Category Archives: Psychology

Making it Safe to Innovate

Building Emotional Safety

Making it Safe to Innovate - Building Emotional Safety

GUEST POST from Janet Sernack

When my husband and I became accredited as foster parents for children in need, I thought my skills as a trainer and facilitator would help me navigate the challenges we faced. I quickly discovered that when children arrived at our home late at night, often physically injured and emotionally distraught due to a tragic accident or being separated from their families, their primary need was for emotional safety. This began my long and enlightening quest into what it truly means for someone to develop both emotional and psychological safety. To discover and explore why both emotional and psychological safety are crucial for people to survive, innovate and thrive in the post-pandemic, unstable, and uncertain world.

The whole issue of “safety” is a crucial one. Causing many people, especially those in the change, learning and coaching space, to stop, pause, retreat, and reflect upon how to personalize and contextualize it for ourselves and others we care about and interact with. Yet so few people understand the importance of creating safe environments, especially today when there is so much hatred and violence happening on many of our streets.

We all deserve to, and are entitled to, feel emotionally safe and secure in all aspects of our lives.

What does it mean to be safe?

Because safety: the condition of being protected from or unlikely to cause danger, risk, or injury, impacts everyone and everything in our entire world system. It is an essential element required for our survival, growth, and ability to navigate and innovate in the post-pandemic era. Safety is critical in enhancing people’s capacity to connect, belong, and engage in purposeful relationships, build happy families and secure communities, as well as produce creative, inventive, and innovative work that helps make the world a better place.

What is emotional safety?

Emotional safety exists in an environment where individuals feel valued, respected, and heard, regardless of their values, beliefs, or religious or cultural origins. It involves allowing people to feel safe and secure, nurturing vulnerability, and sharing personal thoughts and feelings without fear of having their words judged as “bad” or “wrong.” Without facing punishment, discrimination, persecution, diminishment, blame, shame, hatred, or violence by others.

It’s a space where it’s safe to say “I don’t know” or “I made a mistake” without being labelled as incompetent or “lacking” in some vital way.

  • Improving well-being, engagement and productivity

Emotional safety is a vital element of an emotionally and mentally healthy environment that fosters well-being, boosts engagement, and enhances productivity. In such an environment, individuals feel secure enough to express, explore, and share their thoughts and feelings about themselves, their colleagues, managers, leaders, and even their organization as a whole. People feel respected and trusted to share ideas, establish boundaries, and be accepted for who they are, what they believe in, flaws and all. 

  • Building mutuality

The intention is to build mutuality, defined by the American Psychological Association as:

“The tendency of relationship partners to think of themselves as members of a dyadic relationship rather than as distinct individuals. As close relationships, particularly romantic ones, develop over time, partners display increasing levels of mutuality, which may influence their affect, cognition, and behavior. In interdependence theory, the tendency of partners to depend equally on each other’s behavior for the attainment of desirable outcomes”.

We live in an interdependent, globalized world where developing emotionally safe, positive, and interactive mutual relationships across geographies, technologies, demographics, and functions is more important than ever. Mutuality lays the groundwork for creating a shared understanding that fosters a safe and open space for learning and effective interactions, based on cooperative, co-petitive, and collaborative relationships in the workplace.

  • Becoming attuned

Emotional intelligence, empathy, trust, and effective communication are vital for fostering emotional safety and form the basis for developing effective emotional regulation and management strategies. This enables us to attune to and connect with others with whom we wish to build relationships.

According to Dr. Dan Seigal:

“When we attune with others, we allow our internal state to shift, to come to resonate with the inner world of another. This resonance is at the heart of the important sense of “feeling felt” that emerges in close relationships. Children need attunement to feel secure and to develop well, and throughout our lives we need attunement to feel close and connected.”

As a foster carer, my ability and willingness to attune with them represented the most important gift I could offer the children. It allowed them to feel close and connected to someone who genuinely cared for them by simply providing the most basic essentials. With no judgement or strings attached, and with both detachment and empathy, it also provided them with crucial evidence that this could indeed continue to be possible for them in their future lives.

As a trainer, facilitator, and coach, these are the key ingredients for establishing an emotionally safe and effective learning intervention, particularly about the people side of innovation and in building an organization that fosters a culture of failure

Developing a psychologically safe culture

Emotional safety is closely linked to psychological safety, which is the belief that individuals can be themselves at work and share their opinions and ideas without fear of negative repercussions.  According to Dr Timothy Clarke at the Leaderfactor, psychological safety empowers individuals and teams to reach new levels of creativity, collaboration, and innovation by nurturing a culture of inclusion and vulnerability. It is a social condition where people feel accepted and secure enough to learn, contribute, and question the status quo, free from fear of embarrassment, marginalization, or punishment, by creating an environment founded on permission, safety, and trust.

  • Embodying a way of being

Creating this emotional state or culture is much harder than most people think. Most organizations believe it’s something they must achieve through process and system changes, rather than by embodying it as a way of being a manager, leader, trainer, or coach who creates:

  • Sanctuaries of inclusion—a space where individuals feel safe and are encouraged to express their feelings, thoughts, opinions, and ideas, fostering a profound sense of inclusion, connection, and belonging.
  • Safe containers – a space where individuals confidently disrupt conventional or habitual ways of doing things, step outside their comfort zones, and challenge the status quo, allowing dissonance, contradiction, paradox, and conflict as sources of creative tension to disrupt, differ, and deviate from the norm. 
  • Collective holding spaces—where individuals accept responsibility, take ownership, and are trusted to contribute to the entire system. By fostering co-creative, interdependent relationships both internally and externally, we work towards achieving the team’s and organization’s vision, mission, purpose, and collective goals.
  • Incubators and accelerators of innovation—where team members are free to emerge, diverge, and converge possibilities. They are empowered, enabled, and equipped to transform these into creative ideas and opportunities. Individuals and teams feel safe in unlearning, learning, and relearning new ways of being, thinking, and acting. This environment challenges the status quo by encouraging disruptive questions, taking calculated risks, and experimenting with new ideas within an authentic, fail-fast culture that promotes quick learning.

Benefits of emotional and psychological safety

  • Enhances individual, team, and collective engagement, connection, and belonging. It establishes a foundation for harnessing and mobilizing people’s collective intelligence in line with the organization’s vision, mission, and purpose. 
  • Promotes effective team collaboration, where individuals feel at ease sharing their ideas, opinions, and concerns. It cultivates an environment where diverse perspectives can be openly discussed alongside differing views: 
  • Inspires people to be emotionally energetic, agile, and adaptable in the face of uncertainty and chaos, as well as in a rapidly changing business landscape.

