#66 - Psychological Safety in Resilient Organisations

Resilient Organisations: Turning Disruption into Competitive Advantage

Disruption is inevitable in today’s fast-paced world. To thrive in an environment full of unknowns, organisations need employees who are open to learning, challenging existing norms, and adapting their mindsets and behaviors. Employees with these qualities are resilient, and teams that embody resilience can transform disruptions into opportunities for competitive advantage.

According to a study by McKinsey Quarterly, individuals who report high levels of resilience and adaptability tend to be more engaged and demonstrate greater innovative behaviors. While McKinsey quantifies this with claims of a "three to four times higher likelihood" of innovation, I urge caution when interpreting such statistics in social science. The numbers may be compelling, but causality is complex.

In their article, Developing a Resilient, Adaptable Workforce for an Uncertain Future, McKinsey experts identify four key environmental conditions that foster resilience within organisations.

Conditions of Resilience

Set a Compass or North Star to Guide People in a Common Direction

A strong sense of purpose is a fundamental pillar of resilience. In an unpredictable world, having a clear direction provides stability and serves as a reference point when navigating challenges. Purpose acts as an anchor, helping employees remain focused even when circumstances shift rapidly.

Leaders Must be the Role Models of Resilience

Leaders who don’t ‘walk the talk’ fail to inspire change. Empty words and surface-level compliments do little to foster resilience. In fact, when leaders do not practice what they preach, they risk creating resentment rather than driving genuine transformation.

Resilient organisations require leaders who model adaptability, perseverance, and openness to learning. When employees see these traits in action, they are more likely to mirror them in their own work.

Encourage Employees to Learn and Build These Skills in Groups

McKinsey highlights that social learning amplifies individual learning effects. Beyond that, learning in groups fosters diversity of thought and interconnections—key features of resilient systems.

Resilience is not just an individual trait; it thrives in collective environments. When employees engage in collaborative learning, they develop shared problem-solving skills, broaden their perspectives, and strengthen workplace relationships. This, in turn, enhances the organisation’s overall ability to withstand and adapt to challenges..

Build a Psychologically Safe Community, Not Just a Workforce

This is perhaps the least obvious but most critical component of resilience. Some may argue that an excessive focus on psychological safety leads to complacency, reducing the drive to innovate or take risks. However, McKinsey suggests that psychological safety and accountability are not mutually exclusive; instead, they must be integrated.

Balancing Psychological Safety and Accountability

Psychological safety means employees feel safe expressing ideas, asking questions, and taking risks without fear of embarrassment or punishment. However, this does not mean an absence of accountability. In fact, the most resilient organisations blend psychological safety with clear expectations and constructive feedback.

When employees feel psychologically safe:

• They are more likely to engage in open, challenging discussions.

• They share feedback more transparently, leading to continuous improvement.

• They take responsibility for outcomes rather than engaging in blame games.

On the other hand, accountability without psychological safety often results in stress, fear of failure, and a reluctance to innovate. Employees may hesitate to share bold ideas or admit mistakes, which stifles growth.

Leaders can cultivate this balance by:

• Encouraging open dialogue: Frame mistakes as learning opportunities rather than failures.

• Setting clear, realistic expectations: Psychological safety does not mean lowering standards. High-performance cultures can coexist with a safe, trust-driven environment.

• Providing constructive feedback: The goal is not to avoid conflict but to create a space where feedback is actionable and growth-oriented.

This powerful combination—psychological safety with accountability—creates an environment where employees feel both supported and challenged, leading to higher resilience across the organisation.

Conclusion

McKinsey’s findings align with much of the existing research on resilient systems, but their insights on the synergy between psychological safety and accountability stand out. Contrary to popular belief, psychological safety does not lead to complacency. Instead, when merged with accountability, it fosters a culture of continuous learning, open feedback, and shared responsibility.

Transforming an organisation into a supportive, resilient community is one of the most vital leadership skills of our era. The question of how to build psychological safety effectively is complex, and I will explore this topic in greater depth in future articles.

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References and Notes

Brassey J., De Smet A, Maor D, Rabipour S. (2024). Developing a resilient, adaptable workforce for an uncertain future. McKinsey Quarterly.

McKinsey Quarterly distinguishes resilience from adaptability. However, in my definition, adaptability is a key ingredient of resilience rather than a separate characteristic.