CULTURES OF GROWTH

1. Mindset is a continuum, not a fixed trait

Mindset exists on a continuum. And where we fall on that continuum at any given moment often has to do with the situation we're in and the people around us.

Fluid nature of mindset. Contrary to popular belief, mindset is not a binary state of fixed or growth. Instead, it's a dynamic spectrum influenced by various factors:

• Situational context
• Social environment
• Personal experiences
• Current challenges

Shifting between mindsets. People naturally move along this continuum, sometimes leaning towards fixed beliefs and other times embracing growth-oriented perspectives. This flexibility allows for:

• Adaptation to different circumstances
• Learning from diverse experiences
• Personal development over time

Understanding the fluid nature of mindset empowers individuals to consciously shift their perspective when faced with challenges, fostering resilience and continuous improvement.

2. Organizational culture shapes individual mindsets

Mindset culture as it exists outside of us is an active, collaborative creation.

Culture as a mindset incubator. Organizational culture plays a pivotal role in shaping individual mindsets, creating either a "Culture of Genius" or a "Culture of Growth":

Culture of Genius:

• Emphasizes innate talent
• Fosters competition
• Discourages risk-taking

Culture of Growth:

• Values effort and learning
• Promotes collaboration
• Encourages innovation

Ripple effect of culture. The prevailing mindset culture influences:

• Hiring practices
• Performance evaluations
• Employee engagement
• Innovation and creativity
• Overall organizational success

Leaders must recognize their role in cultivating a growth-oriented culture that permeates all levels of the organization, ultimately shaping the mindsets of individual employees.

3. Collaboration thrives in Cultures of Growth

When we're in our fixed mindset, colleagues are constantly competing against each other and wondering who might take their place.

Collaboration vs. competition. Cultures of Growth foster an environment where collaboration is valued over internal competition:

• Shared goals over individual achievements
• Knowledge sharing instead of information hoarding
• Team success celebrated alongside personal growth

Benefits of collaborative cultures:

• Increased innovation through diverse perspectives
• Higher employee satisfaction and retention
• Improved problem-solving capabilities
• Enhanced organizational adaptability

Examples like Atlassian's ShipIt days and Patagonia's team-oriented approach demonstrate how collaboration can drive both individual growth and organizational success.

4. Innovation flourishes in psychologically safe environments

Cultures of Growth can be exceptionally competitive in their marketplace performance, and without the collateral damage to people that Cultures of Genius often accrue.

Psychological safety fuels innovation. In psychologically safe environments, employees feel comfortable:

• Taking calculated risks
• Sharing novel ideas
• Learning from failures

Key elements of innovative cultures:

• Open communication channels
• Tolerance for well-intentioned mistakes
• Recognition of effort and progress, not just outcomes
• Diverse perspectives valued and sought after

Companies like 3M and Google have successfully implemented practices like "15% time" to encourage innovation, demonstrating that a growth mindset culture can lead to market competitiveness without sacrificing employee well-being.

5. Risk-taking and resilience are cultivated through growth mindset

When we believe there is a positive correlation between effort and ability, we're more likely to see problems as solvable with the right tools.

Embracing challenges. A growth mindset culture encourages individuals to view challenges as opportunities for development:

• Reframing "failures" as learning experiences
• Emphasizing effort and strategy over innate ability
• Celebrating progress and improvement

Building resilience through mindset:

• Developing problem-solving skills
• Cultivating adaptability in the face of change
• Fostering a sense of agency and control

Examples like Ramona Hood's career progression at FedEx demonstrate how embracing challenges and continuously seeking growth opportunities can lead to remarkable achievements and resilience.

6. Ethical behavior stems from a culture of continuous improvement

Cultures of Growth value transparency and share information (rather than hoarding it to get ahead of others), and when people make mistakes in these organizations, they accept responsibility (instead of pointing fingers).

Ethics and growth mindset. Organizations with a growth mindset culture tend to foster more ethical behavior:

• Transparency in communication
• Accountability for actions
• Learning from mistakes rather than hiding them

Promoting ethical cultures:

• Clear ethical guidelines and expectations
• Open discussions about ethical dilemmas
• Recognition of ethical decision-making
• Leadership modeling ethical behavior

Case studies like the contrast between Theranos and Greyston Bakery illustrate how a culture focused on continuous improvement and transparency can lead to more ethical outcomes and sustainable success.

7. Diversity and inclusion are natural outcomes of growth-oriented cultures

Cultures of Growth value a diverse workforce not just for optics, but because they know it makes them better.

Diversity as a strength. Growth-minded organizations recognize the value of diverse perspectives:

• Enhanced problem-solving capabilities
• Increased innovation through varied experiences
• Broader market understanding and reach

Fostering inclusion:

• Actively seeking diverse talent
• Creating equitable opportunities for growth
• Valuing and leveraging different viewpoints
• Cultivating a sense of belonging for all employees

Examples like Microsoft's transformation under Satya Nadella demonstrate how a shift towards a growth mindset culture can naturally lead to improved diversity and inclusion, resulting in better organizational outcomes.

8. Critical feedback is an opportunity for growth, not a threat

When we are in our growth mindsets, we not only perceive critical feedback as a chance to learn and grow, but we may also feel annoyed or frustrated when others shy away from providing it, or when the feedback they offer is vague or not useful.

Reframing feedback. In a growth mindset culture, critical feedback is viewed as:

• A tool for improvement
• An opportunity to learn and develop
• A valuable resource for personal and professional growth

Effective feedback practices:

• Specific and actionable feedback
• Focus on behavior and outcomes, not personal attributes
• Encouraging two-way dialogue
• Regular feedback cycles, not just annual reviews

Leaders can model this approach by actively seeking feedback and demonstrating how they use it to improve, creating a culture where feedback is valued and sought after at all levels.

9. Success of others can inspire rather than threaten

When we're in our growth mindset, we are more likely to be inspired by the success of others and to view it as an opportunity to learn new strategies that will help us achieve our own success.

Shifting perspective on others' success. A growth mindset culture encourages individuals to:

• Learn from others' achievements
• Seek inspiration in colleagues' progress
• Collaborate rather than compete

Fostering a supportive environment:

• Celebrating team and individual successes
• Sharing strategies and insights
• Mentoring and knowledge transfer programs
• Creating opportunities for cross-functional learning

Examples like the collaboration between tennis legends Chris Evert and Martina Navratilova demonstrate how viewing others' success as inspirational rather than threatening can lead to mutual growth and achievement.

10. Leaders play a crucial role in shaping mindset culture

Leaders can model a growth mindset in the face of evaluative situations. Not only does this provide you with the opportunity to learn and grow yourself—as in the example of our Dutch executive—it also serves as a visible example of the behavior you want to encourage in others and throughout the organization.

Leadership's impact on culture. Leaders significantly influence organizational mindset through:

• Their own behavior and responses to challenges
• The systems and processes they implement
• The way they communicate and provide feedback

Strategies for growth-minded leadership:

• Modeling vulnerability and learning from mistakes
• Encouraging calculated risk-taking
• Providing resources for continuous learning and development
• Recognizing and rewarding growth-oriented behaviors

Case studies like Satya Nadella's transformation of Microsoft's culture highlight the powerful impact leaders can have in shifting an organization towards a growth mindset, resulting in improved innovation, collaboration, and overall success.

Last updated: October 6, 2024