AI will continue to disrupt job stability and security.

Developing emotional and psychological safety is a key success factor that underpins a culture of innovation, as it creates the essential space for individuals to think and act differently. This is achieved through experimentation, learning from failures, and exploring new methods that lead to breakthrough ideas and innovative solutions, enabling individuals to survive and thrive in the age of AI.

  • Both job losses and opportunities

Fast Company shares that Anthropic CEO Dario Amodei has a stark warning for the developed world about job losses resulting from AI. The CEO told Axios that AI could wipe out half of all entry-level white-collar jobs. This could result in a 10% to 20% rise in the unemployment rate over the next one to five years, Amodei says. The losses could come from tech, finance, law, consulting, and other white-collar professions, with entry-level jobs being hit the hardest.

Just as the children we fostered needed emotional safety, we all require emotional safety when walking our city streets. Similarly, while at work, we all need a psychologically safe working environment rooted in mutuality and trust. This is what allows individuals to attune to each other, feel secure, bonded, and connected, fostering a sense of belonging and unity. This requires investing in the co-creation of emotionally and psychologically safe spaces that attract and retain top talent, enabling individuals to feel valued, as they truly matter, and helping them adapt, innovate, grow, perform and thrive in a post-pandemic, unstable, and uncertain world.

This is an excerpt from our upcoming book, “Anyone Can Learn to Innovate,” scheduled for publication in late 2025.

Please find out about our collective learning products and tools, including The Coach for Innovators, Leaders, and Teams Certified Program, presented by Janet Sernack. It is a collaborative, intimate, and profoundly personalized innovation coaching and learning program supported by a global group of peers over nine weeks. It can be customized as a bespoke corporate learning program.

It is a blended and transformational change and learning program that will give you a deep understanding of the language, principles, and applications of an ecosystem-focused, human-centric approach and emergent structure (Theory U) to innovation. It will also upskill people and teams and develop their future fitness within your unique innovation context. Please find out more about our products and tools.

Image Credit: Pixabay

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Values Determine Your Competitiveness

Values Determine Your Competitiveness

GUEST POST from Greg Satell

When Lou Gerstner was chosen to lead IBM in 1993, he was an unlikely revolutionary. A McKinsey consultant and then the successful CEO of RJR Nabisco, he was considered to be a pillar of the establishment. He would, however, turn out to be as subversive as any activist, transforming the company and saving it from near-death.

Yet there was more to what he achieved than simply turning red ink to black. “The Gerstner revolution wasn’t about technology or strategy, it was about transforming our values and our culture to be in greater harmony with the market,” Irving Wladawsky-Berger, one of his chief lieutenants, told me.

Values are essential to how an enterprise honors its mission. They represent choices of what an organization will and will not do, what it rewards and what it punishes and how it defines success and failure. Perhaps most importantly, values will determine an enterprise’s relationships with other stakeholders, how it collaborates and what it can achieve.

Values Incur Costs And Constraints

At his very first press conference, Gerstner famously declared: “the last thing IBM needs right now is a vision.” It was an odd, even shocking statement for a new CEO charged with turning around a historic company. But what he understood, and few others did, was that unless he changed the culture to honor the values its success was built on, no strategy could succeed.

“At IBM we had lost sight of our values,” Wladawsky-Berger would later tell me. “For example, there was a long tradition of IBM executives dressing formally in a suit and tie. Yet that wasn’t a value, it was an early manifestation of a value. In the early days, many of IBM’s customers were banks, so IBM’s salespeople dressed to reflect their customers. So the value was to be close to customers.”

Gerstner had been a customer and knew that IBM did not always treat him well. At one point the company threatened to pull service from an entire data center because a single piece of competitive equipment was installed. So as CEO, he vowed to shift the focus from IBM’s “own “proprietary stack of technologies” to its customers’ “stack of business processes.”

Yet he did something else as well. He made it clear that he was willing to forego revenue on every sale to do what was right for the customer and he showed that he meant it. Over the years I’ve spoken to dozens of IBM executives from that period and virtually all of them have pointed this out. Not one seems to think IBM would still be in business today without it.

The truth is that if you’re not willing to incur costs and constraints, it’s not a value. It’s a platitude. “Lou refocused us all on customers and listening to what they wanted and he did it by example,” Wladawsky-Berger, remembers. “We started listening to customers more because he listened to customers.

Values Signal Trust And Credibility

In South Africa, the Congress of The People was held in June, 1955. The gathering, which included blacks, mixed race, Indians and liberal whites, convened to draft and adopt the Freedom Charter, much like the Continental Congress gathered to produce the Declaration of Independence in America. The idea was to come up with a common and inclusive vision.

However, the Freedom Charter was anything but moderate. It was a “revolutionary document precisely because the changes it envisioned could not be achieved without radically altering the economic and political structure of South Africa… In South Africa, to merely achieve fairness, one had to destroy apartheid itself, for it was the very embodiment of injustice,” Nelson Mandela would later write.

Yet despite its seemingly radical aims, the Freedom Charter spoke to common values, such as equal rights and equal protection under the law—not just among the signatories, but for anyone living in a free society. It was powerful because of how it signaled to outside stakeholders, such as international institutions, governments and corporations that they shared more with the anti-apartheid movement than they did with the regime.

It was because of those values that activists were able to successfully boycott firms, such as Barclays Bank and Shell Oil, that did business in South Africa. When those companies pulled their investments out, the dominoes began to fall. International sanctions and political pressure increased markedly and Apartheid became politically untenable.

Here again, values would play a crucial role. Much like Gerstner’s willingness to lose revenue on every sale to keep his commitment to IBM customers, Mandela’s commitment to the Freedom Charter, even during 27 years in prison, signaled to stakeholders—inside and outside of South Africa—that supporting his cause was the right thing to do.

Shared Values Drive Collaboration

In the 1960s and 70s, Route 128 outside of Boston was the center of technology, but by the 1990s Silicon Valley had taken over and never looked back. As AnnaLee Saxenian explained in her classic, Regional Advantage, the key difference had less to do with strategy, technology and tactics than it did with values and how the firms saw themselves.

Dominant Boston firms such as DEC, Data General and Wang Laboratories saw themselves as warring fiefdoms. The west coast startups, however, saw themselves as part of the same ecosystem and tended to band together and socialize. “Everybody worked for the same company — Silicon Valley,” Saxenian would later tell me.

