How Inclusive Leaders Create Psychological Safety: The Foundation of High-Performing Teams (Part 1)

As inclusive leaders, we often hear about the importance of psychological safety, but what does it actually mean in practice? Esther Derby captures it perfectly: “Psychological safety does not mean that you feel comfortable all the time. Psychological safety means you feel comfortable talking about what makes you uncomfortable.”

This distinction is crucial for those of us committed to inclusive leadership. We’re not trying to create a space where everyone feels cosy and unchallenged. Instead, we’re building an environment where people feel safe to be vulnerable, to ask difficult questions, and to share perspectives that might challenge the status quo.

The Business Case for Psychological Safety

The evidence supporting psychological safety as a cornerstone of inclusive leadership is compelling. When Google released their internal study in 2016, they discovered something remarkable: psychological safety was the single most important factor distinguishing their high-performing teams from the rest. The numbers speak for themselves – teams with the highest levels of psychological safety showed a 36% difference in sales revenue compared to those with the lowest levels.

This research, popularised by Harvard Professor Amy Edmondson in her groundbreaking work “The Fearless Organization,” has transformed how we think about team dynamics and inclusive leadership. It’s not just about being nice to people; it’s about creating conditions where diverse perspectives can flourish and contribute to better business outcomes.

As inclusive leaders, we understand that psychological safety isn’t a luxury – it’s a necessity for tapping into the full potential of our teams.

The Interconnected Web of Inclusion

Here’s where it gets fascinating: psychological safety, diversity, equity, and inclusion exist in a symbiotic relationship. It’s a bit like asking which came first, the chicken or the egg. Each element strengthens the others in a continuous cycle of improvement.

When we create psychologically safe environments, we unlock the power of diverse perspectives. People feel confident sharing their unique viewpoints, knowing they won’t be ridiculed or dismissed. This leads to more innovative solutions and better decision-making – the very outcomes we seek as inclusive leaders.

Simultaneously, when people feel psychologically safe, they’re more likely to call out bias when they see it, whether they’re experiencing it themselves or witnessing it happen to others. This creates a more equitable environment where everyone has a genuine opportunity to contribute and thrive.

The reverse is equally true. When our teams see genuine diversity represented at all levels, when they witness equitable treatment in action, when they feel truly included, it becomes easier for them to speak up and be authentic. They see that difference is valued, not just tolerated.

The Approachability Factor

As inclusive leaders, one of our most powerful tools for creating psychological safety is our approachability. This isn’t about having an open-door policy – though that’s important too. It’s about actively walking the halls, as Alida Miranda Wolff, author of “The first Time Manager: DEI”, puts it: “Good leaders have an open-door policy, but great leaders walk the halls.”

I remember working with a concessions company in Greece where the director had earned incredible trust from his employees. Why? Because when problems arose, he didn’t just tell them to bring issues to his office. He left his office and went to help them where they were. This simple act of showing up created an environment where people felt safe to raise concerns and ask for help.

Contrast this with a senior HR leader I encountered in the UK healthcare industry. Despite being a genuine champion of inclusion at the strategic level, he rarely interacted with his own team members. The result? People felt intimidated by him, even though his intentions were good. As inclusive leaders, our impact isn’t just about what we say or the policies we create – it’s about how we show up every day.

We become approachable by having human-to-human interactions that go beyond titles and hierarchies. This means making ourselves genuinely available, not just in scheduled one-to-ones but on an ad hoc basis. It means socialising with different people in informal settings, showing interest in them as whole human beings, not just as job functions.

The Ripple Effect of Authentic Leadership

Every time we show up authentically and vulnerably, we give others permission to do the same. This is perhaps the most powerful aspect of psychological safety – it’s contagious in the best possible way.

I’ve seen this principle in action countless times. A senior leader in an Italian food manufacturing company chose to be transparent about his facial paralysis, sending a message to his team explaining his appearance. The response was extraordinary – colleagues began opening up to him in ways they never had before.

In a Korean electronics company, I met a manager whose Mohican hairstyle became a bridge to deeper connections with his team and clients. By showing up as his authentic self, he created space for others to do the same.

These examples remind us that inclusive leadership isn’t about conforming to traditional expectations of how leaders should look or behave. It’s about creating space for everyone to bring their whole selves to work.

Making It Practical

So how do we put this into practice? It starts with small, consistent actions:

• Acknowledging when we don’t know something instead of pretending we do
• Asking clarifying questions, even when we think we should know the answer
• Sharing our own struggles and uncertainties appropriately
• Admitting our mistakes openly and learning from them
• Asking for help when we need it

These simple acts of vulnerability create ripple effects throughout our teams. When people see us being human, they feel permission to be human too.

As inclusive leaders, we have the opportunity – and responsibility – to model the behaviour we want to see. Every interaction is a chance to either build psychological safety or erode it. The choice is ours.

Thanks for reading – Let’s keep shining the inclusion light together! ✨

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This is the first piece of a three-part series on how to create psychological safety. It’s an excerpt adapted from my upcoming book, Practising Inclusive Leadership.

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