com; Le Cong Thuan, “Motivating follower creativity by offering intellectual stimulation,” International Journal of Organizational Analysis,December 2019, Volume 28, Number 4, pp. 817–29, emerald.com; Jie Li et al., “Not all transformational leadership behaviors are equal: Theimpact of followers’ identification with leader and modernity on taking charge,” Journal of Leadership and Organizational Studies, August2017, Volume 24, Number 3, pp. 318–34, journals.sagepub.com; Susana Llorens-Gumbau, Marisa Salanova Soria, and Israel SánchezCardona, “Leadership intellectual stimulation and team learning: The mediating role of team positive affect,” Universitas Psychologica,March 2018, Volume 17, Number 1, pp. 1–16, revistas.javeriana.edu.co.4Psychological safety and the critical role of leadership development

Exhibit 2Leaders can exercise supportive, consultative leadership to establish a positiveLeaders can exercise supportive, consultative leadership to establish a positiveteam climate, then begin to challenge the team.team climate, then begin to challenge the team.Reported leadership behaviors and associated positive team climateFrequentlydemonstratesbehaviorSupport of team26%of team6272% of respondents reportingthese leadership behaviors alsoreport a positive team climate% of respondents reportingthese leadership behaviors alsoreport a positive team climate41%13%leadersleadersof teamleadersof teamleaders2732% of respondents reportingthese leadership behaviors alsoreport a positive team climate% of respondents reportingthese leadership behaviors alsoreport a positive team climateInfrequentlydemonstrates behaviorFrequentlydemonstrates behaviorChallengeWhat’s more, the survey results show that a climateconducive to psychological safety starts at the verytop of an organization. We sought to understandthe effects of senior-leader behavior on employees’sense of safety and found that senior leaderscan help create a culture of inclusiveness thatpromotes positive leadership behaviors throughoutan organization by role-modeling these behaviorsthemselves. Team leaders are more likely toexhibit supportive, consultative, and challengingleadership if senior leaders demonstrateinclusiveness—for example, by seeking outPsychological safety and the critical role of leadership developmentopinions that might differ from their own and bytreating others with respect.The importance of developing leadersat all levelsOur findings show that investing in leadershipdevelopment across an organization—for allleadership positions—is an effective methodfor cultivating the combination of leadershipbehaviors that enhance psychological safety.Employees who report that their organizations5

The employee experience, based on leaders’ behaviorsEmployees’ experiences look verydifferent depending on how their leadersbehave. Amy Edmondson, the NovartisProfessor of Leadership and Managementat Harvard Business School, explainsbelow how specific combinations of theleadership behaviors we tested in thesurvey can shape an employee’s mindsetand quality of work.— When a leader isn’t supportive,consultative, or challenging: “Theapathy zone.” Employees who workunder leaders who infrequentlydisplay each of these three behaviorsare often afraid of interpersonalengagement, reluctant to ask othersfor help, and are not motivated tooffer improvements or suggestionsfor the team’s work. They tend to bedisengaged and apathetic.— When a leader is highly supportiveand consultative but doesn’tchallenge the team: “The comfortzone.” Employees working with sucha leader typically feel comfortablevoicing their opinions and appreciatedby colleagues and managers for beingthemselves. However, because theydo not feel particularly challenged,they do not display ambition, nor dothey tend to make major strides as ateam. Often these team environmentsare more focused on creatingcollegiality within the team than onproviding customer satisfaction.— When a leader is neither supportivenor consultative but challenges theteam: “The anxiety zone.” Employeesworking under this type of leaderoften face the kind of anxiety that getsin the way of collaborating, askinginvest substantially in leadership development aremore likely to also report that their team leadersfrequently demonstrate consultative, supportive,and challenging leadership behaviors. They alsoare 64 percent more likely to rate senior leadersas more inclusive (Exhibit 3).13 However, the resultssuggest that the effectiveness of these programsvaries depending upon the skills they address.13146for help, and thus contributing theirbest work. They feel alone and in overtheir heads but do not feel able to askfor help. They believe their work isimportant and are challenged by it,but they do not feel supported orenabled to do it well. Because of that,they tend to keep work-related ideasto themselves.— When a leader is highly supportive andconsultative and also challenges theteam: “The learning zone.” Employeescan achieve a “flow state” where theyfeel properly supported and challenged,and also feel capable of rising to theoccasion. They feel energized by theirwork, able to complete the work, andenabled to take necessary risks inthe process. These employees oftenrequest help from one another—andalso offer it.Reorient the skills developed inleadership programsOrganizations often attempt to cover many topicsin their leadership-development programs.14 Butour findings suggest that focusing on a handfulof specific skills and behaviors in these learningprograms can improve the likelihood of positiveleadership behaviors that foster psychologicalWe measured investing in leadership development by asking about agreement with the following statements: “my organization places a greatdeal of importance on developing its leaders,” and “my organization devotes significant resources to developing its leaders.”Chris Gagnon, Bill Schaninger, and Haimeng Zhang, “Why rigor is the key ingredient to develop leaders,” April 2019, McKinsey.com.Psychological safety and the critical role of leadership development