This difference in values translated directly into differences in operational practice. For example, in Silicon Valley if you left your employer to start a company of your own, you were still considered part of the family. Many new entrepreneurs became suppliers or customers to their former employers and still socialized actively with their former colleagues. In Boston, if you left your firm you were treated as a pariah and an outcast.

When technology began to shift in the 80s and 90s, the Boston firms had little, if any, connection to the new ecosystems that were evolving. In Silicon Valley, however, connections to former employees acted as an antenna network, providing early market intelligence that helped those companies adapt.

When you value competition above all else, everyone is a potential enemy. However, when you are willing to forsake absolute fealty in the service of collaboration, you can leverage the assets of an entire ecosystem. Those may not show up on a strategic plan or a balance sheet, but they are just as important as any other asset.

Moving From Hierarchies to Networks

The truth is that IBM was not devoid of values when Gerstner arrived. It’s just that they’d gone awry. “IBM had always valued competitiveness, but we had started to compete with each other internally rather than working together to beat the competition,” Wladawsky-Berger remembers. Certainly it valued technology and profits, just not customers.

What Gerstner did was, as noted above, bring the company’s culture and values back into “harmony with the market.” The company no longer wielded monopoly-like power. It had to collaborate with a wide array of stakeholders. It was this realization that led it to become the first major technology company to embrace open source software and support Linux.

Traditionally we’ve seen the world as driven by hierarchies. Kings and queens ruled the world through aristocracies that carried out their orders. Corporate CEO’s outlined strategies that underlings would have to execute. Discipline was enforced through a system of punishments and rewards. Power was valued above all else.

Yet as Moisés Naím pointed out in The End of Power, “Power is easier to get, but harder to use or keep.” Therefore, the ability to attract has become more important than the power to compel or coerce. That’s why today, strategy has less to do with increasing efficiencies and acquiring resources and more to do with widening and deepening networks of connections.

Power no longer lies at the top of hierarchies, but emanates from the center of networks. What determines whether we will get there or not is our values.

— Article courtesy of the Digital Tonto blog
— Image credits: Pexels

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Optimizing Employee One-On-Ones

Optimizing Employee One-On-Ones

GUEST POST from David Burkus

One-on-one meetings with employees are a crucial aspect of effective leadership. Organizations spent countless hours, money, and other resources trying to find the most qualified talent on board, and then spent more money to keep that talent motivated and engaged. And yet, the single most time time-efficient and effective way to invest in the growth and development of employees is a simple feedback session with their direct supervisor.

In this article, we will delve into the three main sections that make up a successful one-on-one meeting: expectations, feedback, and growth and development. By following this structure, you can ensure that your meetings are productive and meaningful, leading to improved performance and employee satisfaction.

Expectations

The first part of your one-on-one meetings with employees should focus on expectations. Setting clear objectives and expectations is the foundation of any successful working relationship. During one-on-one meetings, it is essential to discuss and align on these expectations to ensure that everyone is on the same page. By doing so, you can monitor progress, celebrate achievements, and identify any factors that may be affecting performance.

By setting clear objectives and roles, you provide your employees with a sense of direction and purpose. This clarity allows them to focus their efforts on the most important tasks and prioritize their work effectively. Monitoring progress and celebrating achievements not only boosts morale but also provides an opportunity to recognize and reward outstanding performance. Additionally, by identifying factors that may be affecting performance, you can work together to find solutions and remove any obstacles that may hinder progress.

Feedback

The second part of your one-on-one meetings with employees should focus on feedback. Feedback is a powerful tool for growth and improvement. During one-on-one meetings, it is crucial to provide fair feedback that highlights both areas of high performance and areas for improvement. By acknowledging and appreciating the employee’s strengths, you motivate them to continue excelling in those areas. Simultaneously, by providing constructive feedback, you help them identify areas where they can grow and develop.

This section is also meant to be a two-way conversation. This is a time for employees to give you feedback as well. How are you doing as their manager? What resources do they need that you can provide? Encourage your employees to share their thoughts and ideas, and actively listen to their feedback. By fostering a safe and supportive environment, you can build trust and strengthen the relationship with your team members.

Growth and Development

The final part of your one-on-one meetings with employees should discuss the employees’ growth and development. Take the time to discuss their long-term career goals, the skills they want to develop, and potential future roles they aspire to. Understanding your employees’ career aspirations allows you to tailor their development plans and provide them with the necessary resources and opportunities to achieve their goals. By identifying the skills and knowledge they need to grow, you can offer targeted training and development programs. Additionally, supporting employees in their current roles by assigning challenging projects or providing mentorship opportunities can facilitate their growth and prepare them for future roles within the organization.

This section should focus on the real and accurate career objectives of employees. Unfortunately, too often employees who lack trust in their boss or the company invent false ambitions (“I want to be a manager” or “I’m here for the long-term.”) It’s okay if some employees decide their long-term goals will take them away from the organization. Leaders can still invest in their growth, and they can still be high performers in the meantime.

One-on-one meetings with employees are a valuable investment of time and effort. By following the threefold structure of expectations, feedback, and growth and development, you can create a supportive and engaging work environment. Candid and honest conversations in these meetings can lead to faster growth and better results than formal annual reviews or performance improvement plans.

Remember, the order of the three sections is important, as ending on growth and development helps make the conversation forward-looking and motivating. By setting clear expectations, providing constructive feedback, and supporting your employees’ growth, you can foster a culture of continuous improvement and help everyone on your team do their best work ever.

Image credit: Pexels

Originally published at https://davidburkus.com on September 18, 2023.

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Overcoming the Fear of Innovation Failure

Overcoming the Fear of Innovation Failure

GUEST POST from Stefan Lindegaard

Let’s explore one of the biggest barriers to innovation – fear of failure – and share actionable steps to help your organization overcome it. Your perspectives, ideas, and feedback are much appreciated.

What is the Challenge?

One of the biggest barriers to innovation is the fear of failure. Many organizations, especially large corporations, develop cultures where taking risks is discouraged because failure is often met with negative consequences. This results in stagnation, as employees and leaders shy away from innovative ideas that carry potential risk.

Why Does This Matter?

Without risk, there is no innovation. Companies that focus too much on avoiding failure end up missing opportunities for growth and transformation. Fear of failure leads to risk-averse behavior, stifling creativity and preventing teams from experimenting with new ideas.

How to Overcome It

The key enabler to overcoming the fear of failure is psychological safety—when team members feel safe to express ideas, take risks, and make mistakes without fear of being judged or penalized, they are more likely to experiment.

