Case Study: Navigating Organizational Change with Psychological Safety

Introduction:

Spec Furniture, a stalwart in contract furniture manufacturing, has navigated the complexities of rapid growth, cultural integration, and the global pandemic. With roots dating back to 1991 and starting with just a four-person team, the company had established a strong presence in multiple sectors: corporate, healthcare and education.

Challenge:

The acquisition of Spec Furniture by Sauter Manufacturing in 2017 marked the beginning of a challenging cultural integration merger process. The company faced the dual challenges of honoring its family-business roots while adapting to the culture of a larger corporate entity.

This period of transition led to unease among longstanding employees. The situation was further complicated by the COVID-19 pandemic, which forced rapid shifts to remote work, causing significant disruptions in communication and collaboration.

Objectives:

Spec Furniture recognized the need for a strategic intervention to bridge the cultural divide and provide support for its employees during these periods of change.

Spec Furniture’s Chief Operations Officer Reg Bernard said:

“One of the things that we were trying to achieve was we recognized that we needed to develop some level of common language. We had people in front of us that were experiencing lots of changes. They didn’t know how to deal with it. We didn’t know how to deal with it.”

The objective was clear: to create a cohesive, inclusive culture that embraced both the legacy of Spec and the new direction under Sauter Manufacturing. The company aimed to establish a common language and set of tools that would facilitate better communication, collaboration, and support for the diverse needs of their teams.

The Imperative of Psychological Safety for Coaches, Consultants and Trainers

This article offers evidence of the imperative of psychological safety for coaches, consultants and trainers, outlining why its essential for client organizations and how it can be integrated and sustained through strategic initiatives and accreditation.

In today’s corporate environment, psychological safety has ascended from mere buzzword status to become an essential part of healthy organizational culture. The shift stems from both internal motivations and external pressures, signaling a permanent place for psychological safety in modern workplaces.

 

Internal Factors Driving the Need for Psychological Safety

Increased Performance

For professionals working with teams, it’s vital to understand that psychological safety directly impacts engagement and allows for greater innovation and productivity. When Google set out to determine what made their best performers tick, they discovered that psychological safety was the number one determining factor in team performance.

Through working with leaders and coaching them on developing greater skill in psychological safety, they’ll be creating environments that encourage teams to share openly without the fear of repercussions. Teams will be more inclined to take risks and generate better solutions providing a competitive edge.

Improved Bottom Line

Psychological safety contributes to the financial health of a company by fostering better decision-making and reducing costs associated with workplace conflicts. In a recent case study, ABL was able to show how psychological safety led to a financial record-breaking year for one of our clients.

As a consultant, emphasizing the economic benefits of psychological safety can help in persuading senior management to invest in relevant initiatives.

Occupational Health and Safety Compliance & Mitigating Risk

Addressing psychological hazards is now as crucial as managing physical ones. Executive coaches, consultants and trainers can guide organizations in complying with health and safety regulations, thereby mitigating risks associated with mental health that can have legal and financial repercussions.

Improved Retention

Retention is a significant concern for organizations, especially in light of ‘The Great Resignation’. Employees are naturally inclined to stay longer where they feel genuinely valued and understood. Coaches, trainers and consultants can highlight how a psychologically safe environment encourages employees to stay longer, reducing turnover and the associated costs of hiring and training new staff.

Diversity, Inclusion, Equity & Belonging

An inclusive culture is underpinned by psychological safety. Coaches and consultants play a crucial role in fostering environments where diversity is celebrated, and all employees can thrive, thus enhancing corporate reputation and employee satisfaction.

 

External Factors Reinforcing the Urgency

ISO Psychosocial Risk Regulations

Global standards now mandate the management of psychosocial risks. Executive coaches, trainers and consultants need to be well-versed in psychological safety to guide their clients effectively in achieving compliance.

Workplace Legislation & Accountability

In regions like Australia, Canada, and the UK, where psychological safety practices are legally mandated, coaches and consultants must prepare their clients to adhere to these laws to avoid penalties.

Employee Expectations

Post ‘The Great Resignation,’ employees prioritize workplaces that support their well-being. Coaches and consultants should advise leadership on the strategic value of meeting these expectations to attract and retain top talent.

Employee Health

With the rise of mental health issues, workplaces have a critical role in fostering employee well-being. Consultants, coaches and trainers can offer programs that help companies address these challenges, enhancing their role as supportive employers.

 

Achieving Psychological Safety Accreditation with ABL

To adapt and align with these driving forces, gaining accreditation in psychological safety is a strategic move for coaches, trainers and consultants. As the corporate world increasingly prioritizes mental health and well-being, those accredited in psychological safety will find themselves in high demand.

The Academy of Brain-based Leadership (ABL) offers a comprehensive Psychological S.A.F.E.T.Y.™ Accreditation. Using our neuroscience-backed S.A.F.E.T.Y.™ Assessment and Toolkit, coaches, consultants and trainers learn how to help people gain insight into their psychological safety needs and strategies to enhance the psychological safety of those they work with.

 

Conclusion

As an executive coach, trainer, or consultant, emphasizing the importance of psychological safety within client organizations is crucial. Not only does it foster a more innovative, productive, and inclusive workplace, but it also aligns with global standards and legal requirements, enhancing corporate reputation and operational success.

Through applying the knowledge gained from accreditation in your consulting or coaching practices you’ll be significantly enhancing your value proposition to clients.

Psychological safety is essential and it’s here to stay. Don’t get left behind.