Exhibit 3Organizations that invest in leadership development are more likely to seeOrganizations that invest in leadership development are more likely to seeleader behaviors that foster psychological safety.leader behaviors that foster psychological safety.Relationship between organizational investment in developing leaders, senior-leader inclusiveness,and leadership behaviors, standardized regression coefficientsOrganization invests substantiallyin developing leaders0.230.33Organization invests substantiallyin developing leaders0.640.23Senior-leader inclusiveness0.58Authoritative shipChallengingleadershipAuthoritative eleadershipChallengingleadershipNonsignificant effects.safety and, ultimately, of strong team performance.Some of the most commonly taught skills atrespondents’ organizations—such as opendialogue skills, which allow leaders to exploredisagreements and talk through tension in a team—are among the ones most associated with positiveleadership behaviors. However, several relativelyuntapped skill areas also yield beneficial results(Exhibit 4).Two of the less-commonly addressed skills in formalprograms are predictive of positive leadership.Training in sponsorship—that is, enablingothers’ success ahead of one’s own—supportsboth consultative- and challenging-leadershipbehaviors, yet just 26 percent of respondents saytheir organizations include the skill in developmentprograms. And development of situationalhumility, which 36 percent of respondents say theirorganizations address, teaches leaders how todevelop a personal-growth mindset and curiosity.Psychological safety and the critical role of leadership developmentAddressing this skill is predictive of leadersdisplaying consultative behaviors.Development at the top is equally importantAccording to the data, fostering psychologicalsafety at scale begins with companies’ most seniorleaders developing and embodying the leadershipbehaviors they want to see across the organization.Many of the same skills that promote positiveteam-leader behaviors can also be developedamong senior leaders to promote inclusiveness. Forexample, open-dialogue skills and development ofsocial relationships within teams are also importantskill sets for senior leaders.In addition, several skills are more important at thevery top of the organization. Situational and culturalawareness, or understanding how beliefs can bedeveloped based on selective observations andthe norms in different cultures, are both linked withsenior leaders’ inclusiveness.7