Here are some steps to foster psychological safety and address the fear of failure:

  • Model Vulnerability: Leaders should share their own past failures and the lessons learned, showing that failure is a stepping stone to success.
  • Encourage Small Experiments: Allow teams to run small, low-stakes experiments where failure carries minimal risk. This builds a culture of learning and exploration.
  • Celebrate Learnings, Not Just Successes: When a project doesn’t achieve the desired outcome, recognize and celebrate the learning gained rather than focusing on the failure itself.
  • Establish a Feedback Culture: Implement regular feedback loops where employees can openly discuss what went wrong, why it happened, and how to improve without fear of blame.
  • Create Safety Nets: Ensure that failure doesn’t have punitive consequences by offering support and framing failures as essential learning experiences for future innovation.

What This Means for Your Teams / Organization

By reducing the stigma around failure, you empower your teams to think more creatively and push boundaries. This mindset shift can lead to more breakthrough innovations and a more dynamic, agile organization.

More Inspiration – Thought Leaders, Case-Study

  • Thought Leader: Tom Kelley of IDEO on Creative Confidence
  • Case Study: How Google’s “Moonshot Factory” (X) embraces failure as part of its process to develop groundbreaking technologies and new ways of doing things.

This post is part of my Corporate Innovation Explained series. You can also follow my Leadership Growth Explained and Team Dynamics Explained series if you like this kind of inspiration.

Image Credit: Pixabay

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Making People Matter in AI Era

Making People Matter in AI Era

GUEST POST from Janet Sernack

People matter more than ever as we witness one of the most significant technological advancements reshaping humanity. Regardless of size, every industry and organization can adopt AI to enhance operations, innovate, stay competitive, and grow by partnering AI with people. Our research highlights three workplace trends and four global, strategic, and systemic human crises that affect the successful execution of all organizational transformation initiatives, posing potential barriers to implementing AI strategies. This makes the importance of people mattering in the age of AI greater than ever. 

Three Key Global Trends

According to Udemy’s 2024 Global Learning and Skills Trends Report, three key trends are core to the future of work, stating that organizations and their leaders must:

  1. Understand how to navigate the skills landscape and why it is essential to assess, identify, develop, and validate the skills their teams possess, lack, and require to remain innovative and competitive.
  2. Adapt to the rise of AI, focusing on how generative AI and automation disrupt our work processes and their role in supporting a shift to a skills-based approach.
  3. Develop strong leaders who can guide their teams through change and foster resilience within them.

Five Key Global Crises

1. Organizational engagement is in crisis.

Recently, Gallup reported that Global employee engagement fell by two percentage points in 2024, only the second time it has fallen in the past 12 years. Managers (particularly young managers and female managers) experienced the sharpest decline. Employee engagement significantly influences economic output; Gallup estimates that a two-point drop in engagement costs the world $438 billion in lost productivity in 2024.

2. People are burning out, causing a crisis in well-being.

In 2019, the World Health Organization included burnout in its International Classification of Diseases, describing “Burn-out is a syndrome conceptualized as resulting from chronic workplace stress that has not been successfully managed. Three dimensions characterize it:

  • Feelings of energy depletion or exhaustion;
  • Increased mental distance from one’s job, or feelings of negativism or cynicism related to one’s job; and
  • Reduced professional efficacy.

Burn-out refers specifically to phenomena in the occupational context and should not be applied to describe experiences in other areas of life.”

They estimate that globally, an estimated 12 billion working days are lost every year to depression and anxiety, costing US$ 1 trillion per year in lost productivity.

Burnout is more than just an employee problem; it’s an organizational issue that requires a comprehensive solution. People’s mental and emotional health and well-being are still not prioritized or managed effectively. Well-being in the workplace is a complex systemic issue that must be addressed. Making people matter in the age of AI involves empowering, enabling, and equipping them to focus on developing their self-regulation and self-management skills, shifting them from languishing in a constant state of emotional overwhelm and cognitive overload that leads to burnout.

3. The attention economy is putting people into crisis.

According to Johann Hari, in his best-selling book, “Stolen Focus,” people’s focus and attention have been stolen; our ability to pay attention is collapsing, and we must intentionally reclaim it. His book describes the wide range of consequences that losing focus and attention has on our lives. These issues are further impacted by the pervasive and addictive technology we are compelled to use in our virtual world, exacerbated by the legacy of the global pandemic and the ongoing necessity for many people to work virtually from home. He reveals how our dwindling attention spans predate the internet and how its decline is accelerating at an alarming rate. He suggests that to regain your ability to focus, you should stop multitasking and practice paying attention. Yet, in the Thesaurus, there are 286 synonyms, antonyms, and words related to paying attention, such as listen and give heed.

4. Organizational performance is in crisis.

Research at BetterUp Labs analyzed behavioral data from 410,000 employees (2019-2025), linking real-world performance with organizational outcomes and psychological drivers. It reveals that performance isn’t just about efficiency, it’s about shifting fluidity between three performance modes – basic: the legacy from the industrial age, collaborative: the imperative of knowledge work, and adaptive: the core requirement to perform effectively in the face of technological disruption, by being agile, creative, and connected. The right human fuel powers these: motivation, optimism and agency, which our research has found to be in short supply and BetterUp states is running dry.

Data scientists at BetterUp uncovered that performance has declined by 2-6% across industries since 2019. In business terms, half of today’s workforce would land in a lower performance tier, across all three modes, by 2019 standards.

GenAI relies on activating all three performance gears, and the rise of AI-powered agents is reshaping the way teams work together. Research reveals that companies that invest in adaptive performance see up to 37% higher innovation.

5. Innovation is in crisis.

According to the Boston Consulting Group’s “Most Innovative Companies 2024 Report,” Innovation Systems Need a Reboot:

“Companies have never placed a higher priority on innovation—yet they have never been as unready to deliver on their innovation aspirations”

Their annual survey of global innovators finds that the pandemic, a shifting macroeconomic climate, and rising geopolitical tensions have all taken a toll on the innovation discipline. With high uncertainty, leaders shifted from medium-term advantage and value creation to short-term agility. In that environment, the systems guiding innovation activities and channeling innovation investments suffered, leaving organizations less equipped for the race to come. In particular, as measured by BCG’s proprietary innovation maturity score, innovation readiness is down across the elements of the innovation system that align with the corporate value creation agenda.

You can overcome these crises by transforming them into opportunities through a continuous learning platform that empowers, enables, and equips people to innovate today, making people matter in the age of AI. This will help develop new ways of shaping tomorrow while serving natural, social, and human capital, as well as humanity.

