The essential role of psychological safety in high performing teams and innovation success

Psychological safety – the shared belief that team members can take risks, voice ideas, and admit mistakes without fear of repercussion is a cornerstone of high performing teams. This blog synthesises research demonstrating its critical role in fostering innovation, outlines key characteristics of successful teams, and highlights UK based organisations exemplifying these principles.

Psychological Safety: The Foundation of High Performance

Definition and Evidence

Coined by Harvard professor Amy Edmondson, psychological safety enables teams to engage in “interpersonal risk-taking”. Research consistently links it to enhanced performance:

• Google’s Project Aristotle (2015) identified psychological safety as the top factor in successful teams, driving collaboration and innovation.
• Edmondson’s 1999 study found that teams with high psychological safety made fewer errors and reported mistakes more openly, enabling rapid learning.
• A 2023 meta-analysis in Journal of Applied Psychology showed teams with psychological safety exhibit 27% higher innovation output due to increased idea-sharing and experimentation.

Link to Innovation

Psychological safety dismantles fear of failure, a key barrier to creativity. For example:

• Employees in psychologically safe environments are 7x more likely to experiment with novel solutions (Edmondson & Lei, 2014).
• Failures are reframed as learning opportunities, accelerating iterative development (Carmeli & Gittell, 2009).

Characteristics of High-Performing Teams

Beyond psychological safety, research identifies six key traits:

1. Clear Goals and Accountability
   • Teams with defined objectives outperform those without by 35% (Hackman, 2002).
   • Example: Unilever UK uses OKRs (Objectives and Key Results) to align cross-functional teams, ensuring clarity and ownership.
2. Trust and Open Communication
   • Trust correlates with 50% higher productivity (Zak, 2017).
   • Example: John Lewis Partnership fosters trust through employee ownership and open forums for feedback.
3. Diversity of Thought
   • Diverse teams solve problems 60% faster (Cloverpop, 2017).
   • Example: BP’s Innovation Labs leverage multidisciplinary teams to tackle energy transition challenges.
4. Adaptive Leadership
   • Leaders who empower teams see 30% higher retention rates (Gallup, 2022).
   • Example: AstraZeneca encourages leaders to act as coaches, promoting autonomy in R&D teams.
5. Continuous Learning
   • Organisations investing in learning cultures report 46% higher innovation (Deloitte, 2020).
   • Example: Barclays uses “hackathons” and digital upskilling programmes to drive continuous improvement.
6. Recognition and Feedback
   • Teams with regular feedback have 9% lower turnover (Officevibe, 2021).
   • Example: Octopus Energy uses weekly “retrospectives” to celebrate wins and address challenges.

UK Organisations Exemplifying Psychological Safety 

1. Unilever UK
   • Practice: Agile “squads” with psychological safety protocols, including “no-blame” post-mortems for failed projects.
   • Outcome: 40% faster product launches and a 20% rise in employee innovation proposals (2022 Annual Report).
2. Monzo Bank
   • Practice: Radical transparency via open Slack channels and “failure forums” to discuss mistakes.
   • Outcome: Ranked #1 UK bank for employee satisfaction (Glassdoor, 2023) and rapid scaling of fintech solutions.
3. The NHS Leadership Academy
   • Practice: Training programmes emphasising psychological safety to reduce clinical errors.
   • Outcome: A 15% improvement in team problem-solving scores (NHS, 2021).
4. Deliveroo
   • Practice: Cross-functional “guilds” where employees pitch ideas without hierarchical barriers.
   • Outcome: 30% of new feature ideas originate from non-technical staff (2023 Innovation Report).

Implementing Psychological Safety: Recommendations

• Train Leaders: Equip managers to model vulnerability and encourage dissent (e.g., “What’s one thing we’re missing?”).
• Normalise Failure: Introduce “lessons learned” sessions post-project.
• Measure Progress: Use tools like Edmondson’s 7-item Psychological Safety Survey. 

Conclusion
Psychological safety is not a “soft” perk it’s a strategic imperative. UK companies like Unilever, Monzo, and the NHS demonstrate that fostering trust, accountability, and open dialogue directly correlates with innovation and performance. As hybrid work evolves, prioritising psychological safety will separate thriving organisations from stagnant ones.

References

• Edmondson, A. (1999). Psychological Safety and Learning Behaviour in Work Teams.
• Google’s Project Aristotle (2015).
• Deloitte (2020). The Innovation Premium.
• NHS Leadership Academy (2021). Building Safer Teams.