Psychological safety is a strategic imperative for high-performing, innovative and learning organisations. As Fearless Organisation Scan© certified practitioners, we equip leaders and teams to foster open dialogue, harness diversity and strengthen collaboration.

18 Nov
Leadership, Culture Building, Personal Development, Psychological Safety, Quality Conversations

Why Most Organisations Fail at Culture Transformation (And How to Get It Right)

Culture by default or by design, the choice shapes everything.

The Great Resignation revealed a truth many leaders weren't prepared to face: organisational culture had become the make-or-break factor for business survival. Workers were 10.4 times more likely to leave because of toxic culture than compensation issues. This isn't just a workplace challenge, it's a business crisis demanding our attention.

Here's what makes me come alive about this work: companies with strong, healthy cultures show four times the revenue growth of those with weaker cultures. Yet the cost of getting it wrong is devastating, $223 billion wasted annually on turnover due to poor culture, with workplace stress alone costing businesses over $500 billion yearly.

Organisational culture had become the make-or-break factor for business survival.

The Reality Organisations Face

After years of journeying with culture builders, I've discovered that 70% of culture transformations fail, not because of strategy, but because of how we approach the human element. Most leaders treat culture as a side project, sprinkling perks and posting mission statements without addressing the underlying rhythms that actually shape daily behaviour.

I've discovered that 70% of culture transformations fail, not because of strategy, but because of how we approach the human element.

The disconnect happens in three critical areas:

  • Unclear definition beyond vague values statements
  • Inconsistent measurement leaving leaders without actionable data
  • Leadership behaviours that contradict stated values

Culture isn't something you mandate through policy or create with team-building retreats. Like a well-tuned orchestra, it emerges when people move in harmony with each other and the organisation's cadence. When that harmony breaks down, the discord affects everything, from psychological safety to innovation to retention.

Like a well-tuned orchestra, it emerges when people move in harmony with each other and the organisation's cadence. When that harmony breaks down, the discord affects everything, from innovation to retention to psychological safety.

Image Source: Breathe HR

The Hidden Costs of Getting Culture Wrong

The numbers tell a story every business leader needs to hear. Beyond the $67 billion annual cost of toxic workplace culture, we're seeing deeper human costs that ripple through organisations (Gallup 2023).
  • 73% of professionals have left jobs due to poor cultural fit
  • Two-thirds of workers won't consider companies with toxic culture reputations
  • 78% of executives believe poor culture blocks innovation efforts
  • Employees experiencing workplace injustice face 35-55% higher odds of major diseases

These costs compound like interest on debt you never intended to take on. What started as poor leadership decisions becomes systemic toxicity affecting every aspect of business performance.

Successful transformation doesn't emerge from inspirational speeches. It grows from creating psychological safety, those safe spaces for quality conversations where people feel secure to contribute, fail, and grow.

Creating Cultures Where People Flourish

Here's what I've learnt from working with culture-builder communities: successful transformation doesn't emerge from inspirational speeches. It grows from creating psychological safety, those safe spaces for quality conversations where people feel secure to contribute, fail, and grow.

Shaping culture needs to leverage these key elements:

  1. Clarity: Define specific, observable behaviors that exemplify the organisation’s core values.
  2. Conviction: Integrate values into hiring, promotion, and reward systems.
  3. Courage: Confront issues by creating psychological safety for honest feedback and course correction, reinforcing breakthrough learning.
  4. Celebration: Celebrate cultural wins visibly, supporting others to succeed.

Middle managers become crucial culture carriers, translating values into daily actions through countless decisions and interactions. Cultural alignment begins with belonging, and belonging begins with psychological safety.

Building Rhythms That Last

Culture lives in the daily actions & ways of working, not just in what gets communicated in townhalls & meetings. When leaders consistently model desired behaviours, something beautiful emerges: trust builds, engagement follows, and performance improves. This is how we create trusted communities of practice where both business and human flourishing happen naturally.

The organisations that succeed understand this truth: culture becomes your strongest competitive advantage when it emerges from aligned actions, systems, and behaviours. This is how you build workplaces where everyone feels safe to contribute their best work.

Culture becomes your strongest competitive advantage when it emerges from aligned actions, systems, and behaviours.

Ready to Design Culture Intentionally?