Current constraints of AI mean developing crucial human skills

While AI can perform many tasks, it cannot yet understand and respond to human emotions, build meaningful relationships, exhibit curiosity, or solve problems creatively.

This is why making people matter in the age of AI is crucial, as their human skills are essential.

Some of the most critical human skills are illustrated below.

Some of the Most Critical Human Skills

These essential human skills are challenging to learn and require time, repetition, and practice to develop; however, they are fundamental for creating practical solutions to address the three trends and four crises mentioned above.

Making people matter in the age of AI involves:

  • Providing individuals with the ‘chance to’ self-regulate their reactive responses by fostering self and systemic awareness and agility to flow with change and disruption in an increasingly uncertain, volatile, ambiguous, and complex world.
  • Inspiring and motivating people to ‘want to’ self-manage and develop their authentic presence and learning processes to be visionary and purposeful in adapting, innovating, and growing through disruption.
  • Teaching people ‘how to’ develop the states, traits, mindsets, behaviors, and skills that foster discomfort resilience, adaptive and creative thinking, problem-solving, purpose and vision, conflict negotiation, and innovation.

Human Skills Matter More Than Ever

The human element is critical to shaping the future of work, collaboration, and growth. The most effective AI outcomes will likely come from human-AI partnership, not from automation alone. Making people matter in the age of AI is crucial as part of the adoption journey, and partnering them with AI can turn their fears into curiosity, re-engage them purposefully and meaningfully, and enable them to contribute more to a team or organization. This, in turn, allows them to improve their well-being, maintain attention, innovate, and enhance their performance. Still, it cannot do this for them.

Making people matter in the age of AI by investing in continuous learning tools that develop their human skills will empower them to adapt, learn, grow, and take initiative. External support from a coach or mentor can enhance support, alleviate stress, boost performance, and improve work-life balance and satisfaction.

Human problems require human solutions.

Our human skills are irreplaceable in making real-world decisions and solving complex problems. AI cannot align fragmented and dysfunctional teams, repair broken processes, or address outdated governance. These are human problems requiring human solutions. That’s where human curiosity and inspiration define what AI can never achieve. It is not yet possible to connect people, through AI, to what wants to emerge in the future.

Making people matter in the age of AI can ignite our human inspiration, empowering, engaging, and enabling individuals to unleash their potential at the intersection of human possibility and technological innovation. We can then harness people’s collective intelligence and technological expertise to create, adapt, grow, and innovate in ways that enhance people’s lives, which are deeply appreciated and cherished.

This is an excerpt from our upcoming book, “Anyone Can Learn to Innovate,” scheduled for publication in late 2025.

Please find out more about our work at ImagineNation™.

Please find out about our collective learning products and tools, including The Coach for Innovators, Leaders, and Teams Certified Program, presented by Janet Sernack. It is a collaborative, intimate, and profoundly personalized innovation coaching and learning program supported by a global group of peers over nine weeks. It can be customized as a bespoke corporate learning program.

It is a blended and transformational change and learning program that will give you a deep understanding of the language, principles, and applications of an ecosystem-focused, human-centric approach and emergent structure (Theory U) to innovation. It will also upskill people and teams and develop their future fitness within your unique innovation context. Please find out more about our products and tools.

Image Credit: Unsplash

Subscribe to Human-Centered Change & Innovation WeeklySign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

Putting Human Agency at the Center of Decision-Making

Putting Human Agency at the Center of Decision-Making

GUEST POST from Greg Satell

We live in an automated age. From the news we read and the items we shop for, to who we date and what companies we choose to work for, algorithms help drive every facet of modern life. Such rapid technological advancement has led some to predict that we’re headed for a jobless future, where there is no more need for humans.

Yet in their recent book Radically Human, Accenture’s Paul Daugherty and H. James Wilson argue exactly the opposite. In their work guiding technology strategy for many of the world’s top corporations, they have found that, in many cases, the robots need us more than we need them. Automation is no panacea.

For over a century, pundits have been trying to apply an engineering mindset to human affairs with the hope of taking a more “scientific approach.” So far, those efforts have failed. In reality, these ideas have less to do with science than denying the value of human agency and limiting the impact of human judgment. We need to stop making the same mistake.

The Myth Of Shareholder Value

In 1970, the economist Milton Friedman proposed a radical idea. He argued that corporate CEOs should not take into account the interests of the communities they serve, but that their only social responsibility was to increase shareholder value. While ridiculed by many at the time, by the 1980s Friedman’s idea became accepted doctrine.

In particular, what irked Friedman was that managers would exercise judgment with respect to the objectives of the organization. “the key point is that, in his capacity as a corporate executive, the manager is the agent of the individuals who own the corporation … and his primary responsibility is to them,” he wrote.

The problem is that boiling down the success of an enterprise to the single variable of shareholder value avoids important questions. What do we mean by “value?” Is short term value more important than long-term value? Do owners value only share price or do they also value other things, like technological progress and a healthy environment?

Avoiding tough questions leaves significant problems unsolved, which may be one reason that, since Friedman’s essay, our well-being has declined significantly. Our economy has become markedly less productive, less competitive and less dynamic. Purchasing power for most people has stagnated. By just about every metric, we’re worse off.

How The Consumer Welfare Standard Undermines Consumer Welfare

In 1978, the legal scholar Robert Bork published the Antitrust Paradox in which he argued against the rule of reason standard for antitrust cases that required judges to use their discretion when deciding what constitutes a practice that “unreasonably” restricts trade. In its place, he suggested a consumer welfare standard, which would only take into account whether the consumer was harmed by higher prices.

Much like Friedman, Bork didn’t like the idea of depending on subjective human judgment. How could we trust judges to decide what is “reasonable” without a clear and objective standard? If the government is going to block business activity, he argued, it should have to prove, through stringent economic analysis, that harm is being done.

Yet as Lina Kahn pointed out in a now-famous paper titled Amazon’s Antitrust Paradox, consumers can be harmed even as prices are lowered. If Amazon is allowed to control the online retail infrastructure, including logistics, hosting, marketing, etc., then trade is restricted, free markets are undermined and the consumer will be harmed.

To understand why, you only need to look at the recent baby formula shortage, in which only three firms dominate the market and, the leader, Abbott, is the exclusive supplier in many markets. Not only is it highly likely that the lack of competition contributed to lax quality standards at Abbott’s plant in Sturgis, Michigan, but once it went offline because of contamination, there weren’t enough suppliers to fill the gap.

