Diverse teams are often seen as the key to unlocking creativity and innovation, so it’s easy to assume that simply bringing together people with different perspectives will yield exceptional results.
Yet, in my experience, even the most skilled and varied teams can struggle to reach their potential. The reason isn’t a lack of talent or fresh ideas—it’s something less visible but equally vital: psychological safety.
Without psychological safety, diversity’s promise remains unrealized, and teams find themselves holding back instead of thriving.
The Missing Ingredient in Diverse Teams
Recently, I had the opportunity to work with a team of highly skilled engineers from different cultural and professional backgrounds. On paper, they were a dream team.
They had every kind of diversity one could hope for—cognitive, experiential, and demographic. But in meetings, there was mostly silence. Only one or two dominant voices would contribute, while the rest remained quiet, even when they had valuable insights to share.
It wasn’t that these team members didn’t want to contribute; they simply didn’t feel safe enough to. As one member confided, "I’ve seen what happens when people speak up. It’s just easier to nod along."
This wasn’t a people problem—it was a system problem. The team had a culture that inadvertently rewarded conformity over contribution. They had mistaken team harmony for team health, failing to realize that real teamwork requires a level of discomfort—the willingness to challenge, question, and grow together.
Insights from Research: The Paradox of Diversity
This experience is backed by research from Henrik Bresman and Amy C. Edmondson in their study, "Exploring the Relationship between Team Diversity, Psychological Safety, and Team Performance."
The study reveals a paradox:
While diversity brings unique perspectives and skills, it also introduces potential friction and communication barriers, especially in high-stakes environments. Without psychological safety, these differences often lead to misunderstandings, frustration, and disengagement.
In the engineering team I worked with, these challenges were clear. Each team member held a valuable piece of the puzzle, but without a safe space to share and connect these pieces, the team remained stuck. The diversity was there, but it couldn’t breathe.
Why Psychological Safety Matters
Psychological safety, a concept deeply studied by Edmondson, isn’t about making everyone comfortable all the time.
Instead, it’s about creating an environment where team members feel safe enough to be uncomfortable together. This means building a space where people can speak up, take risks, and voice their unique perspectives without fear of ridicule or retaliation.
According to the study, psychological safety is the enabler that unlocks diversity’s potential. It bridges the communication gaps and trust issues that diverse teams often encounter.
Teams with high psychological safety reported a greater willingness to discuss mistakes, seek feedback, and challenge each other constructively—elements essential for innovation.
The Formula for High-Performance Teams
The research and my experience highlight an essential formula:
Diversity + Psychological Safety = High Team Performance
Diverse teams with high psychological safety not only perform better but also experience enhanced well-being and job satisfaction.
When people feel valued and respected for their unique insights, they are more engaged and less likely to leave, leading to stronger team cohesion and lower turnover rates.
This formula played out in the engineering team I worked with. Once we began to foster psychological safety, something remarkable happened. The team members began to voice their ideas, challenge each other constructively, and collaborate in ways that hadn’t been possible before.
The diversity was always there; the difference was that now, it could breathe.
Enhanced Performance and Satisfaction
The study also underscores that when psychological safety is present, diverse teams can overcome communication challenges and avoid the pitfalls of misunderstanding.
Diverse teams with high psychological safety report greater satisfaction and well-being, as psychological safety allows them to express their ideas without fear. They move from walking on eggshells to taking bold steps together.
Leaders play a crucial role in this transformation.
Teams with leaders who model openness, actively invite input, and admit mistakes see a higher level of psychological safety.
These behaviors set the tone for a culture where diverse perspectives are not only welcome but necessary.
Key Takeaways for Leaders
Understand the Paradox of Diversity: While diversity brings richness, it can also create communication challenges. Leaders must recognize this and create a culture that values open communication and constructive conflict.
Build Psychological Safety: Leaders need to foster an environment where team members feel safe enough to speak up, take risks, and offer unique perspectives. Psychological safety isn’t just about making people comfortable; it’s about creating a space where they can be uncomfortable together in productive ways.
Unlock the Potential of Diversity: Diversity alone isn’t enough to drive performance. It’s the combination of diversity and psychological safety that leads to high performance and well-being.
Final Thought: Are Your Teams Walking on Eggshells or Taking Bold Leaps?
If you truly want to harness the power of diversity, don’t just focus on who’s in the room. Focus on creating a space where they feel safe enough to speak, challenge, and innovate.
Take a moment for self-reflection: Is your team walking on eggshells, or are they ready to take bold leaps and drive real change?
The difference lies in how safe they feel to take risks and contribute their unique insights.
Diverse teams are indeed full of potential, but potential alone isn’t enough. It’s the environment of psychological safety that unlocks this potential, allowing the collective strengths of each team member to shine and drive meaningful progress.
If your organization is ready to harness the true potential of your diverse team and eliminate the friction that holds them back, start by building a foundation of psychological safety.
My Psychological Safety Scan and Debrief Program provides an in-depth look into your team’s dynamics, uncovering areas of strength and opportunities for growth.
Take the first step towards a high-performing, resilient team—reach out to learn how this program can transform your team’s collaboration and performance.
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