Working in a psychologically safe environment does not mean that people always agree with one another for the sake of being nice. It also does not mean that people offer unequivocal praise or unconditional support for everything you have to say. In fact, you could say it’s the opposite. Psychological safety is about candor, about making it possible for productive disagreement and free exchange of ideas. It goes without saying that these are vital to learning and innovation. Conflict inevitably arises in any workplace. Psychological safety enables people on different sides of a conflict to speak candidly about what’s bothering them.

Psychological safety and performance standards are two separate, equally important dimensions - both of which affect team and organizational performance in a complex interdependent environment.

When I studied top management teams with action scientist Diana Smith, we analyzed detailed transcripts of their conversations to show how a psychologically safe climate for candid discussion of strategic disagreement can be created, even in high-level teams confronting strategic challenges, and how this can enable productive decision-making.

One of the most important things to keep in mind, wherever you work, is that the failure of an employee to speak up in a crucial moment cannot be seen. This is true whether that employee is on the front lines of customer service or sitting next to you in the executive board room. And because not offering an idea is an invisible act, it's hard to engage in real-time course correction. This means that psychologically safe workplaces have a powerful advantage in competitive industries.

To reinforce a climate of psychological safety, it's imperative that leaders – at all levels – respond productively to the risks people take. Productive responses are characterized by three elements: expressions of appreciation, destigmatizing failure, and sanctioning clear violations.