These aren’t isolated examples, but indicative of a much larger and growing crisis. An article in Harvard Business Review details how the vast majority of industries are concentrated in just a few dominant players. A more extensive analysis by the Federal Reserve bank shows how the lack of competition leads to lower business dynamism and less productivity.

“Great Power” Politics

In early March, the prominent political scientist John Mearsheimer gave an interview to The New Yorker in which he argued that the United States had erred greatly in its support of Ukraine. According to his theory, we should recognize Russia’s role as a great power and its right to dictate certain things to its smaller and weaker neighbor.

Today, the idea that America should have left Ukraine at the mercy of Russia seems not only morally questionable, but patently absurd. Not only has the brutality of the Russian forces horrified the world, their incompetence has laid bare the fecklessness of the the Putin regime. How could such a respected expert of foreign affairs get things so wrong?

Once again, the failure to recognize human agency is a key culprit. In Mearsheimer’s view, which he calls, “realism,” only “great powers” have a say in world affairs and they will work to further their interests. He believes that by not recognizing Russia’s desire to subjugate other nations in its orbit, America and its allies are being silly and impractical.

Hopefully, we can learn some lessons from the war in Ukraine. Strategy is not a game of chess, in which we move inert pieces around a board. People have the power to make choices. Ukraine chose to undertake tough reforms and arm itself. Russia chose an autocracy which rewarded loyalty over competence. That, more than anything else, has driven events.
The Real World Isn’t An Algorithm

A joke began circulating in the late 1970s, often attributed to management consultant Warren Bennis, that the factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment. Today, even with offshoring, about 10% of Americans work in factories.

When you scratch below the surface, the joke has less to do with technological advancement than it does with derision and control. Bennis wasn’t just any business consultant, but a renowned expert on leadership, who wrote books, published articles in top journals and even advised presidents. That he would promote the view, even as a joke, that leaders should deny agency to employees is as troubling as it is telling.

If you believe that human judgment is a liability rather than an asset, you manage accordingly. You treat employees as cogs in a machine rather than partners in a shared enterprise. You invest in offshoring rather than up-skilling, schedule shifts without regard to people’s lives, deny benefits such as parental leave. We’ve seen where that’s gotten us—lower productivity, worsening mental health and a society that is more unequal and less just.

We need to get back to the business of being human. Our economy should serve our people, not the other way around. The success of a society needs to be measured by the well-being of those who live in it. If we increase GDP, but our air and water are more polluted, our children less educated, we live unhappy lives and die deaths of despair, what have we really gained?

— Article courtesy of the Digital Tonto blog
— Image credits: Pixabay

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Your Response is What Matters

Your Response is What Matters

GUEST POST from Mike Shipulski

When was the last time you taught someone a new method or technique? What was their reaction? How did it make you feel? Will you do it again?

When was the last time you learned something new from a colleague? What was your reaction? What did you do so it would happen again?

When was the last time you woke up early because you were excited to go to work? How did you feel about that? What can change so it happens once a week?

When was the last time you had a crazy idea and your colleagues helped you make it real? How did you feel about that? How can you do it for them? What can you do to make it happen more frequently?

When was the last time you had a crazy idea and it was squelched because it violated a successful recipe? How did you feel about that? What can you do so it happens differently next time?

When was the last time you used your good judgement without asking for permission? How did you feel about that? What can you do to give others the confidence to use their best judgement?

When was the last time someone gave you credit for doing good work? And when was the last time you did the same for someone else? What can you do so the behavior blossoms into common practice?

When was the last time you openly contradicted a majority opinion with a dissenting minority opinion? Though it was received poorly, you must do it again. The majority needs to hear your dissenting opinion so they can sharpen their thinking.

When was the last time you gave good advice to a younger colleague? How can you systematize that type of behavior?

When was the last time you did work so undeniably good that others twisted it a bit and adopted it as their own? Don’t feel badly. When doing innovative work this is what success looks like. All that really matters is your customers realize the value from the work and not who gets credit. What can you do so this type of thing happens as a matter of course?

Good things happen and bad things happen. That’s how life goes. But the important part is you pay attention to what worked and what didn’t. And the second important part is actively making the good stuff happen more frequently and the bad stuff happen less frequently.

Image credit: Pexels

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Addressing the Veteran Mental Health Crisis

A New Frontier in Healing for Memorial Day Weekend

Addressing the Veteran Mental Health Crisis

by Braden Kelley and Art Inteligencia

As a nation, we have an enduring obligation to the brave individuals who have served in our military. On this Memorial Day weekend, while we honor their sacrifice, we must also look toward a future where we care for the psychological wounds of war. One of the greatest challenges we face is the veteran mental health crisis, with high rates of PTSD, depression, and suicide. Emerging research suggests that psychedelic treatments could significantly alleviate these conditions, providing a new pathway to healing that we cannot afford to ignore.

Understanding the Crisis

The statistics are alarming. According to the Department of Veterans Affairs (VA), approximately 17 veterans die by suicide every day. Furthermore, the VA estimates that around 15% of Vietnam veterans, 12% of Gulf War veterans, and 11-20% of veterans who served in Operations Iraqi Freedom and Enduring Freedom suffer from PTSD in a given year. Traditional treatments like psychotherapy and pharmacotherapy have proven beneficial for some, but many veterans experience symptoms that persist despite these interventions.

The Promise of Psychedelics

In recent years, researchers have turned their attention to the therapeutic potential of psychedelic substances such as MDMA, psilocybin, and LSD. These substances are showing promise in treating PTSD, depression, and other mental health issues. A landmark study conducted by the Multidisciplinary Association for Psychedelic Studies (MAPS) in collaboration with the VA found that 67% of participants treated with MDMA-assisted therapy no longer met the diagnostic criteria for PTSD after three sessions. This is a groundbreaking finding that cannot be ignored.

Similarly, psilocybin, the active compound in “magic mushrooms,” has shown potential in alleviating depression and anxiety symptoms in numerous studies. A study from Johns Hopkins Medicine demonstrated that psilocybin-assisted therapy resulted in rapid and sustained reductions in depression severity, with effects lasting for weeks and even months. The therapeutic mechanisms of psychedelics, which include altering neural network connectivity and promoting emotional processing, offer a new realm of possibilities for treatment.

Legal and Regulatory Challenges

Despite promising results, the legal status of these substances remains a significant barrier. Classified as Schedule I substances under the Controlled Substances Act, they are currently deemed to have “no accepted medical use.” However, as the evidence base strengthens, there is growing momentum for reevaluating this classification. States like Oregon and cities such as Denver have decriminalized psilocybin, paving the way for broader acceptance and access.