Every organisation has the potential to create workplace cultures where people thrive alongside business success.

It starts with leaders willing to examine the gap between stated values and lived reality—then doing the purposeful work of closing that gap, one conversation, one decision, and one authentic action at a time.

Together, we've discovered that the most powerful transformations happen when leaders commit to the 4Cs and create psychological safety as their foundation. We'd be grateful to explore how we might support you in designing a culture where your people thrive and your business flourishes.

Because what makes this work powerful is that culture transformation isn't about perfection, it's about creating the conditions for authentic connection and sustainable growth.

It starts with leaders willing to examine the gap between stated values and lived reality—then doing the purposeful work of closing that gap, one conversation, one decision, and one authentic action at a time.

SOURCES

  • https://www.hcamag.com/ca/specialization/employee-engagement/nearly-half-of-workers-quit-because-of-bad-company-culture-report/513768
  • https://www.gallup.com/workplace/509069/diagnosing-broken-culture.aspx)
Eddie Eng talks about psychological safety
17 Jan
Psychological Safety, Culture Building, Leadership

Psychological Safety: The Key to Innovation, Engagement, and High-Performing Teams

Psychological safety isn’t just a feel-good concept—it’s a business imperative.

Research has found that it’s the single most important factor in building successful teams. But psychological safety is often misunderstood. It’s not about avoiding conflict or creating a culture of unchecked positivity. Let’s explore what it truly means and how to cultivate it for a thriving organisation.

Calvin Yeo

What Is Psychological Safety—and What Is It Not?

Psychological safety is the pioneering work of Dr. Amy Edmondson, a Harvard professor who has studied this concept for more than two decades. She defines it as the experience of feeling safe to take interpersonal risks with others.

Psychological safety is about creating a safe environment—not just between two or three close friends, but one where most people can candidly express ideas and share diverse views. It enables individuals to ask difficult questions, admit mistakes, and even confront others while holding them accountable.

Psychological safety is not an end in itself but a means towards excellence, where people bring their full selves to work and contribute the best of what they have to offer. When people strive to do their best, conflict is inevitable. However, psychological safety is not the absence of conflict—it is a space where people can passionately advocate for their ideas, not to suppress or attack others, but to value everyone’s contributions in co-creating solutions. This fosters more effective problem-solving and drives better innovation by incorporating diverse perspectives.

What about you? What does psychological safety mean to you, and what is it not?

Eddie Eng

How Do You Create a Psychologically Safe Culture in a Top-Down Organization?

The most critical factor in driving cultural change is securing buy-in and commitment from the leadership team.

As the principal consultant, I partnered with an organization to address their top-down culture, which was stifling employee engagement and hindering business performance. By collaborating with the HR team, we presented compelling case studies demonstrating the tangible consequences of a low-psychological-safety environment. We highlighted the internal challenges—employees were reluctant to speak up about client feedback, which directly impacted the organization's ability to deliver quality and timely results.

Recognizing the detrimental effects on business performance, the leadership team became open and committed to change. We facilitated a shared understanding of the importance of psychological safety and developed new ways of working that encouraged open communication and collaboration.

Today, this organization is no longer top-down, and employees feel more comfortable speaking up freely.

What strategies have you found effective in fostering psychological safety?

Psychological safety is not an end in itself but a means towards excellence, where people bring their full selves to work and contribute the best of what they have to offer.

Calvin Yeo

Are You Building or Eroding Psychological Safety at Work?

Google research has identified psychological safety as the most important factor in building an effective team. But how do you know whether you are fostering or eroding psychological safety in your workplace?

People do not judge us based on our intentions; they judge us based on our behaviours. Take a moment to reflect on how you interact with others at work:

  • Do you intentionally invite others to share their diverse views, or are you more focused on sharing your own?
  • Do you proactively seek feedback, or do you wait for others to initiate it?
  • Do you ask for help when needed, or do you prefer to work independently

The practice of actively inviting others creates psychological safety. By demonstrating genuine curiosity and a willingness to understand different points of view, we foster an environment where everyone feels valued, respected, and encouraged to contribute freely. What do you do to build psychological safety in your workplace?

