Traditional accountability is often a fear-based tactic that backfires by killing creativity. The leader's role is not to be an enforcer, but a facilitator who builds a system where people willingly hold themselves accountable to meaningful, shared goals.

A 'blame and shame' culture develops when all bad outcomes are punished equally, chilling employee reporting. To foster psychological safety, leaders must distinguish between unintentional mistakes (errors) and conscious violations (choices). A just response to each builds a culture where people feel safe admitting failures.

In a supportive culture, managing underperformance starts with co-authored goals upstream. When results falter, the conversation should be a diagnostic inquiry focused on removing roadblocks. This shifts the focus from the person's failure to the problem that's hindering their success, making tough conversations productive.

Much like a failed surgery provides crucial data for a future successful one, business failures should be seen as necessary steps toward a breakthrough. A "scar" from a failed project is evidence of progress and learning, not something to be hidden. This mindset is foundational for psychological safety.

Instead of avoiding risk, teams build trust by creating a 'safe danger' zone for manageable risks, like sharing a half-baked idea. This process of successfully navigating small vulnerabilities rewires fear into trust and encourages creative thinking, proving that safety and danger are more like 'dance partners' than opposites.

A risk-averse employee isn't the root problem; they are a symptom. Their mindset has been shaped by a culture or process that punishes failure or embarrassment. To change the mindset, leaders must first fix the underlying systemic issues.

To foster an innovative team that takes big swings, leaders must create a culture of psychological safety. Team members must know they won't be fired for a failed experiment. Instead, failures should be treated as learning opportunities, encouraging them to be edgier and push boundaries.

Menlo's culture operates on the principle that when mistakes happen, the system is at fault, not the individual. This approach removes fear and blame, encouraging the team to analyze and improve the processes that allowed the error to occur, fostering a culture of continuous improvement.

To foster psychological safety for innovation, leaders must publicly celebrate the effort and learning from failed projects, not just successful outcomes. Putting a team on a pedestal for a six-month project that didn't ship sends a stronger signal than any monetary award.