Building a Comprehensive Support System

To address the veteran mental health crisis effectively, we must take a multi-faceted approach:

  1. Policy Revision and Advocacy: It is crucial for policymakers to prioritize the revision of regulations surrounding psychedelics. We need comprehensive legislative efforts to reclassify these substances, allowing for more extensive research and greater accessibility.
  2. Research and Training: Increased funding for research into psychedelic-assisted therapies is essential. Universities, independent research organizations, and the VA should collaborate to expand clinical trials. Alongside research, training programs for mental health professionals must be developed to ensure they are well-equipped to provide these treatments safely and effectively.
  3. Education and Awareness: Public awareness campaigns can help destigmatize mental health and psychedelic treatments. Stories of healing and recovery should be shared, and educational resources must be made available to veterans, their families, and the general public.
  4. Holistic Care Models: Veteran care must incorporate holistic and integrative approaches, including mindfulness, nutrition, and community support, alongside psychedelic treatments. These support systems are vital for sustaining mental health and can multiply the therapeutic effects of psychedelics.
  5. Veteran-Centric Programs: Programs tailored specifically to veterans’ unique experiences and needs should be developed. Peer support systems, where veterans can share their experiences and support one another through healing, can enhance recovery outcomes.

The Role of Community

Community plays a pivotal role in healing. As a nation, we must foster environments that not only support veterans but actively engage them in the healing process. Community centers focused on veteran well-being, alongside integration programs that help veterans transition back into civilian life with purpose and support, can be transformative.

The Moral Imperative

As we commemorate Memorial Day, we must also reflect on our moral duty to those who have served. The veteran mental health crisis is a call to action—an opportunity not only to acknowledge the sacrifices of our military personnel but to invest in their healing and well-being. Psychedelic treatments represent a beacon of hope, backed by rigorous science and positive outcomes. It is essential for us to come together as a society, to push for changes that reflect our commitment to caring for veterans in the most effective and compassionate ways possible.

Conclusion

The journey to mental health recovery for veterans is not an easy one, but it is a journey we must undertake collectively. By embracing innovation and fostering an environment of openness and support, we can lead the way in addressing the mental health crisis that afflicts our veterans. The time to act is now. With courage, compassion, and collaboration, we can chart a course toward healing and honor the legacy of those who have served with dignity and responsibility.

In the spirit of unity and progress, let us stand together to advocate for effective solutions and a brighter future for all veterans. Their healing is our mission. Let us not falter in this duty.


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Image Credit: Microsoft CoPilot

Content Authenticity Statement: Most of the paragraphs in the article were created with the help of OpenAI Playground.

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The Real Reason Your Team Isn’t Speaking to You

The Real Reason Your Team Isn't Speaking to You

GUEST POST from David Burkus

It’s a common issue in many organizations – teams not voicing obstacles or issues in their work. If you’ve been a leader for a while, you’ve probably experienced it firsthand. Maybe you and your team had a check-in meeting with everyone, and everything was positive. Everyone gives a status update. And no one is asking for help. So, the meeting ended, and everyone went about their business.

But you were suspicious. Your team was saying it was all good. But then they started missing deadlines, or the project came in over budget, or it didn’t come in at all.

You’re not alone. In fact, in many organizations’ failures happen and get covered up at many levels of the organization. It’s not uncommon for senior leaders to be the least informed about what’s really happening in the organization because everyone at every level is trying to minimize failure…or trying to minimize their role in it.

No one trusts each other enough to share their setbacks, so no one knows what’s holding the team back.

But trust doesn’t automatically resolve teamwide issues. Building trust is great, but research suggests that trust alone is insufficient. Instead, teams need to feel psychological safety—a climate of mutual trust and respect that helps team members feel safe to take interpersonal risks. Risks like voicing failures or disagreements, but also risks like sharing their “crazy” ideas that just might be brilliant.

Teams with psychological safety have members who can be vulnerable and authentic with each other. They ask questions or offer ideas that may seem odd but can lead the team’s thinking in new directions. Psychological safety encourages team members to speak up when they disagree, and as a result more diverse viewpoints are shared. Psychological safety reduces failures, because when people feel that they can speak freely they’re more likely to intervene before a team makes a mistake. In fact, research from Harvard Business School professor Amy Edmondson, who first discovered the power of psychology safety on teams, suggests that on diverse teams, psychological safety determines whether their varied strengths are harnessed or if they perform below their potential.

In her work, Edmondson describes psychological safety as “a team climate characterized by interpersonal trust and mutual respect in which people are comfortable being themselves.”

Trust and Respect.

These may seem similar. But they have their differences. The interplay between them is what builds psychological safety. Trust is how much we feel we can share our authentic selves with others. Respect is how much we feel they accept that self. If I trust you, then I will share honestly with you. If you respect me, then you will value what I’ve shared. High-performing teams don’t need to just trust each other, they also need to learn how to respect each other’s contribution.

So how can leaders build a sense of trust and respect on a team? Here’s a few ideas:

1. Celebrate Failures

Celebrating failures on a team doesn’t mean teams throw a party every time they lose, but it doesn’t mean that every loss immediately triggers a round of “shift the blame” or that they forbid each other from talking about “the project which shall not be named.” Failures are inevitable, and often for reasons outside of a team’s control. Clients change their mind. Budgets get cut. Global pandemics disrupt the supply chain and force everyone to look at each other on video calls. To build trust on a team, the team must be comfortable with the idea that they will fail—and that they will learn from failure.

So, taking the time to celebrate what the painful experience taught the team can be a worthwhile exercise. This happens in several ways. You could draft a “failure resume” for yourself and encourage teammates to do the same, listing every job or project that didn’t turn out as hoped. As a team, you could create a “failure wall” with pictures or quotes from projects that blew up or clients you didn’t win. Sara Blakely, founder of Spanx, throws regular Oops Meetings, where she admits her own mistakes and encourages the team to do the same. One pharmaceutical company went so far as to create “Failure Wakes” to gather researchers together around a promised but failed compound. The team said their good-byes, and expressed gratitude for the lessons working on that aborted drug taught them. These types of celebrations not only focus the team on lessons learned, but they encourage future risk-taking and keep teams motivated even when those chances of failure are high.