Calvin Yeo

Driving Innovation with Psychological Safety

Every organisation wants innovation. How does psychological safety f

uel innovation? I recently heard a definition of innovation as doing things differently or doing different or new things. Yet, many organisations face innovation challenges due to fear barriers. For example, is it safe to bring up new ideas that might seem silly to others, or to highlight gaps and mistakes that need new fixes and changes?

Quoting Dr Amy Edmondson, psychological safety addresses these fear barriers by doing three things:

  1. Reframing failure.
  2. Inviting participation.
  3. Responding productively.

Let me touch on the first area—reframing failure—because failure is such a taboo word in many organisations. This requires a re-understanding of the different types of failure and knowing how to learn well from failure. Furthermore, when we learn from failure, how can we share that with the organisation so others can also benefit?

As I often say, if I’ve already paid the price for my failures, why not share that with the organisation so they don’t have to pay the price too?

How does psychological safety play a part in fueling your organisation’s innovation? 

By demonstrating genuine curiosity and a willingness to understand different points of view, we foster an environment where everyone feels valued, respected, and encouraged to contribute freely.

Eddie Eng

Calvin Yeo

Driving Innovation with Psychological Safety​

Google research has identified psychological safety as the most important factor in building an effective team. But how do you know whether you are fostering or eroding psychological safety in your workplace?

People do not judge us based on our intentions; they judge us based on our behaviours. Take a moment to reflect on how you interact with others at work:

  • Do you intentionally invite others to share their diverse views, or are you more focused on sharing your own?
  • Do you proactively seek feedback, or do you wait for others to initiate it?
  • Do you ask for help when needed, or do you prefer to work independently

The practice of actively inviting others creates psychological safety. By demonstrating genuine curiosity and a willingness to understand different points of view, we foster an environment where everyone feels valued, respected, and encouraged to contribute freely. What do you do to build psychological safety in your workplace?

Learn more about fostering Psychological Safety

Watch Episode 3 of the Cadence Culture Dialogue here: https://cadenceculture.sg/cadence-culture-dialogue-ep-3-psychological-safety/

In Episode 3 of Cadence Culture Dialogue, Co-Founders Eddie Eng and Calvin discuss the concept of psychological safety in the workplace.
20 Nov
Psychological Safety, Cadence Culture Dialogue

Cadence Culture Dialogue Ep. 3: Psychological Safety

Welcome to the Cadence Culture dialogue.

It's a dialogue on how we can be culture builders in our workplaces.

 

To be culture builders, there are skill sets that we need to strengthen. For example, the ability to communicate what organisational culture is and its value to people and business growth, the ability to create psychological safety, and to have quality conversations.

We invite you on this journey with us.

CADENCE CULTURE DIOLOGUE - EPISODE 3

Psychological Safety

Teams with strong psychological safety are learning organisations where there’s significant business and people growth, innovation at all levels, strong teamwork, and the ability to attract top talent.

Calvin Yeo, Co-Founder

Transcript

Calvin: Welcome to the Cadence Culture Dialogue. This is a dialogue about how we can be culture builders in our workplaces. The previous dialogue was about the quality of conversations, so do check it out if you missed it.

Eddie: Today’s dialogue is about psychological safety. Please share your questions, perspectives, and comments with us.

Calvin: Eddie, let me begin with a question. Everyone is familiar with physical safety at work, but what is psychological safety?

Eddie: Quick story: In 2012, Google started Project Aristotle to uncover what makes a team effective. They spent two years studying 180 teams. After two years, they revealed five key factors that make a team effective, and the underpinning factor—the most important one—is psychological safety.

Calvin: That’s when the whole corporate world started paying attention to psychological safety, and everyone began trying to figure out what it means. So, Eddie, define psychological safety for us.

Eddie: Here, I’d reference Dr Amy Edmondson, a Harvard professor credited with coining the term psychological safety. Psychological safety is the experience of feeling safe to take interpersonal risks with others. This includes expressing ideas, asking questions, seeking help, sharing diverse views, admitting mistakes, and holding each other accountable.

It’s not just about taking risks with one or two colleagues we have strong, trusting relationships with—it’s about creating a psychologically safe environment where people generally feel secure enough to be open and candid with one another.

Calvin: Wow. I’m a big fan of Dr Amy Edmondson’s work. Over the last two decades, she has curated and showcased many examples of different teams and organisations—those with weak psychological safety and those with strong psychological safety—and the difference is like night and day.

