Yet a 2017 Gallup poll found that only 3 in 10 employees strongly agree with the statement that their opinions count at work. Gallup calculated that by “moving that ratio to six in 10 employees, organizations could realize a 27 percent reduction in turnover, a 40 percent reduction in safety incidents and a 12 percent increase in productivity.” That's why it's not enough for organizations to simply hire talent. If leaders want to unleash individual and collective talent, they must foster a psychologically safe climate where employees feel free to contribute ideas, share information, and report mistakes.

Like Volkswagen, Wells Fargo's avoidable failure was not the result of one bad apple but of a system that demanded hitting targets so ambitious they could only be met by deceit. Employees operated in a culture of fear that brooked no dissent. Rather than manifesting interest in salespeople's experiences while executing the cross-selling strategy and using what was being learned in the field to shift or sharpen the company's strategy, managers sent a clear message: produce – or else.

Fisher calls herself a natural listener, which helps to make “not knowing” a positive trait. When first setting up her company, she found the combination of these two traits to be an advantage. As she says, “when you don't know and you're really listening intently, people want to help you. They want to share.” Evidently, she's managed to maintain the vulnerability and receptivity of her original “I don't know,” even as she's become a seasoned leader of an enduring brand in the fashion industry. One of the outcomes of managing by not knowing is, as Fisher says, that “people feel safe to explore their own ideas instead of feeling like they just need to do what you tell them to do.”

Eileen Fisher clothing is structured along simple lines and fluid designs. The same could be said for the way the company conducts its meetings. People sit in a circle, with the intention of de-emphasizing hierarchies and instead encouraging what's called “a leader in every chair.” To create the mindfulness and focus conducive to an environment where everyone collaborates and contributes, meetings begin with a minute of silence. Sometimes an object, such as a gourd, is passed from person to person; the idea is the person is allowed and expected to speak when the object is in hand. The point is that Fisher, like the other leaders discussed in this chapter, has institutionalized very specific processes that help create psychological safety.

When Fisher describes how projects and initiatives come about in her organization, she emphasizes encouraging employees to be passionate and giving them “permission to care.” For example, an assistant, Amy Hall, rose in the company to become Director of Social Consciousness by following her passion for how the company was running its factories and treating its factory workers, eventually becoming involved in setting standards for how factories operate worldwide. In 2013, at a four-day off-site company sustainability conference, the staff made a commitment to produce only environmentally sustainable clothing by the year 2020. Although the idea had not originally come from Fisher, she wanted to lend her support and realized the importance of simply saying, “yes.” Although she doesn't call herself a CEO, she realized that “saying yes gives people permission” to go forward.

Barry-Wehmiller rallied from the economic downturn relatively easily and by 2010 reported record financial results. In other words, by continuing to make its team members feel safe and cared for during a crisis, the company created a win-win situation for everyone.