2. Hold After-Action Reviews

One way to at least celebrate learning if not failure is the after-action review. Although unlike clapping or waving, this is a more serious ritual done after the action (hence the name). Originally a military ritual, after-action reviews work well because they force the team to discuss strengths and weaknesses and to dissect past failures (and even successes) for lessons. Just after the team finishes a project, or during an important milestone, gather them together and ask them a few questions:

  • What was our intended result?
  • What was the actual result?
  • Why were they different?
  • What will we do the same next time?
  • What will we do differently next time?

The purpose of the meeting is not to find someone to blame, or someone to give all the credit. The goal is to extract lessons from the project about where the team is strong and where they need improvement. When people are open and honest about their weaknesses and contributions to failure, celebrate the vulnerability they just signaled.

3. Model Active Listening

The easiest way to signal disrespect to someone is make them feel ignored. The reverse is true as well. Making people feel listened to and truly heard is one of the simplest ways to signal that you respect what they have to say. Great team cultures are marked by how well they listen to each other and take turns speaking so everyone feels heard. But our natural tendency as humans can make it difficult to show others we’re listening. We want to help people. So, when people come to us with problems, we want to jump in and help right away. For team leaders, this tendency is even stronger. People are supposed to come to us for help, right? So, we start helping…which means we start talking…which means we stop listening.

One simple trick for ensuring you listen longer and help others feel more heard is to get used to saying, “Tell me more.” When someone says something that triggers a thought in your head, and you feel your mouth starting to open so your brilliant advice can greet the world—stop. Instead of whatever you were going to say, just say “Tell me more.” If you want to take active listening even further, consider a useful acronym from communication expert Julian Treasure: RASA. When someone else is speaking, Receive their ideas by paying attention to them as they speak. Appreciate what they are saying by nodding or giving confirming feedback. Summarize what the other person said when they’re finished. Then Ask them questions to explore their idea further. Since respect is a learned behavior, as you model active listening your team will follow your example—and more members of your team will feel heard and respected.

4. Recognize, And Share Credit

Leadership thinker Warren Bennis once noted that good leaders shine under the spotlight, but great leaders help others shine. Teams that share credit and take the time to recognize each other are teams where members feel more respected and more trusted. But teams that fight for credit when a project is finished (or fight over blame when it fails) diminish what little respect they had before. Great team leaders look for as many ways to share credit with their team as they can, even if they desire most of the credit. This can be as simple as taking the time to appreciate each team member’s strengths, or as big as shouting those praises throughout the company. When team members know what you appreciate about them, they know you respect their abilities and their ideas.

In addition, find small wins that can be celebrated more often—hence creating more opportunities to recognize others. Small wins have a big impact on individual and team motivation—and that impact only gets bigger when credit for the win is shared team wide.

Conclusion – The Psychological Safety Cycle

When individuals feel respected, and respectful behavior becomes the norm on a team, trust will naturally increase as well. That ensures that great ideas, and great lessons, get heard and considered. Without respect, that trust you’re building by accepting failures and embracing held-back brilliance from your team, will have a very short half-life. You can’t sleep on respect.

It’s a cycle.

You build trust on the team, which encourages people to take risks (or to risk admitting failures) and if that risk is met with respect…trust grows even more. If it doesn’t, you’re failing even faster.

It’s worth including in the conclusion, that we’re not talking about repeat failures. Psychological safety doesn’t mean there’s no accountability for consistently under-performing. It doesn’t mean that people can get away slacking off or that teams will just keep failing. But it does mean they don’t have to be afraid to ask for help or admit those occasional times when they do fail. It means that they take learning and growth so seriously that don’t hold back talking about their own struggles and their own mistakes.

And that’s why high-performing teams are psychologically safe teams.

Image credit: Pixabay

Originally published on DavidBurkus.com on January 6, 2024

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Paying Your Employees More Can Save You Money

Paying Your Employees More Can Save You Money

GUEST POST from Shep Hyken

What’s the secret to keeping employees, getting them to work hard and provide a more engaging experience with your customers? There are two answers. The first is one word: Money.

Many years ago, I worked with a well-known fast casual restaurant chain. I was impressed by its low turnover and high customer engagement and satisfaction ratings. Its secret was higher starting pay, generous raises and a reasonable benefits package. All of that compensation led to attracting the best candidates, and more importantly, keeping them.

A recent RetailWire article covered the higher wages Costco pays its employees. Typical hourly employees (Costco refers to them as “assistants”) include cashiers, stockers, warehouse personnel and people running the Costco food courts. With a tighter labor market, it is tougher to find people to fill these roles (and others). It is reported that Costco’s wages are at the high end of the industry. A memo from Costco’s CEO Ron Vachris stated, “We believe our hourly wages and benefits will continue to far outpace others in the retail industry.”

While wages are higher, employee retention in retail has gone down. According to an article in The Economist, the average employee turnover rate in the retail industry is 60%. Costco’s turnover is 8%, which is an incredible 86.67% lower than the industry.

Does this mean the higher wages are being paid by consumers? The simple answer is no. The longer answer is why. Just because a company pays employees more, a resulting benefit, such as lower turnover, actually reduces the cost of the higher wage. Lower turnover results in lower hiring costs, which also includes the cost of on-boarding and training. The full cost of the higher wage is dramatically reduced to a point that might pay for itself.

But higher wages aren’t the only reason employees stick around, work harder and better engage with customers. As mentioned at the top of the article, there is also a second reason, and that is culture.

While some employees will stick around for the paycheck, if you want the most out of any employee, they must like their job, and that goes beyond the job description. It also includes who they work with and work for. The culture of a company helps retain the best talent.

Regardless of what you pay your employees, if they don’t like the company, the way they are treated, their boss or leadership, paying them more may not be enough. I won’t go into creating company culture, but you can check out a Forbes article from last year that covered the Employee Hierarchy of Needs with a focus on building a fulfilling workplace culture.

Happy employees mean happier customers. All the benefits mentioned translate to higher NPS and customer satisfaction scores. If you compare the highest-rated companies and brands for customer service and experience posted by the American Customer Satisfaction Institute (ACSI) and the highest-rated companies and brands by employees at www.Glassdoor.com, you’ll find many of the same names. This is further backed up by an excellent article in the Harvard Business Review titled “The Key to Happy Customers? Happy Employees” by Andrew Chamberlain and Daniel Zhao. Even though it was written just over five years ago, the insights are more relevant than ever.

Companies like Costco prove that investing in employees through both compensation and culture isn’t just good for employees. It’s good for business. Employee happiness is contagious. Customers pick up on it. And when customers are happy, they come back, spend more and tell others. And, that makes the leadership and investors happy too!

Image Credit: Wikimedia Commons

This article was originally published on Forbes.com

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