Exhibit 4The skillsleast oftenofteninin tebehaviorsTheskills addressedaddressed leastbehaviors that foster psychological safety.that foster psychological safety.Skills addressed in leadership-development programs that are predictive of positive team-leaderbehaviors and senior-leader inclusivenessSignificant effectMost commonlyaddressedSupportiveand leaderinclusivenessGroup dynamicsOpen-dialogue skillsSelf-awarenessCultural awarenessDeveloping high-quality socialrelationships in teamsMindful listeningSituational awarenessUnconscious biasesLeast commonlyaddressed1Situational humility1Sponsorship1Situational humility and sponsorship are only predictive of consultative-leadership behaviors, not supportive-leadership behaviors.Looking aheadGiven the quickening pace of change anddisruption and the need for creative, adaptiveresponses from teams at every level, psychologicalsafety is more important than ever. Theorganizations that develop the leadership skillsand positive work environment that help createpsychological safety can reap many benefits,from improved innovation, experimentation, andagility to better overall organizational healthand performance.15As clear as this call to action may be, “How do wedevelop psychological safety?” and, more specifically,“Where do we start?” remain the most commonquestions we are asked. These survey findingsshow that there is no time to waste in creating andinvesting in leadership development at scale to help158enhance psychological safety. Organizations canstart doing so in the following ways:— Go beyond one-off training programs and deployan at-scale system of leadership development.Human behaviors aren’t easily shifted overnight.Yet too often we see companies try to do so byusing targeted training programs alone. Shiftingleadership behaviors within a complex systemat the individual, team, and enterprise levelsbegins with defining a clear strategy alignedto the organization’s overall aspiration anda comprehensive set of capabilities that arerequired to achieve it. It’s critical to develop ataxonomy of skills (having an open dialogue, forexample) that not only supports the realizationof the organization’s overall identity but alsofosters learning and growth and applies directlyWe define organizational health as an organization’s ability to align on a clear vision, strategy, and culture; to execute with excellence; and torenew the organization’s focus over time by responding to market trends.Psychological safety and the critical role of leadership development

to people’s day-to-day work. Practically speaking,toward personal introspection through targetedwhile the delivery of learning may be sequencedreflection questions and small, intimateas a series of trainings—and rapidly codified andbreakout conversations. These environmentsscaled for all leaders across a cohort or functioncan help leaders achieve increased selfof the organization—those trainings will beawareness, spark the desire for further growth,even more effective when combined with otherand, with the help of reflection and feedback,building blocks of a broader learning system,drive collective growth and performance.such as behavioral reinforcements. Whilelearning experiences look much different now— Build mechanisms to make development a16than before the COVID-19 pandemic, digitalpart of leaders’ day-to-day work. Formallearning provides large companies with morelearning and skill development serve asopportunities to break down silos and createspringboards in the context of real work;new connections across an organizationthe most successful learning journeysthrough learning.account for the rich learning that happens inday-to-day work and interactions. The use— Invest in leadership-development experiencesof learning nudges (that is, daily, targetedthat are emotional, sensory, and create ahareminders for individuals) can help learnersmoments. Learning experiences that areovercome obstacles and move from retentionimmersive and engaging are remembered moreto application of their knowledge. In parallel,clearly and for a longer time. Yet a commonthe organization’s most senior leaders needpitfall of learning programs is an outsize focusto be the first adopters of putting real work aton the content—even though it is usually notthe core of their development, which requiresa lack of knowledge that holds leaders backsenior leaders to role model—publicly—theirfrom realizing their full potential. Therefore, it’sown processes of learning. In this context, thecritical that learning programs prompt leadersconcept of role models has evolved; rather thanto engage with and shift their underlyingrole models serving as examples of the finishedbeliefs, assumptions, and emotions to bringproduct, they become examples of the work inabout lasting mindset changes. This requiresprogress, high on self-belief but low on perfecta learning environment that is both conduciveanswers. These examples become strongto the often vulnerable process of learning andsignals for leaders across the organizationalso expertly designed. Companies can beginthat it is safe to be practicing, failing, andwith facilitated experiences that push learnersdeveloping on the job.16“Rethink capabilities to emerge stronger from COVID-19,” November 2020, McKinsey.com.The contributors to the development and analysis of this survey include Aaron De Smet, a senior partner in McKinsey’s NewJersey office; Kim Rubenstein, a research-science specialist in the New York office; Gunnar Schrah, a director of researchscience in the Denver office; Mike Vierow, an associate partner in the Brisbane office; and Amy Edmondson, the NovartisProfessor of Leadership and Management at Harvard Business School.Designed by McKinsey Global PublishingCopyright 2021 McKinsey & Company. All rights reserved.Psychological safety and the critical role of leadership development9

Positive team climate Psychological safety Supportive leadership Challenging leadership 0.77 -0.08 0.22 0.54 0.33 0.05 Signi cant e ect Conditional e ect2 Leaders can increase the likelihood of team members' psychological safety by demonstrating specific behaviors. Psychological safety and the critical role of leadership development 3