10 Brain Facts Every Leader Should Know

With decades of management experience and working, talking, and reading publications from neuroscientists, social psychologists, and others, here are 10 brain facts every leader should know to enhance team performance, foster innovation, and build a culture of psychological safety.

#1 We each have a limited amount of mental bandwidth…

And we tend to apply it where we expect to have the greatest benefit whether it is a good feeling or avoiding a negative outcome.

When we ruminate over an unresolved stressor (real or perceived) our bandwidth is reduced for all other tasks and prevents our best brain from being put forward. So, setting up life to avoid obvious stressors pays huge mental dividends, and when the stress is unavoidable, learning to appropriately manage it is crucial for success.

#2 The human brain responds to stressors nonconsciously

The brain scans for threats more than 5 times per second, and respond in about 15 milliseconds with a whole waterfall of physiological changes. By the time the mind is conscious of the threat, hormones, steroids and many other processes have already begun which can take time to dissipate.

During this period, rumination saps brain resources and therefore productivity. In teams, one person’s problem can boil over onto the whole team. Therefore, keeping unnecessary stressors out of the workplace is key to optimum brain performance.

#3 The brain is wired to be social

Humans respond to social threats with similar circuitry as we respond to physical threats, and the circuitry that allows us to perceive physical pain is the same as mental pain.

So, feeling rejected at work “hurts” and we know that physical pain distracts the mind, reduces engagement and the ability to regulate emotions, all of which impact performance.  So, maintaining a “safe” working environment is critical to creating and maintaining a high performing team.

#4 Security around time, process, and targets is important

People like to know what is coming next. Our brain is a pattern making machine. We create these patterns so we can make sense out of the world around us. When things are unclear, we will use a tremendous amount of our bandwidth ruminating until they become clear in our own minds.

The easiest way to avoid this unproductive use of bandwidth is to clearly communicate goals, the process to achieve those goals, and set proper expectations regarding the outcomes. Take as much ambiguity out of the way forward as possible so people can easily see where they can fit and feel secure in the route to the future.

#5 Autonomy

No one likes a micromanager. Once your team is secure about their position and they know they are safe, empower them to go to the target in their own way.

People can be tremendously creative when they have the freedom to achieve a known target on their own. And those high in autonomy tend to be the self-starters that we yearn to have in our companies, but if their autonomy is restricted, are likely to be the first to leave and find alternative opportunities.

#6 Unfair treatment will kill performance

Even monkeys respond aggressively to unfair situations. If you wish to see this hilarious outcome of unfair pay with capuchin monkeys, check out this short YouTube video from Dr. Frans de Waal.

When the perception of the setup is unfair, people ruminate and precious bandwidth is spent on unproductive thoughts and can lead to very strong and negative reactions.

#7 Everyone wants to be Esteemed

The brain scans the environment multiple times per second checking how we compare to those around us and how we are perceived by others. The search for esteem drives much of our behaviors whether it is to get that promotion, buy a fancy car, donate money to charity, or leave a legacy when we are gone.

The perception of loss of esteem is a clear threat that will be met with resistance whether that means exerting power in other forms (blocking initiatives), or taking too much risk (making poor, oversized stock trades).

Finding ways to preserve and grow everyone’s esteem needs to be built into the management system as well as actively managed on an individual level with everyone including team members, customers and suppliers.

#8 Trust is paramount

If we do not trust one another, everything becomes very difficult. When trust issues arise, make sure to deal with them decisively so everyone feels like they are on the same team.

Each member should be clear what they can expect from one another and also believe the others are going to do what is best for the team. This makes integrity key, where integrity is simply defined as doing what you said you were going to do.

#9 You matter

Never forget that we are individuals. Each of us has our own unique background and experiences that have taught us how to live. With billions of neurons and trillions of connections, there has never been a brain like yours on the earth and there probably will never be another one like you.

Thankfully, diversity has been shown to help teams avoid blind spots if it is honored and included. So remember to respect each person’s unique nature and learn to appreciate the diversity that they bring to the team.

(For a great example, consider the friendship between Supreme Court Justices Scalia and Ginsburg as is outlined in this short article)

#10 Money is not the main driver of performance

Financial incentives can cause as much a threat as a reward. In fact, research showed that money can reduce performance as it can cause a threat response to perceived failure. When money is the primary incentive people tend to avoid necessary risks causing a lack of innovation and ability to recover from setbacks.

Key learning: The stimuli represented in the above points (Security, Autonomy, Fairness, Esteem, Trust, and You) provide ample monetary alternatives to motivate and inspire others to be their best. Learning how to leverage the knowledge yielded through neuroscience can make our working environments more brain friendly and therefore more human.

Bonus: The S.A.F.E.T.Y.™ Model

When it comes to brain facts every leader should know, there is nothing that compares to understanding how to manage stressors and triggers for yourself and those you manage.

This has been built into the S.A.F.E.T.Y.™ Model created by the Academy of Brain-based Leadership (ABL). S.A.F.E.T.Y.™ is an acronym for Security, Autonomy, Fairness, Esteem, Trust, and You which make up the social triggers that can make or break performance.

You can learn more about S.A.F.E.T.Y.™ and the insights for your leadership in the book ‘Psychological Safety: The key to happy, high-performing people and teams’.

The S.A.F.E.T.Y.™ self-assessment helps you understand how S.A.F.E.T.Y.™ impacts you in your daily life. Want to know your top S.A.F.E.T.Y.™ Dimension? Click here to take the test and find out for free and upgrade to receive your full profile report to understand how your profile may be impacting you and those you lead.

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