Teams with strong psychological safety are learning organisations where there’s significant business and people growth, innovation at all levels, strong teamwork, and the ability to attract top talent. On the other hand, organisations with weak psychological safety have declined or even ceased to exist.

Eddie: Calvin, can you share with us a business example?

Calvin: Well, I’ve spent 17 years in the telecoms business, so let me share a telecoms example. Many of us may have owned a Nokia phone in the past, or at least heard of them. Their decline and disappearance was largely due to a fearful and emotional climate within the organisation, where employees were too afraid to speak up about the threats posed by Apple and Google in smartphone development.

When Apple and Google launched their smart devices, Nokia suffered a massive market share loss, losing more than 2 billion euros. This ultimately led them, in 2013, to sell their devices and services platform to Microsoft.

Eddie: From being the number one market leader to selling their business—yeah, that’s a huge fall.

Calvin: Eddie, based on your experience, what do you think is preventing leaders from creating psychological safety at work?

Eddie: You know, nobody intentionally sets out to erode psychological safety. However, the reality is that our intentions often don’t align with our behaviours, and we’re not always aware of it. I’ve fallen into this trap in the past. As a passionate and experienced consultant, I’m quick to provide solutions in any discussion, and I often communicate in a passionate tone. What I didn’t realise was that my behaviour was being perceived as strong and not open to others’ ideas.

Thankfully, one of my trusted colleagues gave me feedback that raised my awareness and gave me the opportunity to adjust my behaviour. This made me 

realise that the first step in building psychological safety is becoming aware of how others perceive our actions.

Calvin: Great, thank you for sharing that, Eddie. How do you think we can gain greater awareness, particularly in relation to psychological safety?

Eddie: One way is to create a feedback cadence with colleagues—regularly seeking feedback about how they feel and think regarding the way we approach things. For example, asking, “How do you feel about the way I communicated in the meeting?” or “How do you feel about my contributions to this discussion?”

When we actively invite feedback, show genuine interest in hearing others’ input, and respond positively and with gratitude, people start to see how open we are. This helps them feel safe enough to speak their minds.

Calvin: Wow, that’s a great point. Feedback cadence—I think that’s something we all need. I also remember working with clients who benefited from a Fearless Organization Scan. This tool, based on Dr Amy Edmondson’s research, combines survey results with a facilitated conversation. Teams can use it to identify areas for improvement and work together to strengthen psychological safety.

When we actively invite feedback, show genuine interest in hearing others’ input, and respond positively and with gratitude, people start to see how open we are. This helps them feel safe enough to speak their minds.

Eddie Eng, Co-Founder

Eddie: Calvin, what are the common pitfalls you’ve observed when leaders try to build psychological safety at work?

Calvin: Well, one pitfall I’ve personally encountered is waiting for psychological safety to be perfect before speaking up—expecting to feel completely safe before saying anything. Sometimes, it even led to blaming others for the lack of psychological safety when I or we failed to take responsibility for speaking up and taking action.

To avoid this pitfall, it’s important to complement the building of psychological safety with the courage to speak up. This has been a growth area for me personally. I’ve had to take responsibility to voice my thoughts even when I didn’t feel entirely safe. To do this, I reminded myself of the importance of why I was speaking up—what I was speaking up for—and how that purpose outweighed the perceived risks.

At the same time, I’ve learned to understand that rejection or disagreement from others when I speak up doesn’t diminish who I am as a person. It’s about being secure in my identity.

Eddie: Wow, I think it’s so important to be secure in our identity. That’s absolutely right. Fostering a culture of psychological safety is key to unlocking the full potential of a team. We’re continuing to gather best practices for leaders to cultivate psychological safety at work, and we’d love to share them with you. Come and journey with us as friends of Cadence Culture—click the link below to find out more.

Calvin: Yes, we’d love for you to join us as friends of Cadence Culture. And do look out for our next Cadence Culture Dialogue. See you soon!

Eddie: Goodbye.

A Special Invitation

We’d like to invite you to journey with us as we launch Cadence Culture Learning Series— online and in-person bite-sized sessions on Culture and Leadership. Click here to get your complimentary access.